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Market drops on weak global cues; breadth positive

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Key benchmark indices are trading lower in early trade on selling pressure in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 181.50 points or 0.35% at 52,320.48. The Nifty 50 index was down 67.75 points or 0.43% at 15,699.80. Global cues are negative as US Fed hinted at early rate hike.

The S&P BSE Mid-Cap index was down 0.41%. The S&P BSE Small-Cap index was up 0.11%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 1363 shares rose and 1138 shares fell. A total of 98 shares were unchanged.

 

Stocks in news:

Wipro fell 0.75%. Wipro announced a partnership with Exaware, a leading provider of Open Network routing solutions. The partnership will jointly develop advanced engineering solutions that foster innovation in the networking industry, streamline 5G technology upgrades, and open the door to future 6G compatibility.

SBI declined 0.45%. SBI informed that the meeting of the board of directors of the bank is scheduled on 21 June 2021, to consider and approve raising of Additional Tier 1 (AT 1) Capital by way of issuance of Basel III compliant debt instrument in USD and / or INR through a Public offer or Private placement to overseas and / or Indian investors during FY 22.

CESC gained 2.99%. CESC said that the company's board of directors approved a proposal for sub-division of existing 1 equity share of nominal value of Rs 10 each to be sub-divided into 10 equity shares of nominal value of Re 1 each.

Isgec Heavy Engineering advanced 3.51%. The company has received an order for the fabrication of above ground piping spools from Tata Projects, India for one of the projects of national importance.

Punjab & Sind Bank dropped 2.25%. Punjab & Sind Bank said that Lanco Infratech's account with outstanding dues of Rs 215.17 crore has been declared as fraud and reported to RBI. Further, the account has been fully provided for as per existing RBI norms.

Minda Industries fell 1.45%. Minda Industries said that Commercial Paper of Rs. 50 crore issued on 18 March, 2021 with maturity date of 16 June, 2021 has been redeemed.

Global Markets:

Overseas, Asian stocks are trading mostly lower on Thursday, as investors watched for market reaction after the U.S. Federal Reserve on Wednesday moved up its timeline for rate hikes.

U.S. stocks dropped Wednesday after the Federal Reserve raised its inflation expectations and moved up the time frame on when it will next hike interest rates.

The Federal Reserve on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond-buying, and said the 15-month-old health emergency was no longer a core constraint on U.S. commerce.

Signaling that broad changes in policy may happen sooner than expected, U.S. central bank officials moved their first projected rate increases from 2024 into 2023, with 13 of 18 policymakers foreseeing a "liftoff" in borrowing costs that year and 11 seeing two quarter-percentage-point rate increases.

The Fed also raised its headline inflation expectation to 3.4% for 2021, a full percentage point higher than the March projection, but the post-meeting statement continued to say that inflation pressures are transitory. Powell said inflation could run hotter than the Fed expected amid the economic recovery.

Back home, the domestic equity benchmarks ended with modest losses on Wednesday as firm crude oil prices and negative Asian stocks spoiled investors sentiment. The barometer index, the S&P BSE Sensex, fell 271.07 points or 0.51% to 52,501.98. The Nifty 50 index lost 101.70 points or 0.64% to 15,767.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 870.29 crore, while domestic institutional investors (DIIs), were also net sellers to the tune of Rs 874.20 crore in the Indian equity market on 16 June, provisional data showed.

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First Published: Jun 17 2021 | 9:38 AM IST

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