Shares off the day`s low; insurance stocks in demand

The key equity barometers sharply came off the day`s low in mid-afternoon trade. The Nifty continued to trade below the 16,100 level. Insurance stocks witnessed significant buying demand, followed by private banks and financials.

At 14:23 IST, the barometer index, the S&P BSE Sensex, was down 120.08 points or 0.22% to 53,932.53. The Nifty 50 index fell 39.05 points or 0.24% to 16,086.10.

The broader indices tumbled. The S&P BSE Mid-Cap index slipped 1.45% while the S&P BSE Small-Cap index declined 2.28%.

Sellers outnumbered buyers. On the BSE, 681 shares rose and 2,589 shares fell. A total of 122 shares were unchanged.

Investors awaited the release of minutes from the last U.S. Federal Reserve meeting, due later today. The minutes will give more clues on whether the monetary tightening would continue. Investors are worried about a potential U.S. recession caused by the monetary tightening.

Numbers to Track:

The yield on the 10-year benchmark federal paper rose to 7.310% as compared with 7.359% at the close of the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 77.5450, compared with its close of 77.5700 during the previous trading session.

MCX Gold futures for (3 June 2022) settlement shed 0.37% to Rs 50,969.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.31% to 102.18.

In the commodities market, Brent crude for July 2022 settlement rose $1.16 or 1.02% to $114.72 a barrel.

Buzzing Index:

The Nifty Financial Services index advanced 1.03% at 15,972.45. The index has gained 1.35% in two sessions.

Among the components of the Nifty Financial Services index, HDFC Life Insurance Company (up 2.98%), ICICI Prudential Life Insurance Company (up 2.87%), SBI Life Insurance Company (up 2.49%), Kotak Mahindra Bank (up 2.24%) and ICICI Lombard General Insurance Company (up 2.13%) were the top gainers.

HDFC (up 1.02%), HDFC Bank (up 0.72%), ICICI Bank (up 0.71%), Bajaj Finance (up 0.66%) and Bajaj Finserv (up 0.26%) advanced while SBI Cards & Payment Services (down 1.65%), Muthoot Finance (down 1.58%) and Cholamandalam Investment & Finance Company (down 1.51%) declined.

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