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Home / Markets / Live Blog /  Sensex slips 372 points dragged by RIL, HDFC; Nifty ends below 16,000

Sensex slips 372 points dragged by RIL, HDFC; Nifty ends below 16,000

Stock Market Today: Indices are expected to remain weak (PTI)Premium
Stock Market Today: Indices are expected to remain weak (PTI)

  • Stock Market Closing: Indian indices ended in the red on Wednesday amid volatile trade dragged by heavyweights HDFC twins, and RIL. Banks, financial, and IT stocks fell the most among sectors

Indian benchmark indices slumped for third straight day on Wednesday after giving up initial gains. While banks and IT lagged, FMCG and pharma held on to their gains. Stocks in Asia ended mixed on Wednesday as trader struggled to recover some of the losses suffered at the start of the week.

13 Jul 2022, 03:53:16 PM IST

Sensex, Nifty end lower for the third day in a row

Indian benchmark share indices slumped for the third straight day on Wednesday with benchmark Sensex ending 372 points lower at 53,514.15 dragged by selling in heavyweights, Reliance Industries and HDFC twins. The 30-stock index hit a high of 54,211.22 and a low of 53,455.26 intraday. The Nifty50 also erased all initial gains and slipped in afternoon trade to end 0.6% lower at 15,966.65 amid volatile trading. 

Midcap and Smallcap indices managed to eke out minor gains, outperforming the benchmarks. Among sectors, banks, financials and IT were the biggest losers, while pharma, metal and FMCG ended with solid gains.

IndusInd Bank, Bharti Airtel, HDFC twins and Reliance were the biggest laggards among the 14 stocks that ended in the red on Sensex. HUL, Asian Paints and Sun Pharma were the prominent gainers.

Meanwhile, the Indian rupee ended a tad lower at 79.63 against the US dollar.

Sensex at close
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Sensex at close
13 Jul 2022, 03:32:51 PM IST

13 Jul 2022, 03:26:08 PM IST

Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One, on aluminium prices

Half of 2022 is over, where we have seen some wild swings in the metals sector. Aluminum, the light metal has declined by 8.36% (YTD as of 12th July) on the MCX and 16.10% on the LME.

The escalation of geopolitical tensions between Russia and Ukraine crippled the supply chain causing aluminum prices to reach record highs in March on the LME and the MCX.

However, at present, the tables have turned, as the metal prices have corrected drastically and the base metals pack has been under constant pressure.

In June itself aluminium prices have declined by about 9% on the MCX and over 10% on the LME. Prices have fallen to their lowest levels in seven months as a result of prolonged Covid-19-induced lockdowns in Chinese cities of Shanghai and Beijing, central banks around the world gear up for a sharp rise in interest rate, and a slowing global economy acted as the major triggers which lead to the downfall.

13 Jul 2022, 03:18:22 PM IST

Nifty Sectoral Indices: Banks, financials fall most; FMCG, pharma up

NSE
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NSE
13 Jul 2022, 03:06:59 PM IST

Sensex check: At day's low, down over 400 points

BSE
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13 Jul 2022, 02:57:44 PM IST

RITES signs pact with CRIS to develop smart IT solutions for railway sector

13 Jul 2022, 02:56:52 PM IST

Reliance Research downgrades HCL Technologies to 'hold'

We expect HCLT to report a healthy revenue driven by consistent transformation deal wins, increasing focus on ER&D services and rising share of Mode 2 business. However, the pace of growth would taper down to low double digit in FY24E. The sector may not remain immune to worsening macros. We believe that management is ambitious on margin guidance and would lower its guidance going forward. In view of rising concern on recession in US and global slowdown in FY24E, we expect cut in valuation multiple of IT companies in the range of 10-20%, closer to historical averages. As current valuation captures majority of the positives, with limited upside, we downgrade HCLT to HOLD from BUY with a revised TP of Rs1,000 (vs. earlier Rs1,351), valuing stock at a revised P/E multiple of 17x on FY24E earnings.

