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Taking Stock | Market tanks 2.6% amid global sell-off, rupee hits new low; all eyes on inflation data

Indian rupee ended 19 paise lower at 78.03 to a dollar against the June 10 close of 77.84 after falling to a record low of 78.28 during the day

June 13, 2022 / 04:54 PM IST
Stock Market Today:

Stock Market Today:

Indian benchmark indices ended sharply lower on June 13 amid a selloff in the global markets on worries of an aggressive policy tightening by the Federal Reserve and ahead of domestic CPI inflation data.

At close, the Sensex was down 1,456.74 points, or 2.68 percent, at 52,846.70, and the Nifty was down 427.40 points, or 2.64 percent, at 15,774.40.

"The correction in the global markets is due to a double whammy of upcoming policy rate hikes and cuts to the central bank’s balance sheet," said Vinod Nair, Head of Research at Geojit Financial Services.

Higher-than-expected US inflation data with prices climbing to a 40-year high in May added fuel to the already wrecked market, which was factoring in a 50bps hike in the Fed rate.

A weakened rupee, which dropped to a new low during the day, persistent FII selling along with the anticipation of elevated domestic CPI numbers gripped domestic markets in fear, he said.

Close

The statistics ministry will release consumer price index inflation data later in the day.

"We will continue to trade with high volatility, however medium to long-term risk-takers, should start chip-in to the market because this could be in the last phases of the consolidation," he added.

Also Read: Disappointing start to week | Market crash erodes nearly Rs 7 lakh crore of investor wealth

IndexPricesChangeChange%
Sensex52,978.68-48.29 -0.09%
Nifty 5015,763.45-35.65 -0.23%
Nifty Bank33,416.80146.90 +0.44%
Nifty 50 15,763.45 -35.65 (-0.23%)
Thu, Jun 30, 2022
Biggest GainerPricesChangeChange%
HDFC Life553.5512.30 +2.27%
Biggest LoserPricesChangeChange%
Bajaj Auto3,726.95-140.60 -3.64%
Best SectorPricesChangeChange%
Nifty Bank33421.10151.20 +0.45%
Worst SectorPricesChangeChange%
Nifty Metal4672.35-83.05 -1.75%

Bajaj Finserv, Bajaj Finance, Tech Mahindra, IndusInd Bank and Hindalco Industries were among the top Nifty losers, while gainers included Nestle India and Bajaj Auto.

All the sectoral indices ended in the red, with Nifty bank, auto, IT, metal and PSU bank falling 2-4 percent each.

The Indian rupee ended 19 paise lower at 78.03 to a dollar against June 10’s close of 77.84. It touched fresh record low of 78.28 during the day.

Also Read: Rupee hits fresh record low, weakens past 78 a dollar on global equity slump, inflation worries

Stocks and sectors

On the BSE, bank, IT, metal, realty, indices shed 3 percent each, while capital goods, auto, oil & gas were down over 2 percent each.

The BSE midcap shed 2.7 percent and the smallcap index lost 3 percent.

A short build-up was see in RBL Bank, Mahindra & Mahindra Financial Services and Indiabulls Housing Finance.

More than 200 stocks slipped to their 52-week lows on the BSE. These included Bajaj Finance, Bajaj Finserv, Glenmark Pharma, Spicejet, Grasim Industries, Indiabulls Housing Finance and Moil.

Also Read: Market sheds over 2 percent amid worries over US inflation, Indian CPI data

Outlook for June 14

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The market crashed with full force on the first day of the week, as benchmark indices slumped below their crucial levels on across-the-board selling pressure.

There have been heightened concerns that central banks will be more aggressive in the coming months to hike interest rates to combat inflation, which will hurt growth and put margins under pressure.

Technically, if the Nifty breaks and closes below 15,700, it will be a major downside event for the market.

In such a situation, the index will slide to 15,500-15,400 in the short term. It is advisable to reduce weak long position below the 15,700. The Bank Nifty can drop to 32,000 levels if it ends below 33,500.

Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services

The near-term outlook remains weak on the back of twin global headwinds of high inflation and increasing interest rates.

Several global central banks, including the US Fed, are to meet this week to decide on their monetary policy and will keep the markets busy.

At home, a depreciating rupee and consistent FII selling are aggravating the pressure on the market. The Nifty has slipped below 16,000 and the weakness will likely continue if it fails to move up from the level.

The market will likely remain lacklustre in the absence of near-term positive triggers. Traders should avoid leveraged long positions for now.

Ajit Mishra, VP-Research, Religare Broking

Markets started the week with a sharp cut, in continuous to the prevailing corrective phase.

All eyes would be on the CPI data to be released in the evening. The US Fed meeting outcome to be shared on June 15 would induce further volatility.

The Nifty has almost retested the March 2022 low of 15,671 and a breakdown if it will lead to a further decline towards 15,450.

In case of a rebound, the 15,900-16,200 zone will act as a hurdle. We recommend using rebound to create shorts in the index until we see some sign of reversal. Stocks, on the other hand, are offering opportunities on both sides, so plan accordingly.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 
Rakesh Patil
first published: Jun 13, 2022 04:54 pm
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