Informist, Wednesday, Jun 1, 2022
By Abhishek Saini
MUMBAI – Benchmark equity indices closed yet another listless session in the red, unable to hold on to the intermittent gains. Amid inflation and growth concerns, investors refrained from taking aggressive positions, awaiting cues on the liquidity tightening path of central banks.
Mounting inflation in Europe and elevated crude oil prices made sure investors avoided aggressive fresh bets and booked profits.
“Markets have corrected over the last six months and participants are now quickly discounting the impact of high inflation and the rising interest rate scenario,” said Anupama Sharma, executive director, IIFL Wealth
“We believe that markets are likely to continue witnessing volatility. In the backdrop of such a landscape, investors should maintain asset allocation disciplines and take advantage of the volatility by building equity positions at compelling valuations,” Sharma added
The indices had witnessed a muted start but were able to shrug off any weakness and inched around 0.2% higher. This was largely led by automobile and consumer goods companies.
However, increased selling later in the session, across frontline sectors like information technology, banks and metals pulled the indices around 0.8% lower. Mixed sales dats by automobile companies for May also dampened sentiment as the pack continued to struggle with a shortage of semiconductors.
A 44% on-year rise in goods and services tax collections in May brought some cheer among investors, but wasn’t enough to help indices recover from the losses.
Today, the Nifty 50 index ended 0.4% lower at 16522.75 points, recovering from its day’s low of 16438.85 points, but also sharply off the intra-day high of 16649.20 The Sensex first climbed to 55791.49 points, but as selling intensified, it dropped to the day’s low of 55091.43 points and ended 0.3% lower at 55381.17 points.
Among sectors, shares of automobile companies had a mixed day. While Tata Motors and Mahindra & Mahindra ended higher after the companies reported a massive jump in May sales, stocks like Bajaj Auto fell on muted sales for the month.
Overall, the Nifty Auto index ended a marginal 0.2% lower.
Shares of banks and financial stocks also witnessed swings today, much like the headline indices. The Nifty Bank index rose 0.8% intra-day and supported the early rise in headline indices. However, it gave up gains and pulled the indices lower. Eventually, the index recovered and ended 0.4% higher, helping frontline indices end sharply off lows.
Information technology shares were the worst hit, with shares of Tech Mahindra, HCL Technologies and Infosys falling 1.5-3.0% and pulling the Nifty IT index 1.4% lower.
Among specific stocks, shares of Bharat Dynamics surged 4% on a 30-bln-rupee order win. Among the laggards, shares of Bata India ended 1.5% lower after a large deal on BSE.
Shares of eMudhra, which listed at 270 rupees on the NSE, a premium of 6% to its issue price, succumbed to the weak market. The stock erased most of its gains and ended at 257.90 rupees, a mere 0.7% higher than the issue price.
* Among Nifty 50 stocks, 14 rose, 32 fell and 4 were unchanged
* Among Sensex stocks, 10 rose and 20 fell
* On the NSE, 1,114 stocks rose, 949 fell and 67 were unchanged
* On the BSE, 1,844 stocks rose, 1,487 fell and 131 were unchanged
* Nifty Bank: Up 0.38%; Nifty IT: Down 1.41%; Nifty Auto: Down 0.20%
BSE National Stock Exchange
Sensex: 55381.17 points, down 185.24 pts (0.3%) Nifty 50: 16522.75 points, down 61.80 pts (0.4%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17) : 2022 Closing High: 18308.10 (Jan 17)
2022 Closing Low: 52792.23 (May 19) : 2022 Closing Low: 15782.15 (May 13)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
2022 Low (intraday): 52260.82 (Mar 8) : 2022 Low (intraday): 15671.45 (Mar 8)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
Edited by Avishek Dutta
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