Outlook and Valuation

At CMP, HCLT trades at 18x/15.8x on FY23E/FY24E EPS. We believe that IT Services would not remain immune to worsening global macros in terms of rising inflation, economic slowdown, currency headwinds and likely cut on spending. Additionally, we expect FY23E margins to get impacted because of higher attrition, sub-contracting cost in new geographies and lower utilisation due to accelerated hiring over next 1-2 quarters. Favorable currency, better pricing along with scale would nullify the impact to some extent but its not sufficient to cover the cost escalation. We forecast EBIT margin to contract 147bps to 17.5% in FY23E, while it would improve by 100bps to 18.5% in FY24E. Revenue growth would taper down to low double digit in FY24E, while QoQ decline in order book, clear margin pressure and lower pricing power ahead would lead to valuation multiple contraction close to its historical averages. Therefore, we cut our valuation multiple from 22x to 17x for HCLT and downgrade the stock to HOLD from BUY with revised TP of Rs1,000, considering limited upside potential.

13 Jul 2022, 02:36:43 PM IST

HDFC twins, Reliance, Bharti Airtel drag Sensex

BSE
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13 Jul 2022, 02:28:28 PM IST

Asian stocks end mixed amid recession fears

Asian stocks were mixed Wednesday as trader struggled to recover some of the losses suffered at the start of the week, while oil bounced from a rout, though recession alarms continue to ring loud. The euro clawed its way back slightly after hitting parity with the dollar for the first time in two decades, though it remains under pressure from growing concerns about an energy crisis across the eurozone. Nikkei 225 closed 0.5% higher; Hang Seng Index fell 0.2%. Shanghai - Composite rose 0.1%.

13 Jul 2022, 02:17:29 PM IST

Prabhudas Lilladher recommends ‘hold’ on HCL Tech with target price of ₹982

HCLT reported largely in-line revenue of USD 3025 mn, +2.7% QoQ CC (PLe: 2.9%, Cons: 2.4%), +1.1% QoQ USD (PLe: 1%, Cons: 0.8%). Growth was led by Products (5.1% QoQ CC), followed by ER&D (3.7% QoQ CC). IT services growth was muted at 2% QoQ CC, as productivity benefits to be provided to clients kicked-in. EBIT margin declined by 100bps QoQ to 17% led by 180bps QoQ decline in IT services margin, due to higher talent costs amidst elevated levels and deal transition costs. Management has retained its margin guidance of 18-20% for FY23, but given headwinds from wage hikes spread across Q2 and Q3, we model EBIT margin at 17.5%/18% for FY23/24.

We cut EPS estimates by 5%/2.6% for FY23/24 due to cut in margin estimates. We continue to value HCLT on 17x FY24 EPS to arrive at TP of Rs. 982 (earlier: Rs. 1007). HCLT is currently trading at 19x/16x on FY23/24E EPS of INR 49.8/57.7 respectively with Revenue/EPS CAGR of 9.3%/7.6% over FY22-24E. Maintain ‘HOLD’.

--Sequential services (IT+ERD) revenue growth led by select few verticals: IT services growth was led by Technology services (10.9% QoQ CC), TMT (4.3% QoQ CC) and Life Sciences & Healthcare (2.7% QoQ CC). Whereas other verticals - BFSI (0.8% QoQ CC) and Public Services (-0.2% QoQ CC) were flattish, Manufacturing declined 0.5% QoQ CC and Retail & CPG declined 1.4% QoQ CC. Growth was healthy in US (2.8% QoQ CC) and soft in Europe (1.6% QoQ CC).

--Margins for FY23 likely to be below the guided range: EBIT margin came at 17%, -100bps QoQ (PLe: 17.1%, Cons: 17.6%) led by 180bps QoQ decline in IT Services and 40bps QoQ drop in ERD segment. Margin was partially offset by increase of 340bps QoQ in Product business. Margin walk – 1) 100bps impact from higher outsourcing costs, 2) 150bps impact from retention and employee addition costs, 3) 35 bps from travel and visa costs partially offset by exchange gains of 40bps and weak seasonality was offset by operating efficiency.

