Benchmarks nudge lower; Nifty below 22,400

The domestic equity indices traded with small losses in early trade. The Nifty traded below the 22,400 level. Auto, consumer durables and metal stocks were in demand while IT, private bank and FMCG shares edged lower.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 121.94 points or 0.17% to 73,541.78. The Nifty 50 index lost 13.40 points or 0.06% to 22,390.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.63% and the S&P BSE Small-Cap index added 0.64%.

The market breadth was strong. On the BSE, 1,995 shares rose and 856 shares fell. A total of 113 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 776.49 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,127.81 crore in the Indian equity market on 16 May 2024, provisional data showed.

Stocks in Spotlight:

Vedanta rose 0.90%. The companys board approved equity fundraising of up to Rs 8,500 crore and investment in Vedanta Copper International for a copper rod plant in Saudi Arabia.

Sanghvi Movers slipped 5.79%. The construction vehicle makers board approved a 2-for-1 stock split.

GMR Airports Infrastructure added 0.67% after the company reported a 7% YoY increase in passenger traffic (1.04 crore) and a 4% YoY increase in aircraft movements (67,267) for April 2024.

Numbers to Track:

The yield on India's 10-year benchmark federal rose 0.07% to 7.081 as compared with previous close 7.076.

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.5000, compared with its close of 83.5050 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement declined 0.12% to Rs 72,894.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.16% to 104.63.

The United States 10-year bond yield shed 0.09% to 4.371.

In the commodities market, Brent crude for July 2024 settlement rose 19 cents or 0.23% to $83.46 a barrel.

Global Markets:

Asian stocks were mixed Friday as investors weighed the Federal Reserve's monetary policy path. Fed officials signaled interest rates might stay elevated for longer despite signs of easing inflation.

China's industrial production grew 6.7% year-on-year in April, accelerating from March's 4.5% rise, according to data from the National Bureau of Statistics. However, consumer spending remained weak, with retail sales growing 2.3% year-on-year in April, down from March's 3.1% increase.

US stocks closed slightly lower on Thursday after the Dow Jones reached an intra-day high of 40,000 for the first time. The rally followed recalibrated investor expectations for Fed rate cuts after April's inflation slowdown. Strong corporate earnings also contributed to the bullish sentiment.

On Thursday, the US weekly Initial Jobless Claims for the week ending May 11 came in at 222,000 from the previous week of 232,000, according to the US Bureau of Labor Statistics (BLS). Housing Starts climbed 5.7% MoM to 1.36 million in April, while Building Permits declined by 3% MoM in April to 1.44 million.

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