Rupee at close: Rupee ends at 77.52 per US dollar against May 31 close of 77.64 per US dollar
Market at Close: Benchmark indices ended in the red for the second concutive day as Sensex slipped 185.24 points or 0.33% at 55381.17, and the Nifty shed 61.70 points or 0.37% at 16522.80. About 1800 shares have advanced, 1450 shares declined, and 132 shares are unchanged.Among the sectors, pharma, power, realty were the top losers while buying was seen in financials and capital goods names. The midcap index ended flat while the smallcap index added half a percent.
Atul Auto In FocusThe company sold 1,794 units in the month of May, up significantly from 100 units sold in same month last year
Expert’s Take on Market
Due to the spectacular run witnessed over the last 2 years, equity markets had, earlier this year, moved to a fairly valued zone as a result of which allocation to equities in investor portfolios were closer to their strategic allocation limits. For the last 12 months, we have been cautious on equities as an asset class given the expensive valuations, Anupama Sharma, Executive Director at IIFL Wealth said.
However, markets have corrected since the beginning of the year due to the war in Ukraine, concerns over the Omicron impacting growth recovery, and the higher inflation and interest rates dampening investor sentiment. Further, these upheavals have impacted ground level growth as well with recent data indicating that India’s economic growth slowed down to 4.1% in the fourth quarter of FY22 and estimates for full year GDP growth in FY22 getting pruned down to 8.7% from 8.9% estimated in February.
Markets have corrected over the last 6 months and participants are now quickly discounting the impact of high inflation and the rising interest rate scenario. 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, she said.
Delta CorpAce investor Rakesh Jhunjhunwala sold 25 lakh equity shares (0.93 percent of total shareholding) in the company via open market transactions.With this, Jhunjhunwala’s shareholding stands reduced to 6.16 percent, down from 7.1 percent earlier.
Coal India logs 30% production growth in May
Accelerating its production, Coal India posted a strong 30 percent output growth in May 2022. The increase in volume terms was 12.6 million tonnes [MTs).
The company produced 54.7 million tonnes (MTs) of coal during the month compared to 42.1 MTs in May 2021.
During the first two months of FY22, Coal India produced 24.2 MTs more coal than what it did in the same period a year ago. This represents a healthy 29 percent growth, said Coal India in its BSE filing.
TVS Motor Company Sales Data in May
Total two-wheelers sales grew from 1,54,416 units in May 2021 to 2,87,058 units in May 2022. Domestic two-wheeler sales grew from 52,084 units in May 2021 to 1.91,482 units in May 2022. Motorcycle sales grew from 1,25,188 units in May 2021 to 1,48,560 units in May 2022. Scooter sales of the Company grew from 19,627 units in May 2021 to 1,00,665 units in May 2022, TVS Motor said in its BSE filing.
The shortage in the supply of semiconductors has impacted the production and sales of premium two-wheelers, it reasoned.
Gyscoal Alloys CFO Resigns
Vishal Parikh has tendered his resignation as a Chief Financial Officer of the company with effect from June 01, 2022 due to personnel reason (health complication of his family member) and not able to continue as an employee of the company, said Gyscoal.
NMDC – Monthly Sales DataThe state-owned mineral producer sold 2.65 million tonnes of iron ore in May 2022, much lower than 3.3 million tonnes sold in same month last year, while the company produced 3.2 million tonnes of iron ore, up from 2.79 million tonnes of iron ore YoY.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded higher with benchmark NYMEX WTI crude oil were trading 1.55% up near $116.45 per barrel. Crude oil prices were up on Wednesday after China ended a lockdown in Shanghai and European Union (EU) leaders agreed on a partial and phased Russian oil ban. Earlier, crude prices declined on reports that the OPEC members are exploring the idea of suspending Russia’s participation in the alliance’s oil-production deal.
We expect crude oil prices to trade sideways to up with resistance at $120 per barrel and support at $114 per barrel. MCX Crude oil June contract has important support at Rs 8890 and resistance at Rs 9170 per barrel.