Benchmarks trades with modest losses; Nifty holds 15,700 level

The key barometers were trading with modest losses in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, fell 175.81 points or 0.33% at 52,326.17. The Nifty 50 index lost 65.30 points or 0.41% at 15,702.25.

In the broader market, the S&P BSE Mid-Cap index skid 0.92% while the S&P BSE Small-Cap index slipped 0.05%.

The market breadth was almost even. On the BSE, 1,515 shares rose and 1,533 shares fell. A total of 147 shares were unchanged.

Global cues were mixed after the US Federal Reserve on Wednesday signaled that policy makers expect rates to rise earlier than previously expected by penciling in two increases by the end of 2023.

Federal Reserve officials held interest rates near zero but signaled they expect two increases by the end of 2023, pulling forward the date of liftoff as the economy recovers.

"Progress on vaccinations has reduced the spread of COVID-19 in the United States, "the Federal Open Market Committee said in a statement released on Wednesday following the conclusion of its two-day policy meeting. "Amid this progress and strong policy support, indicators of economic activity and employment have strengthened."

The central bank held the target range for its benchmark policy rate unchanged at zero to 0.25% and pledged to continue asset purchases at a $120 billion monthly pace until substantial further progress had been made on employment and inflation.

Economy:

The figures of direct tax collections for the FY 2021-22, as on 15 June 2021 show that net collections are at Rs 1,85,871 crore compared to Rs 92,762 crore over the corresponding period of the preceding year, representing an increase of 100.4% over the collections of the preceding year. The net direct tax collections include corporation tax (CIT) at Rs 74,356 crore (net of refund) and personal income tax (PIT) including security transaction tax (STT) at Rs 1,11,043 crore (net of refund).

The advance tax collections for the first quarter of the FY 2021-22 stand at Rs 28,780 crore against advance tax collections of Rs 11,714 crore for the corresponding period of the immediately preceding Financial Year, showing a growth of approximately 146%.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 17,70,40,221 with 38,32,997 deaths. India reported 8,26,740 active cases of COVID-19 infection and 3,81,903 deaths while 2,84,91,670 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

A single day rise of 67,208 new coronavirus infections were recorded taking India's total tally of COVID-19 cases to 2,97,00,313, while the active cases declined to 8,26,740, the lowest after 71 days, according to the Union health ministry data updated on Thursday. The COVID-19 death toll climbed to 3,81,903 with 2,330 fresh fatalities, the data updated at 8 AM showed.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.85% to 15.29. The Nifty 24 June 2021 futures were trading at 15,723.05, at a premium of 20.80 points as compared with the spot at 15,702.25.

The Nifty option chain for 24 June 2021 expiry showed maximum Call OI of 30.7 lakh contracts at the 16,000 strike price. Maximum Put OI of 34.2 lakh contracts was seen at 15,500 strike price.

Buzzing Index:

The Nifty Metal index fell 1.57% to 5,134.45. The index lost 5.03% in four sessions.

Hindustan Zinc (down 1.84%), Coal India (down 1.54%), Hindalco Industries (down 1.24%), Steel Authority of India (SAIL) (down 1.11%) and Welspun Corp (down 1.02%) declined.

Stocks in Spotlight:

Nazara Technologies rose 0.83%. On Thursday, the company announced that it has signed a binding term sheet to acquire a majority stake in Arrakis Tanitim Organizasyon Pazarlama San (Publishme). The diversified gaming company will invest an approximate amount of Rs 20 crore for acquiring 69.82% stake by way of primary and secondary transaction through its subsidiary. With this acquisition, Nazara expands its international footprint in the freemium segment. Nazara will aim to build local execution capabilities cutting across key growth segments namely, freemium, gamified learning and esports.

Punjab & Sind Bank fell 0.75%. On Wednesday, the bank declared that Lanco Infratech's account with outstanding dues of Rs 215.17 crore has been declared as fraud and reported to the Reserve bank of India (RBI). The PSU bank said that the account has been fully provided for as per existing RBI norms.

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