The key equity barometers ended with steep cuts after a weak session on Monday. The Nifty closed below 15,800 level. All the sectoral indices on the NSE traded in the red with IT, metals and bank stocks falling the most.
As per provisional closing data, the barometer index, the S&P BSE Sensex, slumped 1456.74 points or 2.68% to 52,846.70. The Nifty 50 index tumbled 427.40 points or 2.64% to 15,774.40.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 14.25% to 22.37.
The broader market tumbled, the S&P BSE Mid-Cap index fell 2.73% while the S&P BSE Small-Cap index declined 3.15%.
Sellers outnumbered buyers. On the BSE, 670 shares rose and 2,825 shares fell. A total of 118 shares were unchanged.
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Global cues were weak as investors shunned risky assets on worries that aggressive interest rate hikes by global central banks would stifle economic growth. On Friday, US government data showed inflation reached 8.6% in the 12 months ended in May, the steepest rise in consumer prices since December 1981.
Economy:
Industrial activity in April jumped 7.1% year on year, according to the index of industrial production (IIP) data released by the government on Friday. In comparison, industrial growth had expanded 1.9% in March. Growth in the mining sector was 7.8% in April 2022. The manufacturing sector expanded by 6.3%. Power sector showed a growth of 11.8% year on year in April 2022
Buzzing Index:
The Nifty IT index dropped 3.92% to 27,974.20. The index has tumbled 6% in two sessions.
Mindtree (down 5.89%), L&T Technology Services (down 5.51%), Larsen & Toubro Infotech (down 5.23%), Mphasis (down 5.14%), Coforge (down 4.97%), Tech Mahindra (down 4.86%), Tata Consultancy Services (down 3.99%), Infosys (down 3.35%), Wipro (down 3.22%) and HCL Technologies (down 2.21%) edged lower.
Stocks in Spotlight:
UltraTech Cement slipped 2.97%. Fitch Ratings has revised the outlook on UltraTech Cement's long-term foreign-currency issuer default rating (IDR) to 'stable' from 'negative' and affirmed the foreign- and local-currency IDRs at 'BBB-'. The outlook on the local-currency IDR is 'stable', the credit rating agency said.
Coal India (CIL) declined 3.50%. CIL has floated two international competitive bidding e-tenders of 3 million tones (MTs) each, to source coal from abroad. The bids are for 5,000 GAR (gross as received) quality of thermal grade coal.
GlaxoSmithKline Pharmaceuticals shed 0.60%. The board has recommended a dividend of Rs 90 (including special dividend of Rs 60) per equity share for the year ended 31 March 2022. The company has fixed 8 July 2022 as the record date for determining entitlement of members to final dividend for the financial year ended 31 March 2022.
Bank of Baroda tumbled 4.95%. The state-run bank on Friday announced an increase in the marginal cost of funds-based lending rate (MCLR) by 10-20 basis points across different tenors, effective from 12 June 2022.
Jammu and Kashmir Bank dropped 5.41%. The bank's board on 10 June 2022 approved the appointment of Pratik D Punjabi as the chief financial officer of the bank.
Vedanta fell 3.50%. Vedanta Limited Iron & Steel sector has ventured into international iron ore mining operations in Liberia, West Africa through its subsidiary WCL. WCL is a wholly-owned subsidiary of Bloom Fountain (BFL) which is, in turn, a wholly-owned subsidiary of Vedanta.
Life Insurance Corporation of India (LIC) dropped 5.64%. The 30-day lock-in period for anchor investors ended on Monday, 13 June 2022. The end of lock-in period will allow anchor investors to sell their existing shares in the market. Ahead of the IPO, LIC on 2 May 2022 raised Rs 5,627.27 crore from anchor investors by allotting about 5.93 crore shares to 123 investors at Rs 949 per share. The stock is currently down about 29% compared with its issue price.
RBL Bank slumped 22.67%. The bank appointed R Subramaniakumar as the new managing director and CEO of the bank for three years. Shares of the private sector bank hit an all time low of Rs 92.75 in intraday today on the BSE.
Trident declined 4.41%. In the home textile division, production of bath linen was 3,364 metric tons (MT) (down 34.32% YoY), bed linen production was 2.85 million metres (down 6.25% YoY) and yarn production was 9,191 MT (down 10.86% YoY) in May 2022. Production of paper jumped 14.34% YoY to 14,372 MT while that of chemicals fell 1.36% YoY to 8,923 MT during the period under review.
Global Markets:
The US Dow Jones futures were currently trading with a cut of 576 points, indicating a weak start to equities on Wall Street today.
Shares in Europe and Asia slumped on Monday as investor sentiments were dominated by the prospect of forthcoming interest rate hikes.
Investor mood was darkened by the European Central Bank's confirmation on 9 June 2022 that it intends to hike interest rates by 25 basis points at its July meeting. A further hike is expected in September, the scale of which will be determined by the medium-term inflation outlook.
The UK economy contracted by 0.3% in April after it shrank by 0.1% the month before.
Meanwhile, a COVID-19 warning from Beijing added to concerns about global growth.
US stocks ended sharply lower on Friday as a steeper-than-expected rise in US consumer prices in May fueled fears of more aggressive interest rate hikes by the Federal Reserve.
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