Sensex loses 627 points; Clever below 16,400

Benchmarks continued to trade with heavy losses mid-afternoon. The Nifty slipped below 16,400 again. Oil & Gas and Auto stocks bucked the trend while Consumer Durables, Media and Real Estate stocks fell. Negative global indices and continued selling by FIIs dented sentiment. Investors were also cautious ahead of Wednesday’s RBI policy outcome and Friday’s expected US inflation data.

As of 2:25 p.m. IST, the barometer index, the S&P BSE Sensex, was down 627.59 points or 1.13% at 55,047.73. The Nifty 50 index fell 174.40 points or 1.05% to 16,395.15.

In the broader market, the S&P BSE Mid-Cap Index lost 1.22% while the S&P BSE Small-Cap Index fell 0.71%.

Sellers outnumbered buyers. On the BSE, 1,207 stocks rose and 2,020 stocks fell. A total of 130 stocks remained unchanged.

The Monetary Policy Committee (MPC) of the RBI meets from June 6 to 8, 2022. Following the off-cycle rate hike of 40 basis points on May 4, 2022, the RBI is expected to raise the policy rate further.

Numbers to follow:

The yield on the benchmark 10-year Federal paper rose to 7.533% from 7.5% at the close of the previous trading session.

India’s benchmark 10-year bond yield hit a three-year high ahead of the RBI policy announcement due tomorrow.

The yield on the benchmark 10-year bond 6.54 GS 2032 rose to 7.53%, up 3 basis points from its previous close and the highest level since March 2019.

On the foreign exchange market, the rupee fell slightly against the dollar. The partially convertible rupee was hovering at 77.7250, compared to its close of 77.66 in the previous trading session.

MCX Gold futures for settlement (June 3, 2022) fell 0.07% to Rs 50,836.

The US dollar index (DXY), which tracks the value of the greenback against a basket of currencies, rose 0.10% to 102.54.

In the commodities market, Brent crude for August 2022 settlement rose 41 cents or 0.34% to $119.92 a barrel. Oil prices rose slightly on the expected recovery in demand in China as it eased tough Covid restrictions.

Zoom Index:

The Nifty Oil & Gas Index rose 0.78% to 8,095.40. The index rose 3.82% in four trading sessions amid firm crude oil prices.

Among the components of the Nifty Oil & Gas index, Oil & Natural Gas Corpn (+5.26%), Oil India (+4.21%), GAIL (India) (+2.19%), Adani Total Gas (+1.07%) and Reliance Industries up 0.48% were the main gainers.

Actions in the spotlight:

Fitch Ratings has affirmed the Adani Ports and Special Economic Zones (APSEZ) long-term foreign currency issuers (IDR) default rating at “BBB-“. The outlook is “negative”, the rating agency said. Fitch Ratings said APSEZ’s underlying credit profile reflects its status as India’s largest commercial port operator, with top-notch operational efficiency. The issuer has demonstrated throughput resilience through economic cycles, including the current downturn related to the Covid-19 pandemic.

IRB Infrastructure Developers announced on Monday that it has offered the Vadodara to Kim Expressway project, being developed under the Hybrid Annuity Model (HAM), to IRB InvIT Fund. The Vadodara Kim Section, part of the Delhi-Mumbai Expressway (DME), is 23,740 km long and has a project cost of Rs 2,094 crore. The project recently received a provisional COD and is generating revenue . IRB Infra’s Board of Directors has approved the preliminary non-binding proposal to transfer said project to the IRB InvIT fund, which is a listed and publicly offered infrastructure investment trust sponsored by the company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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