Stock market indices open weak: Sensex plunges 350 points, Nifty around 16,250

Stocks slipped in Asia on Thursday, weighed down by the impact of high inflation and as as stagflation risks persisted

FPJ Web DeskUpdated: Thursday, June 09, 2022, 09:25 AM IST
article-image
Sensex plunges 350 points / Representative image | Photo credit: IANS

The stock market indices opened weak a day after RBI policy rate hike. The BSE Sensex fell 350 points to 54,537. The broader NSE Nifty dropped 100 points to slip below 16,300. Sensex 30 shares opened in red with Axis Bank, HCL Tech, Bajaj Finserv, L&T, Ultratech Cement, M&M, Nestle, and Tech M being the major laggards.

On June 8, the benchmark Sensex declined 215 points to close lower at 54,892.49. The broader Nifty closed below 16,400 mark at 16,356.25.

Asian stocks down

Stocks slipped in Asia on Thursday, weighed down by the impact of high inflation and as as stagflation risks persisted. Nikkei is trading 0.09 percent higher whereas Topix index is down by 0.06 percent. Sentiment also took a knock after Shanghai said it will lock down a district on Saturday morning for mass Covid testing. That’s the city’s first major movement restriction since it exited curbs earlier this month.

US stocks close lower

US stocks finished lower Wednesday, failing to build on back-to-back gains, as oil prices ended at a three-month high and investors awaited inflation data due at the end of the week. Trading was choppy as investors awaited an ECB meeting on Thursday and US consumer price data on Friday that will highlight the dilemma they face. Investors raised their bets on ECB rate hikes, and money markets priced in 75 basis points of rate hikes by September.

The Organization for Economic Cooperation and Development cut its global economic growth forecast for this year to 3 percent from 4.5 percent, and predicted growth would slow to 2.8 percent in 2023, as it cited “a new set of adverse shocks” from Russia’s invasion of Ukraine and China’s COVID-related lockdowns.

West Texas Intermediate crude for July delivery rose $2.70, or 2.3 percent, to close at $122.11 a barrel on the New York Mercantile Exchange, the highest finish for a front-month contract since March 8 after government data showed an unexpected fall in gasoline inventories. The yield on the 10-year US Treasury note rose 5.9 basis points to 3.028 percent, heading closer to its one-year peak of 3.124 percent reached a month ago.

US Treasury Secretary Janet Yellen expects inflation to ‘remain high’

Treasury Secretary Janet Yellen acknowledged Tuesday that she and Federal Reserve Chair Jerome Powell “could have used a better word” than “transitory” when describing the expected run of inflation in the US economy. She added that she was hopeful it would soon be on the decline, AP reported.

“I do expect inflation to remain high although I very much hope that it will be coming down now,” Yellen told the Senate Finance Committee during a hearing on the agency’s latest budget request. “I think that bringing inflation down should be our number one priority.”

Chile's central bank raises interest rates by 75 bps

Chile's central bank raised its benchmark interest rate by 75 basis points (bps) to 9.0 percent, and suggested more increases were coming as it battles rising inflation.

RBI hikes repo rates by 50 bps

The Reserve Bank of India’s Monetary Policy Committee (MPC) decided to hike the Policy Repo Rate by 50 basis points to 4.9 per cent in its June meeting. MPC members voted unanimously to hike rates and to continue the withdrawal of the accommodative stance. MPC noted that inflation is likely to remain above the 6 per cent mark for the first three quarters of the current financial year.

MSP for kharif crops up

India has raised the minimum support prices for kharif crops by 5-9% amid concerns over a spike in inflation. The hikes ranged from Rs 100-523 a quintal for the marketing season 2022-23, according to a statement by the Ministry of Agriculture & Farmers Welfare.

Sugar exports at record 8.6 mn tonnes till May this year

Sugar exports from India, the world's largest producer and second biggest exporter of the sweetener, touched a record 8.6 million tonne till May of the ongoing 2021-22 marketing year ending September, said the latest data released by industry body ISMA on Wednesday.

The country had exported total 7 million tonne of sugar in the 2020-21 marketing year, while domestic production stood at 31.19 million tonne in the same period.

Last month, the government capped sugar exports at 10 million tonne to ensure enough domestic supply and check retail prices during festival season in October-November. However, cooperatives have demanded raising the export cap by 1 million tonne.

Exports up 24.18% to $9.4 bn during June 1-7

The exports during June 1-7, 2021 stood at $7.56 billion, the commerce ministry official said. Imports during the first week of this month too rose by about 77 percent to $16 billion.

Gems and jewelry, engineering, petroleum products, and electronic goods' exports increased by 84.3 percent, 25.7 percent, 20.4 percent, and 73.5 percent, respectively. Major import goods that recorded growth include petroleum, crude, coal, coke and briquettes, gold, and chemicals.

Crude prices jump

Oil prices jumped over 2 percent to a 13-week high on Wednesday as USdemand for gasoline keeps rising despite record pump prices, while expectations that China's oil demand will increase faced growing supply concerns in several countries, including Iran.

Stock under F&O ban

Delta Corp is under the NSE F&O ban for June 9.

(With inputs from Reuters, agencies)

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Mumbai: Man gets 1-month jail for holding hand, asking cousin to marry him

Mumbai: Man gets 1-month jail for holding hand, asking cousin to marry him

Udaipur beheading: Congress says one of main accused ‘BJP member’

Udaipur beheading: Congress says one of main accused ‘BJP member’

Sanjay Raut makes sensational claim, says he got 'Guwahati offer' but refused as he follows...

Sanjay Raut makes sensational claim, says he got 'Guwahati offer' but refused as he follows...

After Udaipur horror, now Amravati chemist stabbed to death for alleged social media post supporting...

After Udaipur horror, now Amravati chemist stabbed to death for alleged social media post supporting...

Daily Horoscope for Sunday, July 3, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Daily Horoscope for Sunday, July 3, 2022, for all zodiac signs by astrologer Vinayak Vishwas...