Monday stock market: On Monday, markets opened negatively due to the bad mood abroad after inflation in the United States jumped to a 40-year high of 8.6 percent in May. With the sharp rise in US inflation that exceeded street expectations, all eyes will turn to the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, June 15, as investors fear an interest rate hike on the anvil. Apart from that, India will release its retail inflation figures for May on Monday, June 13th.
Massacre on D Street on Monday morning
At 09:16 GMT, the Sensex was down 1,311.76 points, or 2.42 percent, at 52,991.68, and the Nifty was down 373.20 points, or 2.30 percent, at 15,828.60. The prices of 491 shares rose, 1670 shares declined, and 117 shares remained unchanged.
Top Losers and Gainers on Nifty
Cipla, Sun Pharma, SBI Life Insurance and Power Grid Corporation were among the major gainers on Nifty, while Kotak Mahindra Bank, HDFC, L&T, Hindalco Industries and Infosys were the losers.
RBL Bank stock fell 15%; Hit its lowest level in 52 weeks
Shares of RBL Bank fell 15 percent in early trading after the private bank announced the appointment of veteran banker R Subramaniakumar as its new managing director and CEO. The appointment comes after the former managing director and CEO of RBL Bank unexpectedly resigned, after which the Reserve Bank of India appointed a nominee director to the bank’s board of directors. Most analysts downgraded the stock, noting that the appointment raises more questions than answers, as the veteran banker was previously involved in altering poor asset quality.
LIC shares hit a new low
Shares of Life Insurance Corporation of India (LIC) hit a new record low of Rs 682 on BSE in opening trades as the 30-day closing period for major investors ended today. Major investors, who have bought more than 59 million shares, can sell their shares on the open market starting Monday.
10-year bond yield rises to a 3-year high
The yield on the 10-year note rose 8 basis points to 7.59 per cent at the open. The rise in yield comes amid crude prices close to $120 a barrel and inflationary fears.
Why are the markets down today?
Siddhartha Kimka, Head of Retail Research at Motilal Oswal Financial Services, said: “Investors will be looking forward to the upcoming Federal Reserve meeting scheduled for June 14-15. On the domestic side, a depreciating rupee, higher crude oil prices and consistent FII sell-offs from Key Factors Downsides Market stuck in a wider range for the last month, which is expected to continue until any clear trend emerges on either side. While dips are being bought, support is missing at higher levels Expect limited stocks and sector specific actions Likely to be The energy, automotive, utility vehicles, select banking, retail, rapid quality standards and defense sectors are in focus.
US markets witness biggest weekly drop in inflation data
US stocks posted their biggest weekly percentage drop since January and ended Friday sharply lower as a more-than-expected rise in US consumer prices in May led to fears of a further rate hike by the Federal Reserve. The Dow Jones Industrial Average fell 880 points, or 2.73 percent, to 3,1392.79 points. The S&P 500 Index lost 116.96 points, or 2.91 percent, to 3,900.86 points. The Nasdaq Composite Index fell 414.20 points, or 3.52 percent, to 11,340.02 points.
Asian stocks plunge as inflation fears escalate
Tokyo stocks opened lower on Monday, as global inflation fears escalated on the back of fresh US data and led Wall Street, especially high-tech issues. The Nikkei 225 index fell 2.63 percent, or 731.04 points, to 27,093.25 in morning trading, while the broader Topix index lost 2.05 percent, or 39.86 points, to 1903.23 points.
Asian stocks fell on Monday and bond yields rose, as inflation in the United States reignited fears of tightening Federal Reserve policy, and a coronavirus warning from Beijing heightened concerns about global growth. Chinese blue-chip stocks fell 0.84 percent, and Hong Kong’s Hang Seng Index fell 2.9 percent. Japan’s Nikkei fell 2.78 percent and South Korea’s Kospi fell 2.78 percent.
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