--Other concall takeaways: 1) Management retained revenue guidance of 12-14% YoY CC due to healthy new deal TCV ($2 bn, 23.4% YoY, -9% QoQ), close to record high pipeline and near term strength in demand, 2) Fresher addition target of 30K for FY23 intact, added ~6K freshers in Q1 and targets to add ~10K in Q2, 3) Attrition inched up to 23.8% (190bps QoQ) and is expected to taper off from Q3, 4) DSO increased to 65 days (vs 61 in Q1) led by delay in payments by certain clients, which are expected to be recovered in Q2, 5) Declared dividend of Rs. 10/share.

13 Jul 2022, 02:06:53 PM IST

Nifty Bank plunges around 1%; IndusInd slumps 5%; HDFC Bank down 2%

NSE
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13 Jul 2022, 01:56:27 PM IST

Growing concerns of recession in the US among other reasons have sent the India IT sector tumbling

During the pandemic and lockdowns, the IT and broader technology sectors, were in spotlight and boomed big time. This was due to the increasing importance of working from home.

However, things have changed quickly… and how!

The IT sector, one of the strongest sectors in the country, is now under pressure due to recent global crisis and fears of a recession. Read on to know more

13 Jul 2022, 01:46:12 PM IST

Ritika Chhabra- Economist and Quant Analyst at Prabhudas Lilladher on US inflation data preview

US inflation is expected to hit a new 40-year high in June, at 8.8% according to Bloomberg consensus. The high inflation is propelled by soaring prices of gas, food and housing. Any number higher than 8.8% might trigger a further sell off in risk assets.

However, recent fall in commodity prices should reflect in consumer prices this month and possibly in August. So far in July, the average gas prices are down to $4.65 a gallon from $5.01 a month ago. This should possibly reduce inflationary pressure going forward if commodity prices ease further.

Having said that, Fed is expected to raise fed fund rate by 75bps in the coming FOMC meeting irrespecttive of the outcome, as inflation continues to be elevated well above the Fed's 2% target.

13 Jul 2022, 01:36:14 PM IST

BSE MidCap holds gains, even as Sensex slips into negative territory

BSE
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13 Jul 2022, 01:29:40 PM IST

Oppo India evaded customs duty worth ₹4389 crore: DRI

The Directorate of Revenue Intelligence (DRI) conductes searches on mobile company Oppo India and unearthed customs duty evasion of nearly 4389 core. Searches were conducted by DRI at the office premises of Oppo India and residences of its key management employees, which led to the recovery of incriminating evidence indicating wilful mis-declaration in the description of certain items imported by Oppo India for use in the manufacture of mobile phones, DRI said.

13 Jul 2022, 01:19:03 PM IST

Credit profile of most construction entities to remain resilient: Icra

The construction industry in India is expected to witness a healthy revenue growth in the medium term as the impact of a sharp increase in prices of major commodities seems to tapering, ratings agency Icra has said in its recent report.

The report, however, cautioned that growth would depend a lot on sustainability of recent cool off in commodity prices as higher prices in the past of commodities such as bitumen and steel and increased competition shaved off operating profits of companies by about 100-200 basis points.

13 Jul 2022, 01:09:22 PM IST

Delhi High Court lifts ban on Vivo bank accounts in money laundering case

The Delhi High Court on Wednesday lifted a freeze on smartphone maker Vivo's bank accounts imposed by the country's financial crime agency and ordering the Chinese company to provide a bank guarantee of $119 million, a lawyer for the company told Reuters.

In a filing, Vivo India had said it would not be able to pay statutory dues and salaries, listing 10 affected bank accounts and saying it needed to make monthly payments of 28.26 billion. ($355 million).

13 Jul 2022, 12:59:52 PM IST

Sensex pares gains, down 200 points in volatile trade

BSE
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13 Jul 2022, 12:49:28 PM IST

Indian rupee hits record low for a third straight session

The Indian rupee hit a record low for a third straight session on Wednesday as foreign investors continued to dump riskier assets ahead of U.S. inflation data that could determine the pace of tightening in the world's largest economy.

The partially convertible rupee was trading at 79.66/67 per dollar compared to its previous close of 79.5975. The unit touched a life low of 79.6675.

