Indices drop in early trade on weak global cues

Benchmark indices were trading on a weak note in early trade amid negative global cues. All the sectoral indices on the NSE were trading in the red. The Nifty was trading below the 16,300 level.

At 9:29 IST, the barometer index, the S&P BSE Sensex, was down 679.96 points or 1.23% at 54,640.32. The Nifty 50 index fell 216.70 points or 1.32% at 16,261.25.

In the broader market, the S&P BSE Mid-Cap index lost 0.94% while the S&P BSE Small-Cap index was down by 0.74%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 862 shares rose and 1,621 shares fell. A total of 102 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,512.64 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,624.90 crore in the Indian equity market on 9 June, provisional data showed.

Stocks in Spotlight:

Bajaj Auto rose 1.32% to 3,928.10. The meeting of board of directors of the company is scheduled to be held on 14 June 2022, to consider a proposal for buyback of fully paid-up equity shares of the company.

Power Finance Corporation fell 0.74% to Rs 107.75. A Special Purpose Vehicle (SPV) Company named Fatehgarh IV Transmission Ltd has been incorporated as a wholly owned subsidiary of PFC Consulting Limited (a wholly owned subsidiary of Power Finance Corporation Limited) for development of Transmission system for evacuation of power from REZ in Rajasthan (20 GW) under Phase-III-Part-A1'

Dr. Reddy's Laboratories fell 0.53% to Rs 4,303.15. Olema Pharmaceuticals, Inc. and Aurigene Discovery Technologies Limited announced an exclusive global license agreement to research, develop and commercialize novel small molecule inhibitors of an undisclosed oncology target. Aurigene Discovery Technologies is a clinical stage biotech company and a wholly owned subsidiary of Dr. Reddy's Laboratories.

Global markets:

Overseas, Asian stocks are trading lower on Friday as Chinese inflation data for May came in largely in line with expectations. Investors also looked ahead to the release of U.S. inflation data expected later stateside.

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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