Informist, Friday, Jun 10, 2022

By Vaibhavi

MUMBAI – Domestic equities witnessed selling pressure as investors refrained from carrying forward positions ahead of the crucial US inflation data for May, which is scheduled to be released later today.  

Today, the Nifty 50 hit a low of 16172.60 points, but recouped some losses and ended at 16201.80 points, 1.7% lower. The 30-stock Sensex closed 1.8% lower at 54303.44 points after it slipping to a low of 54205.99 points earlier in the day. 

Both the indices ended the week with losses of around 2%.

Inflation in the US has been at multi-decade highs over the last few months. It is widely expected to have softened a bit last month, but not enough to see the US Federal Reserve change its tone.

The Fed will take cues from the retail inflation data for its future policy tightening trajectory. 

Aishvarya Dadheech, a fund manager at Ambit Asset Management, believes that the relentless selling by foreign institutional investors will continue until there is clarity on how the Fed's action will pan out.  Foreign institutional investors have offloaded Indian equities worth nearly $25 bln in 2022 so far. 

Adding to the woes were high crude oil prices, yield on the 10-year US Treasury bill that inched higher ahead of the inflation data, and reimposition of COVID-19 restrictions in parts of China. 

Higher crude prices for a prolonged period will also pave the way for more money to move out of the market which, in turn, will affect growth, Dadheech said. 

After Reserve Bank of India's warning about inflation remaining high earlier this week, European Central Bank, too, spoke about steeper rate hikes in September if prices fail to cool down. The hawkish comments by the central bank and its 25-basis-point interest rate hike from July also triggered a risk-off sentiment.

Given the risk aversion in the market, it is crucial for the Nifty 50 to sustain above its key support of 16150-16200 points to leave room for any pullback, said Ruchit Jain, lead research analyst at 5paisa.com. 

Losses across frontline sectors such as banking, information technology and metals weighed on benchmark indices. A sharp fall in index-heavyweight Reliance Industries also contributed to the weakness. 

Prevailing weakness in equities also had a bearing on the currency market as the rupee fell to a fresh record low of 77.8750 against the dollar during the day. 

Shares in the IT pack remained under pressure tracking overnight weakness in their US peers. Losses of 1-3% across its constituents resulted in the Nifty IT index ending over 2% lower.

Metal companies extended their losses amid demand worries as restrictions resurfaced in parts of China. Hindalco Industries was the biggest loser within the sector and fell 3.5% while the Nifty Metal ended 1.5% lower.

Reliance Industries erased its gains from the previous session on profit booking and slipped 3%.

Among gainers, Oriental Aromatics rose nearly 13% after the company received an environmental clearance for its proposed greenfield project in Maharashtra.

IIFL Finance also gained nearly 8% on reports that Abu Dhabi Investment Authority plans to acquire 20% stake in the company's home financing arm. 

The overall market breadth remained negative as more than two stocks fell for every one that rose. 

* Among Nifty 50 stocks, 13 rose and 37 fell

* Among Sensex stocks, 7 rose and 23 fell

* On the NSE, 670 stocks rose, 1,395 fell and 70 were unchanged

* On the BSE, 1,308 stocks rose, 2,002 fell and 119 were unchanged

* Nifty Metal: Down 1.5%; Nifty IT: Down 2.2%; Nifty Bank: Down 1.7%

BSE                                                 National Stock Exchange
Sensex: 54303.44 points, down 1016.84 pts (1.8%)    Nifty 50: 16201.80 points, down 276.30 pts (1.7%)

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 62245.43 (Oct 19)                 : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18)             : Record Close High: 18477.05 (Oct 18)

2022 1st day close: 59183.22 (Jan 3)             : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17)             : 2022 Closing High: 18308.10 (Jan 17) 
2022 Closing Low: 52792.23 (May 19)              : 2022 Closing Low: 15782.15 (May 13)
2022 High (intraday): 61385.48 (Jan 17)          : 2022 High (intraday): 18321.55 (Jan 17)

2022 Low (intraday): 52260.82 (Mar 8)            : 2022 Low (intraday): 15671.45 (Mar 8)
2021 Closing High: 61305.95 (Oct 14)             : 2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)              : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)          : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)           : 2021 Low (intraday): 13596.75 (Jan 29)

2020 Closing High: 47751.33 (Dec 31)             : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)              : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)          : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)           : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)          : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)           : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))          : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)            : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)          : 2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Aditya Sakorkar

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.