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Nifty hovers above 15,750; breadth remains positive
14-Jun-22   13:34 Hrs IST
The frontline indices were trading with tiny gains in the afternoon trade. The Nifty traded above 15,750 mark. Value buying emerged after the Nifty slumped 4.27% in the past two sessions. Metal, realty and auto shares advanced while oil & gas, FMCG and PSU bank shares corrected.

At 13:27 IST, the barometer index, the S&P BSE Sensex, was up 14.04 points or 0.03% to 52,860.74. The Nifty 50 index added 14.35 points or 0.09% to 15,788.75.

In the broader market, the S&P BSE Mid-Cap index rose 0.42% while the S&P BSE Small-Cap index added 0.25%.

The market breadth was positive. On the BSE, 1,819 shares rose and 1,403 shares fell. A total of 137 shares were unchanged.

While easing domestic inflation in May gave some hope to investors, 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 reported forecasted 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%.

Gainers & Losers:

Adani Ports and Special Economic Zones (up 2.24%), NTPC (up 2.12%), Divis Laboratories (up 2.05%), Apollo Hospitals (up 1.93%) and Eicher Motors (up 1.75%) were major Nifty gainers.

Tech Mahindra (down 2.13%), ONGC (down 1.35%), Reliance Industries (down 1.24%), HDFC Life Insurance (down 1.23%) and Hindalco (down 1.11%) were majority Nifty losers.

Stocks in Spotlight:

Adani Enterprises (AEL) advanced 4.97%. 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 USD 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.

Torrent Power gained 2.92%. 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 0.99%. 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). Sorafenib is used to treat late-stage kidney cancer (advanced renal cell carcinoma), liver cancer (hepatocellular carcinoma) that cannot be treated by surgery, and differentiated thyroid cancer that has come back or spread to other parts of your body. Sorafenib is an antineoplastic (cancer) agent.

RBL Bank was up 0.46%. The private lender said that the speculation and rumors linking its new MD & CEO with asset quality challenges of the bank are unfounded and baseless. In a statement released to the media, RBL Bank 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 said.

Global Markets:

The US Dow Jones futures were currently trading with a gain of 224 points, indicating a positive start to equities on Wall Street today.

European stocks rose across the board while most Asian stocks declined on Tuesday.

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, as per reports.

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