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Home / Markets / Live Blog /  Sensex slips 94 pts, Nifty ends below 16,600; Asian Paints, Nestle India drag

Sensex slips 94 pts, Nifty ends below 16,600; Asian Paints, Nestle India drag

Market Closing: Indian indices on Monday declined marginally in a choppy trading session amid mixed global cues. (Hemant Mishra/Mint)Premium
Market Closing: Indian indices on Monday declined marginally in a choppy trading session amid mixed global cues. (Hemant Mishra/Mint)

  • Market Closing: Indian indices on Monday shrugged of early losses to settle marginally lower dragged by selling pressure in finance, infra, technology, and metal stocks. 

Indian indices on Monday ended in the red as investors exercised caution ahead of RBI's MPC meeting's outcome on 2 June. Stocks in Europe gained along with US equity futures Monday as Beijing’s latest move to ease Covid restrictions injected a note of optimism into markets rattled by inflation and rate-hike concerns. Treasuries and the dollar slipped. Shares rose in Japan, South Korea, Hong Kong, and Shanghai, while it fell in Australia.

06 Jun 2022, 03:49:40 PM IST

Sensex falls 94 pts, Nifty ends below 16,600; metals shine, realty, IT slip

Indian indices on Monday closed lower dragged by tech stocks, while global investor mood turned cautious ahead of key US economic growth data and central bank rate decisions in Europe and India this week.

The Sensex lost 93.91 points, or 0.17%, to close at 55,675.32, while Nifty50 declined 14.75 points to end at 16,569.55. Sectorally, metal stocks gained the most, while realty, capital goods, and IT recorded losses.

On the 30-stock index, the most gains were made by Tata Steel and IndusInd Bank, while Bajaj Finserv, UltraTech, and Asian Paints were among the biggest losers.

On Nifty50, Bajaj Auto, JSW Steel, and Tata Consumer made the most gains, while Shree Cement, BPCL, and Asian Paints were among the biggest laggards.

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Sensex at close
06 Jun 2022, 03:24:20 PM IST

These midcap and smallcap stocks are Motilal Oswal's top picks

The Nifty ended 3% lower month-on-month (MoM) in May 2022 as the stock registered the second consecutive month of a decline. However, the Nifty has remained resilient in CY22 year-to-date (YTD) despite multiple headwinds as strong DIIs flows continue.

06 Jun 2022, 03:18:56 PM IST

Why Arab nations’ censure over anti-Prophet remarks matter to India

India’s ruling party has been thrown into prompt damage control mode as the country’s diplomatic envoys faced music over the weekend from key West Asian trading partners over alleged anti-Prophet remarks by a spokesperson during a TV debate. The Bharatiya Janata Party suspended one spokesperson and expelled another on Sunday as tensions raged over social media calls for a boycott of Indian products in the Gulf region.

06 Jun 2022, 03:08:29 PM IST

LIC shares slump to record low of ₹782.45; market cap slips below ₹5 lakh cr

Share price of Life Insurance Corporation of India (LIC) slumped to a record low of 782.45 on Monday, which is 17.55 per cent down from its IPO issue price of 949.

At 1.27 pm on the BSE, Life Insurance Corporation of India's share was trading 2.01 per cent down at 784.15.

Earlier, the scrip opened flat at 800.25 but witnessed selling pressure later in the day. It slipped to a low of 782.45 in the intra-day. This is the lowest level since its listing on the stock exchanges last month.

06 Jun 2022, 02:57:47 PM IST

Shanghai, Hong Kong stocks close at two-month highs as Covid impact fades

Shanghai and Hong Kong stocks closed at near two-month highs on Monday, as Beijing and Shanghai steadily return to normal life from China's biggest COVID-19 outbreak in two years, with sentiment boosted by measures to revive the country's economy.

The blue-chip CSI300 index rose 1.9% to 4,166.09, the highest level in seven weeks, while the Shanghai Composite Index gained 1.3% to 3,236.37, the highest since April 8.

The Hang Seng index rose 2.7% to 21,653.90, the highest since April 8, while the China Enterprises Index gained 3.2%, to 7,499.97 points.

06 Jun 2022, 02:56:55 PM IST

Global stocks rise on improved Chinese services data

Global stock markets and Wall Street futures advanced Monday after the downturn in China's service industries eased and news reports said the Biden administration might lift U.S. tariffs on some Chinese imports.

