Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended more than 1 per cent down on Tuesday, one day ahead of RBI MPC outcome. BSE Sensex ended 593 points or 1.02 per cent down at 55,107, while NSE Nifty 50 index fell 153 points or 0.92% to end the day at 16,416. Top index losers were Titan Company, down 4.5 per cent followed by Dr. Reddy’s, Hindustan Unilever, L&T, Asian Paints, Reliance Industries Ltd (RIL), and Infosys among others. On the flip side, NTPC, Maruti Suzuki India, M&M, Bharti Airtel and State Bank of India (SBI) capped the index losses. India VIX, the volatility index, was up 1.1 per cent to finish at 20.43 levels. On the sectoral front, Nifty Bank index fell nearly 1 per cent to settle at 34,996 levels.
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BSE Sensex tanked 567 points or 1.02% to settle at 55,107 on Tuesday while NSE Nifty 50 index fell 153 points or 0.92% to end the day at 16,416.
Not an easy job for the central banker. Recently released GDP data showed a sliding y-o-y growth for private consumption expenditure, an indication that economic activity remains slow. On the other hand, the inflation surprise has brought to the fore the need for the RBI to tighten monetary policy. The government has also joined the RBI in an attempt to contain inflationary pressures in the economy. We see the RBI extending its 40bps repo hike of May with a 35bps increase in June, followed by 25bps each in August and September. By this time, we expect the global growth to have softened enough to pull down commodity prices and thus provide some comfort to the domestic inflation cycle too. We thus factor in the RBI to press the pause button again after a 15bps insurance hike in the repo rate in December and analyze the implications of its rate hike cycle of 140 bps on growth before taking any further decision. Indranil Pan – Chief Economist, YES Bank
The insurance giant, LIC Ltd. is currently trading below its IPO price. The issue was priced at a price to the embedded value of 1.1x, which is a discount compared to its domestic as well as global peers. This valuation discounts concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins and short term persistency ratios. However, we believe India's highly underserved life insurance market is still in its infancy and is well-positioned to capitalize on the enormous growth potential. LIC has a number of competitive advantages, including a strong brand value, a massive network of agents, and an enviable distribution network. So, investors with a long-term view can buy this stock at CMP and follow a buy on dip strategy. Santosh Meena, Head of Research, Swastika Investmart
Abhinav Capital Services, AGI Infra, Chemcrux Enterprises, DHP India, Galactico Corporate Services, Galaxy Bearings, Gorani Industries, Hindustan Aeronautics (HAL), Lords Chloro Alkali, Meghmani Finechem, Oil India, SAR Auto Products, S&T Corporation, Time Technoplast were among the stocks that hit 52-week high on BSE. Read full story
The Reserve Bank of India’s Monetary Policy Committee (MPC) will announce the outcome of its bi-monthly meeting tomorrow and experts are certain another rate hike is imminent. The only thing to watch out for now is the magnitude of the hike. Dalal Street seems nervous with BSE Sensex and NSE Nifty 50 already down more than 1% this week, but experts say investors may bet on rate-sensitive stocks for potential gains ahead of the RBI policy decision. Analysts believe rate-sensitive sectors such as financials are ones to watch out for just ahead of the MPC’s decision, where inflation is now taking the centrestage.
BSE Sensex and Nifty 50 tanked 1.4 per cent each on Tuesday, one day ahead of Reserve Bank of India’s (RBI) Monetary Policy Committee decision on June 8. So far in the day BSE Sensex has fallen to a day’s low of 54,882.41, while Nifty 50 hit 16,375.15. Analysts say that weakness in global markets on inflationary concerns, tightening interest rates ahead of the RBI Policy outcome, appears to be weighing on the domestic investors. Read full story
We expect CPI inflation to moderate to 7.1% in May, as favourable base effects mask sequential price rises. While the government has announced some supply side measures to ease cost pressures, we think it will be some time before these have any material impact on inflation. Rahul Bajoria, MD & Chief India Economist, Barclays
PB Fintech Ltd. is India's leading online platform for insurance and lending products. The stock tanked as much as 10 percent on Tuesday after the announcement of a stake sale by the CEO of the company. The stock got listed in November 2021 and has seen almost a 70% fall since its listing. The issue was exorbitantly priced at market to sales of 46.40x during its IPO, and it remains expensive despite the recent correction. The company operates in a very competitive space as there aren’t any significant barriers to entry, plus the company is still a loss-making one despite the significant rise in revenues in FY22. Further, we believe that the current market conditions are punishing companies that are growing without showing profitability and are skeptical of companies that are relying on buzzwords like “underpenetrated in India” to show a rosy future picture. Santosh Meena, Head of Research, Swastika Investmart
With rising economic activity the demand for power has been robust while supply has been lagging. Analysts at Bank of America Securities (BofA) believe power shortage in the peak season will persist as the supply-demand mismatch on slower thermal capacity addition in the past few years continues and demand remains robust. BofA analysts, however, see positives for select sectors and stocks even as the power supply remains tight. Analysts noted that financials such as State Bank of India, ICICI Bank and others such as NTPC and BHEL could benefit over the next few years as this demand-supply mismatch is bridged.
