Auto sector was the biggest loser of the day, down 0.61 percent at 3.20 pm
Source:BSE
Market at 3.00 PM
Benchmark indices off day’s high, Sensex trading higher by around 350 points, Nifty above 16,600
The Sensex was up 339.88 points or 0.61% at 55,721 and the Nifty was up 89.70 points or 0.54% at 16612.45. About 1885 shares have advanced, 1384 shares declined, and 132 shares are unchanged.
Source: BSE
Nifty IT lead the pack of gainers with a gain of 1.91 percent
Source: NSE
European Markets Updates
RBI’s tightening path has a ‘real’ argument in favour of growth
CEA argues RBI’s rate hike won’t hit growth as real interest rates would be low. Many economists agree but give different figures as to what exactly are the real interest rate and neutral rate. An RBI…
Tapan Patel, Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded lower with benchmark NYMEX WTI crude oil fell by more than 2% to $112.30 per barrel. Crude oil prices were down on Thursday morning in Asia, falling by around $3 a barrel in early Asian trading. Investors cashed in on a recent rally with OPEC and allies meeting later in the day set to pave the way for expected output increases. The US crude oil supply from the American Petroleum Institute showed a draw of 1.181 million barrels for the week ended May 26.
We expect crude oil prices to trade sideways to down with resistance at $116 per barrel with support at $110 per barrel. MCX Crude oil June contract has important support at Rs 8590 and resistance at Rs 9010 per barrel.
#OnCNBCTV18 | Nagesh Basavanhalli says, Our net cash position post-infusion will be ₹1,300 crore pic.twitter.com/HgJvP0QZb9
— CNBC-TV18 (@CNBCTV18Live) June 2, 2022
Market update at 2 PM: Sensex is up 380.74 points or 0.69% at 55761.91, and the Nifty gained 86.50 points or 0.52% at 16609.30.
Steel stocks in focus today as steel prices tank the most since December 2021 levels
#CNBCTV18Market | Global steel prices at lowest levels since December 2021 pic.twitter.com/zSJPuzfBnw
— CNBC-TV18 (@CNBCTV18Live) June 2, 2022
Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services Ltd.
Mid-Market update – Nifty is expected to remain in a range while Bank nifty may outperform. Traders are advised to apply buy on decline strategy at the support zones. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in stocks like Reliance, Bajaj Finance, Voltas and HAL.
Expect RBI to high the repo rate by 35-40 bps in June, Pankaj Pathak, Fund Manager-Fixed Income, Quantum AMC
We expect that the RBI will hike the Repo rate by another 35-40 basis points in the June meeting. However, we will not be surprised if they prefer to go slow on rate hikes given the government is also responding to the inflation risks. The recent announcement on fuel tax cuts and reduction of import duties on edible oils will provide some comfort to the RBI. RBI’s surprise hike in CRR rate at the start of the month has fuelled an expectation of a further hike in CRR rate in the June policy. However, surplus liquidity in the banking system has fallen sharply in the last three weeks. Currently, the net excess liquidity parked under the RBI’s LAF window is close to Rs. 3 trillion. We believe, the RBI will be comfortable with this level of liquidity at this juncture. So, it may keep the CRR rate unchanged. The bond market is already positioned for frontloaded rate hikes. The broader market expectation is that the RBI will hike by around 40-50 basis points in the June meeting. Any smaller rate hike will be a positive surprise and short term bond yields may soften marginally.
Talks of windfall tax on Oil companies speculative, won’t comment. Taxation is Finance Ministry’s prerogative: Oil Minister
