Equity benchmark Sensex slumped over 1,000 points to sink below the 55,000-level on Friday, tracking deep losses in IT, finance, banking and energy stocks amid widespread selling in the global markets. A weak rupee, surging crude prices and relentless foreign capital outflows further weighed on sentiment, traders said. The 30-share BSE index ended 1,016.84 points or 1.84 per cent lower at 54,303.44. Similarly, the broader NSE Nifty plunged 276.30 points or 1.68 per cent to 16,201.80.
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Dow sinks over 600 points after red-hot May inflation data
Wall Street shuddered Friday, and stocks tumbled after getting hammered by data showing inflation is getting worse, not better, as investors had been hoping. The S&P 500 was 2% lower in the first half hour of trading, while moves in the bond market indicated investors’ concerns are building about a possible recession. The Dow Jones Industrial Average was down 611 points, or 1.9%, at 31,661 as of 9:55 a.m. Eastern time, and the Nasdaq composite was 2.4% lower.
US inflation hit a new 40-year high last month of 8.6%
- The costs of gas, food and other necessities jumped in May, raising inflation to a new four-decade high and giving American households no respite from rising costs.
- Consumer prices surged 8.6% last month from 12 months earlier, faster than April’s year-over-year surge of 8.3%, the Labor Department said Friday.
- On a month-to-month basis, prices jumped 1% from April to May, a steep rise from the 0.3% increase from March to April. Much higher gas prices were to blame for most of that increase.
Expectations of the week!
Yesha Shah, Head of Equity Research, Samco Securities
TECH VIEW: Rupak De, Senior Technical Analyst at LKP Securities
Nifty has managed to close above the 16200 mark after remaining with a bearish bias throughout the day. On the daily chart, the index has filled the gap of 27th May. The bias is likely to remain weak as long as the index remains below 16400. On the lower end, support is pegged at 16200; a decisive breakdown below 16200 may induce selling pressure in the market.
Bank Nifty has slipped below the recent consolidation on the daily chart suggesting a rise in bearishness. The daily RSI is in a bearish crossover. The index has sustained below 50SMA. Going ahead, the trend may remain negative, on the lower end, support is visible at 34000. On the higher end resistance is seen at 34800
Rupee falls 11 paise to record low of 77.85 against US dollar
The rupee tumbled 11 paise to close at a fresh lifetime low of 77.85 (provisional) against the US dollar on Friday as a sell-off in domestic equities and stronger greenback overseas weighed on investor sentiment. Persistent foreign capital outflows, elevated global crude oil prices and risk-averse sentiments also impacted the domestic unit, forex traders said.
Rising inflation fears gripped the domestic market leading to heavy sell-off ahead of the release of US inflation data & Fed policy meet next week. The inflation data will be crucial to sense the quantum of a rate hike. European Central Bank in its policy meeting signalled to start rate hike from next month and a large change in September. Persisted foreign fund outflow and widening trade deficit due to the elevated oil prices led to depreciation of INR, weakening the sentiment.
– Vinod Nair, Head Of Research at Geojit Financial Services
Rupee traded weak by 0.08 points at 77.85 compared to 77.77 down 0.10% inching closer to 78.00 on back of strong dollar prices after China lockdown restriction raised yet again, sending commodity prices lower and dollar prices higher. The rupee felt the pressure as dollar prices trade above $103.50 & Crude prices holding above $120 in both Brent & Nymex. The rupee can be seen in range of 77.75-78.00 given the current situation, Core CPI data of the US will give further cues for the range on rupee and dollar index.
– LKP Securities
Market View: Ajit Mishra, VP – Research, Religare Broking
Markets will continue to take cues from the global markets in absence of any major domestic event. First, participants will react to the US inflation data and upcoming macroeconomic data (IIP, CPI & WPI) will also be in focus. While the index is gradually inching lower, a mixed trend on the sectoral front is offering opportunities on both sides so traders should align their positions accordingly.
Financial Services, IT crack the most
Sensex Heatmap: 23 of 30 index stocks end lower
Closing Bell: Sensex resumes losing run after 1-day break, plummets 1,017 pts; Nifty ends below 16,200; Kotak Bank, HDFC drop 4% each, RIL 3%
SIAM DATA: May passenger vehicle sales at 2.51 lakh units vs 88,045 units
#AutoSales | May passenger vehicle sales at 2.51 lk units vs 88,045 units, as per latest @siamindia data… https://t.co/BI6qQlrH7M
— ET NOW (@ETNOWlive) 1654850926000
Transformers and Rectifiers has been awarded orders of Transformers for total contract value of Rs 186 Crores from one of the State Utility.
