Sensex drops 458 pts; breadth positive

Benchmark indices were trading with steep losses in the early trade. Barring the Nifty Oil & Gas index, all the other sectoral indices on the NSE traded in the red. The Nifty was trading below the 16,500 level. Mixed Asian cues and persistent FII selling spoiled sentiment. Investors were also cautious ahead of Reserve Bank of India (RBI)'s policy announcement later this week.

At 9:28 IST, the barometer index, the S&P BSE Sensex, declined 457.84 points or 0.82% at 55,217.48. The Nifty 50 index fell 127.55 points or 0.77% at 16,442.

In the broader market, the S&P BSE Mid-Cap index lost 0.50% while the S&P BSE Small-Cap index was up by 0.01%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,214 shares rose and 1,183 shares fell. A total of 114 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,397.65 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,940 crore in the Indian equity market on 6 June 2022, provisional data showed.

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.

Stocks in Spotlight:

SBI Cards and Payment Services fell 0.13% to Rs 772.95. The company's board approved raising upto Rs 2,500 crore by issuing non-convertible debentures (NCDs) in one or more tranches, on private placement basis.

HLE Glascoat rose 1.77% to Rs 3,480. The company's board approved 5-for-1 stock split and fundraising of upto Rs 350 crore.

NMDC fell 0.12% to Rs 124.50. The state-owned miner has fixed the price of lump ore at Rs 4,400 per tonne, and Fines at Rs 3,310 per tonne with effect from 5 June, down from Rs 5,500 per tonne and Rs 4,410 per tonne on 25 May this year.

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 0.31% to 3.047% 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 88 cents or 0.74% at $120.39 a barrel. Oil prices inched higher on expected demand recovery in China as it relaxed tough Covid curbs.

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