Sensex tanks 730 pts; Nifty below 16,400; breadth weak

The frontline indices slumped in the mid-morning trade, with the Nifty crashing below the 16,400 mark. Selling was wide spread. However, oil & gas shares bucked the trend amid firm crude oil prices. Mixed Asian cues and continuous selling by the FIIs dented sentiment. Investors were also cautious ahead of Reserve Bank of India (RBI)`s policy announcement later this week.

At 11:23 IST, the barometer index, the S&P BSE Sensex, lost 730.61 points or 1.31% at 54,944.71. The Nifty 50 index declined 214.15 points or 1.29% at 16,355.40.

In the broader market, the S&P BSE Mid-Cap index lost 1.27% while the S&P BSE Small-Cap index was down by 0.90%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,100 shares rose and 1,976 shares fell. A total of 131 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.

Buzzing Index:

The Nifty Realty index fell 1.95% to 395.65 continuing its losing run to third day. The index declined 3.69% in three trading sessions.

Among the components of the Nifty Realty index, DLF (down 2.8%), Macrotech Developers (down 2.7%), Indiabulls Real Estate (down 2.47%), Brigade Enterprises (down 2.17%) and Godrej Properties (down 1.81%) were the top losers.

Stocks in Spotlight:

PSP Projects fell 1.18% to Rs 533.30. The company said that it has received new work orders worth Rs 154.89 crore in the institutional, residential and precast segments. With this, the total work orders received during the financial year 2022-23 to date amount to Rs 549.62 crore. The company further said that it has emerged as the lowest bidder (L-1 Bidder) for a Government Medical College and Hospital in Gujarat with a bid value worth Rs 615.18 crore.

Bharti Airtel declined 1.38% to Rs 673.95. The telecom major`s subsidiary, Nxtra Data, entered into an agreement for acquisition of 11.69% stake in Avaada MHAmravati, a special purpose vehicle formed for the purpose of owning and operating the captive power plant. The company acquired 51,17,000 equity shares, 11.69% stake, in Avaada MHAmravati for Rs 5.11 crore. The completion of the acquisition is subject to the receipt of all consents, permissions required to be obtained by Avaada MHAmravati from regulatory authority for open access for captive consumption of electricity, the company stated.

PB Fintech slumped 10.34% to Rs 590.30 amid a steep surge in volumes. On the BSE, the counter clocked volume of 1.49 lakh shares as compared to an average volume of 0.38 lakh in the past three month. On the NSE, the counter clocked volume of 55.09 lakh shares as compared to an average volume of 7.12 lakh in the past three month. On a year-to-date (YTD) basis, the stock has declined by 36.35%, underperforming the Sensex 30 index which lost 5.25% in the same period.

Global Markets:

Asian shares were mixed on Tuesday, with the yen hitting a 20-year low, as investors nervously awaited U.S. inflation figures.

The US 10-year Treasury yield was up 0.013% to 3.051% in the Asia session.

In Europe, 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.

In the commodities market, Brent crude for August 2022 settlement was up 75 cents or 0.63% at $120.26 a barrel. Oil prices inched higher on expected demand recovery in China as it relaxed tough Covid curbs.

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