Sensex slips 359 pts, Nifty ends at 16,584.55; realty shares climb

The benchmark indices ended with modest losses on Tuesday, snapping its three-day rising streak. Realty, media and metal shares advanced while PSU banks, financial services and oil & gas shares declined. The Nifty 50 index hit a low of 16,521.90 in early trade. The index quickly recovered and hovered near the flat line for most part of the session. It tumbled once again in the final hour of the trade.

The barometer index, the S&P BSE Sensex, was down 359.33 points or 0.64% to 55,566.41. The Nifty 50 index fell 76.85 points or 0.46% to 16,584.55. The 50-unit index climbed 3.97% in the past three days.

The broader market ended with gains. The S&P BSE Mid-Cap index gained 0.49% while the S&P BSE Small-Cap index added 0.68%.

The market breadth was positive. On the BSE 1,764 shares rose while 1,589 shares fell. A total of 124 shares were unchanged.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose to 7.417% compared with 7.409% at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 77.65, compared with its close of 77.54 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.09% to Rs 50,963.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.07% to 101.74.

In the commodities market, Brent crude for July 2022 settlement rose $4.40, or 3.68%, at $123.83 a barrel. The contract rose $2.03 or 1.73% to settle at $ 119.43 a barrel during the previous trading session.

Oil prices rose after European Union leaders agreed on fresh sanctions against Russia for its invasion of Ukraine. The agreement would �effectively cut around 90% of oil imports from Russia to the EU by the end of the year,� European Commission President Ursula von der Leyen said in a tweet.

Foreign Markets:

The Dow Jones futures were down 98 points, indicating a negative opening in the US stock market today.

Most European indices declined on Tuesday as hot German inflation reading reignited concerns about the pace of monetary tightening from central banks.

Data showed that the German EU-harmonized inflation came in at an annual 8.7% in May, marking a sharp increase from the 7.8% seen in April. French inflation also surpassed expectations in May to a record of 5.8%, up from 5.4% in April, preliminary data showed on Tuesday.

Meanwhile, most Asian shares ended higher on Tuesday as investors reacted to the official Chinese factory activity data for May.

China`s official manufacturing Purchasing Managers` Index for May came in at 49.6, an improvement over April`s reading of 47.4, but still below the 50-point mark that separates growth from contraction.

Japan`s factories posted a sharp fall in output in April as China`s COVID-19 lockdowns and wider supply disruptions took a heavy toll on manufacturers. Factory output dropped 1.3% in April from the previous month, official data showed on Tuesday. Separate data showed retail sales grew 2.9% in April from a year earlier, marking their sharpest gain since May 2021.

Buzzing Segment:

The Nifty Realty index rose 2.01% to 411.70. The index has jumped 8.14% in four sessions.

Indiabulls Real Estate (up 4.81%), Sunteck Realty (up 4.74%), Prestige Estates Projects (up 3.93%), Macrotech Developers (up 3.05%), Godrej Properties (up 3.03%), Brigade Enterprises (up 2.65%), Phoenix Mills (up 2.47%), Sobha (up 1.87%), Oberoi Realty (up 1.02%) advanced.

On the other hand, DLF fell 0.29%.

Stocks in Spotlight:

Aarti Industries slumped 6.15%, triggered by the company`s guidance for 2022-23 and the March quarter earnings. The management reportedly guided that consolidated operating profit will grow at high single digit in 2022-23.

The company`s financial were strong on year-on-year basis. However, it slowed on a sequential basis. A domestic brokerage reportedly noted that sequentially, consolidated operating profit fell 4% likely because the company ceased to account for compensatory receipts from Bayer AG since December.

NCC rose 3.04% after the company said its buildings division received three orders totaling Rs 6388 crore in May 2022.

KNR Constructions jumped 6.52% after the EPC company`s consolidated net profit surged 49% to Rs 140.69 crore on an 11 % rise in net sales to Rs 1,102.08 crore in Q4 FY22 over Q4 FY21.

Oriental Rail Infrastructure advanced 2.96% after the company`s wholly owned subsidiary Oriental Foundry has secured an order worth Rs 1,211.89 crore from Indian Railways. The order is for supply of 2,964 wagons to be executed over a period of thirty-nine months.

Cressanda Solutions hit an upper circuit of 5% at Rs 32.15 after the company said it has entered into an agreement with a large institutional client for providing tech-powered infrastructure solutions towards unaddressed passenger experience in India. The company said it will play a pivotal role in managing the entire operations of this project with an estimated value of Rs 1500 crore in a fully functional year.

Lemon Tree Hotels rose 8.03% after the company said it signed a license agreement for a 40 room hotel at Chirang, Assam under the company`s brand `Keys Select, by Lemon Tree Hotels`.

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