Price as on 10 Jun, 2022 02:17 PM, Click on company names for their live prices.
European shares slip ahead of U.S. inflation data
European shares on Friday extended losses to a fourth consecutive session, ahead of U.S. inflation data that could spur more speculation about the Federal Reserve’s policy decision next week. All sectors were trading in red with banks weighing the most in the pan-European STOXX 600 index, which lost 0.7% by 0704 GMT, on course to end the week about 2% lower.
Top Sensex drags at this hour!
FREAKY FRIDAY: SENSEX TANKS 1,000 POINTS
Sensex Today LIVE: Asian Paints top index performer, Kotak Bank worst as Sensex slides 900 points
History says when FII outflows rise to such levels, it’s usually a good time to buy Indian stocks. The return of FII inflows will depend on two factors. Firstly, a better earnings growth trajectory than peers and a more resilient emerging market picture. I reckon that in H2 of 2022, both these factors could be supportive of FII inflows than of aggressive outflows.
– Sahil Kapoor, Market Strategist & Head – Products, DSP Investment Managers
Top 5 losers from the metal pack
Price as on 10 Jun, 2022 12:58 PM, Click on company names for their live prices.
Rupee hit its fresh all time low but in the last few sessions has been very resilient and is consolidating in a narrow range despite volatility in domestic and global equities and strength in the dollar against its major crosses. On the domestic front, RBI has been very actively intervening and curtailing the volatility for the rupee. Global crude oil prices have been rallying thereby putting pressure on inflation and leading to higher trade deficit. Dollar is getting support at lower levels ahead of US inflation number that will be released today and FOMC policy statement that is scheduled next week. Expectation is that the Fed could continue to raise rates and maintain its hawkish stance. We expect the USDINR (Spot) to trade with a positive bias and is gradually headed towards 78.50 levels. On the downside 77.20 will continue to act as an important support in the short term.
– Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
Alembic Pharmaceuticals on Friday said it has received approval from the US health regulator to market Dasatinib tablets, used to treat certain types of cancers, in the American market.
Price as on 10 Jun, 2022 12:11 PM, Click on company names for their live prices.
These stocks fall in market tandem, down up to 4%
Price as on 10 Jun, 2022 12:02 PM, Click on company names for their live prices.
Market LIVE Updates: Nifty slips below 16,250
FITCH ON INDIA
- Cuts FY23 GDP growth forecast to 7.8% vs 8.5%
- Sees SBI raising repo rate to 6.14% by FY24
- Sees India growth at around 7% between FY24 to FY27
We believe India’s highly underserved life insurance market is still in its infancy and is well-positioned to capitalize on the enormous growth potential. LIC has several competitive advantages, including a strong brand value, a massive network of agents, and an enviable distribution network. Further, the company has plans to address concerns with the company like low VNB margins, loss in market share, high reliance on agency channel, etc. Additionally, the company’s issue was priced at a Price to Embedded Value of 1.1x, which was already at a discount compared to its global as well as Indian peers, and the current dip provides further valuation comfort. Another point we’d like to make is that investors should be aware that insurance is a long-term business; therefore wealth development and compounding occur only over time. One interesting observation that can be witnessed is that the low made on the first day of trade after the 30-day anchor investor’s lock-in period may act as strong support for a further rally for quality stocks. If fundamentals are strong it’s a good time to buy on such dips.
– Santosh Meena, Head of Research, Swastika Investmart
India’s retail inflation likely slipped only modestly in May
- India’s retail inflation likely slipped modestly in May, but stayed well above the Reserve Bank of India’s upper tolerance limit for a fifth consecutive month, as lower fuel prices offset surging food costs, a Reuters poll found.
- But the dip is expected to be temporary and analysts say the RBI remains on track to keep raising interest rates.
- Late last month, the government announced a series of changes to the tax structure levied on essential commodities and trimmed fuel tax to cushion consumers from rising prices and fight high inflation.
Market LIVE Updates: IT pack trade with deep cuts; check out the top losers from the pack
Price as on 10 Jun, 2022 10:20 AM, Click on company names for their live prices.
