Indian equity
benchmarks traded under pressure and fell nearly a per cent on Tuesday weighed
by IT, TECK and Metal stocks amid weakness across global markets. After a weak
start, the indices drifted further lower and ended around the day’s low ahead
of the industrial growth data for May and retail inflation figures for June to
be out later in the day.
On the global front, European markets ended lower as
rising COVID case counts in several regions raised fears of another round of
painful lockdowns in China, especially in Shanghai or Beijing. Investors also
fretted about a worsening energy crisis in Europe.
Also Read | Glance finds a way to advertise on lock screens, will others follow?
The Nifty50 has
formed a reasonable negative candle on the daily chart and the bulls need to be
careful, according to Nagaraj Shetti, Technical Research Analyst at HDFC
Securities. He sees the
possibility of some correction in the 50-scrip index in the short term.
Also Read | Explained: Why has RBI allowed international trade settlement in Rupee
Sensex fell 508.62 points or 0.94% to 53,886.61 and the
Nifty was down by 157.70 points or 0.97% to 16,058.30 in the previous session. Sensex
touched high and low of 54,236.49 and 53,824.97, respectively. There were 3
stocks advancing against 27 stock declining on the index. Nifty traded in a
range of 16,158.75 and 16,031.15. There were 6 stocks advancing against 44
stocks declining on the index.
Also Read | Rogers’s being probed by regulators, customers call for more competition
Broader Indices
The broader indices ended in red with the BSE Mid cap index
falling 0.51%, while Small cap index was down by 0.52%. On the sectoral front, Utilities
was up by 1.27%, Telecom was up by 1.22%, Power was up by 1.15% and Realty was
up by 0.04%, while IT down by 1.29%, TECK down by 1.21%, Metal down by 1.16%,
Auto down by 1.13% and FMCG down by 1.03% were the top losing indices on BSE.
Asian stocks trade at two year low, euro approaches parity with dollar
India VIX Index
Nifty or India VIX, a
gauge of the market’s expectation of volatility over the near term, rose 0.98%
to 18.55 on Tuesday.
SGX Nifty
The trends on SGX Nifty indicate
a positive opening for the index in India with a 55 points gain. The Nifty futures were trading
at 16,114.00 on the Singaporean Exchange
around 06:50 hours IST.
Also Read | Oil prices fall as new China COVID restrictions dampen fuel demand outlook
Support and
Resistance levels
The key support level
for the Nifty is placed at 16,007, followed by 15,955. If the index moves up,
the key resistance levels to watch out for are 16,134 and 16,210, according to
pivot charts.
The S&P 500 fell 35.63 points, or 0.9%, to 3,818.80.
The Dow Jones Industrial Average fell 192.51 points, or 0.6%, to 30,981.33.
The Nasdaq fell 107.87 points, or 0.9%, to 11,264.73.
The Russell 2000 index of smaller companies fell 3.83 points, or 0.2%, to 1,728.18.
Also Read | Indian rupee hits all-time low on stronger dollar, recession worries
Asian Markets
Asian markets ended
mostly lower on Tuesday. The Heng Seng fell 1.32%, the KOSPI Composite fell 0.96%,
the Shanghai Composite fell 0.97% and the Nikkei 225 rose 1.77%.
European Markets
European markets
ended mostly lower on Tuesday, London’s FTSE 100 was up by 0.0049%, France’s
CAC 40 was down by 0.62% and Germany’s DAX was down by 1.40%.
Also Read | Week ahead: Quarterly results, crude price to weigh on Sensex, Nifty
Major News Headlines
Retail inflation drops marginally
to 7.01% in June
Retail inflation fell marginally
to 7.01% in June on the back of a slight drop in prices of vegetables and
pulses, though it remained above the Reserve Bank of India’s (RBI) tolerance
level for the sixth month in a row. The consumer price index (CPI) based on
inflation stood at 7.04% in the previous month in May and 6.26% in June 2021.
Also Read | What to do if restaurants and hotels continue to levy a service charge
Inflation in the food segment in
June 2022 stood at 7.75%, against 7.97% in the previous month, according to the
National Statistical Office (NSO) data released on Tuesday. However, retail inflation has stayed above the RBI’s upper
tolerance limit of 6% since January 2022. According to the official data, the
inflation rate in vegetables dropped to 17.37% during the month from 18.26% in
May. For pulses and products, it eased to (-) 1.02% against (-)0.42%.
Also Read | Twitter takeover saga enters ‘Twilight zone’: Elon Musk wants to end deal
For the first time in 20 years,
the US dollar and the euro are at parity
The exchange rate between the
euro (EUR) and the US dollar has reached parity for the first time in 20 years,
meaning the two currencies are worth the same. The euro touched $1 on Tuesday,
down around 12% since the start of the year amid fears of recession on the
continent abound, worsened by high inflation and energy supply disruptions
caused by the Russia-Ukraine war.
Also Read | Why is Elon Musk keen to walk away from Twitter deal?
The European Union, which
received nearly 40% of its gas through Russian pipelines before the war, is
trying to reduce its dependence on Russian oil and gas. At the same time,
Russia has reduced gas supplies to some EU nations and recently cut the flow in
the Nord Stream by 60%.
Also Read | What is Abenomics?
HCL Tech Q1 Results: Net profit comes
at Rs 3,283 crore, declares Rs 10 interim dividend
The IT services company reported an 8.6% sequential decline in
profit at Rs 3,283 crore due to margin pressure in the quarter ended June 2022.
Revenue increased by 3.8% quarter on quarter to Rs 23,464 crore in the
April-June quarter of fiscal 2022. In dollar terms, revenue increased 1.1% to
$3.025 million and in constant currency terms, the topline growth was 2.7%. The
firm also declared an interim dividend of Rs 10 per share for fiscal 2023.
Also Read | How to survive a market crash
SANDEEP BANSAL HUF bought 65,000 shares in AKG Exim Limited at Rs 49.37
per share as per NSE.
KISHAN MUNDRA sold 1,47,000 shares in CMM Infraprojects Limited at Rs
13.39 per share on the NSE.
FINDOC INVESTMART PRIVATE LIMITED sold 8,00,000 shares in Steel Exchange
India Limited at Rs 23.00 per share as per NSE.
LA RICHESSE ADVISORS PRIVATE LIMITED bought 75,00,000 shares in Supreme
Engineering Limited at Rs 2.75 per share as per NSE.
Also Read | US inflation rate at a 40-year high | A timeline: 1930-2022
Foreign institutional
investors (FIIs) sold shares worth a net Rs 1,565.68 crore, while domestic
institutional investors (DIIs) bought shares worth a net Rs 140.71 crore in the
Indian equity market on July 12, as per provisional data available on the NSE.
Also Read | Great Depression to COVID: Top 5 market crashes in American history
Delta Corp is the
stock/security that has been placed under the F&O ban for July 13.
Securities in the ban period under the F&O segment include companies in
which the security has crossed 95% of the market-wide position limit.
