Markets remain subdued in afternoon trade

Indian equity benchmarks continued their lackluster trade in afternoon session as sentiments remains downbeat as the wholesale price-based (WPI) inflation accelerated to a record high of 12.94 per cent in May, on rising prices of crude oil and manufactured goods. Low base effect also contributed to the spike in WPI inflation in May 2021. In May 2020, WPI inflation was at (-) 3.37 per cent. This is the fifth straight month of uptick seen in the wholesale price index (WPI)-based inflation. In April, 2021, WPI inflation hit double digit at 10.49 per cent. In scrip specific developments, Adani group shares decline following the action taken against three FPI accounts owning Adani Group shares by NSDL. According to report, the freeze could be because of insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act (PMLA).

On the global front, Asian markets were trading mixed as traders focus will be on the U.S. Federal Reserve's policy meeting this week. The central bank has assured that rising inflation will not last long enough to warrant a sooner-than-expected end to easy-money policies. Back home, Sona BLW Precision Forgings’ IPO of Rs 5,550-crore is opened for subscription on June 14. The IPO will be sold in the Rs 285-291 price band. Another IPO by the producer of long steel products Shyam Metalics also opened on same day and will be sold in the Rs 303-Rs 306 price band.

The BSE Sensex is currently trading at 52256.51, down by 218.25 points or 0.42% after trading in a range of 51936.31 and 52542.66. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 1.13%, while Small cap index was down by 0.33%.

The few gaining sectoral indices on the BSE were IT up by 0.36%, TECK up by 0.25%, Healthcare up by 0.13%, while Power down by 2.45%, Industrials down by 2.18%, Utilities down by 1.50%, Realty down by 1.44% and Bankex was down by 1.19% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.29%, ONGC up by 0.85%, Infosys up by 0.72%, Dr. Reddys Lab up by 0.66% and Bajaj Finserv was up by 0.58%. On the flip side, Kotak Mahindra Bank down by 1.57%, SBI down by 1.52%, ICICI Bank down by 1.38%, NTPC down by 1.26% and HDFC was down by 1.24% were the top losers.

Meanwhile, total outstanding dues owed by electricity distribution utilities or Distribution companies (discoms) to power producers fell 11.2 percent to Rs 81,628 crore in April 2021 from a year ago. According to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators), discoms owed a total Rs 91,915 crore to power generation firms in April 2020.

However, outstanding dues of discoms towards electricity producers have been increasing year-on-year as well as month-on-month for years showing perennial stress in the power sector till February this year. It has started tapering off from March 2021. Total dues in April increased sequentially compared to Rs 78,841 crore in March this year.

Total outstanding dues of discoms had dipped 3.4 percent in March this year from Rs 81,687 crore in the same month last year. In April 2021, the total overdue amount, which was not cleared even after 45 days of grace period offered by generators, stood at Rs 68,732 crore as against Rs 76,117 crore in the same month a year ago. The overdue amount stood at Rs 67,656 crore in March this year.

The CNX Nifty is currently trading at 15716.70, down by 82.65 points or 0.52% after trading in a range of 15606.50 and 15791.90. There were 14 stocks advancing against 34 stocks declining, while 2 stocks remain unchanged on the index.

The top gainers on Nifty were Bajaj Finance up by 1.18%, Tata Steel up by 1.01%, Cipla up by 0.90%, ONGC up by 0.85% and Divis Lab was up by 0.85%. On the flip side, Adani Ports down by 12.67%, Coal India down by 2.27%, SBI down by 1.58%, Kotak Mahindra Bank down by 1.53% and ICICI Bank was down by 1.50% were the top losers.

Asian markets were trading mixed; KOSPI rose 2.81 points or 0.09% to 3,252.13 and Nikkei 225 was up by 213.07 points or 0.74% to 29,161.80. On the other hand, Straits Times trembled 3.03 points or 0.1% to 3,154.94 and Jakarta Composite was down by 3.50 points or 0.06% to 6,092.00.