13 Jul 2022, 12:27:57 PM IST

Sri Lanka declares state of emergency after president flees

13 Jul 2022, 12:20:06 PM IST

Maruti Suzuki’s forex tailwind is a tipping point

Things seem to be falling in place for Maruti Suzuki India Ltd. The automaker is a key beneficiary of weakening of JPY/EUR against USD. “Maruti has total 26% direct and indirect foreign currency exposure (primarily in JPY and EUR) towards sourcing of components. The USD/INR leg for both these payables is a natural hedge against the USD exports (about 15-20% of sales)," said JM Financial’s analysts in a report on 12 July.

13 Jul 2022, 12:09:18 PM IST

Nifty sectoral indices at this hour:  Banks slip into the red, financial services, IT also weak

NSE
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13 Jul 2022, 12:02:58 PM IST

Sensex at noon: Up 72 points at 53,955; HUL, Asian Paints top gainers; HDFC Bank, IndusInd lag

BSE
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BSE
13 Jul 2022, 11:53:31 AM IST

Gold prices flat as investors seek cues from U.S. inflation data

Gold prices held their ground near the lowest levels in more than nine months on Wednesday, as investors cautiously awaited U.S. inflation data for cues on the road ahead for the Federal Reserve's monetary policy stance.

Spot gold was steady at $1,725.83 per ounce, after dropping to its lowest since late-September at $1,722.30 earlier in the session. U.S. gold futures dipped 0.2% to $1,722.00.

13 Jul 2022, 11:46:15 AM IST

YES Securities says ‘buy’ HCL Tech

Weak operating margin but near to medium term outlook remains strong

Overall, the sequential revenue growth was inline with expectation; but the EBIT margin came much below estimates. The revenue growth is led by the Services segment (IT Services and ER&D), that continues to maintain growth momentum. The P&P Segment is expected to grow at mid single digit YoY. We expect revenue growth to be more predictable and robust going ahead as IT services contribution rises in revenue mix. Deal booking remains strong and that offers strong growth visibility for FY23. We maintain BUY Rating on the stock with revised target price of 1,140/share at 18x on FY24E.

13 Jul 2022, 11:40:31 AM IST

RBL Bank and IMGC announce strategic partnership to offer mortgage guarantee backed home loans

13 Jul 2022, 11:15:23 AM IST

Shilpa Medicare up 5% as Dabaspet unit get GMP certificate

The company’s newly commissioned facility at Dabaspet, Karnataka, has received GMP certificate from UK MHRA. The facility was inspected by MHRA from 18 Apr 2022 to 20 Apr 2022. The facility has capabilities of manufacturing and testing specialized dosage forms like Orodispersible Films and Transdermal systems.

13 Jul 2022, 11:07:13 AM IST

Covid update: India records 16,906 new cases, 43 deaths in last 24 hours

The total number of active case load currently stands at 1,32,457 in the country.

13 Jul 2022, 10:57:00 AM IST

Anand Rathi Wealth up 2% as co posts 33.6% jump in profit

Total revenue rose by 35.7 per cent to 133.5 crore in the quarter under review from 98.4 crore in the first quarter ended Jun 2021.

13 Jul 2022, 10:44:18 AM IST

‘Virus is running freely’: WHO chief warns against Covid-19 infections surge

The World Health Organization's chief has warned that fresh waves of Covid-19 infections show the pandemic is "nowhere near over". "New waves of the virus demonstrate again that Covid-19 is nowhere near over," Tedros Adhanom Ghebreyesus told a news conference, adding: "As the virus pushes at us, we must push back."

13 Jul 2022, 10:31:30 AM IST

Bajaj Healthcare forays into opiate processing, shares surge

Indian pharmaceutical company Bajaj Healthcare Ltd said on Wednesday it was entering the highly-regulated opiate processing business after winning two tenders from the government, sending its shares to a near three-month peak.

The orders, to supply opium-derived alkaloids and active pharmaceutical ingredients (API) to the government, give a private player access to the state-controlled opiates market for the first time, Bajaj Healthcare said in a regulatory filing.

