Nifty hovers over 15,600; breadth negative

The benchmark indices traded with modest losses in the mid-morning trade. FMCG, realty and healthcare stocks advanced while oil & gas, auto and media shares declined. The market was dragged by the index heavyweight Reliance Industries which dropped about 6% as the government on Friday announced an increase in taxes on the export of petrol, diesel, and aviation turbine fuel (ATF).

At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 442.15 points or 0.83% to 52,576.79. The Nifty 50 index fell 144.20 points or 0.91% to 15,636.05.

In the broader market, the S&P BSE Mid-Cap index fell 0.09% while the S&P BSE Small-Cap index lost 0.40%.

 

The market breadth was negative. On the BSE, 1,334 shares rose and 1,682 shares fell. A total of 229 shares were unchanged.

Economy:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 53.9 in June, lower than 54.6 in May. The latest reading showed the weakest pace of growth since last September.

Softer increases in production, factory orders, stocks of purchases and employment all dragged down the PMI in June, alongside an improvement in supplier performance which is inverted before entering the calculation.

Buzzing Index:

The Nifty Media index fell 0.64% to 1,885.35, continuing its losing streak to the third day. The index fell 1.2% in the three trading sessions.

Among the components of the Nifty Media index, Nazara Technologies (down 3.63%), Dish TV India (down 2.7%), Network 18 Media & Investments (down 2.54%), Saregama India (down 1.37%) and PVR (down 1.23%) were the top losers.

Among the other losers were TV18 Broadcast (down 1.03%), Zee Entertainment Enterprises (down 0.84%), Hathway Cable & Datacom (down 0.31%).

On the other hand, Sun TV Network (up 0.95%) ,Inox Leisure (up 0.47%) turned up.

Stocks in Spotlight:

Lupin rose 1.30%. The pharma company said that it has received approval from the United States Food and Drug Administration (FDA) for its abbreviated new drug application (ANDA) for Paliperidone Extended-Release Tablets (ERT). The approved ANDA is generic equivalent of Invega Extended-Release Tablets of Janssen Research and Development, LLC. Paliperidone is a prescription medicine used in the treatment of schizophrenia and mania. It works by modulating the action of certain chemical messengers in the brain that affect thoughts.

Bajaj Auto fell 2.30% to Rs 3,620.55 after the two wheeler maker reported a marginal increase in total sales of 3,47,004 units in June 2022 compared with 3,46,136 units sold in June 2021. On a sequential basis, the company's total sales surged 25.79% from 2,75,868 units sold in May 2022. Domestic sales dropped 15% to 1,38,351 units in June 2022 as compared to 1,61,836 units in June 2021. Exports rose 13% to 2,08,653 units in June 2022 as against 1,84,300 units in June 2021.

Global markets:

The Dow Jones index futures were down 288 points, indicating a negative opening in the US stocks today.

Most of the Asian stocks were trading lower on Friday as investors digested positive factory activity data from a private survey in China. Markets in Hong Kong were closed on Friday for a holiday.

China's Caixin/Markit manufacturing Purchasing Managers' Index for June was released Friday. It came in at 51.7, above the 50-level that separates growth from contraction. That compared to last month's reading of 48.1.

Sentiment at Japan's large manufacturers worsened in the April-to-June period, according to the Bank of Japan's quarterly tankan business sentiment survey. The headline index for large manufacturers' sentiment came in at 9, a decline from the previous quarter's reading of 14.

Japan's factory activity growth slowed in June as supply disruptions in part due to China's strict COVID-19 curbs hurt manufacturers. The final au Jibun Bank Japan Manufacturing purchasing managers' index (PMI) slipped to a seasonally adjusted 52.7 in June from a final 53.3 in the previous month.

U.S. stocks tumbled on Thursday on concerns that central banks determined to tame inflation will hamper global economic growth. Fears over slowing growth and surging prices have rippled through markets, with recession worries taking center stage as monetary policymakers across the world look to aggressively raise borrowing costs.

US consumer spending rose less than expected in May as motor vehicles remained scarce while higher prices forced cutbacks on purchases of other goods. Consumer spending gained 0.2% in May, the smallest rise in five months. Data for April was revised down to show outlays increasing 0.6% instead of 0.9% as previously reported.

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