STOCK IN FOCUS: IIFL FINANCE
#StocksInNews | 80.8 lk @IIFL_Finance shares trade in 2 bunch deals @IIFLHomeLoan #StockMarketIndia… https://t.co/dVqjU6OI4y
— ET NOW (@ETNOWlive) 1654832069000
Strengthening of the US 10-year bond yield to 3.05 % can be interpreted as the market discounting worse- than- expected inflation data in the US on Friday. If inflation data turns out to be worse-than-expected, equity markets will turn bearish. If it doesn’t, markets will stage a rebound next week. Meanwhile, INR depreciation is becoming a tailwind for the IT industry. Since banks have hiked lending rates immediately after the repo rate hike, they are likely to post good results in the coming quarters. Calibrated buying on dips in high quality banking and IT stocks can fetch good returns to investors in the medium- term.
– Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Welspun Enterprises executes agreements with Actis Highway to sell its highway project portfolio; stock rallies 7%
Price as on 10 Jun, 2022 09:31 AM, Click on company names for their live prices.
Voda Idea, SAIL, YES Bank, MRPL among most active stocks on NSE
Price as on 10 Jun, 2022 09:28 AM, Click on company names for their live prices.
Sector Watch | Sea of red…
- Metal, IT, private banks & financials bleed over 1% each
Sensex Heatmap: NTPC only index stocks trading in the green
OPENING BELL: Sensex tanks over 600 points, Nifty slips below 16,300; Berger Paints sheds 3%, IIFL jumps 8%
Rupee hits new all-time low
#MarketAlert | Rupee hits a fresh intraday low of Rs 77.82/$ #Dollar #USDINR #Rupee #MarketsWithETNOW https://t.co/lPtTUey6DR
— ET NOW (@ETNOWlive) 1654832226000
Asian stocks track global shares lower, US CPI in focus
Asian shares tracked Wall Street lower on Friday, while the dollar held on to its overnight gains, after rate hike guidance from the European Central Bank and upcoming US inflation data unnerved investors. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.2% in early Asian trade, weighed down by drops of 1.5% in Hong Kong, 0.8% in resources-heavy Australia and 1.6% in South Korea.
Oil dips on demand worries over Shanghai’s new partial lockdowns
Oil prices fell on Friday but still hovered near three-month highs, with fears over new COVID-19 lockdown measures in Shanghai outweighing solid demand for fuels in the world’s top consumer United States. Brent crude futures for August was down $1.01, or 0.8%, at $122.06 a barrel as of 0141 GMT after a 0.4% decline the previous day.
SGX Nifty signals a gap-down start
Nifty futures on the Singapore Exchange traded 232 points, or 1.41 per cent, lower at 16,239.50, signaling that Dalal Street was headed for a gap-down start on Friday.
Q4 results today
HMT, Citurgia Biochemicals, Opto Circuits (India), Supreme Infrastructure India and Apis India are among companies which will announce their quarterly earnings today.
Tech view: Nifty all set to leap towards 16,800
The daily momentum indicator has been in bullish mode, whereas the hourly momentum indicator developed a positive divergence and started a new cycle on the upside. This suggests that the Nifty50 is set for a leap towards the junction of the swing high and the daily upper Bollinger Band, which is near 16,800.
Tokyo stocks open lower with eyes on US inflation
Tokyo stocks opened lower on Friday, tracking falls on Wall Street, with investors cautious ahead of key US inflation data due later in the day. The benchmark Nikkei 225 index was down 1.03 percent, or 290.31 points, at 27,956.22 in early trade, while the broader Topix index fell 1.01 percent, or 19.82 points, to 1,949.23.
US stocks drop as investor jitters climb before CPI data Friday
US stocks sold off sharply Thursday as investor anxiety heightened ahead of data on Friday that is expected to show consumer prices remained elevated in May. The Dow Jones Industrial Average fell 638.11 points, or 1.94%, to 32,272.79; the S&P 500 lost 97.95 points, or 2.38%, to 4,017.82; and the Nasdaq Composite dropped 332.05 points, or 2.75%, to 11,754.23.
Rupee slips 6 paise to 77.74 against US dollar
The rupee depreciated by 6 paise to close at 77.74 against the US dollar on Thursday, weighed down by elevated crude oil prices and persistent foreign capital outflows.
Sensex, Nifty on Thursday
After shuffling between gains and losses, the benchmark staged an 813 point rebound in late afternoon trade. The 30-share pack Sensex added 427.79 points or 0.78 per cent to end the session at the day’s high at 55,320.28. Its broader peer, Nifty50, rose 121.85 points or 0.74 per cent to reclaim the 16,450 mark.