Barometers turn range bound; breadth weak

Frontline indices were trading in a narrow range near the day's low with steep losses in the mid-morning trade. Global cues were mixed as investors were cautious ahead of the US inflation data expected later today. All the sectoral indices on the NSE were trading in the red. Metals, IT and financial services stocks slumped. The Nifty was hovering between 16,250 and 16,300 level.

At 11:23 IST, the barometer index, the S&P BSE Sensex, was down 768.16 points or 1.39% at 54,552.12. The Nifty 50 index fell 215.05 points or 1.31% at 16,263.05.

In the broader market, the S&P BSE Mid-Cap index lost 0.73% while the S&P BSE Small-Cap index was down by 0.56%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,176 shares rose and 1,884 shares fell. A total of 146 shares were unchanged.

Buzzing Index:

The Nifty Metal index fell 1.90% to 5,177.85 continuing its losing run to the second day. The index declined 3.19% in the two trading sessions.

Among the components of the Nifty Metal index, Hindalco Industries (down 3.7%), Tata Steel (down 2.56%), Jindal Steel & Power (down 2.23%), National Aluminium Company (down 2.11%) and Steel Authority of India (down 2.07%) were the top losers.

Stocks in Spotlight:

Bajaj Auto fell 0.45% to Rs 3,859.55 after the two-wheeler major said its board will consider a share buyback on on 14 June 2022.

HFCL rose 2.04% to Rs 65.05 after the company said that it has received the purchase orders aggregating to Rs 73.39 crore or supply of unlicensed band radios along with accessories and optical fibre cables. The company has bagged a contract worth Rs 51.09 crore from one of the private telecom operators of the country for supply of UBRs (unlicensed band radio) along with accessories. The order has to be executed by September 2022.

Welspun Enterprises rallied 7.24% to Rs 107.40 after the company announced that it has executed definitive agreements to exit its portfolio of operating road concessions (Highway Portfolio) to Actis Highway Infra (Actis). The company sold the portfolio for an aggregate enterprise value (EV) of approximately Rs 6,000 crore. The entire transaction is expected to be completed by 31 March 2023, subject to completion of customary and regulatory compliances and approvals from NHAI, PWD, and lenders.

Global Markets:

Most of the Asian stocks were trading lower on Friday as Chinese inflation data for May came in largely in line with expectations.

The Chinese producer price index for May jumped 6.4% as compared with a year earlier, according to figures by the country's Bureau of Statistics. The consumer price index for May climbed 2.1% from a year ago.

US stocks fell sharply on Thursday ahead of a key inflation report as investors worried about the state of the U.S. economy. Investors are looking to see if inflation has peaked or if the Federal Reserve will need to be even more aggressive to tamp down price increases.

The European Central Bank raised its inflation projections on Thursday but cut its growth outlook as the conflict in Ukraine continues to weigh on confidence, consumption and investment. The ECB now sees inflation over its 2% target throughout its projection horizon, accepting that rapid price growth is not nearly as temporary as it had forecast for the past year.

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