Sensex and Nifty End Flat Trade As Margin Rules Kick In; India VIX jumps 3%

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Stock market updates: A volatile stock market session peaked near the flat line on Tuesday as investors preferred to post profits after seven consecutive sessions of gains. That aside, a reduction in GDP growth predicted by global agency Moody’s and a decline in manufacturing activity have kept market players on the sidelines.

Earlier today, Moody’s said it expects the damage to the economy from the second wave of Covid-19 and subsequent lockdowns to be limited to the April to June 2021 quarter. Of the slowdown, he now expects India’s GDP in the fiscal year ending March 2022 to grow 9.3% and 7.9% in FY23.

Additionally, data released by IHS Markit showed orders and production at domestic factories slowed to a 10-month low in May, with most states restricting activities amid localized lockdowns. The manufacturing PMI slipped to 50.8 in May from 55.5 in April, making it one of the biggest drops.

Add to that, volumes have remained slim as peak 75% margin standards take effect from today.

Against this backdrop, the benchmark S&P BSE Sensex stood at 51,934 levels, down 2.5 points. The NSE’s Nifty50, on the other hand, ended at 15,575 levels, down 8 points or 0.05 percent. Earlier today, the 50-stock index hit a new all-time high of 15,660.75.

CGSB, Adani Ports, Bajaj Finance, SBI, Bajaj Auto, HUL, Tech M and HDFC were the main index gainers today, rising 1-4% while JSW Steel, Tata Steel, ICICI Bank, Grasim, UltraTech Cement, SBI Life, Hero MotoCorp and Infosys were the main laggards, dropping 2.3%.

Participation in the larger market space also remained subdued on Tuesday. The S&P BSE MidCap index closed 0.01% higher while the SmallCap index slipped 0.3%.

From a sector perspective, with the exception of the Nifty Media, Pharma and IT indices, all the other indices settled the day in the red. The Nifty Private Bank Index was the first loser, down 1 percent, while the Nifty IT Index gained 0.11 percent.

Global markets

European stocks hit new record highs on Tuesday, as high metal and oil prices boosted shares of major commodities companies, while data shows eurozone manufacturing activity increased to a record pace of 63.1 levels in May.

The pan-European STOXX 600 index gained 0.9 percent in the first trading session in June, while the leading UK index rose 1.1 percent. The German DAX jumped 1.3% to a new record, while the CAC 40 in France added 0.7%.

That aside, the MSCI Emerging Markets Equity Index rose 0.7 percent, while those of Turkey, South Africa and Russia gained between 0.2 and 1.3. percent.

In Asia, Japan’s Nikkei slipped 0.2%, South Korea’s Kospi slipped 0.5%, China’s Shanghai Composite slipped 0.26%, and Australia’s ASX200 slipped 0, 3%.

In the commodities market, Brent Brent futures rose more than 2% on Tuesday, approaching $ 71 a barrel, ahead of the OPEC + meeting scheduled for later today.

(With contributions from Reuters)



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