London and Frankfurt opened higher. Shanghai, Tokyo and Hong Kong advanced. Oil prices gained to stay close to $120 per barrel.

A survey showed activity in Chinese retailing and other service industries shrank in May but at a slower rate than the previous month. Meanwhile, The Wall Street Journal reported Washington planned to lift tariffs on Chinese-made solar panels and Commerce Secretary Gina Raimondo said President Joe Biden was “looking at" ending other duties.

06 Jun 2022, 02:53:21 PM IST

Oil gains near $120 as Saudi price boost shows demand confidence

Oil climbed after Saudi Arabia signaled confidence in demand with a bigger-than-expected price increase of its crude for Asia.

West Texas Intermediate traded near $120 a barrel after earlier rising to the highest level in almost three months. Saudi Arabia boosted its official selling prices for Asian customers in July as China -- the world’s top crude importer -- cautiously emerges from virus lockdowns that have strained its economy.

Oil has rallied almost 60% this year as rebounding demand from economies recovering from the pandemic coincided with a tightening market after Russia’s invasion of Ukraine. The war has fanned inflation, driving up the cost of food to fuels and prompted aggressive monetary tightening from central banks.

06 Jun 2022, 02:43:53 PM IST

Axis Securities suggests this chemical stock to buy, shares as its top pick of the week

There has been a strong tire replacement demand in domestic market as economic revival has started taking pace. Tyre demand is robust in US & Euro region which will support exports, whereas overall demand is expected to grow by 7% in FY23, as per Axis Securities.

06 Jun 2022, 02:30:47 PM IST

This Adani stock hits upper circuit today after 3 lower circuit in past sessions

Multibagger stock: Amid highly volatile stock market today, Adani Power share price hit upper circuit in Monday's morning deals. The Adani group stock hit upper circuit today after hitting lower circuit on three successive previous sessions. Adani Power share price today had a gap up opening at 285 per share on NSE and it went on to hit intraday high of 298.30 per share levels.

06 Jun 2022, 02:15:16 PM IST

Tata Motors bags biggest ever EV fleet order in India

Tata Motors today said it has bagged an order for supply of 10,000 XPRES-T EV units from BluSmart Electric Mobility. The deployment of 10,000 units makes this the biggest ever EV fleet order in India, the auto major said in a statement.

06 Jun 2022, 01:59:06 PM IST

On a strong footing: Prabhudas Lilladher on Oil India

Rating: BUY | CMP: Rs251 | TP: Rs344

We attended the analyst meet of Oil India (OINL). Management guided strong volume growth FY25E to be a watershed year, driven by commissioning of major oil and gas expansion along with Numaligarh Refinery’s (NRL) expansion projects. Some key highlights are 1) Oil and gas production to increase by 30% and 70% respectively post completion of major projects in Assam 2) NRL refinery’s expansion to 9MTPA from current 3MTPA to come on stream by FY25E 3) No imposition of windfall taxes after two years of depressed profits and 4) No price cap on gas prices. OINL is well placed to benefit from rising oil and gas prices and high GRMs and FY25E EBIDTA can increase to Rs210bn (FY22-Rs105bn) on higher volumes. We maintain our estimates and retain ‘BUY’ with a PT of Rs344 based on 3.5x EV/E FY24E.

06 Jun 2022, 01:50:51 PM IST

On the cusp of a recovery: ICICI Securities on Mindspace Business Parks REIT

We maintain our ADD rating with a revised target price of Rs367/unit and at CMP of Rs349/unit, we estimate NDCF yield of 5.8% in FY23E and 6.2% in FY24E (over 90% tax-free returns). Key risks to our call are further rise in vacancies across assets and fall in lease rentals.

06 Jun 2022, 01:49:39 PM IST

Tata Power, Kolte-Patil Developers join hands to ease EV adoption, drive sustainability

Kolte-Patil Developers Limited (KPDL), a leading Pune-based real estate developer with expanding operations in Mumbai and Bengaluru, has partnered with India's largest EV charging solutions provider, Tata Power, to install charging stations across its projects in Pune, Mumbai, and Bengaluru, providing comprehensive charging solutions to EV owners.

