Bourses turn positive in late afternoon session

Indian benchmarks erased all the losses to turn positive in late afternoon session. Traders were seen piling up positions in Energy, Oil & Gas and Healthcare sectors, while selling was witnessed in Industrials, Power and Utilities sectors’ stocks. Traders took support even during the second wave of COVID-19, direct tax collection has nearly doubled in FY22 so far, compared with the same period in the previous fiscal year. Besides, India’s foreign exchange reserves crossed the $600 billion-mark for the first time to touch a new high of $605 billion as on June 4. Traders shrugged off 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. On the global front, Asian markets were trading mixed as traders focus will be on the US Federal Reserve's policy meeting this week. European markets were trading higher as investors look ahead to the June meeting of the US Federal Reserve.

The BSE Sensex is currently trading at 52542.31, up by 67.55 points or 0.13% after trading in a range of 51936.31 and 52553.19. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.84%, while Small cap index was up by 0.02%.

The top gaining sectoral indices on the BSE were Energy up by 1.12%, Oil & Gas up by 0.53%, Healthcare up by 0.47% , IT up by 0.44% and Metal was up by 0.43%, while Power down by 2.41%, Industrials down by 1.73%, Utilities down by 1.24%, Realty down by 0.97% and Capital Goods was down by 0.68% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.85%, Bajaj Finance up by 1.58%, ONGC up by 1.17%, Dr. Reddys Lab up by 0.80% and Infosys up by 0.78%. On the flip side, Kotak Mahindra Bank down by 1.54%, NTPC down by 1.31%, Bajaj Auto down by 0.74%, Maruti Suzuki down by 0.69% and HDFC Bank down by 0.61% were the top losers.

Meanwhile, India’s inflation based on wholesale price index (WPI) rose to 12.94% (Provisional) for the month of May 2021 as compared to -3.37% in May 2020, primarily due to low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil etc. and manufactured products as compared the corresponding month of the previous year.

Component wise, primary articles index having weight of 22.62%, declined by 0.86% to 150.5 (Provisional) in May 2021 from 151.8 (Provisional) for the month of April 2021. Prices of Non-food Articles increased in May 2021 (as compared to April 2021) by 1.26%, Crude Petroleum & Natural Gas by 0.67% and Food Articles declined by 1.48%.

Fuel & Power index, having weight of 13.15%, increased by 1.75% to 110.5 (Provisional) in May 2021 from 108.6 (Provisional) for the month of April 2021. Prices of Mineral Oils increased by 3.12% in May 2021 as compared to April 2021. Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by 1.24% to 131.0 (Provisional) in May 2021.

The CNX Nifty is currently trading at 15,803.60, up by 4.25 points or 0.02% after trading in a range of 15606.50 and 15810.95. There were 26 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 1.81%, Bajaj Finance up by 1.56%, Divis Lab up by 1.28%, ONGC up by 1.25% and Tata Steel up by 1.15%. On the flip side, Adani Ports down by 12.60%, Coal India down by 2.09%, Kotak Mahindra Bank down by 1.47%, NTPC down by 1.35% and Hero MotoCorp down by 0.93% were the top losers.

Asian markets were trading mixed, Nikkei 225 surged 213.07 points or 0.74% to 29,161.80 and KOSPI was up by 2.81 points or 0.09% to 3,252.13. On the flip side, Straits Times trembled 3.13 points or 0.1% to 3,154.84 and Jakarta Composite was down by 15.12 points or 0.25% to 6,080.38.

European markets were trading higher, UK’s FTSE 100 increased 23.16 points or 0.32% to 7,157.22, France’s CAC increased 28.89 points or 0.44% to 6,629.55 and Germany’s DAX was up by 48.66 points or 0.31% to 15,741.93.