30 May , 2024
Stocks edged higher as markets reopened in Europe and the US, with traders closely watching inflation data and central bank speakers for clues on the timing of interest-rate cuts.
Europe’s Stoxx 600 remained mostly unchanged, maintaining its trajectory for a 3.5% gain in May, while futures on US shares rose by 0.3%. The 10-year Treasury yield fell by two basis points, and the dollar held steady. Brent crude prices were also stable following two days of gains, despite escalating tensions in the Middle East after the death of an Egyptian soldier in a clash with Israeli troops.
Consumer inflation expectations in the eurozone declined in April, while the Federal Reserve’s preferred measure of underlying inflation is expected to show modest improvement on Friday. ECB’s Klaas Knot is scheduled to speak on Tuesday, with Federal Reserve officials Lisa Cook and Neel Kashkari among the speakers lined up for the week.
“We are very much on the inflation data watch for now," said Marija Veitmane, senior multi-asset strategist at State Street Global Markets. “Stocks and risk assets will continue to be supported, but I don’t see a change of leadership nor a broadening of performance. Large-cap growth stocks will be leading."
The ECB’s next policy meeting is on June 6. On Monday, France’s Francois Villeroy de Galhau suggested that the ECB should not rule out cutting rates in both June and July, although hawkish policymakers, including Executive Board member Isabel Schnabel, have opposed consecutive rate cuts.
Traders returning from the long weekend are also vigilant for issues related to the switch to the “T+1” rule, where US equities will settle in one day instead of two. Concerns include potential delays for international investors sourcing dollars, different speeds of global fund movements compared to their assets, and reduced time to correct errors.
Elsewhere, Bitcoin dropped as traders monitored transfers from wallets belonging to the defunct Mt. Gox exchange, whose administrators are ramping up efforts to return a $9 billion cache of Bitcoin to creditors.
Sensex Today Live: Closing Bell Wrap
Indian benchmark indices traded subdued on Tuesday, influenced by the cautious market mood amid the ongoing 2024 Lok Sabha elections and upcoming inflation data globally.
These uncertainties led the benchmark indices to touch all-time highs in the last two trading sessions, but they closed in the red for the second consecutive day today.
The Sensex, which opened higher at 75,585.40, fluctuated between a high of 75,585.40 and a low of 75,083.22, closing at 75,170.45, down 220.05 points or 0.29%. Similarly, the Nifty 50, which opened higher at 22,977.15, ranged between 22,858.50 and 22,998.55, closing at 22,888.15, down 44.30 points or 0.19%.
On the BSE Sensex, 19 of the 30 stocks closed in the red. The top laggards were Power Grid Corp., NTPC, Tech Mahindra, Bharti Airtel, and Tata Motors, while the top gainers included Asian Paints, Wipro, JSW Steel, Hindustan Unilever, and Bajaj Finserv.
On the Nifty 50, 28 of the 50 stocks ended in the red. Adani Ports & SEZ, Power Grid Corp., BPCL, Coal India, and Adani Enterprises were the major losers, whereas Divi's Laboratories, SBI Life, HDFC Life, Hero MotoCorp, and Grasim Industries were the top gainers.
The broader market also closed in the red, with the BSE MidCap down 0.63% and the BSE SmallCap down 1.09%.
The Realty, PSU Bank, and Oil & Gas indices were the biggest drags, while the Pharma and Healthcare indices gained the most. The Bank, Auto, Metal, Consumer Durables, and IT indices also closed in the red, whereas the Financial Services, Media, and FMCG sectoral indices ended in the green.
In corporate news, 3M India reported Q4 revenues of ₹1,094.5 crore, up 4.6% compared to ₹1,046 crore a year ago, with net profit rising 27% YoY to ₹173 crore from ₹136 crore a year ago. Hind Rectifiers recorded a net profit of ₹5 crore in Q4, compared to a loss of ₹2.4 crore a year ago, with revenues at ₹151.3 crore, up from ₹111.6 crore a year ago.
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