The domestic equity benchmarks ended with small losses on Monday. Investors were cautious ahead of Reserve Bank of India (RBI)'s policy announcement later this week. The Nifty ended above the 16,550 mark, recovering from the day's low of 16,444.55 in early trade. Metals, oil & gas and private banks shares advanced while media, realty and consumer durables were under pressure.
The barometer index, S&P BSE Sensex was down 93.91 points or 0.17% to 55,675.32. The Nifty 50 index fell 14.75 points or 0.09% to 16,569.55.
Asian Paints (down 2.36%), UltraTech Cement (down 1.68%), Bajaj Finserv (down 1.34%) and Nestle India (down 1.01%) were major drags.
In the broader market, the S&P BSE Mid-Cap index fell 0.15% while the S&P BSE Small-Cap index declined 0.54%.
The market breadth was negative. On the BSE, 1373 shares rose while 2021 shares fell. A total of 163 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.13% to 20.2025.
RBI's Monetary Policy Committee (MPC) is meeting from 6th to 8th June 2022. After the 40 basis points off-cycle rate hike on 4 May 2022, RBI is widely expected to increase the policy rate further.
Numbers to Track:
The yield on 10-year benchmark federal paper rose to 7.501% as compared with 7.490% at close in the previous trading session.
In the foreign exchange market, the rupee remained stable against the dollar. The partially convertible rupee was hovering at 77.66, compared with its close of 77.66 during the previous trading session.
MCX Gold futures for (3 June 2022) settlement rose 0.07% to Rs 51,011.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.13% to 102.01.
In the commodities market, Brent crude for August 2022 settlement was up 78 cents or 0.65% at $120.50 a barrel. Oil prices jumped after Saudi Arabia raised prices sharply for its crude sales in July.
Global Markets:
The Dow Jones futures were up 273 points, indicating a positive opening in the US stock market today.
Shares in Europe and Asia advanced on Monday, as international markets gear up for key U.S. data releases, including the latest inflation reading. Market in South Korea was shut for a holiday.
The U.K.'s Prime Minister Boris Johnson will face a vote of confidence later on Monday amid increasing dissatisfaction in his leadership.
China's Caixin Services Purchasing Managers' Index released Monday came in at 41.4, better than April's reading of 36.2 but still in contraction territory.
US stocks slid Friday as investors digested a stronger-than-expected jobs report and its implication for monetary policy going forward. The Dow Jones Industrial Average fell 348.58 points, or 1.1%, to 32,899.70. The S&P 500 slipped 1.6% to 4,108.54. The technology-heavy Nasdaq Composite fell nearly 2.5% to 12,012.73.
American employers added 390,000 jobs last month, the government reported Friday. The jobless rate held steady at 3.6% for the third consecutive month.
Buzzing Segment:
The Nifty Metal index rose 1.12% to 5,388.65. The index fell 1.27% in the previous session.
Ratnamani Metals & Tubes (up 6.6%), Welspun Corp (up 4.11%), JSW Steel (up 2.69%), Jindal Steel & Power (up 1.87%), Adani Enterprises (up 1.74%), Vedanta (up 1.25%), Tata Steel (up 1.10%), Hindalco Industries (up 0.85%), National Aluminium Company (up 0.16%) and Steel Authority of India (up 0.07%) advanced.
Stocks in Spotlight:
Ducon Infratechnologies rose 3.81% after the company announced that it has set up a new business division, "Hydrofule", to focus on reducing the production cost of Green Hydrogen.
Confidence Petroleum India rose 2.88% after the company said that it had received license for commercial operation of CNG stations at Bangalore. In line with the agreement with Gail Gas for the establishment of 100 CNG stations in the city of Banglore, the company has completed seven CNG stations in Bangalore, received the license for commercial operation for three, and started CNG dispensing.
Adani Transmission (ATL) rose 3.49% after the company said that it has signed definitive agreements with Essar Power for acquiring 673 ckt kms operational inter-state transmission project owned and operated by Essar Power Transmission. The enterprise value for the transaction is Rs 1,913 crore. The target asset is an operational 400 kV inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh with line length of 673 circuit kilometre (ckt kms).
Larsen & Toubro fell 0.79%. The water & effluent treatment business of L&T Construction has secured an order from the Brihanmumbai Municipal Corporation (BMC) to execute the Bandra Wastewater Treatment Facility under the Mumbai Sewage Disposal Project - Stage II. As per L&T's classification, the value of the 'large' contract lies between Rs 2,500 crore to Rs 5,000 crore.
SpiceJet fell 1.17% after India's aviation regulator imposed Rs 10 lakh fine on the low-cost air carrier for training pilots on faulty simulator. Spicejet clarified to the bourses that it has 650 pilots trained on MAX aircraft. The Directorate General of Civil Aviation (DGCA) had an observation on the training profile followed for 90 pilots. As per the advise of DGCA, the company restricted these 90 pilots from operating MAX aircraft, until these pilots undergo re-training to the satisfaction of DGCA.
Valiant Organics declined 4.89% after the specialty chemicals maker informed about an incidence of blast in reactor in chlorination section of the company's plant located at GIDC, Sarigam, Valsad, and Gujarat. The company said that the incident occurred on Friday, 3 June 2022 at around 9:50 a.m.
RattanIndia Power declined 4.55% after the company on Saturday announced that Vibhav Agarwal has resigned from the post of managing director (MD) due to personal reasons. Agarwal also ceased to be key managerial personnel of the company from 3 June 2022.
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