06 Jun 2022, 01:15:43 PM IST

₹5.56 to ₹185: Multibagger stock turns ₹1 lakh to ₹33 lakh in one year

Multibagger stock: Investing in penny stocks is quite risky but high risk-traders prefer to invest in such low float stocks as well. However, they invest in the penny stock after gathering proper information instead of gambling. According to market magnets, investing in stock is like investing in business. So, irrespective of size of the business, one needs to check investment viability of a stock on same parameter and if the answer coming out from the balance sheet of the company is satisfactory, then one can think of investing even in a penny stock as penny stocks deliver whopping return in short term.

06 Jun 2022, 01:08:29 PM IST

As covid cases in India rise yet again, these stocks take a beating

Multiplex stocks were under pressure on Monday as covid cases started to rise again in India with the country reporting record weekly Covid-19 cases in three months. Shares of PVR plunged about 3% to 1,768 whereas that of Inox Leisure declined over 4% to 480 apiece on the BSE in Monday's trading session.

06 Jun 2022, 12:48:06 PM IST

5 growth sectors the Adani Group is investing in

The Adani Group has been forging ahead, cinching around 8-10 deals in the past year. Growing organically and inorganically, the group has been investing in an array of new sectors.

06 Jun 2022, 12:26:37 PM IST

Stabilising commodity prices and bond yields are setting a floor for equity valuations; Q1FY23 growth trends robust: ICICI Securities

Reducing ‘shock and awe’ effect of omicron wave, nuclear brinkmanship, inflation scare and rising bond yield: CY22 began with the omicron scare, followed by the sudden escalation of Russia-Ukraine conflict in Mar’22, thereby pushing the world into an unprecedented phase of nuclear brinkmanship. This impacted the ‘equity risk premium’ (reflected in spike in VIX). It also resulted in a surge in commodity prices, especially crude oil, thereby triggering an inflation scare. This was followed by the more than expected hawkishness of the US Federal Reserve and India’s RBI resulting in an increase in the ‘risk free rate’ as sovereign bond yields spiked and acted as a double whammy for equity valuations. However, post the initial spurt, omicron has receded sharply while commodity prices and bond yields have started to stabilise. Also, the Russia-Ukraine conflict will likely be scaled down from global nuclear brinkmanship to a local conflict. Dip in the latest PCE inflation data for the US, general cooling down of commodity prices and the expected increase in oil output by OPEC+ will likely add credence to the peak inflation argument.

Outlook and top picks: The above trends are visible in the fear index (VIX) receding and will most likely put a floor on equity valuations on a 1-year forward P/E basis, which fell from around 23x in Oct’21 to less than 18x during the May’22 sell-off. High-frequency indicators for Q1FY23 so far appear robust and indicate economic recovery is on course.

Incorporating the above factors and trends, our Mar’23E target for the NIFTY50 stands at 19,000. We are overweight on stocks driven by investment rate, savings rate, credit growth, exports and pent-up discretionary consumption.

Top picks: SBI, Axis Bank, HDFC Bank, Aditya Birla Capital, SBI Life, Larsen & Toubro, NTPC, NHPC, GAIL, Oil India, Coal India, UltraTech Cement, Bharti Airtel, Tata Communications, Gujarat Fluorochemicals, Phoenix Mills, Brigade Enterprises, Greenpanel Industries, Indian Hotels, Jubilant Foodworks, Metro Brands, Sapphire Foods, Inox Leisure, TVS Motors, Eicher Motors. 

Q1FY23 is the first quarter of no covid restriction on movement since the onset of the pandemic in 2019. High-frequency indicators for the quarter so far indicate robust economic recovery, which should gather momentum going forward.

06 Jun 2022, 12:15:50 PM IST

Citi raises oil price forecasts on "heavily delayed" Iran deal

Citi Research on Monday raised its quarterly oil price forecasts for this year and its year-average outlook for 2023, because additional supply from Iran looked heavily delayed, adding to tighter market balances.

Delay in Iran sanctions relief is the main factor tightening balances, Citi said.

The bank now factors in Iran sanctions relief beginning in the first quarter of next year, at first adding 0.5 million barrels per day (bpd), then 1.3 million bpd over the second half. It previously expected Iran sanctions relief to add supply in mid-2022.

Iran and the United States engaged in indirect talks in Vienna over the past year to revive a 2015 nuclear agreement between Tehran and world powers.

Citing tighter market balances, Citi raised its second-quarter 2022 Brent price forecast by $14 to $113 per barrel, and the third and fourth quarter prices by $12, to $99 and $85, respectively. The bank estimates Brent to average $75 per barrel in 2023, revised higher by $16.