Shares of Oil India have surged 15 per cent in 5 days as Brent crude oil prices rose. In comparison, the Nifty 50 index has dropped 1 per cent. Oil India stocks jumped over 5 per cent in the previous session as oil prices rose more than $2 in early trade after Saudi Arabia raised prices sharply for its crude sales in July. Analysts at HDFC Securities believe that Oil India is a favourable buy. “A target price of Rs 300 is premised on increase in crude price realisation and improvement in domestic gas price realisation,” the brokerage firm had said in a Q4FY22 result update report. Oil India shares were trading flat at Rs 278 on BSE intraday. Read full story
HDFC Bank has hiked its marginal cost of funds-based lending rates (MCLRs) by 35 basis points across tenures, even as the market awaits another imminent RBI policy rate hike later this week. The new rates will be effective from today (Tuesday, 7 June 2022). MCLRs on loans from India’s largest private lender will now range between 7.5% and 8.05%. The one-year MCLR at HDFC Bank stands at 7.85%, as against SBI’s 7.2% and PNB’s 7.4%. Read full story
Inflation has emerged as a threat to economic growth and markets, globally. In US, inflation touched 8.3 per cent in April; in the Euro Zone inflation is at 7.5 per cent and in UK at 9 per cent. In countries like Turkey and Sri Lanka, there is hyperinflation. In India, CPI inflation is at 7.8 per cent and WPI inflation is at 15.08 per cent. Rising inflation has negative implications for the economy and markets in the short run.
HDFC Bank has hiked its marginal cost of funds-based lending rates (MCLRs) by 35 basis points across tenures, even as the market awaits another imminent RBI policy rate hike later this week. The new rates will be effective from today (Tuesday, 7 June 2022). MCLRs on loans from India’s largest private lender will now range between 7.5% and 8.05%. The one-year MCLR at HDFC Bank stands at 7.85%, as against SBI’s 7.2% and PNB’s 7.4%.
Only five Sensex constituents were in the green on Tuesday morning. NTPC was the top gainer on Sensex, up 0.84%, followed by Reliance Industries, SBI, Power Grid, and IndusInd Bank.
The key point to highlight is that on past three out of five sessions index bounced from the earlier range breakout zone of 16400 coincided with a positive gap area recorded in last week (16352-16438), highlighting elevated buying demand emerging from immediate support of 16400 as per the change of polarity concept.
~ ICICI Direct
We remain positive on the Automobile sector and expect sustained demand recovery moving forward. From OEMs under our coverage, we expect the following stocks to perform well: Hero Motocorp, Bajaj Auto, and TVS Motors in the 2W segment, Maruti Suzuki in the PV segment, and Ashok Leyland in the CV space. Axis Securities
The market direction is likely to be influenced more by the inflation in the US, which, in turn, will decide how far the Fed will go in raising rates. This will be the key determinant of possible 'risk on' or 'risk off' in equity markets globally. A rising rate scenario will improve the margin of the banking sector since deposit rates lag lending rates. The most attractively valued segment in the market now is financials, particularly banking. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Except for Nifty PSU Bank and Nifty Oil & Gas indices, all the sectoral indices were ruling in the negative territory. Nifty Bank index fell 0.7 per cent to 35,056.65
Top index losers were Titan Company, Asian Paints, Hindustan Unilever Ltd (HUL), Sun Pharma, Kotak Mahindra Bank, Dr Reddy's Laboratories, Mahindra & Mahindra (M&M)
Only Reliance Industries Ltd (RIL), and Axis Bank were trading in the green
BSE Sensex tanked over 550 points to 55115, while NSE Nifty 50 fell below 16450, down 158 points or 1%
BSE Sensex was up 150 points, while NSE Nifty 50 fell below 16350 in pre-opening session
The Indian Rupee is expected to depreciate further, and may even fall below 80 mark in near term. Reports from UBS AG, Nomura Holdings and Bloomberg Economics suggest rupee will go down to 79-81 to a dollar over the next few months. Bloomberg Economics predicts the rupee will fall to 81 per dollar by the end of November. Nomura Holdings Inc. sees the local currency at 79 by end June, while Standard Chartered Plc also sees a similar level by the third quarter. In the previous session, the rupee closed unchanged against the US dollar in muted trade as participants largely stayed on the sidelines ahead of the RBI’s policy decision later this week.