13 Jul 2022, 10:21:58 AM IST

Delta Corp up 1% as company is back in the black

The company reported net profit of 57.13 crore in the April-June quarter against a loss of 28.93 crore in the year ago period. Consolidated net sales for the quarter rose to 250.27 against 75.87 crore a year ago.

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13 Jul 2022, 10:16:42 AM IST

Q1 results of HCL and TCS have some worrying similarities

HCL Technologies Ltd is the second IT company which reported it's June quarter earnings on Tuesday, post market hours. But there is hardly any good news for IT investors who were already disappointed with Q1FY23 result of Tata Consultancy Services Ltd announced last week.

In fact there are worrying some similarities between the two. (Read here)

13 Jul 2022, 10:07:00 AM IST

Market view: Sameet Chavan, chief analyst-Technical and Derivatives, Angel One

After the decent rally seen during the last week, this week so far has been more of consolidation for the benchmark with some profit booking seen at higher levels. The major culprit for this has been the weak global cues along with the non-participation of heavy-weight counters. Last week, we broke above a congestion zone when we closed above the 15940 - 16000 zone and technically prices tend to retest breakout levels before resuming the up move. Hence, we remain buoyant and expect buying to emerge from lower levels where 15940 - 16000 will act as a sacrosanct point. Having said that, one should not be complacent as we are not completely out of the woods and should keep an eye on global development as well. On the flip side, we can see 16200 - 16250 is now acting as immediate resistance. Hence, one should ideally look to buy at lower levels and book profits around the resistance levels.

Despite the weakness in the benchmark, the market breadth seemed positive as many individual counters gave splendid moves. This is exactly what we highlighted in our previous outlook to focus on apt themes that will give outperforming opportunities and we reiterate one should continue with the same however they need to be very fussy in their selection.

13 Jul 2022, 09:56:58 AM IST

Union Bank, Canara Bank lift Nifty PSU Bank index by 1% 

NSE
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13 Jul 2022, 09:45:08 AM IST

HCL Technologies slips 2% as June quarter earnings disappoints Street

The IT service provider posted a net profit of 3,283 crore in the June quarter, up 2.4% from a year ago, but below Bloomberg consensus estimates of 3,322 crore. The company’s net profit was down 8.6% quarter-to-quarter, while revenue increased 3.8% in the same period. June quarter revenue rose 17% from a year ago to 23,464 crore.

BSE
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13 Jul 2022, 09:39:09 AM IST

Rupee slides 14 paise to a low of 79.59 per US dollar

The rupee slipped by 14 paise to close at a new record low of 79.59 against the US dollar on Tuesday. A strong greenback overseas and persistent foreign fund outflows continued its effect on investor sentiment.

13 Jul 2022, 09:29:14 AM IST

Nifty above 16,100 in early trade; NTPC, Coal India top charts while Hindalco and Eicher Motors lag

NSE
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13 Jul 2022, 09:22:22 AM IST

Sensex up nearly 200 points; Asian Paints; L&T top gainers; RIL, HCL Tech lag

BSE
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13 Jul 2022, 09:18:21 AM IST

Sensex, Nifty open in the green; Asian Paints top gainer

13 Jul 2022, 09:06:18 AM IST

Indian indices in the green in pre-open

BSE
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13 Jul 2022, 08:58:04 AM IST

Top audit bodies end discord over small businesses

Two of India’s top audit regulators have buried their differences over a proposal to relax the statutory audit requirement of small businesses, following a change of guard at the helm of both institutions.

Last September, the Institute of Chartered Accountants of India (ICAI) opposed a consultation paper from the National Financial Reporting Authority (NFRA) proposing to ease the statutory audit requirement for small businesses. While ICAI is India’s accounting rule maker and self-regulator of auditors, NFRA is the audit watchdog set up by the government.(Full story)

13 Jul 2022, 08:50:44 AM IST

Gold subdued as investors await US inflation data

Gold prices steadied near a more than nine-month low on Wednesday, as cautious investors awaited monthly U.S. inflation data for cues on the road ahead for the Federal Reserve's monetary policy. Spot gold was up 0.1% at $1,727.89 per ounce, after dropping to its lowest level since late-September at $1,722.30 earlier. U.S. gold futures were flat at $1,725.30.

