Market slips in early trade

Key indices are trading lower in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 173.28 points or 0.52% at 33,431.94. The Nifty 50 index was down 70.65 points or 0.71% at 9,843.35. Asian stocks are trading lower.

The S&P BSE Mid-Cap index was up 0.2%. The S&P BSE Small-Cap index was up 0.3%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 709 shares rose and 702 shares fell. A total of 54 shares were unchanged.

Stocks in news:

HCL Technologies slipped 0.59%. HCL Technologies announced the commencement of its operations in Sri Lanka. Marking its presence in the region, HCL plans to create over 1,500 new local employment opportunities for both freshers and experienced professionals, within the first eighteen months of kick-starting its operations from its office in Colombo. A key part of HCL's business and development strategy in Sri Lanka will be to use local talent pool of Sri Lanka for global assignments.

Wipro rose 0.54%. Wipro Gallagher Solutions (WGS), a Wipro company announced a partnership with DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services for the mortgage industry. The partnership will enable Wipro Gallagher Solutions to advance digital mortgage processes via a seamless integration to DocMagic services.

HPCL rose 1.67%. HPCL reported consolidated net loss of Rs 27.63 crore in Q4 March 2020 against a net profit of Rs 3,340.03 crore in Q4 March 2019. Total income fell 3.2% to Rs 66,659.85 crore in Q4 March 2020 over Q4 March 2019.

HDFC Asset Management Company (HDFC AMC) fell 2.55% to Rs 2,473. Standard Life Investments (the promoter of the company)(the Seller) proposes to sell up to 60 lakh equity shares (representing approximately 2.82% stake in HDFC Asset Management Company on 17 June 2020 (for non-retail investors only) and on 18 June 2020 (for retail investors and for non-retail investors who choose to carry forward their un-allotted bids), with an option to additionally sell up to 6,000,000 equity shares (representing approximately 2.82% stake). The floor price for the sale shall be Rs 2,362 per share.

NMDC rose 1.06%. NMDC reported 78.23% fall in consolidated net profit to Rs 315.39 crore on 13.51% fall in total income to Rs 3,320.95 crore in Q4 March 2020 over Q4 March 2019.

Navin Fluorine International advanced 4.83% after the company reported 675.13% surge in consolidated net profit to Rs 272.69 crore on 6.99% rise in total income to Rs 282.26 crore in Q4 March 2020 over Q4 March 2019.

Ashoka Buildcon gained 4.61%. Ashoka Buildcon reported consolidated net profit of Rs 134.56 crore in Q4 March 2020 against a net loss of Rs 10.24 crore in Q4 March 2019. Total income fell 0.83% to Rs 1,610.56 crore in Q4 March 2020 over Q4 March 2019.

Global Markets:

Overseas, Asian stocks are trading lower as the International Monetary Fund said the global economy is set to see a more significant contraction than it previously forecast.

Japan's exports plunged 28.3% year-on-year in May, according to provisional trade statistics released Wednesday by the country's Ministry of Finance.

IMF Chief Economist Gita Gopinath said in a Tuesday blog post that the forthcoming June World Economic Outlook Update is expected to show negative growth rates even worse than previously estimated. The fund also said the current crisis, which it dubbed the Great Lockdown, is unlike anything the world has seen before.

Investors continue to watch for developments on the geopolitical front regionally, as tensions escalate along the Korean peninsula after North Korea reportedly destroyed a liaison office with the South.

In US, Wall Street advanced on Tuesday as the prospect of additional stimulus and a record jump in retail sales suggested the U.S. economy could bounce back sooner than expected.

A full US economic recovery will not occur until the American people are sure that the novel coronavirus epidemic has been brought under control, Federal Reserve Chair Jerome Powell said on Tuesday, as he began the first of two days of hearings before US lawmakers. The longer the downturn lasts, the greater the potential for longer-term damage from permanent job loss and business closures, Powell added.

In economic data, U.S. retail sales jumped by 17.7% in May, the government said Tuesday. U.S. industrial production for May rose by 1.4%, as many factories resumed operations after shutdowns spurred by the coronavirus crisis, the Federal Reserve said Tuesday.

Back home, domestic shares advanced on Tuesday amid high volatility as strong global cues boosted sentiment while India-China faceoff in Ladakh capped gains. The barometer S&P BSE Sensex gained 376.42 points or 1.13% at 33,605.22. The Nifty 50 index rose 100.30 points or 1.02% at 9,914.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,478.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,161.51 crore in the Indian equity market on 16 June, provisional data showed.

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