The domestic benchmarks, the BSE Sensex and the NSE Nifty, are poised to open lower on Thursday, following negative trends across Asian markets as Wall Street and European stocks ended down in trade overnight. The weak trends on SGX Nifty also indicated a gap-down opening for the domestic bourses, with SGX Nifty futures trading 70 points, or 0.43%, lower at 16,278 on the Singapore Stock Exchange at 8:05 AM.
On Wednesday, the domestic bourses ended lower for the fourth consecutive session after the RBI’s Monetary Policy Committee raised the repo rate by 50 basis points (bps) to 4.90%. The S&P BSE Sensex dropped 215 points, or 0.39%, to settle at 54,892 points, and the Nifty 50 fell 60 points, or 0.37%, to 16,356. On the Sensex pack, Bharti Airtel, ITC, Reliance Industries (RIL), Asian Paints, Axis Bank, and IndusInd Bank were the top losers. On the gaining side, Tata Steel, Dr. Reddy’s Laboratories, State Bank of India (SBI), Titan Company, Bajaj Finance, and Maruti Suzuki India topped the chart. On the sectoral front, rate-sensitive sectors – realty, auto, and bankex – ended higher as RBI’s decision came in line with market expectations.
Stocks to watch
Wipro: The IT major has signed a deal with Brazil-based Petrobras to modernise and align its IT infrastructure processes.
Tata Power Company: Tata Power Solar, a subsidiary of the company, has commissioned an EPC (engineering, procurement and construction) project of 450 MWDC for Brookfield Renewable India in Rajasthan.
Vedanta: The mining major has pledged 5.77% shares in Hindustan Zinc Ltd for a term loan of ₹8,000 crore. The company unveiled the development days after the Union Cabinet approved the government's 29.5% stake sale in Hindustan Zinc.
Lupin: The drug maker has received tentative approval from the US Food and Drug Administration (USFDA) to market Ivacaftor tablets, used to treat cystic fibrosis, in America.
Bank of India, PNB: Post RBI rate hike, the public sector lenders have changed its repo based lending rate with immediate effect.
Rail Vikas Nigam: The state-owned company has signed a deal with Kyrgyzindustry to execute infrastructure projects in Kyrgyz Republic.
Future Enterprises Ltd (FEL): The Kishore Biyani-led debt-ridden firm has defaulted on payment of interest of ₹1.41 crore for its non-convertible debentures. The due date for payment was June 6, 2022.
Crompton Greaves Consumer Electricals: The consumer goods company said its board will meet next week to consider raising up to ₹925 crore through debt securities. The board meeting is scheduled on June 13, 2022.
TTI Enterprise: The company has informed exchanges that its board of directors will meet on June 28 to consider sub-division of shares and fundraising for various business purposes.
YES Bank: On the back of YES Bank’s turnaround and having achieved significant progress post the implementation of the reconstruction scheme March 2020, the board of directors of the bank have recommended to its shareholders, the formation of an alternate board in line with the directions of the scheme.
Delta Corp: The stock will remain under the NSE F&O ban today.
Here are the key things investors should know before the market opens today:
Wall Street ends lower
In the overnight trade, the U.S. indices ended in red as Treasury yields rose above 3% level, while renewed surge in oil and energy prices raised concerns about potential aggressive policy stance by the central bank to curb inflation. The caution also prevailed in the market ahead of the inflation data due this week, which is expected to remain at elevated level, in view of higher commodity prices. The Dow Jones Industrial Average ended 0.81% lower, the S&P 500 dropped 1.08%, and the Nasdaq Composite fell 0.73%.
Asian stocks mixed
Shares in the Asia-Pacific region were trading mixed in opening deals on Thursday, following a negative finish on Wall Street overnight. Investors remained concerned about higher oil prices, elevated inflation and the outlook for interest rates.
Regional heavyweight Japan’s Nikkei 225 rose 0.2% and Indonesia’s Jakarta Composite gained 0.5%. The Hang Seng index in Hong Kong also traded flat with positive bias.
Meanwhile, South Korea’s KOSPI dropped 0.7%, the Straits Times Index in Singapore shed 0.3%, and Australia’s ASX 200 fell 1.2%. Taiwan’s Weighted index was also trading 0.4% lower.
In mainland China, stocks were trading on a mixed note, with Shenzhen Component falling 1.4%, while the Shanghai Composite rose 0.1%.
Oil prices rise on demand boost
The price of Brent and U.S. crude edged higher in early trade on Thursday, after rising over 2% in overnight trade on a strong demand outlook. Brent crude hit a 13-week high of $123.58 per barrel on Wednesday amid growing demand for gasoline in the U.S. and hope that ease in Covid restriction in China would boost oil demand.
In Asian trading hours, the Brent oil for July delivery was up 0.3% to $123.9 per barrel, while the U.S. West Texas Intermediate (WTI) crude July futures rose 0.20% to $122.3 a barrel.
FIIs, DIIs data
The foreign institutional investors (FIIs) continued their selling spree in the Indian equity market on June 8, while domestic institutional investors (DIIs) continued to support the market. As per the exchange data, FIIs net sold shares worth ₹2,484.25 crore, while DIIs net purchased shares worth ₹ 1,904.33 crore.
The foreign portfolio investors (FPIs) have so far withdrawn nearly ₹1.7 lakh crore from Indian equity market in 2022. Continuing its selling spree for the eighth straight month, FPIs pushed out nearly ₹40,000 crore in May.
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