Sensex, Nifty at day's low

The domestic equity barometers were currently at the day's low in afternoon trade. The Nifty was trading below the 15,950 mark. European markets declined while their Asian shares were mixed.

At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 109.41 points or 0.20% to 53,404.74. The Nifty 50 index fell 35.50 points or 0.22% to 15,931.15.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.56% while the S&P BSE Small-Cap index declined 0.60%.

The market breadth was negative. On the BSE, 1,270 shares rose and 1,942 shares fell. A total of 141 shares were unchanged.

Domestic equities mirrored the weakness in their global peers after the US consumer inflation leapt to a four-decade high of 9.1% in June, adding pressure on the Federal Reserve to adopt a more aggressive monetary policy to tame the red-hot inflation.

Economy:

India's inflation based on wholesale price index (WPI) stood at 15.18% in June 2022 compared with 12.07% in June 2021.

"The high rate of inflation in June, 2022 is primarily due to rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, food products etc. as compared to the corresponding month of the previous year," the Ministry of Commerce & Industry said in a statement today.

The WPI grew 15.88% in May 2022, while the figure for April was 15.38%. WPI for the month of July 2022 will release on 16 August 2022.

Stocks in Spotlight:

Mindtree declined 1.11% after the IT company reported 0.3% fall in consolidated net profit to Rs 471.6 crore despite a 7.7% rise in revenue to Rs 3121.1 crore in Q1 FY23 over Q4 FY22.

Tata Metaliks tumbled 5.32%. The company reported a 98.7% decline in net profit to Rs 1.22 crore despite of a 10.5% increase in net sales to Rs 666.37 crore in Q1 FY23 over Q1 FY22.

Tata Chemicals (TCL) rose 0.27%. TCL said that CARE Ratings has reaffirmed the ratings assigned to the bank facilities of the company. The rating on the long-term bank facilities has been reaffirmed at 'CARE AA+; Stable' while the rating on the short-term bank facilities has been reaffirmed at 'CARE A1+'.

Welspun Corp shed 0.50%. The company's associate firm East Pipes Integrated Company for Industry (EPIC), in the Kingdom of Saudi Arabia (KSA), has been awarded with a contract by SWCC for manufacture and supply of steel pipes.

Global Markets:

Markets in Europe declined while Asian traded in a mixed fashion on Thursday as global markets digest the latest U.S. inflation data.

Singapore's central bank tightened its monetary policy on Thursday, in an off-cycle move, saying the action would slow inflation as the city-state joins other countries ramping up their battle against mounting price pressures.

US stocks closed modestly lower on Wednesday as hotter-than-expected US inflation data drove fear the Federal Reserve will raise interest rates even more aggressively to slow price increases, potentially sending the economy into recession.

US inflation accelerated in June by more than forecast. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday. The widely followed inflation gauge increased 1.3% from a month earlier, the most since 2005, reflecting higher gasoline, shelter and food costs.

Powered by Capital Market - Live News