13 Jul 2022, 08:40:29 AM IST

Reliance Research reiterates ‘buy’ on JK Tyre

JK Tyre (CMP Rs115)

In view of the strong products basket, regular price hikes, likely revival in replacement demand, healthy export potential and margin expansion in India as well as Mexico operations, we reiterate BUY rating on JKT with a 1-Year Target Price of Rs150, valuing the stock at 8.5x FY24E EPS. .

Intraday Picks

AMBUJA CEMENT (previous close: 371) BUY

For today’s trade, long position can be initiated in the range of 367- 370 for the target of Rs. 379 with a strict stop loss of 363.

BERGER PAINT (previous close: 580) BUY

For today’s trade, long position can be initiated in the range of 570- 580 for the target of Rs. 605 with a strict stop loss of 565.

PETRONET (previous close: 216) SELL

For today’s trade, long position can be initiated in the range of Rs502- 498 for the target of Rs514 with a strict stop loss of Rs494.

13 Jul 2022, 08:30:42 AM IST

HCL Tech, Axis Bank among top 10 stocks that will be in news today

HCL Tech, Axis Bank, Shilpa Medicare, Mindtree, Delta Corp are among Stocks to Watch for today

13 Jul 2022, 08:21:16 AM IST

HCL retains revenue guidance, Q1 net up 2.4%

HCL Technologies Ltd has maintained its 12-14% revenue growth guidance in constant currency for FY23 on the back of strong demand for digital transformation in key markets. The company also left its earnings before interest and taxes margin guidance unchanged at 18-20%.

The Noida-based information technology (IT) services company posted net profit of 3,283 crore in the June quarter, up 2.4% from a year ago, but below Bloomberg consensus estimates of 3,322 crore. However, the company’s net profit was down 8.6% quarter-to-quarter, while revenue increased 3.8% in the same period. June quarter revenue rose 17% from a year ago to 23,464 crore,

13 Jul 2022, 08:11:36 AM IST

Factory output rises in May on base effect

Factory output in May jumped 19.6% from a year ago thanks to last year’s depressed base because of pandemic curbs, official data released on Tuesday showed.

The Index of Industrial Production (IIP) stood at 137.7 in May, while the indices for mining, manufacturing and electricity stood at 120.1, 134.5 and 199.9, respectively, growing 10.9%, 20.6% and 23.5%.

13 Jul 2022, 08:04:31 AM IST

CPI inflation eases marginally in June, but remains above 7%

Retail inflation held above the top end of the central bank’s tolerance limit for the sixth straight month in June, a development that may prompt it to raise interest rates further to cool prices.

Consumer price inflation in June remained little changed at 7.01% from 7.04% in the previous month despite a raft of government measures, including export curbs on food items and excise duty cuts on fuels, to drive down prices.

13 Jul 2022, 07:54:59 AM IST

Oil slips below $100/bbl

Oil steadied after sliding below $100 a barrel on Tuesday as escalating fears about an economic slowdown rippled across markets. West Texas Intermediate plunged about 8% in the previous session to close at the lowest level in three months.

13 Jul 2022, 07:49:30 AM IST

Asian Stocks edge higher 

Stocks in Asia edged up Wednesday and oil held losses in cautious trading shaped by a dimming economic outlook and the countdown to US data that may show inflation hit a fresh four-decade high.

MSCI Inc.’s regional share gauge made modest gains amid a climb in Japan and mixed performance in China and Hong Kong. US futures wavered and European contracts retreated after a near-1% Wall Street drop led by tech and energy.

13 Jul 2022, 07:37:38 AM IST

Wall Street ends lower overnight

Wall Street ended in negative territory overnight ahead of US inflation reading on Wednesday. Dow Jones ended 0.62 per cent lower, tech heavy Nasdaq lost 0.95 per cent while S&P 500 shed 0.92 per cent on Tuesday session.

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