Falling for the
third day in a row, Indian equity benchmarks ended sharply lower on Tuesday due
to selling across counters as caution set in among investors ahead of RBI’s
monetary policy decision due on June 8. The RBI’s Monetary Policy Committee is
expected another round of hike in benchmark interest rates to control inflation
that continues to remain above the central bank’s upper tolerance level. Sentiments
remained weak in late afternoon deals, as exchange data showed Foreign
Institutional Investors (FII) continued to be net sellers of domestic stocks on
Monday.
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The Nifty50 has
formed a small negative candle on the daily chart with a minor lower shadow,
signalling a weak trend with rangebound action, according to Nagaraj Shetti,
Technical Research Analyst at HDFC Securities. “The index is on the edge
of breaking below crucial support at 16,400 but minor buying is still emerging
from the lows,” he said.
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Sensex fell 567.98 points or 1.02% to 55,107.34 and Nifty
was down by 153.20 points or 0.92% to 16,416.35 in the previous session. Sensex
touched a high and low of 55,387.77 and 54,882.41, respectively. There were 5
stocks advancing against 25 stocks declining on the index. Nifty traded in a
range of 16,487.25 and 16,347.10. There were 14 stocks advancing against 36
stocks declining on the index.
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Broader Indices
The broader indices ended in red with the BSE Mid cap
index falling 0.77%, while Small cap index was down by 0.67%. On the sectoral
front, Oil & Gas was up by 1.19%, Energy up by 1.05%, Utilities up by
0.87%, Power up by 0.77% and PSU up by 0.64%, while Consumer Durables was down
by 2.71%, Realty down by 1.57%, Capital Goods down by 1.53%, IT down by 1.42%
and FMCG down by 1.42% were the top losing indices on BSE.
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India VIX Index
Nifty or India VIX, a gauge of the market’s expectation of volatility over the near term, rose 1.10% to 20.42 on Tuesday.
SGX Nifty
The trends on SGX Nifty indicate a negative opening for the
index in India with a 7-points loss. The Nifty futures were trading at 16,485.50 on the Singaporean Exchange around 06:40 hours
IST.
Support and Resistance levels
The key support
level for the Nifty is placed at 16,347, followed by 16,277. If the index moves
up, the key resistance levels to watch out for are 16,487 and 16,557, according to pivot
charts.
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The S&P 500 rose 39.25 points, or 1%, to 4,160.68.
The Dow Jones Industrial Average rose 264.36 points, or 0.8%, to 33,180.14.
The Nasdaq rose 113.86 points, or 0.9%, to 12,175.23.
The Russell 2000 index of smaller companies rose 29.68 points, or 1.6%, to 1,919.56.
Asian Markets
Asian markets ended mixed on Tuesday. The Shanghai Composite rose 0.17%, the Nikkei rose 0.56% while the Hang Seng fell 0.56%.
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European Markets
European markets ended lower on Tuesday, Germany’s DAX was down by 0.66%, France’s CAC 40 was down by 0.74% and London’s FTSE 100 was down by 0.12%.
Major News Headlines
Adani Group, Apollo in discussions to acquire majority stake in
Metropolis
Adani Group and
Apollo Hospitals Enterprises are considering offers for a controlling stake in
the diagnostics chain Metropolis Healthcare, according to Mint. Considering
Metropolis’ market valuation and breadth of operations, the transaction might
be worth at least $1 billion, reported Mint citing sources. The initiative is
the next phase in the Adani Group’s foray into healthcare, according to the
report, and the conglomerate has committed $4 billion to develop a presence in
the field. Metropolis is a diagnostics and pathology chain that was established
in the 1980s with a single lab. It currently has a presence in 19 states,
primarily in western and southern India.
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REL’s
ex-chairman Sunil Godhwani arrested for alleged Rs 800 crore fund
Former chairman and managing director of Religare
Enterprises Limited (REL) Sunil Godhwani has been arrested in connection with a
2020 case related to fraud worth Rs 800 crore. Godhwani, who was already in
judicial custody in a case registered by the Economic Offences Wing of the
Delhi Police for allegedly misappropriating funds of Religare Finvest Ltd
(RFL), was taken on a production remand and then arrested, the police said on
Tuesday.
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Zydus
Lifesciences get USFDA approval to market generic acne drug
Zydus Lifesciences said it has received final approval
from the US Food and Drug Administration (USFDA) to market Adapalene and
Benzoyl Peroxide topical gel is used to treat acne, in the US market. A
combination of Adapalene (a retinoid) and Benzoyl Peroxide (an antibiotic and
skin-peeling agent), the gel is used to decrease the number and severity of
acne pimples.
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Wockhardt
appoints Deepak Madnani as Chief Financial Officer
The pharmaceutical company has appointed Deepak Madnani
as the Chief Financial Officer with immediate effect on June 7. The company has
taken this decision after Pramod Gupta has informed that considering his health
reasons he will not be able to continue as the Chief Financial Officer.
VISESH GUPTA sold 10,000,000 shares in Integra
Essentia Limited at Rs 0.10 per share on the NSE.
SAIF INDIA IV FII
HOLDINGS LIMITED sold 1,60,000 shares in Fiem
Industries Limited at Rs 1,038.23 per share on the NSE.
INDUSIND BANK LTD
CLIENT A/C sold 72,44,000 shares in Future Retail Limited at Rs 7.00 per share as per NSE.
HARSHIL PREMJIBHAI
KANANI sold 18,77,000 shares in Kanani Industries
Limited at Rs 27.80 per share as per NSE.
YASHIH DAHIYA sold
37,69,471 shares in PB Fintech Limited at Rs 610.24 per share as per NSE.
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Foreign institutional investors (FIIs) sold shares worth a net Rs 2,293.98 crore, while domestic institutional investors
(DIIs) bought shares worth a
net Rs 1,311.14 crore in the Indian equity market on June 7, as per provisional
data available on the NSE.
Delta Corp has been
put under the
F&O ban for June 8. 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.
