One Report to Answer all your Questions!

Get your Portfolio Verdict now

Domestic indices wipe out opening gains; trade lower in early deals

08 Jun 2022 Evaluate

Indian equity benchmarks made slightly positive start on Wednesday amid a rebound in global markets. But failed to hold gains and soon slipped below neutral lines in early deals ahead of RBI policy outcome. Investors are eyeing the decision of the RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC), which started its deliberations on Monday, is scheduled to be announced at 10 am on today. Reserve Bank of India (RBI) is likely to raise the benchmark lending rate by 25-50 basis points as inflation continues to remain above its comfort level. Last month, RBI raised the repo rate or short term lending rate by 40 basis points in an off-cycle monetary policy review to check spiralling inflation. Traders were concerned as the World Bank cut India's economic growth forecast for the current fiscal to 7.5 per cent as rising inflation, supply chain disruptions and geopolitical tensions taper recovery.

On the global front, most of the Asian markets are trading higher following the broadly positive cues overnight from Wall Street, with support from energy and technology stocks. Relaxation of coronavirus restrictions in Shanghai and reports that the Biden administration is looking at the option of lifting some tariffs on China to fight inflation is helping underpin sentiment. Back home, coal industry stocks were in focus as Moody's Investors Service said large coal-importing nations, including India, will look to ramp up the output of domestic coal to strengthen energy security and lessen dependence on the import of fossil fuels. Mining stocks move up as govt plans asset monetization in coal mining sector.

The BSE Sensex is currently trading at 54916.81, down by 190.53 points or 0.35% after trading in a range of 54884.45 and 55361.49. There were 11 stocks advancing against 18 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.50%, while Small cap index was down by 0.31%.

The top gaining sectoral indices on the BSE were Metal up by 0.55%, PSU up by 0.44%, Oil & Gas up by 0.40%, Bankex up by 0.15%, Utilities up by 0.14%, while FMCG down by 0.98%, Healthcare down by 0.76%, Telecom down by 0.58%, Capital Goods down by 0.43%, Consumer Disc down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.11%, Titan Co up by 0.65%, NTPC up by 0.57%, Axis Bank up by 0.52% and Kotak Mahindra Bank up by 0.49%. On the flip side, Nestle down by 1.41%, Asian Paints down by 1.23%, Sun Pharma down by 1.06%, Bharti Airtel down by 1.02% and Hindustan Unilever down by 0.97% were the top losers.

Meanwhile, with headwinds from rising inflation, supply chain disruptions, and geopolitical tensions offsetting buoyancy in the recovery of services consumption from the pandemic, the World Bank in its latest issue of the Global Economic Prospects has cut India's economic growth forecast for the current fiscal (FY23) to 7.5 per cent. This is the second time that the World Bank has revised its GDP growth forecast for India in the current fiscal 2022-23 (April 2022 to March 2023). In April, it had trimmed the forecast from 8.7 per cent to 8 per cent and now it is projected at 7.5 per cent.

It said growth will also be supported by fixed investment undertaken by the private sector and by the government, which has introduced incentives and reforms to improve the business climate. It bank added this forecast reflects a 1.2 percentage point downward revision of growth from the January projection. It noted that growth is expected to slow further to 7.1 percent in 2023-24 back towards its longer-run potential.

According to the World Bank report, growth in India slowed in the first half of 2022 as activity was disrupted both by a surge in COVID-19 cases, accompanied by more-targeted mobility restrictions and by the war in Ukraine. The recovery is facing headwinds from rising inflation. The unemployment rate has declined to levels seen prior to the pandemic, but the labour force participation rate remains below pre-pandemic levels and workers have shifted to lower-paying jobs. In India, the focus of government spending has shifted toward infrastructure investment, labour regulations are being simplified, underperforming state-owned assets are being privatised, and the logistics sector is expected to be modernized and integrated, the bank said.

World Bank President David Malpas, in his foreword to the report, said global growth is expected to slow sharply from 5.7 per cent in 2021 to 2.9 per cent this year. He added ‘this also reflects a nearly one-third cut to our January 2022 forecast for this year of 4.1 per cent’. He also said ‘the surge in energy and food prices, along with the supply and trade disruptions triggered by the war in Ukraine and the necessary interest-rate normalization now underway, account for most of the downgrade’.

The CNX Nifty is currently trading at 16365.85, down by 50.50 points or 0.31% after trading in a range of 16348.90 and 16485.70. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.38%, Tata Steel up by 1.05%, Coal India up by 0.96%, NTPC up by 0.92% and JSW Steel up by 0.86%. On the flip side, Tata Consumer Products down by 1.82%, UPL down by 1.48%, Britannia Industries down by 1.28%, Nestle down by 1.23% and Asian Paints down by 1.13% were the top losers.

Asian markets are trading mostly in green; Nikkei rose 225 255.20 points or 0.91% to 28,199.15, Hang Seng surged 335.59 points or 1.56% to21,867.26, Taiwan Weighted jumped 144.69 points or 0.88% to 16,657.57, KOSPI added 2.68 points or 0.10% to 2,629.02 and Jakarta Composite was up by 33.33 points or 0.47% to 7,174.38. On the other hand, Straits Times fell 5.76 points or 0.18% to 3,225.78 and Shanghai Composite was down by 22.61points or 0.70% to 3,219.15.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

Data provided by Accord Fintech Pvt. Ltd.

*Color code for outperformance consistency

*Number is average 3 year rolling returns

Want to invest successfully in stocks?

How the heck do you select a solution that ensures it?

Check how good is your current solution!

Does it get you focused on meeting your financial goals?

Investing is to means to funding your goals. Your solution must help you get clarity of your goals and how you should invest to reach them. Does your solution include Financial Planning?

Does it have a way of investing that you are confident will work for you?

Are you clear of the rationale behind recommendations?

Do you have a way of answering the most important questions: Which stocks are worth investing in, at what price and how do you build your portfolio?

Does it make it easy to find opportunities without wasting your time?

Are you spending too much time finding opportunities?
Do you have a way of knowing when opportunities from your chosen set of stocks arise in the future?
How confident are you about them?