Markets trade near day’s low points in late afternoon session

Indian equity markets traded near day’s low points in late afternoon session, with both Sensex and Nifty falling more than 350 and 100 points, respectively. The broader markets, the BSE Mid cap index and Small cap index were exhibiting a mixed trend. Traders failed to take support, as Indian manufacturing activity steadied in the month of May, with new orders and production increasing at similar rates to those registered in April. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 54.6 in May from 54.7 in April. The report further said that companies were able to secure new work despite lifting selling prices at the fastest rate in over eight-and-a-half years as additional cost burdens continued to be transferred to clients. In scrip specific, eMudhra has debuted at Rs 271.00 on the BSE, up by 15 points or 5.86% from its issue price of Rs 256.

On the global front, Asian markets were trading mixed following the broadly negative cues overnight from Wall Street, as traders remained cautious amid fears surrounding high inflation and interest-rate hikes, with a senior US Fed official calling for several more rate hikes to combat ballooning inflation. European markets were trading mostly in green after a private survey showed China's factory activity shrank less sharply in May than expected.

The BSE Sensex is currently trading at 55,181.25, down by 385.16 points or 0.69% after trading in a range of 55187.43 and 55791.49. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.43%, while Small cap index was up by 0.27%.

The few gaining sectoral indices on the BSE were Capital Goods up by 0.21%, Industrials up by 0.20% and PSU up by 0.19%, while Power down by 1.97%, Utilities down by 1.76%, Realty down by 1.56%, TECK down by 1.25% and Healthcare was down by 1.25% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.73%, HDFC up by 0.62%, Tata Steel up by 0.48%, ITC up by 0.44% and NTPC up by 0.32%. On the flip side, Nestle down by 3.04%, Tech Mahindra down by 2.91%, Bajaj Finserv down by 2.70%, Sun Pharma down by 2.30% and HCL Tech down by 2.16% were the top losers.

Meanwhile, Indian manufacturing activity steadied in the month of May, with new orders and production increasing at similar rates to those registered in April. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 54.6 in May from 54.7 in April.

The report further said that companies were able to secure new work despite lifting selling prices at the fastest rate in over eight-and-a-half years as additional cost burdens continued to be transferred to clients. Besides, demand showed signs of resilience in May, improving further in spite of another uptick in selling prices. Companies reported a marked increase in total new orders that was broadly similar to April.

Further, manufacturing sector jobs rose further in May, owing to ongoing improvements in sales. Although only slight, the rate of employment growth picked up to the strongest since January 2020. In May, there was a notable uptick in growth of new export orders. The rate of expansion was sharp and the fastest since April 2011.

On the inflation front, input costs rose for the twenty-second successive month in May, with companies reporting higher prices for electronic components, energy, freight, foodstuff, metals and textiles. Although softer than in April, the rate of inflation remained historically elevated.

The CNX Nifty is currently trading at 16,468.60, down by 115.95 points or 0.70% after trading in a range of 16462.55 and 16649.20. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.33%, Coal India up by 1.92%, Mahindra & Mahindra up by 1.70%, HDFC Life Insurance up by 1.01% and HDFC up by 0.70%. On the flip side, Apollo Hospital down by 4.44%, Bajaj Auto down by 3.73%, Hindalco down by 3.68%, Bajaj Finserv down by 2.90% and Tech Mahindra down by 2.74% were the top losers.

Asian markets were trading mixed, Nikkei 225 surged 178.09 points or 0.65% to 27,457.89, Jakarta Composite soared 111.40 points or 1.58% to 7,148.97, KOSPI rose 16.24 points or 0.61% to 2,685.90 and Straits Times was up by 6.60 points or 0.2% to 3,239.09. On the flip side, Shanghai Composite declined 4.27 points or 0.13% to 3,182.16, Hang Seng decreased 120.26 points or 0.56% to 21,294.94 and Taiwan Weighted was down by 132.68 points or 0.79% to 16,675.09.

European markets were trading mostly in green, France’s CAC increased 10.80 points or 0.17% to 6,479.60 and Germany’s DAX was up by 25.67 points or 0.18% to 14,414.02. On the flip side, UK’s FTSE 100 was down by 16.08 points or 0.21% to 7,591.58.