06 Jun 2022, 12:06:09 PM IST

Saudi Arabia hikes July crude prices surprisingly high for Asia buyers

Saudi Arabia, the world's top oil exporter, raised July crude oil prices for Asian buyers to higher-than-expected levels amid concerns about tight supply and expectations of strong demand in summer.

The official selling price (OSP) for July-loading Arab Light to Asia was hiked by $2.1 a barrel from June to $6.5 a barrel over Oman/Dubai quotes, just off an all-time-high recorded in May.

That was much higher than most market forecasts for an increase around $1.5. Only one respondent of six in a Reuters poll had predicted a jump of $2.

"The price jump is unexpected, especially the Arab Light. We are puzzled by the decision," said an Asian oil trader.

06 Jun 2022, 12:05:00 PM IST

Tokyo shares close higher on weaker yen

Tokyo shares shrugged off early losses to close higher on Monday as tech and export shares made gains thanks to the weaker yen.

The benchmark Nikkei 225 index rose 0.56 percent, or 154.32 points, to 27,915.89, while the broader Topix index added 0.31 percent, or 5.97 points, to 1,939.11.

The Tokyo market came under pressure in the morning as global investors interpreted solid US economic data as a further sign the Federal Reserve will keep raising interest rates in its fight against inflation, driving down Wall Street shares.

06 Jun 2022, 12:04:32 PM IST

Tata Group chemical stock dips ahead of record date for 300% dividend

Shares of Rallis India Ltd dipped nearly a per cent to 199 apiece on the BSE in Monday's early trading session as the stock started trading ex-dividend, a day ahead of the record date for its dividend that was announced with its Q4FY22 results in April.

06 Jun 2022, 11:43:41 AM IST

Multibagger penny stock to consider bonus share, stock-split. Details here

Multibagger stock: Rajnish Wellness Ltd has informed Indian bourses that a meeting of board of directors of the company is scheduled to be held on 13th June 2022 to consider issuance of bonus shares and stock sub-division. The company management informed about the board agenda in its latest exchange communication. Stock market observers believe that the company might be mulling stock split after its stock price surge from 5.56 to 187.45 apiece levels in last one year, delivering near 3250 per cent return in this period. They said that after stellar return given by this multibagger penny stock, management might have thought that subdivision of shares would enable them increase stock volume by becoming available to small investors.

06 Jun 2022, 11:39:29 AM IST

India bond yields climb to highest in 3 years as RBI committee starts meeting

India’s sovereign bond yields breached the 7.5% level for the first time in three years as the central bank’s rate-setting panel began its three-day meeting. The benchmark 10-year yield rose as much as four basis points to 7.5%, a level last seen in 2019. Yields have jumped by more than 100 basis points in 2022 amid global tightening and as the Reserve Bank of India turned hawkish with an out-of-turn rate hike last month.

06 Jun 2022, 11:32:42 AM IST

Higher traction in office leasing bodes well for Mindspace Business Parks REIT

Office leasing has been on an upward trajectory, aided by an accelerated shift towards grade-A properties. This was among the key highlights of the recently held analysts' day meet of Mindspace Business Parks REIT.

06 Jun 2022, 11:26:17 AM IST

RBI policy this week. What investors should expect as another rate hike likely in store

Surging inflation, amplified by the Russia-Ukraine war, along with faster Fed rate hikes has triggered a hawkish pivot by the Reserve Bank of India (RBI). In a surprise move, RBI raised the repo rate by 40 basis points to 4.4% last month in an off-cycle hike, its first increase in borrowing rates since August 2018.

06 Jun 2022, 11:19:37 AM IST

Why Adani Transmission shares are down? Experts list out reasons

Adani Transmission share price: After ushering in the new year 2022, Adani Transmission shares gave stellar return to its shareholders till beginning of May 2022. However, from first week of May 2022, this Adani group stock has been under sell-off heat. According to stock market experts, massive sell-off by FIIs, stock trading at much higher valuations and negative sentiments in the secondary markets are the major reasons for Adani Transmission share price tumble. They also said that the stock may continue to remain under consolidation till next big trigger arrived for the stock.

06 Jun 2022, 11:07:59 AM IST

TVS looks to raise up to ₹5,000 cr in EV push

TVS Motor Co. Ltd is in advanced talks to raise 4,000-5,000 crore from private equity firms to fund the expansion plan of the group’s newly formed electric mobility arm, two people with direct knowledge of the matter said.

