Sensex tanks 568 pts, Nifty holds 16,400 mark; Titan drops 4.48%

The equity indices ended with steep losses on Tuesday, declining for the third straight session. The Nifty fell as much as 16,347.10 in early afternoon trade, but regained the 16,400 mark in late trade. Negative global cues and continuous selling by the FIIs dented sentiment. Investors were also cautious ahead of RBI`s policy outcome on Wednesday and the US inflation data expected on Friday.

The S&P BSE Sensex tanked 567.98 points or 1.02% to 55,107.34. The Nifty 50 index dropped 153.20 points or 0.92% at 16,416.35. Both the indices have fallen 1.27% in three sessions.

Selling was wide spread today with consumer durables and realty shares declining sharply. However, oil & gas shares bucked the trend amid firm crude oil prices. Auto shares were also in demand.

Titan Company (down 4.48%), Dr Reddy`s Laboratories (down 3.87%), Larsen & Toubro (down 3%), Hindustan Unilever (down 2.98%) and Asian Paints (down 2.61%) dragged.

In the broader market, the S&P BSE Mid-Cap index lost 0.77% while the S&P BSE Small-Cap index slipped 0.67%.

Sellers outnumbered buyers. On the BSE, 1,286 shares rose and 2,011 shares fell. A total of 121 shares were unchanged.

RBI`s Monetary Policy Committee (MPC) is meeting from 6th to 8th June 2022. After the 40 basis points off-cycle rate hike on 4 May 2022, RBI is widely expected to increase the policy rate further.

The inflation data in the US is expected on Friday, which will determine how far the US central bank will go in raising rates.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.518% as compared with 7.5% at close in the previous trading session. The yield rose to its highest levels in three years ahead of RBI policy announcement due tomorrow.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 77.77, compared with its close of 77.6600 during the previous trading session.

MCX Gold futures for (5 August 2022) settlement rose 0.16% to Rs 50,953.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.21% to 102.65.

In the commodities market, Brent crude for August 2022 settlement lost 29 cents or 0.24% at $119.22 a barrel. Oil prices inched higher on expected demand recovery in China as it relaxed tough Covid curbs.

Global Markets:

The Dow Jones futures were down 142 points, indicating a negative opening in the US stock market today.

European stocks fell across the board while Asian shares ended mixed on Tuesday, as investors nervously awaited U.S. inflation figures.

British Prime Minister Boris Johnson survived a no-confidence vote among his Conservative Party`s lawmakers on Monday.

US markets closed slightly higher on Monday led by gains in Amazon and other mega-cap growth shares, while persistent worries over inflation and interest rates kept a lid on the market. The Dow Jones Industrial Average rose 16.08 points, or 0.05%, to 32,915.78, the S&P 500 gained 12.89 points, or 0.31%, to 4,121.43 and the Nasdaq Composite added 48.64 points, or 0.4%, to 12,061.37.

Buzzing Segment:

The Nifty Oil & Gas index rose 0.9% at 8104.90. The index has risen 3.94% in four sessions amid firm crude oil prices.

Oil & Natural Gas Corporation (up 4.84%), GAIL (India) (up 2.09%), Hindustan Petroleum Corporation (up 1.01%), Petronet LNG (up 0.97%), Indian Oil Corporation (up 0.30%), Bharat Petroleum Corporation (up 0.09%) and Adani Total Gas (up 0.20%) advanced.

Stocks in Spotlight:

Time Technoplast jumped 4.06% after the company`s promoter firm informed that the process of sale of land parcel located on Saki Vikar road in Mumbai, has commenced with identified buyer. Further, due diligence process is ongoing by a leading asset management company. The transaction is likely to be completed including receipt of sales proceeds shortly. The sale consideration will be utilized for repayment of debt to lenders of the promoter company, resulting in release of entire present pledged equity shares, the company said in a statement on Monday

PB Fintech tumbled 11.48% amid a steep surge in volumes. The company on Monday (6 June) informed that Yashish Dahiya, chairman and CEO of the company, intends to sell up to 37,69,471 equity shares via bulk deals on the stock exchanges.

Bharat Petroleum Corporation (BPCL) rose 0.28%. The company on Tuesday announced that the Government of India has called off the present Expression of Interest (EoI) process for strategic disinvestment of the company. BPCL stated that all the activities in connection with the disinvestment including the data room were being discontinued.

H.G. Infra Engineering advanced 3.28% after the company received a letter of award (LoA) from Adani Road Transport for a project worth Rs 4,970.99 crore. The value of the said contract is more than the current market capitalization of the company, which presently stands at Rs 3,784.49 crore.

Indian Energy Exchange (IEX) rose 1.54% after the company said it recorded 7,596 MU volume in May 2022, achieving 16% YoY volume growth across all market segments. The total traded volume comprised 6,680 MU in the conventional power market, 642 MU in the green power market and 275 MU (2.75 lac Certificates) in the REC market. IEX`s Day-Ahead Market volume stood at 3,173 MU during the month of May 2022, falling 27% YoY with the average monthly price of Rs 6.76 per unit.

IRB Infrastructure Developers fell 1.38%. The company on Monday announced that it has offered Vadodara to Kim Expressway project, being developed under Hybrid Annuity Model (HAM), to IRB InvIT Fund. The Vadodara Kim stretch, which is part of Delhi-Mumbai Expressway (DME), is 23.740 km-long and has project cost outlay of Rs 2,094 crore. The project recently received provisional COD and is revenue generating.

HLE Glascoat rose 0.16%. after the company`s board approved 5-for-1 stock split and fundraising of upto Rs 350 crore. The board of HLE Glascoat on 6 June 2022 approved the sub-division/ split of existing 1 equity share of face value Rs 10 each, fully paid up into 5 equity shares of Rs 2 each.

SBI Cards and Payment Services fell 1.25%. The company said that its board has approved raising offunds by way of issuance of non-convertible debentures (NCDs) aggregating to Rs 2,500 crore in one or more tranches, on private placement basis.

Bharti Airtel rose 0.37%. The telecom major`s subsidiary, Nxtra Data, entered into an agreement for acquisition of 51,17,000 equity shares, 11.69% stake, in Avaada MHAmravati for Rs 5.11 crore. Avaada MHAmravati is a special purpose vehicle formed for the purpose of owning and operating the captive power plant.

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