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Market slides for 3rd day, Nifty ends below 15,750
14-Jun-22   16:46 Hrs IST

The key equity indices ended with small losses after a volatile session on Tuesday, extending its losing streak for third consecutive session. The Nifty closed below the 15,750 mark after hitting the day's high of 15,858 in mid-morning trade. Oil & gas, auto and bank stocks declined while metal and pharma shares advanced.

The barometer index, the S&P BSE Sensex, declined 153.13 points or 0.29% to 52,693.57. The Nifty 50 index lost 42.30 points or 0.27% to 15,732.10. The Sensex has declined 4.75% and the Nifty has lost 4.53% in three sessions.

Maruti Suzuki India (down 1.32%), Reliance Industries (down 1.33%), Tech Mahindra (down 2.08%) and Indusind Bank (down 2.12%) were major drags today.

In the broader market, the S&P BSE Mid-Cap index shed 0.16% while the S&P BSE Small-Cap index slipped 0.40%.

The market breadth was negative. On the BSE, 1,532 shares rose and 1,782 shares fell. A total of 135 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.13% to 21.89.

Recession fears in the US continued to loom large ahead of the US Fed's policy outcome due on Wednesday. A major foreign brokerage has reportedly forecast a 75-basis point (bp) interest rate hike from the Fed's June policy meeting on Wednesday. A 75-bp hike would reportedly be the biggest since 1994.

Economy:

India's inflation based on the Wholesale Price Index (WPI) rose further in May, hitting 15.88%, according to data released by the commerce ministry today. WPI inflation was 15.08% in April 2022 and 13.11% in May 2021. The high rate of inflation in May, 2022 is primarily due to rise in prices of mineral oils, crude petroleum & natural gas, food articles, basic metals, non-food articles, chemicals & chemical products and food products etc. as compared to the corresponding month of the previous year, stated the Ministry of Commerce and Industry.

India retail inflation (CPI) eased to 7.04% in May, mainly on account of softening food prices, though it remained above the RBI's upper tolerance level for the fifth consecutive month, government data showed on Monday. The Consumer Price Index (CPI) based inflation was 7.79% in April. In May 2021, the retail inflation stood at 6.3%.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper fell to 7.583 as compared with 7.604 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 78.0450, compared with its close of 78.0400 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement fell 0.37% to Rs 50,476.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, increased 0.02% to 105.10.

In the commodities market, Brent crude for August 2022 settlement rose 83 cents or 0.68 % at $123.10 a barrel. The contract rose 26 cents or 0.21% to settle at $122.27a barrel during the previous trading session.

Foreign Markets:

Shares in Europe and Asia declined on Tuesday, mirroring overnight fall in the US stocks.

German inflation accelerated to a five-decade high of 7.9% year on year by national standards in May, official figures confirmed Tuesday.

The U.K. unemployment rate rose slightly in the three months to April to 3.8%, the Office for National Statistics revealed Tuesday. Meanwhile, job vacancies rose to a record 1.3 million.

US equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession.

Investors are looking ahead to Wednesday when the Fed is expected to announce at least a half-point rate hike. The central bank has already raised rates twice this year, including a 50-basis-point increase in May in an effort to stave off the recent inflation surge. The Fed could even raise rates by 0.75% this week following Friday's CPI report, reports suggested.

Buzzing Index:

The Nifty Oil & Gas index fell 1.21% to 7,708.75. The index has slumped 4.69% in three sessions.

Hindustan Petroleum Corporation (down 5.60%), Oil India (down 5.23%), Indian Oil Corporation (down 2.86%), ONGC (down 2.23%), Indraprastha Gas (down 1.89%), Petronet LNG (down 1.88%), Reliance Industries (down 1.32%), Bharat Petroleum Corporation (down 1.09%) and Gujarat Gas (down 0.37%) slumped.

Stocks in Spotlight:

Bajaj Auto dropped 5.06%. The two-wheeler maker on Tuesday said that its board has deferred the proposal to buyback shares. The company said that further deliberations are required in order to take a decision on the proposal of buyback, and accordingly deferred the matter.

Adani Enterprises (AEL) advanced 5.53%. AEL and TotalEnergies have entered into a new partnership to jointly create the world's largest green hydrogen ecosystem. In this strategic alliance, TotalEnergies will acquire 25% minority interest in Adani New Industries (ANIL) from AEL.

ANIL's ambition is to invest over $50 billion over the next 10 years in green hydrogen and associated ecosystem. In the initial phase, ANIL will develop green hydrogen production capacity of 1 million ton per annum before 2030.

Bharti Airtel rose 1.63%. The company said it launched Xstream multiplex, an extension of Airtel's Xstream premium offering, on the Partynite Metaverse platform.

Torrent Power gained 3.26%. The Gujarat-based integrated power utility on Monday said it has completed acquisition of a 50-megawatt (MW) solar power plant in Telangana from SkyPower Group for Rs 416 crore.

Dr Reddy's Laboratories rose 0.96%. The drug major announced the launch of Sorafenib tablets, a generic equivalent of Nexavar tablets, in the U.S. market as approved by the United States Food and Drug Administration (USFDA).

RBL Bank added 0.51%. The private lender said that there has been considerable speculation and rumors linking the appointment of the new MD & CEO of the bank, R. S. Kumar, with asset quality challenges for the bank in the near future.

We wish to reiterate that such speculation is baseless and unfounded and purely speculative in nature, the bank clarified.

Metropolis Healthcare (MHL) fell 3.81%. The medical diagnostic chain on Monday clarified that its promoters have no intention to exit the business.

The company said it is continuously exploring various strategic options/investment opportunities. On account of which the company keeps receiving inbound interest from financial institutions and companies part of the healthcare eco-system for a potential minority stake purchase in MHL.

The company, its promoters and management team are committed to operating Metropolis Healthcare Ltd with the highest standards of medical science, stakeholder trust and customer engagement, the company said.

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