06 Jun 2022, 11:00:33 AM IST

LIC share price hits new low, market cap dips below ₹5 lakh crore

LIC share price: Extending the sell-off for the fifth straight session, shares of the Life Insurance Corporation (LIC) of India nosedived to its new low today in Monday's morning deals. LIC share price today opened at 800.25 apiece levels on NSE and went on to hit new low of 786.10 apiece levels in the opening bell with its market value dipping below 5 lakh crore to around 4.97 lakh crore.

06 Jun 2022, 10:45:56 AM IST

BSE top losers: NIIT, Indiabulls Housing Finance, Raymond bleed

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06 Jun 2022, 10:36:17 AM IST

BSE top gainers: Elecon Engineering, Apar Industries, Bliss GVS Pharma lead

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06 Jun 2022, 10:26:16 AM IST

BSE indices struggle in early trade; Sensex tumbles over 300 points 

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06 Jun 2022, 10:13:18 AM IST

Varun Beverages shares in focus as stock trades ex-bonus

Shares of Varun Beverages Ltd (VBL) started trading ex-bonus on Monday, a day ahead of its record date for bonus shares issue. Varun Beverages shares were trading nearly a per cent lower at 726 apiece on the BSE in opening deals.

06 Jun 2022, 10:03:36 AM IST

Sensex slides in early trade; Nifty falls to 16,517 level

Benchmark indices continued to fall on Monday, with the Sensex declining 227 points in early trade as investors remained cautious amid unabated selling by foreign funds and elevated crude oil prices.

The 30-share BSE Sensex was trading 226.7 points lower at 55,542.53 points. The broader NSE Nifty fell by 67.05 points to 16,517.25 points.

From the Sensex pack, Tech Mahindra, Asian Paints, Wipro, Hindustan Unilever Limited, Bajaj Finserv, Infosys, Tata Steel and Titan were the biggest laggards.

In contrast, M&M and Axis Bank were the gainers.

Elsewhere in Asia, markets in Tokyo, Shanghai and Hong Kong were trading in the green.

Stock markets in the US had ended lower on Friday.

06 Jun 2022, 09:48:24 AM IST

Rupee rises 4 paise to 77.62 against US dollar in early trade

The rupee appreciated 4 paise to 77.62 against the US dollar in opening trade on Monday, supported by a weak American currency in the overseas markets.

However, muted domestic equities, elevated crude oil prices and persistent foreign fund outflows restricted the rupee's rise, forex traders said.

At the interbank foreign exchange, the rupee opened slightly strong at 77.65 against the American dollar and gained further momentum to quote 77.62, registering a rise of 4 paise from the last close.

In the previous session, the rupee had settled at 77.66 against the US dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent lower at 102.10.

Global oil benchmark Brent crude futures rose 0.79 per cent to USD 120.66 per barrel.

06 Jun 2022, 09:43:04 AM IST

Gold flat as US jobs data points to more rate hikes

Gold prices were steady on Monday, after dropping about 1% in the previous session, following a robust U.S. jobs report that signalled more interest rate increases this year, weighing on non-yielding bullion. Spot gold was flat at $1,850.60 per ounce, as of 0041 GMT, while U.S. gold futures were up 0.2% at $1,853.60. 

06 Jun 2022, 09:41:59 AM IST

Asian markets mixed as US jobs data give Fed room to hike rates

Asian markets were mixed Monday following a steep drop on Wall Street in response to a forecast-topping US jobs report that gave the Federal Reserve room to continue hiking interest rates as it struggles to contain surging inflation.

US traders took flight after the closely watched non-farm payroll figures Friday, which showed a slowdown in hiring but still with more new posts created than expected.

That came as more officials suggested the Federal Reserve could continue lifting borrowing costs sharply as they try to rein in inflation.

However, with prices being driven higher by factors ranging from the Ukraine war to China's lockdown-induced slowdown, there are fears the bank's measures could deal a blow to the world's biggest economy.

06 Jun 2022, 09:31:09 AM IST

Bitcoin, dogecoin, other crypto prices today surge. Check latest rates

Cryptocurrency prices today gained with Bitcoin above the $30,000 level around which it has been trading for the past month. The world's largest and most popular cryptocurrency rose more than 4% and was trading at $30,878. The digital token is down over 35% so far this year, and trading far below its record high of $69,000 it had hit in November 2021.

