The key equity indices tumbled and were currently near the day's low afternoon trade. The Nifty traded below 15,700 mark. Realty shares witnessed some bit of bargain buying after declining in the past two sessions.
At 14:23 IST, the barometer index, the S&P BSE Sensex, was down 331.12 points or 0.63% to 52,515.58. The Nifty 50 index lost 91.20 points or 0.58% to 15,683.20.
In the broader market, the S&P BSE Mid-Cap index shed 0.30% while the S&P BSE Small-Cap index slipped 0.45%.
The market breadth was negative. On the BSE, 1,490 shares rose and 1,786 shares fell. A total of 123 shares were unchanged.
While easing domestic inflation in May gave some hope to investors, recession fears in the US continued to loom large ahead of the US Fed's policy outcome due on Wednesday.
A major foreign brokerage has reported forecasted a 75-basis point (bp) interest rate hike from the Fed's June policy meeting on Wednesday. A 75-bp hike would reportedly be the biggest since 1994.
Economy:
India's inflation based on the Wholesale Price Index (WPI) rose further in May, hitting 15.88%, according to data released by the commerce ministry today. WPI inflation was 15.08% in April 2022 and 13.11% in May 2021. The high rate of inflation in May, 2022 is primarily due to rise in prices of mineral oils, crude petroleum & natural gas, food articles, basic metals, non-food articles, chemicals & chemical products and food products etc. as compared to the corresponding month of the previous year, stated the Ministry of Commerce and Industry.
India retail inflation (CPI) eased to 7.04% in May, mainly on account of softening food prices, though it remained above the RBI's upper tolerance level for the fifth consecutive month, government data showed on Monday. The Consumer Price Index (CPI) based inflation was 7.79% in April. In May 2021, the retail inflation stood at 6.3%.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.587% as compared with 7.604% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 78.0575, compared with its close of 78.0400 during the previous trading session.
MCX Gold futures for 5 August 2022 settlement fell 0.13% to Rs 50,600.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.34% to 104.72.
In the commodities market, Brent crude for August 2022 settlement rose $1.04 or 0.85% at $123.31 a barrel.
Buzzing Index:
The Nifty Realty index rose 0.55% to 390. The index had fallen 4.31% in the past two sessions.
Oberoi Realty (up 2.39%), DLF (up 2%), Brigade Enterprises (up 1.6%), Phoenix Mills (up 0.9%) and Sobha (up 0.6%) and Prestige Estates Projects (up 0.15%) advanced.
Meanwhile, Sunteck Realty (down 1.69%), Indiabulls Real Estate (down 0.83%) and Macrotech Developers (down 0.68%) edged lower.
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