Vinod Nair, Head of Research at Geojit Financial Services:
The correction in the global markets is due to a double whammy of upcoming policy rate hikes and cuts to the central bank’s balance sheet.
Higher-than-expected US inflation data added fuel to the already wrecked market which was factoring in a 50bps hike in the Fed rate. The weakened rupee, persistent FII selling along with the anticipation of elevated domestic CPI numbers gripped domestic markets in fear.
We will continue to trade with high volatility, however medium to long-term risk takers, should start chip-in to the market because this could be in the last phases of the consolidation.
S Ranganathan, Head of Research at LKP securities:
Weak global cues ahead of the Fed meet painted benchmark indices here in a sea of red as street awaits CPI data today on a day when the rupee hit a new low.
The risk off mode in equities globally after the US inflation print raised fears of an aggressive rate hike and the dollar index at 104 seem to weigh heavily amidst relentless FII selling despite local redemptions in May coming in at a two year low.
Rupee Close:
Indian rupee ended 19 paise lower at 78.03 per dollar against Friday’s close of 77.84. It touched fresh record low of 78.28 during the day.
Market Close: Benchmark indices ended in the red with Nifty below 15,800 on the back weak global markets.
At Close, the Sensex was down 1,456.74 points or 2.68% at 52,846.70, and the Nifty was down 427.40 points or 2.64% at 15,774.40. About 650 shares have advanced, 2759 shares declined, and 117 shares are unchanged.
Bajaj Finserv, Bajaj Finance, Tech Mahindra, IndusInd Bank and Hindalco Industries were among the top Nifty losers, while gainers included Nestle India and Bajaj Auto.
BSE Midcap shed 2.7 percent and Smallcap index shed 3 percent.
All the sectoral indices ended in the red with bank, capital goods, auto, metal, IT, realty, PSU Bank, oil & gas indices fell 2-3 percent each.
CLSA On RBL Bank Brokerage firm CLSA India said the new CEO appointment raises several questions about RBL Bank.It has downgraded the stock to outperform from buy with a target price at Rs 130 per share.The stock is cheap, however, it lacks material triggers in near term, reported CNBC-TV18.
Macquarie View On Asian Paints:
Brokerage house Macquarie has maintained overweight rating on Asian Paints with a target at Rs 3,500 per share.
The dealer checks suggest price hikes of Rs 3-5 per litre and believe the portfolio-level price hike will be marginal (1 percent), reported CNBC-TV18.
Asian Paints was quoting at Rs 2,662.10, down Rs 46.65, or 1.72 percent on the BSE.
Today’s Stock Market Action
BSE Oil & Gas index slipped over 2 percent dragged by the Gujaart Gas, HPCL, BPCL
Fitch Revises Outlook on UltraTech’s Foreign-Currency IDR to Stable:Fitch Ratings has revised the Outlook on India-based UltraTech Cement Limited’s (UTCL) Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the Foreign- and Local-Currency IDRs at ‘BBB-‘. The Outlook on the Local-Currency IDR is Stable.
Nifty Pharma index fell nearly 2 percent dragged by the Strides Pharma Science, Granules India, Laurus Lab
UBS On Maruti Suzuki India
Research firm UBS has kept buy rating on Maruti Suzuki India with a target price at Rs 10,000 per share.
The company is set to launch next generation Brezza on June 30, while its version of Toyota Hyryder may debut within weeks of Toyota unveil, reported CNBC-TV18.
Maruti Suzuki India was quoting at Rs 7,876.90, down Rs 57.90, or 0.73 percent on the BSE.
Ansal Housing gets notice from HDFCAnsal Housing has received a notice from Housing Development Finance Corporation (HDFC). HDFC through its notice intimated that if dues are not cleared by the promoters (borrowers) against their personal loans, the HDFC may invoke or sell shares of Ansal Housing as held and pledged by the promoters.
