Sensex ends 76 points higher, Nifty above 15,800; RIL, Adani group stocks gain

Benchmark equity indices witnessed a swift recovery after the initial fall as investor lapped up the energy, oil & gas and healthcare sectors, while selling was witnessed in industrials, power and utilities sector stocks. At close, key barometer index Sensex was up 76 points or 0.15% at fresh closing high of 52551, and the broader market index Nifty 50 settled at a new closing peak of 15,811 gaining 12 points or 0.08%.

On an intraday basis, Sensex plunged below the 52,000-mark to 51,936. Similarly, Nifty 50 almost touched 15,600-level as it made an intraday low of 15,606.

After hitting an intraday low of 51,936, Sensex rallied 76 points or 0.15% to end at a fresh closing high of 52551. Similarly, Nifty settled 12 points or  0.08% higher at 15,811. The 50-share index had touched an intraday low of 15,606.

Adani Group

Shares of Adani group companies rebounded from day’s low as the group clarified that the 3 foreign funds- Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in Adani Group Companies are active.

After falling nearly 21% intraday, Adani Enterprises ended at Rs 1,510.35 (down 5.70%). Likewise, Adani Green Energy, which slipped 5% in the early trade, ended marginally higher at Rs 1,226 (up 0.68%). After falling 13.88%,  Adani Ports recouped some of the losses and closed the day at Rs 762  apiece (down 9.26%).

However, shares of Adani Transmission and Adani Total Gas were still locked in lower circuit each quoiting 5% down each at Rs 1,522.50 and Rs 1,544.90, respectively. Adani Power also closed 5% lower at Rs 140.90.

Economy

India’s annual rate of inflation, based on the monthly Wholesale Price Index (WPI), was 12.94% in May 2021 compared to -3.37% in May 2020. The high rate of inflation in May 2021 is primarily due to the low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil etc. and manufactured products as compared to the corresponding month of the previous year.

India’s Index of Industrial Production (IIP) rose by a sharp 134.44% in April 2021, as per data from the National Statistical Office which stressed that the numbers are not strictly comparable with April 2020 when the country was in the midst of a national lockdown.

April’s industrial output was just 0.08% higher than the pre-pandemic levels of April 2019. The manufacturing sector recorded a 197.1% uptick this April, though it was still 0.9% lower than April 2019 levels. Electricity output rose 38.5% in April 2021 from a year ago and was 6.81% higher than the pre-COVID-19 levels of April 2019. Similarly, Mining output grew 37% year-on-year in April 2021 but was only 0.2% higher than the same month in 2019.

Gainers & losers

Buzzing sectors

All sectoral indices pared their opening losses. Nifty IT index led the pack with a gain of 0.34%, followed by the Nifty FMCG index rallying 0.04%. On the downside, the Nifty Realty index lost the most 1.52%, the Nifty Metal index slipped 0.65% and Nifty Bank was down 0.28%. Nifty Auto and Nifty Pharma indices ended around 0.10% lower.

Broader market

The broader market failed to mirror benchmark indices as the BSE MidCap index ended at 22,771 0.68% lower. Likewise, the BSE SmallCap index was down 0.16% at 25,116. Even the market breadth was negative as 1,094 shares declined compared to 887 stocks advancing and 322 scrips remained unchanged.

“Though the domestic market opened on a negative note due to lack of positive cues, it recovered in the afternoon, led by heavyweights following positive global markets. WPI inflation for May rose to 12.94% reflecting a higher price of fuel and manufactured products along with a lower base. Fed policy meeting to be held on June 15-16 is expected to dominate investor behaviour in the coming days. Though the Fed is expected to keep its rates unchanged, the key focus of the market will be on its comment on inflation,” said Vinod Nair, Head of Research at Geojit Financial Services

Global markets

Shares in Europe and Asia advanced on Monday, 14 June 2021. Markets in mainland China and Hong Kong were closed for public holidays.

US stocks rose slightly on Friday with the S&P 500 adding to its new record. The S&P 500 climbed 0.2% to a fresh closing high of 4,247.44, a second record close in a row. The Nasdaq Composite advanced 0.4% to 14,069.42 with Apple, Microsoft and Netflix all registering gains. The Dow Jones Industrial Average gained 13.36 points to 34,479.60.

Meanwhile, leaders of the Group of Seven wealthy nations staked their claim Sunday to leading the world out of the coronavirus pandemic and crisis, pledging more than 1 billion coronavirus vaccine doses to poorer nations, vowing to help developing countries grow while fighting climate change and backing a minimum tax on multinational firms.

The G-7 also backed a minimum tax of at least 15% on large multinational companies to stop corporations from using tax havens to avoid taxes, a move championed by the United States.