Nifty slides below 22,100; FMCG stocks slide

The key equity barometers extended losses in the mid-afternoon trade. The Nifty slipped below the 22,100 level. FMCG stocks declined after rising in the previous trading session. Trading was volatile due to the expiry of weekly index options on the NSE.

At 14:32 IST, the barometer index, the S&P BSE Sensex, was down 186.19 points or 0.26% to 72,757.49. The Nifty 50 index lost 52.05 points or 0.24% to 22,095.85.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.34% while the S&P BSE Small-Cap index gained 0.69%.

The market breadth was positive. On the BSE, 2,191 shares rose and 1,582 shares fell. A total of 135 shares were unchanged.

Economy:

The International Monetary Fund raised Indias FY25 GDP growth forecast by 30 bps to 6.8% from its January forecast of 6.5%, citing bullish domestic demand conditions and a rising working-age population. IMF sees India's FY26 GDP growth at 6.5%. The global financial agency sees India's retail inflation at 4.6% in FY25 and 4.2% in FY26.

Politics:

India is gearing up for its election in 2024. The BJP is looking to consolidate its grip on power as it aims for a historic third term while a band of opposition parties, including the Congress, has formed a united front called INDIA to deny PM Modi another victory. The elections will occur in 7 phases, starting on 19 April and ending on 1 June. The Lok Sabha elections 2024 results will declared on 4 June.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.36% to 7.167 from previous close of 7.193.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5350, compared with its close of 83.6150 during the previous trading session.

MCX Gold futures for 5 June 2024 rose 0.09% to Rs 72,821.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.13% to 105.82.

The United States 10-year bond yield declined 0.28% to 4.571.

In the commodities market, Brent crude for June 2024 settlement fell 53 cents or 0.61% to $86.76 a barrel.

Buzzing Index:

The Nifty FMCG index declined 0.46% to 53,155.55. The index rose 0.43% in the previous trading session.

Nestle India (down 3.39%), Britannia Industries (down 0.96%), Colgate-Palmolive (India) (down 0.95%), ITC (down 0.68%), Balrampur Chini Mills (down 0.64%), Radico Khaitan (down 0.52%), United Breweries (down 0.32%) slipped.

On the other hand, Procter & Gamble Hygiene and Health Care (up 1.32%) ,Tata Consumer Products (up 0.74%) and United Spirits (up 0.66%) edged higher.

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