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Market slides for 2nd day; Sensex drops 509 pts, Nifty holds 16K

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Capital Market
Last Updated : Jul 12 2022 | 4:50 PM IST

The key equity indices ended with deep cuts on Tuesday amid negative global cues. Investors were cautious ahead of India's June retail inflation data expected later today. Barring the Nifty Realty index, all the sectoral indices on the NSE ended in the red. Metals, autos and IT shares were under pressure.

The barometer index, the S&P BSE Sensex, was down 508.62 points or 0.94% to 53,886.61. The Nifty 50 index fell 157.70 points or 0.97% to 16,058.30.

NTPC (up 1.87%), Bharti Airtel (up 0.33%) and Bajaj Finance (up 0.21%) were top index gainers.

Infosys (down 2.33%), Nestle India (down 1.87%) and Power Grid Corporation of India (down 1.66%) were major index losers.

In the broader market, the S&P BSE Mid-Cap index declined 0.51% while the S&P BSE Small-Cap index shed 0.52%.

The market breadth was negative. On the BSE, 1,472 shares rose and 1,826 shares fell. A total of 169 shares were unchanged.

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Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.393 as compared with 7.427 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 79.60, compared with its close of 79.45 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement fell 0.01% to Rs 50,639.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.40 % to 108.45.

In the commodities market, Brent crude for September 2022 settlement declined $2.48 or 2.32% at $104.62 a barrel. The contract rose 8 cents or 0.08% to settle at $107.10 a barrel during the previous trading session.

Global Markets:

The US Dow Jones futures were currently trading with a cut of 257 points, indicating a negative start to equities on Wall Street today.

Shares in Europe and Asia declined on Tuesday after Wall Street slipped overnight. The prospect of further monetary policy tightening by major central banks, China's renewed COVID outbreak and Europe's energy shortage impacted sentiment.

U.S. equities fell Monday as Wall Street braced for big company earnings reports slated for later in the week which could signal how inflation is impacting businesses.

Twitter shares dropped sharply after Elon Musk terminated a deal worth $44 billion to buy the social media company. The billionaire took issue with the number of bots and fake accounts on the platform and said Twitter wasn't being truthful about how authentic activity on the platform was. However, the company said it gave Musk the information he needed to assess the claims.

Buzzing Segment:

The Nifty Auto index fell 1.18% to 12,107.35 on profit selling. The index jumped 5.17% in the past four sessions.

Bharat Forge (down 3.62%), Eicher Motors (down 3.34%), Tube Investments of India (down 2.01%), Tata Motors (down 1.99%), M&M (down 1.47%), Ashok Leyland (down 1.41%), Maruti Suzuki India (down 1.28%), Sona BLW Precision Forgings (down 1.02%), Escorts (down 0.64%), TVS Motor (down 0.6%), Bosch (down 0.33%), Bajaj Auto (down 0.25%) and Hero MotoCorp (down 0.05%) declined.

Stocks in Spotlight:

Eureka Forbes jumped 12.06% after the company announced that Pratik Pota is appointed as managing director and chief executive officer of Eureka Forbes for a term of five years with effect from 16 August 2022.

Pratik will lead the management team to continue scaling the business, solidifying Eureka Forbes' market leadership position and delivering innovative products for a growing customer base. Until recently, Pratik was the CEO at Jubilant Foodworks (JFL) where he led the business to a comprehensive turn-around and transformation.

Shares of three telecom equipment suppliers surged today after the Central Government amended the rules for the procurement of telecommunication equipment.

ITI (up 16.91%), Tejas Networks (up 5.82%) and HFCL (up 5.53%) advanced.

The circular mandates wireless service providers to buy only from suppliers designated as trusted sources by the government. As per reports, this would prevent Chinese equipment providers from supplying gear to Indian wireless service providers.

Meanwhile, HFCL has received the purchase orders aggregating to Rs 59.22 crore, from one of the leading private telecom operators of the country for providing Services to rollout their fiber to the home (FTTH) network and long distance fiber network in various telecom circles.

NMDC tumbled 5.28% after the company slashed iron ore prices with effect from today, 12 July 2022. The company has reduced lump ore prices by 11.4% while the price of fines has been decreased by 15.1%.

Trident fell 2.45% after the firm announced production update for June 2022. In the home textile division, production of bath linen slumped 23.6% to 3,333 metric tonnes (MT) in June 2022 as against 4,363 MT posted in June 2021. Production of bed linen tumbled 30.35% to 1.95 million metres (MM) in June 2022 from 2.8 MM recorded in June 2021. Production of yarn slipped 14.61% to 8,186 MT in June 2022 over 9,587 MT reported in June 2021.

Ramco Systems declined 1.06%. The global aviation software provider said that it had gone live at Air Asia Company (AACL) with its Aviation M&E MRO Suite V5.9, thereby automating and digitally transforming AACL's business processes.

Star Health and Allied Insurance Company rose 1.96%. The company has partnered with Common Services Centers (CSC), under Ministry of Electronics & Information Technology, for providing over 5 lakh CSCs access to a select range of Star Health insurance products, specially designed to meet the needs of rural customers, across tier-II, tier-III cities and rural markets pan India.

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First Published: Jul 12 2022 | 4:37 PM IST

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