Shares bounce, Nifty regains 16,350
Published on Jun 09, 2022 10:34
Benchmark indices bounced in the morning trade, supported by firmness in oil & gas, pharma and healthcare shares. However, metals and banks stocks were under pressure. The Nifty climbed above the 16,350 level, recovering from early low of 16,243.85. Trading was volatile due to expiry of weekly index options on the NSE. Gains were capped due to negative global cues and persistent selling of domestic shares by FIIs.
At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 4.28 points or 0.01% at 54,878.45. The Nifty 50 index rose 0.30 points or 0.001% at 16,354.85.
In the broader market, the S&P BSE Mid-Cap index lost 0.04% while the S&P BSE Small-Cap index was up by 0.04%.
The market breadth was positive. On the BSE, 1,580 shares rose and 1,347 shares fell. A total of 130 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,484.25 crore, while domestic institutional investors (DIIs) and were net buyers to the tune of Rs 1,904.33 crore in the Indian equity market on 7 June 2022, provisional data showed.
The Organisation for Economic Cooperation and Development (OECD) sharply slashed the growth for India to 6.9% growth in FY23 from 8.1% estimated earlier and to 6.2 percent in 2023. This is below the Reserve Bank of India`s estimate of a 7.2% rise. India`s Gross domestic product (GDP) grew 8.7% in 2021-22, making it the fastest-growing major economy in the world.
The RBI on Wednesday hiked key repo rate by 50 basis points (bps) to 4.9% in a bid to tame soaring inflation in the country. It began monetary policy tightening in May, intending to anchor inflation expectations and limit second-round effects. OECD expects policy rate to rise to 5.3% by the end of 2022 and remain there in 2023. On Tuesday, the World Bank similarly severely pared India`s FY23 forecast to 7.5% from 8.5% in the April review.
The Nifty PSU Bank index fell nearly 1% to 2,559.30. The index rose 0.71% in the past trading session.
Among the components of the Nifty PSU Bank index, Canara Bank (down 1.3%), State Bank of India (down 0.93%), Punjab National Bank (down 0.64%), Bank of Baroda (down 0.53%) and Union Bank of India (down 0.53%) were the top losers.
Stocks in Spotlight:
BLS International Services rallied 7.82% to Rs 190.95 after the company announced that it will acquire Zero Mass (ZMPL) for a total cash consideration of Rs 120 crore. Incorporated in 2007, Zero Mass Private Limited (ZMPL) has been operating as the largest Business Correspondent ("BC") network for State Bank of India ("SBI") with around 11,500 active Customer Service Points ("CSP") (about 15% of all the SBI BCs). The company has pan-India presence with CSPs located across all States and Union Territories of India. Apart from SBI, ZMPL has contracts with Utkal Grameen Bank and Karur Vysya Bank.
Wipro fell 0.40% to Rs 468.55. The company together with ServiceNow, will contribute to Petrobras to advance its digital journey. The project aims to raise the level of service for internal users and reduce costs by modernising and aligning IT infrastructure processes with the business through a modern cloud solution focused on automation and integration. Brazil`s Petrobras is one of the largest oil, natural gas and derivatives exploration, production and distribution companies in the world.
Tata Power Company rose 0.45% to Rs 234.05 after the company said that Tata Power Solar Systems has commissioned a 450 MW DC capacity solar plant for Brookfield Renewable India. The installation entails set up of over 800,000 modules and was completed within record 7 months timeframe. The project will produce over 800GWh of clean energy annually and will help avoid up to 600,000 tons of annual CO2 emissions. Tata Power Solar is one of India`s largest integrated solar companies and a wholly-owned subsidiary of The Tata Power Company.
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