Nifty tad above 15,800; NSE India VIX up nearly 9%

The domestic equity barometers slumped in early trade amid a sharp sell-off in index pivotals. The Nifty traded tad above the 15,800 level. Shares across sectors declined with banks, financials, and metal stocks falling the most.

At 09:24 IST, the barometer index, the S&P BSE Sensex, was down 1367.73 points or 2.52% to 52,935.71. The Nifty 50 index fell 392.25 points or 2.42% at 15,809.55.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 8.81% to 21.30.

In the broader market, the S&P BSE Mid-Cap index fell 2.19% while the S&P BSE Small-Cap index declined 2.26%.

 

The market breadth, indicating the overall health of the market, was weak. On the BSE, 495 shares rose and 2164 shares fell. A total of 101 shares were unchanged.

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.

Stocks in Spotlight:

Vedanta fell 2.74%. 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.

Coal India (CIL) slipped 2.74%. 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 0.07%. 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.

Global markets:

Asian stocks tumbled on Monday as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth. Markets in Australia are closed on Monday for a holiday.

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.

Meanwhile, the U.S. consumer price index increased a bigger-than-expected 8.6% last month, the largest year-on-year increase since December 1981, Labor Department figures showed Friday.

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