06 Jun 2022, 09:25:24 AM IST

Nifty50 at open: Trades below 16,600; ONGC, Cipla, Bajaj Auto top gainers, Britannia, TechM top losers

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06 Jun 2022, 09:23:12 AM IST

Sensex opens over 100 points lower amid weak global cues

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06 Jun 2022, 09:12:26 AM IST

Pre-open: Nifty50 falls below 16,550; ONGC, NTPC shine,  JSW Steel, Hindalco drag

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06 Jun 2022, 09:10:29 AM IST

Pre-open: Sensex slips 160 points amid weak global cues; Kotak Bank, HCL top losers, Titan up 0.71%

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06 Jun 2022, 08:55:11 AM IST

Rakesh Jhunjhunwala portfolio: Beaten-down stock jumps 10% in 5 days

Rakesh Jhunjhunwala portfolio: Va Tech Wabag shares have rebounded strongly after hitting new 52-week low of 223.65 levels. In last 5 sessions, this beaten-down Rakesh Jhunjhunwala stock has surged from 235.10 apiece levels to 259.35 per share mark, logging near 10 per cent rise in last one week. Uptrend in this Va Tech Wabag share price may continue as the water treatment company has recently bagger first large-scale seawater desalination plant in Senegal and the largest in West Africa upon completion.

06 Jun 2022, 08:53:06 AM IST

Infosys shares fall 22% from highs, Why Jefferies has 'Buy' on the IT stock

IT major Infosys' shares have fallen 22% from its highs on the back of weak Q4 results due to margin pressures, as well as growing concerns on growth due to worsening macro and rising yields.

06 Jun 2022, 08:33:53 AM IST

Nomura Singapore buys stake in BSE-listed multibagger penny stock

Multibagger stock: Global financial services group Nomura Singapore Limited ODI has bought stake in Veeram Securities Ltd. The financial firm, which has presence across 30 countries has bought 1,50,000 Veeram Securities shares. Likewise, Resonance Opportunities Fund Mauritius has made an investment of 1,03,000 shares in this BSE-listed share, which is one of the multibagger penny stock that has risen to the tune of 120% in last one year.

06 Jun 2022, 08:25:05 AM IST

Day trading guide for Monday

6 stocks to buy or sell today — 6th June

06 Jun 2022, 08:13:51 AM IST

RBI to begin three-day monetary policy meet from today, to decide on key rates

The Reserve Bank's rate-setting panel will begin its three-day deliberations on Monday to decide the next monetary policy in the backdrop of high inflationary concerns and evolving geo-political situation. Reserve Bank Governor Shaktikanta Das headed six-member Monetary Policy Committee (MPC) is scheduled to announce the policy resolution on Wednesday,8 June.

06 Jun 2022, 08:09:14 AM IST

Global wheat prices jump after India export ban and Ukraine war: FAO

The price of wheat has jumped in the international markets after India announced a ban on the export of the staple cereal and due to the reduced production prospects in Ukraine following the Russian invasion, the UN food agency has said.

The Food and Agriculture Organisation (FAO) Price Index averaged 157.4 points in May 2022, down 0.6 per cent from April.

The index, which tracks monthly changes in the international prices of a basket of commonly-traded food commodities, however, remained 22.8 per cent higher than in May 2021.

The FAO Cereal Price Index averaged 173.4 points in May, up 3.7 points (2.2 per cent) from April and as much as 39.7 points (29.7 per cent) above its May 2021 value.

06 Jun 2022, 08:07:49 AM IST

Fiscal deficit to remain high: Reliance Securities

Monetary policy tightening measures along with rising subsidies imply that the consolidated fiscal deficit may remain elevated at 10.2% of GDP in FY23, down 20bps from FY22. The government has pegged the combined fiscal shortfall at 9.8%, of which the central deficit is seen at 6.4% and states’ at 3.4% for FY23. While these measures may help to soften the inflationary pressures by ~50bps over the coming months, that will not be enough to bring inflation within the RBI’s comfort zone of 2-6%, unless global commodity prices moderate significantly. India’s merchandise exports rose by 15.5% to $37.29 bn in May’22, on account of a healthy performance by sectors like Petroleum Products, Electronic Goods and Chemicals. However, the trade deficit widened to US$23.33bn in May’22, while imports during the month grew by 56.14% to $60.62 bn.

