Market Live: Sensex slumps 250 pts, Nifty around 16,500; IT, metal stocks bleed

Stock Market LIVE Updates: Benchmark Indian indices opened lower on Monday. The Sensex declined 400 points to 55,367.73 points at 09:45 AM; Nifty fell 108.7 points to 16,475.60 points.

Indian indices witnessed a negative start on Monday. Globally, caution is the dominant theme among the investors ahead of a critical reading on US 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. In India, the Reserve Bank is likely to announce the outcome of its Monetary Policy Committee on 8 June. In Asia, shares gained in Japan, Hong Kong, South Korea, and Shanghai, while it fell in Australia. 

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.

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.

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.

Stockmarkets in the US had ended lower on Friday.

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.

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. 

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.

Bitcoin, dogecoin, other crypto prices today surge

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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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