At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 1,491.25 points or 2.75% to 52,812.19. The Nifty 50 index tumbled 429.55 points or 2.65% to 15,772.25.
The broader market tumbled, the S&P BSE Mid-Cap index fell 2.36% while the S&P BSE Small-Cap index declined 2.51%.
Sellers outnumbered buyers, on the BSE, 633 shares rose and 2,747 shares fell. A total of 130 shares were unchanged.
Global cues were weak as investors shunned risky assets on worries that aggressive interest rate hikes by global central banks would stifle economic growth. On Friday, US government data showed inflation reached 8.6% in the 12 months ended in May, the steepest rise in consumer prices since December 1981.
Economy:
Industrial activity in April jumped 7.1% year on year, according to the index of industrial production (IIP) data released by the government on Friday. In comparison, industrial growth had expanded 1.9% in March. Growth in the mining sector was 7.8% in April 2022. The manufacturing sector expanded by 6.3%. Power sector showed a growth of 11.8% year on year in April 2022
Gainers & Losers:
Nestle India (up 0.47%) and Britannia (up 0.13%) were major Nifty gainers.
Bajaj Finserv (down 6.01%), Hindalco (down 5.51%), Bajaj Finance (down 5.23%), Indusind Bank (down 5.06%) and ICICI Bank (down 4.85%) were majority Nifty losers.
Stocks in Spotlight:
Bank of Baroda tumbled 5.14% to Rs 99.70. The state-run bank on Friday announced an increase in the marginal cost of funds-based lending rate (MCLR) by 10-20 basis points across different tenors, effective from 12 June 2022.
Vedanta fell 4.23% to Rs 288.45 after the company's Iron & Steel sector has ventured into International Iron ore mining operations in Liberia, West Africa through its subsidiary Western Cluster Limited (WCL). WCL is a wholly owned subsidiary of Bloom Fountain ('BFL'), which is in turn a wholly-owned subsidiary of Vedanta. WCL had signed a Mineral Development Agreement with the Government of Liberia ('GoL') for three Iron Ore Mining concessions in Liberia namely Bomi, Bea, and Mano in 2011. However, the operations could not be started due to outbreak of Ebola epidemic. WCL is set to restart its operation with further expansion potential through exploration, Vedanta said.
Life Insurance Corporation of India (LIC) dropped 5.45% to Rs 671 as the 30-day lock-in period for anchor investors ended on Monday, 13 June 2022. The end of lock-in period will allow anchor investors to sell their existing shares in the market. Ahead of the IPO, LIC on 2 May 2022 raised Rs 5,627.27 crore from anchor investors by allotting about 5.93 crore shares to 123 investors at Rs 949 per share. The stock is currently down about 29% compared with its issue price.
RBL Bank slumped 19.10% to Rs 91.70 after the bank appointed R Subramaniakumar as the new managing director and CEO of the bank for three years. Shares of the private sector bank hit an all time low of Rs 92.75 in intraday today on the BSE.
Global Markets:
The US Dow Jones futures were currently trading with a cut of 540 points, indicating a weak start to equities on Wall Street today.
Shares in Europe and Asia slumped on Monday as investor sentiments were dominated by the prospect of forthcoming interest rate hikes. Investor mood was darkened by the European Central Bank's confirmation on 9 June 2022 that it intends to hike interest rates by 25 basis points at its July meeting. A further hike is expected in September, the scale of which will be determined by the medium-term inflation outlook.
The UK economy contracted by 0.3% in April after it shrank by 0.1% the month before.
Meanwhile, a COVID-19 warning from Beijing added to concerns about global growth.
US stocks ended sharply lower on Friday as a steeper-than-expected rise in US consumer prices in May fueled fears of more aggressive interest rate hikes by the Federal Reserve.
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