06 Jun 2022, 08:06:34 AM IST

FII selling continues: Reliance Securities 

FII selling increased to 400 bn in May’22, post the 171 bn in Apr’22; FII selling was witnessed for the 8th consecutive month in a row. They sold more than Rs2,000bn in the last 8 months, while DIIs bought shares worth Rs508bn in May’22. Ongoing Russia-Ukraine conflict, higher commodity prices, elevated inflation and increased expectations of aggressive Fed rate hike in the US kept the Dollar Index at 101 levels. However, we expect sustained FII inflows to resume in 2HFY23 and continue in FY23, as India is better placed compared to many other economies.

06 Jun 2022, 08:03:48 AM IST

Yen weak versus dollar, euro ahead of busy central bank week

The Japanese yen was on the back foot on Monday, ahead of a busy policy-focused week in which inflation will be in the spotlight with a major European Central Bank meeting and U.S. consumer price data scheduled.

The dollar climbed to 130.99 yen in early trade, a fresh one-month high, and not far from last month's 20-year peak of 131.34, after gaining 2.95% last week.

The euro has also climbed on the Japanese currency and hit 140.38 yen on Monday morning, extending a seven-year high hit last week.

Barclays analysts attributed last week's softer yen to a recovery in risk assets, a rise in overseas yields, a stronger dollar and higher oil prices causing concerns about Japan's balance of trade.

The dollar index, which measures the greenback against six major peers, was at 102.1 after gaining 0.47% last week after good jobs and manufacturing data.

06 Jun 2022, 07:47:36 AM IST

Historic Rupee low forecasts grow as oil costs widen deficits

The worst is still to come for the Indian rupee after its slide in May to a historic low, according to analysts and forward markets.

The currency may drop to between 79 to 81 per dollar over the next few months, according to analysts from UBS AG to Nomura Holdings Inc. and Bloomberg Economics. Forwards are also pricing in a similar weakness for the rupee.

The bearish forecasts -- which will see the rupee drop as much as 4% from current level -- stem from a deterioration in India’s external finances. Higher oil prices threaten to widen the current-account deficit to at least 3% of the gross domestic product, compared to a 2% sustainable level, according to UBS, even as outflows from its equity markets accelerate.

“A grind higher for USD/INR from here toward 80 in the next couple of months is not a big ask," said Rohit Arora, emerging markets Asia strategist at UBS. “Nor do I think 80 is a runaway depreciation by any metric. It’s a very modest adjustment of a currency with deteriorating fundamentals."

The rupee declined about 1.6% in May, the biggest drop among emerging Asian currencies, spurring Reserve Bank of India Governor Shaktikanta Das to say that the central bank won’t allow a runaway depreciation of the currency. The current account deficit can still be comfortably funded this year, he added.

06 Jun 2022, 07:37:22 AM IST

Oil jumps after Saudi Arabia hikes crude prices

Oil prices rose more than $2 in early trade on Monday after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.

Brent crude futures were up $1.80, or 1.5%, at $121.52 a barrel at 2319 GMT after touching an intraday high of $121.95, extending a 1.8% gain from Friday.

U.S. West Texas Intermediate (WTI) crude futures were up $1.63, or 1.4%, at $120.50 a barrel after hitting a three-month high of $120.99. The contract gained 1.7% on Friday.

Saudi Arabia raised the official selling price (OSP) for its flagship Arab light crude to Asia to a $6.50 premium versus the average of the Oman and Dubai benchmarks, up from a premium of $4.40 in June, state oil produce Aramco said on Sunday.

06 Jun 2022, 07:30:40 AM IST

Asia shares brace for US inflation, euro up on ECB bets

Asian shares made a muted start on Monday as caution gripped ahead of a critical reading on U.S. inflation, while the euro gained on the yen amid wagers the European Central Bank will take a major step toward policy tightening this week.

Oil prices jumped in early trade after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1%, while Japan's Nikkei eased 0.3%. S&P 500 futures and Nasdaq futures both edged up 0.1%.

Markets will be on tenterhooks for the U.S. consumer price report on Friday, especially after EU inflation shocked many with a record high last week.

Forecasts are for a steep rise of 0.7% in May, though the annual pace is seen holding at 8.3% while core inflation is seen slowing a little to 5.9%.

A high number would only add to expectations of aggressive tightening by the Federal Reserve with markets already priced for half-point hikes in June and July and almost 200 basis points by the end of the year.

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