Sensex drops 567 pts; Nifty holds 16,400

The equity indices ended with major losses on Tuesday. The Nifty ended above the 16,400 mark after hitting the day's low of 16,347.10 in early afternoon trade. Selling was wide spread. However, oil & gas shares bucked the trend amid firm crude oil prices. Negative global cues and continuous selling by the FIIs dented sentiment. Investors were also cautious ahead of RBI's policy outcome on Wednesday and the US inflation data expected on Friday.

As per provisional closing basis, the S&P BSE Sensex, was down 567.98 points or 1.02% to 55,107.34. The Nifty 50 index declined 153.20 points or 0.92% at 16,416.35.

 

The broader market outperformed the benchmark indices, the S&P BSE Mid-Cap index lost 0.77% while the S&P BSE Small-Cap index was slipped 0.67%.

Sellers outnumbered buyers. On the BSE, 1,289 shares rose and 2,002 shares fell. A total of 127 shares were unchanged.

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.

The inflation data in the US is expected on Friday, which will determine how far the US central bank will go in raising rates.

Buzzing Index:

The Nifty Auto index rose 0.52% to 11,362.20 continuing its gaining run to the second day. The index gained 0.70% in two consecutive trading sessions while the Nifty50 index has fallen 1% in the same time period.

Among the components of the Nifty Auto index, TVS Motor Company Ltd (up 2.22%), Sona BLW Precision Forgings Ltd (up 1.89%), Maruti Suzuki India Ltd (up 1.28%), Ashok Leyland Ltd (up 1.26%) and Tata Motors Ltd (up 1.21%) were the top gainers.

Stocks in Spotlight:

Time Technoplast jumped 4.35% to Rs 108 after the company's promoter firm informed that the process of sale of land parcel located on Saki Vikar road in Mumbai, has commenced with identified buyer. Further, due diligence process is ongoing by a leading asset management company. The transaction is likely to be completed including receipt of sales proceeds shortly. The sale consideration will be utilized for repayment of debt to lenders of the promoter company, resulting in release of entire present pledged equity shares, the company said in a statement on Monday

PB Fintech tumbled 11.76% to Rs 580.95 amid a steep surge in volumes. PB Fintech on Monday (6 June) informed that Yashish Dahiya, chairman and CEO of the company, intends to sell up to 37,69,471 equity shares via bulk deals on the stock exchanges.

H.G. Infra Engineering advanced 3.09% to Rs 580 after the company received a letter of award (LoA) from Adani Road Transport for a project worth Rs 4,970.99 crore. The value of the said contract is more than the current market capitalization of the company, which presently stands at Rs 3,784.49 crore.

Indian Energy Exchange (IEX) rose 0.97% to Rs 177 after the company said it recorded 7,596 MU volume in May 2022, achieving 16% YoY volume growth across all market segments. The total traded volume comprised 6,680 MU in the conventional power market, 642 MU in the green power market and 275 MU (2.75 lac Certificates) in the REC market. IEX's Day-Ahead Market volume stood at 3,173 MU during the month of May 2022, falling 27% YoY with the average monthly price of Rs 6.76 per unit.

IRB Infrastructure Developers fell 1.89% to Rs 223.13. The company on Monday announced that it has offered Vadodara to Kim Expressway project, being developed under Hybrid Annuity Model (HAM), to IRB InvIT Fund. The Vadodara Kim stretch, which is part of Delhi-Mumbai Expressway (DME), is 23.740 km-long and has project cost outlay of Rs 2,094 crore. The project recently received provisional COD and is revenue generating.

HLE Glascoat rose 0.16% to Rs 3,425 after the company's board approved 5-for-1 stock split and fundraising of upto Rs 350 crore. The board of HLE Glascoat on 6 June 2022 approved the sub-division/ split of existing 1 equity share of face value Rs 10 each, fully paid up into 5 equity shares of Rs 2 each.

SBI Cards and Payment Services fell 1.23% to Rs 764.45. The company said that its board has approved raising offunds by way of issuance of non-convertible debentures (NCDs) aggregating to Rs 2,500 crore in one or more tranches, on private placement basis.

Bharti Airtel rose 0.40% to Rs 686.05. The telecom major's subsidiary, Nxtra Data, entered into an agreement for acquisition of 11.69% stake in Avaada MHAmravati, a special purpose vehicle formed for the purpose of owning and operating the captive power plant. The company acquired 51,17,000 equity shares, 11.69% stake, in Avaada MHAmravati for Rs 5.11 crore. The completion of the acquisition is subject to the receipt of all consents, permissions required to be obtained by Avaada MHAmravati from regulatory authority for open access for captive consumption of electricity, the company stated.

Global Markets:

The Dow Jones futures were down 145 points, indicating a negative opening in the US stock market today.

European stocks fell across the board while Asian shares ended mixed on Tuesday, as investors nervously awaited U.S. inflation figures.

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.

Powered by Capital Market - Live News