Tepid global cues, weak rupee and rising crude and bond yields have a negative impact on the market.
Equity benchmarks have begun the day on a lower note, tracking negative global cues along with domestic issues of higher bond yields, crude prices as well as weak rupee.
The Sensex is down 132.72 points or 0.37% at 35330.36, while the Nifty is lower by 45.60 points or 0.42% at 10722.80. The market breadth is in favour of the declines as 346 shares have advanced against a fall of 668 shares, while 68 shares are unchanged.
Shares of oil marketing companies (OMCs) are trading lower on the back of higher crude prices. Indian Oil, HPCL and BPCL are trading up to 2 percent lower.
Dr Reddy’s Labs, Tata Motors, and Tech Mahindra are the top gainers, while Power Grid, Asian Paints, BPCL and HPCL have lost the most.
Bond yields touch 8%: The yield on 10-year government bonds on Friday rose above the 8 percent mark for the first time since November 2014, two days after the Reserve Bank of India (RBI) raised key interest rates and change liquidity coverage norms.
The 10-year bond yield closed at 7.993 percent on Thursday. Bond yields and prices move in opposite directions.
Rupee Update: The Indian rupee slipped in the early trade on Friday. It has opened lower by 34 paise at 67.46 per dollar versus 67.12 yesterday.
Rupee fell in the second half of the session following broad strength in the dollar against its major crosses and uptick in global crude oil prices. Yesterday, oil prices rose following reports that Venezuela is nearly a month behind delivering crude to customers from its main oil export terminals. In the recent past, it has been observed that higher crude oil prices have weighed on the rupee, said Motilal Oswal.
Today, USDINR pair is to quote in the range of 67.35 and 67.80. On the domestic front, market participants will be keeping an eye on inflation and industrial production number that will be released earlier next week.
Expectation is that inflation in May could inch higher that could further weigh on the currency, it added.
Here are stocks that are in news today:
HDFC Bank raises MCLR across tenors by 10 bps
Tata Motors proposes to raise up to USD 500 mn via ECB
Omax Autos approves proposal for diversification and expansion of existing capacity for manufacturing products and equipment supplied to Railways
Dr Reddy’s expects to launch generic Copaxone in H1 FY20 in US
Indian Bank revised the marginal cost of funds based lending rates (MCLRs) with effect from June 11, 2018
Time Technoplast receives order worth Rs 40 crore
PTC India: Sutirtha Bhattacharya appointed as the Independent Director on the Board
ITC acquires Nimyle floor cleaner, forays into home care space
Capital First debenture committee allots NCD worth Rs 100cr on private placement basis
Goldman Sachs India Fund sold 14,00,000 shares of Ashiana Housing at Rs 147.02 on the BSE and sold 14,94,502 shares at Rs 147.03 on the NSE
IMP Power successful foray into the renewable energy space
Vakrangee board meeting on June 14 to consider financial results for the quarter and year ended March 31, 2018
The Nifty50 is likely to see a gap down opening on Friday weighed down by muted trend seen in other Asian markets. The Nifty50 closed 83 points lower at 10,768 levels.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 48 points or 0.45 percent. Nifty futures were trading around 10,724- level on the Singaporean Exchange.
The S&P and Nasdaq fell on Thursday as the technology sector snapped a rally while investors turned to safer bets as they kept an eye on global trade tensions and waited for US and European central bank meetings, said a Reuters report.
Asian stocks drifted lower early on Friday, with major markets in the region recording slight declines after the mixed close on Wall Street, it added.
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