Tracking overnight slump in US markets and subsequent fall in SGX Nifty, domestic equity markets in all probability will start on a weak note. Nifty will lack direction because the key driver of sentiment hinges on the RBI monetary policy outcome to trickle in on June 8. Commanding attention will also be Friday’s US CPI report when we will learn if price growth in the US has finally peaked. However, there is slight optimism in the air amidst the reopening of China’s economy and the said reopening that could give a boost to the global economy. Reports also suggest that daily Covid-19 cases are dropping significantly in China. Amidst this backdrop, metal stocks are likely to rise. We like Hindalco & Tata Steel with an interweek/intermonth perspective. Jindal Steel & Power could be a dark horse. Prashanth Tapse, Vice President (Research), Mehta Equities
Nifty has consolidated on Monday after falling from higher levels on Friday. Having taken support from 16443, Nifty rose and closed higher than the low, though minorly in the negative. We think Nifty could remain in the 16353-16696 band for the next few sessions. The 10-year US Treasury yield rose 8.2 basis points to 3.037% as investors await May’s consumer-price index report on Friday. Deepak Jasani, Head of Retail Research, HDFC Securities
Crude oil might continue the positive momentum amid strong fundamentals. Gasoline prices in the US notched record highs, owing to tight supplies and dwindling inventories amid the onset of the US driving season, while the OPEC+ meeting disappointed with modest output hike. OPEC+ increased the output for July, but in effect, we might not see actual addition of barrels into the market, as Russia was not exempted from the supply pact. Read full story
Stocks in Asia traded mixed Tuesday as a jump in Treasury yields fueled concerns that rising borrowing costs will weigh on earnings and induce a recession. The yen sank to a 20-year low.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The prices of petrol and diesel were kept unchanged by the OMCs for the sixteenth day straigh on Tuesday. Prices have remained steady since Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel earlier on May 21. Petrol price in Delhi today stands at Rs 96.72 a litre as against Rs 105.41 a litre last month, while diesel will cost Rs 89.62 a litre as opposed to Rs 96.67. In Mumbai, one litre of petrol costs Rs 111.35 while diesel is retailing at Rs 97.28 per litre.
US stocks ended a choppy session slightly higher on Monday, helped by gains in Amazon.com and other mega-cap growth shares, while persistent worries over inflation and interest rates kept a lid on the market. Read full story
SBI Card: SBI Cards and Payment Services on Monday said its board has approved a proposal to raise Rs 2,500 crore by issuing non-convertible debentures (NCDs) to fund business growth.
Reliance Industries: RIL stands to be the biggest beneficiary of rising crude oil imports from Russia, according to Citi Research. Read full story
Domestic stock markets have started the week on a negative note with both the headline indices closing with losses on Monday. S&P BSE Sensex fell 93 points or 0.17% to settle at 55,675 while the NSE Nifty 50 index slipped 0.09% to end the day at 16,569. India VIX, the volatility gauge has regained 20 levels, gaining 1% on Monday. Entering Tuesday’s trade, SGX Nifty was in the red, down more than 100 points, hinting at a continuation of yesterday’s downward trend. Global cues, however, are largely positive after Wall Street zoomed overnight.
In overnight trade on Wall Street, the S&P 500 climbed 0.31%, the Dow Jones Industrial Average edged 16.08 points higher, and the tech-heavy Nasdaq Composite rose 0.4%.
Asian stock markets were seen trading mixed in early trade. Japan’s Nikkei was marginally higher, while the Topix index climbed 0.49 per cent.
Nifty futures were ruling 101 points or 0.6 per cent down at 16,471 on Singaporean Exchange.
There are speculations that the central bank may go for at least 35 basis points (bps) hike over and above the 40 bps hike effected last month after an off-cycle MPC meeting. Market experts are estimating a bigger hike in interest rate as consumer price index (CPI) based retail inflation, which the Reserve Bank of India factors in while arriving at its monetary policy, galloped for a seventh straight month to touch an 8-year high of 7.79 per cent in April. Read full story
With the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) beginning its three-day deliberations today, Jyoti Prakash Gadia, Managing Director at Resurgent India believes rate hike in the June meeting is a certainty. In an interview with Kshitij Bhargava of FinancialExpress.com, Gadia said that a 20-40 basis point rate hike can be expected from the MPC. He added that inflation is not likely to ease immediately. Jyoti Prakash Gadia added that fiscal measures along with monetary policy action may put a check on inflation in the next 6-9 months. Read full interview