Tapan Patel, Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices rose by 0.72% to $121.80 per barrel. Crude oil prices rose about $1 in volatile trade on Tuesday as tight global supplies outweighed worries that fuel demand would be hit by a possible recession and fresh COVID-19 curbs in China. The market will be awaiting weekly US inventory data from the American Petroleum Institute on Tuesday and the US Energy Information Administration on Wednesday for a view of how tight crude and fuel supply remain.
We expect crude oil prices to trade sideways to up with resistance at $125 per barrel with support at $118 per barrel. MCX Crude oil June contract has important support at Rs 9350 and resistance at Rs 9670 per barrel.
Market update at 2 PM: Sensex is down 100.79 points or 0.19% at 52745.91, and the Nifty shed 24 points or 0.15% at 15750.40.
BSE Capital goods index rose 0.6 percent led by the Thermax, Bharat Electronics, Elgi Equipments
Dhruv Consultancy Services bags consultancy services project
Dhruv Consultancy Services has secured letter of award for consultancy services project as authority’s engineer for supervision of road project (four laning of Vairengte- N Kawnpui section) in Mizoram on EPC mode. The contract price for the said project will be Rs 11.2 crore.
Dhruv Consultancy Services was quoting at Rs 48.55, up Rs 0.65, or 1.36 percent.
D.R.E. Reddy, CEO and Managing Partner at CRCL LLP:
The wholesale inflation has continued to grow in the double digits. At 15.88 percent, which is mostly attributed to rise in the cost of mineral oils, natural gas, and other commodities as compared to the same month in the previous year. Higher crude oil prices and input costs still weigh on the producers and pass-through has resulted in pushing the retail inflation higher.
This move also implies that manufacturers are recovering their pricing power, which was weakened due to the pandemic. A good monsoon and ease in tension will assist to lower WPI inflation within the following months, also leading to crude oil prices ultimately putting downward pressure on inflation at large.
UBS View On Star Health & Allied Insurance Company:Brokerage firm UBS has initiate sell rating on Star Health & Allied Insurance Company with a target at Rs 660 per share.The profitability improving but lag multiliners. The health insurers’ investment income not enough to make up for lower underwriting profit.The company should trade at a lower valuation multiple than multiliners, reported CNBC-TV18.
Marine Electricals receives order worth Rs 10.65 crore
Marine Electricals received an order from Naval Ship Repair Yard, Kochi amounting to Rs 10.65 crore (excluding GST).
Marine Electricals India was quoting at Rs 27.95, up Rs 0.15, or 0.54 percent on the BSE.
Market at 1 PMBenchmark indices were trading lower in the volatile session with Nifty below 15800.The Sensex was down 165.51 points or 0.31% at 52681.19, and the Nifty was down 35.20 points or 0.22% at 15739.20. About 1648 shares have advanced, 1408 shares declined, and 115 shares are unchanged.
Torrent Power completed acquisition of 50 MW solar power plant from SkyPower GroupTorrent Power has completed acquisition of 50 MW solar power plant from SkyPower Group, in Telangana. Enterprise value for this acquisition is Rs 416 crore. Long-term power purchase agreement (PPA) for the project is with Northern Power Distribution Company of Telangana (NPDCTL) for a period of 25 years at a fixed tariff of approximately Rs 5.35 per kWh, with remaining useful life of approximately 20 years.
Macquarie view on ZomatoResearch house Macquarie has initiate with underperform rating on Zomato with a target at Rs 55 per share.Research house expect company to maintain its dominant position in large food delivery market.
The growth concern is corroborated with ongoing soft Apptopia metrics. However, despite 60% share price decline, see further downside, reported CNBC-TV18.
Nifty Auto index rose 0.7 percent led by the Tube Investments Of India, Ashok Leyland, M&M
JUST IN | May WPI Inflation stood at 15.88% against 15.08%, MoM.