Indices drop in early trade; Nifty below 15,500 level

The key equity indices are trading with deep cuts in early trade on selling pressure in index pivotals. Negative Asian stocks impacted the sentiment. The Nifty traded below the 15,500 level. All the sectoral indices were in the red with metal, oil & gas and realty stocks falling the most.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 490.84 points or 0.93% to 52,041.23. The Nifty 50 index shed 166.60 points or 1.07% to 15,472.20.

In the broader market, the S&P BSE Mid-Cap index slipped 1.24% while the S&P BSE Small-Cap index shed 0.96%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 879 shares rose and 1,588 shares fell. A total of 81 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,701.21 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,066.41 crore in the Indian equity market on 21 June, provisional data showed.

Stocks in Spotlight:

Hero MotoCorp fell 0.49%. The company has further strengthened its commitment and operations in Turkiye with the introduction of Euro-5 compliant variants of its three globally popular products. The range of Hero MotoCorp products in the Turkiye include the Xpulse 200 4V motorcycle and Dash 110, Dash 125 scooters.

Biocon declined 0.74%. The company's subsidiary Biocon Biologics issued a statement in response to the media reports related to bribery allegations. Biocon Biologics said it strongly denies the allegations of bribery against the company and its officials associated with the approval process of one of our products in India.

Astral shed 1.14%. The company has subscribed to Optionally Convertible Debentures of Rs. 194 crore issued and allotted by Gem Paints Private Limited. Accordingly, Gem Paints Private Limited and Esha Paints Private Limited have become subsidiary and step down subsidiary of the company respectively.

Greenlam Industries gained 3.78%. The company said it has executed a share subscription agreement with Smiti Holding and Trading Company (Investor), for the issuance and allotment of upto 63,10,680 equity shares of face value of Re.1 at Rs. 309 per equity share of the company to the investor on preferential basis.

Global Markets:

Asian stocks slipped in volatile trade on Wednesday, failing to extend Wall Street's rally on persistent worries about interest rates and inflation.

The Bank of Japan, after maintaining its ultra-low interest rates last week, released the minutes from its April monetary policy meeting on Wednesday. Many members expressed the view that underlying inflation, measured by the CPI excluding such factors as energy, remained relatively low, the minutes said. Most members of BOJ policy board expect short-term and long-term interest rates to remain at their present levels or lower, the minutes added.

Wall Street's major indices jumped over 2% on Tuesday as investors scooped up shares of mega-cap growth and energy companies. U.S. stock markets were closed Monday for Juneteenth.

Fed Chair Jerome Powell will testify before Congress Wednesday and Thursday. His appearance comes after a recent rate hike by three-quarters of a percentage point, the central bank's biggest increase since 1994.

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