Stock market updates: Fanning inflation across the globe stoked fears in the investor community on Wednesday, keeping indices in the red for the second straight day. MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.9 per cent while Japan’s Nikkei shedded 1.9 per cent and Taiwan’s index slumped over 4 per cent.
On Wall Street, E-mini futures for the S&P 500 stumbled 0.2 per cent while futures for the tech-heavy Nasdaq were down 0.5 per cent.
Data from China on Tuesday showed that consumer price inflation hit a seven-month high in April, and factory gate prices rose at the fastest rate in three and a half years. Meanwhile, in Germany, wholesale price inflation hit a decade high.
Now, ahead of retail inflation data from the US and India, slated to be released later in the day, domestic benchmark indices fell about a per cent on Dalal Street. Coupled with positions’ unwinding due to weekly F&O expiry, the BSE barometer of 30-shares dropped 471 points to close at 48,691 levels. In the intra-day trade, the index hit a low of 48,551 levels.
Tata Motors, PowerGrid, Titan Company, Maruti Suzuki, UPL, Cipla, State Bank of India, and NTPC were the top gainers on the 50-share index today, up between 1 per cent and 3 per cent. On the flipside, Tata Steel, JSW Steel, IndusInd Bank, Hindalco, HUL, SBI Life, and Grasim nursed losses up to 4 per cent.
The broader markets, too, succumbed to profit booking with the BSE MidCap and SmallCap indices falling 0.9 per cent and 0.6 per cent, respectively.
Among key sectoral indices, the Nifty metal index tumbled over 3 per cent, followed by the Nifty Private Bank index, down 1.6 per cent.
On the upside, the Nifty PSU Bank index zoomed 3.3 per cent on possible short covering. Individually, Punjab and Sind Bank, Central Bank of India, UCO Bank, PNB, Union Bank of India, Bank of India and Bank of Baroda soared in the range of 4 per cent to 10 per cent.
According to an Edelweiss Research report, the index has added 20 per cent open interest in the last four trading days, highest in last 5 months, with stocks like PNB and Canara Bank witnessing highest trading as well as delivery volume this week.