Stock market update: Sensex, Nifty fall flat amid distress in manufacturing

The 75 per cent peak margin norms were implemented from today resulting in thin volumes.

After remaining volatile for a major part of the day, the stock market on Tuesday closed on an almost flat line. Two big events which affected the market were the fall of the manufacturing PMI in the country and rating agency Moody’s cutting down India’s Gross Domestic Product(GDP) growth forecast. After witnessing seven consecutive days of price rise, the investors looked to book profits. Amid these factors, BSE Sensex closed at 51,934, falling downwards by 2.5 points. Meanwhile, NSE’s Nifty50 fell by 8 points to close at 15,575

According to rating agency Moody’s, the loss to India’s economic growth from the second wave of Covid-19 will be restricted to the April-June quarter of the current fiscal. Its revised figures for India’s GDP growth are at 9.3% in the financial year 2021-22 and 7.9% in FY 2022-23.

The manufacturing PMI, an indicator of business activity in the manufacturing sector, slipped to 50.8 in the month of May from 55.5 in April, signifying the damage to the economy due to lockdowns imposed in wake of Covid-19. Another indicator of the distress in the manufacturing sector comes from data released by IHS Market which shows that domestic factory orders and production in May decreased to a ten-month low.

The 75 per cent peak margin norms were implemented from today resulting in thin volumes.

The top gainers of the day include ONGC, Adani Ports, SBI, HUL, Tech Mahindra and HDFC Bank among others. On the other hand, Tata Steel, JSW Steel, UltraTech Cement, SBI Life, Infosys and Hero MotoCorp, were the top losers down by around 2.3 per cent. Among the sectors, Nifty IT gained the most(0.11%) whereas Nifty Private Bank was the top loser(1%).

Here’s a look at the status of the global markets on Tuesday:

Germany DAX: 1.3% increase

France CAC 40: 0.7% increase

Japan Nikkei: 0.2% decrease

South Korea Kospi: 0.5% increase

China Shanghai Composite: 0.26% increase

Australia ASX200: 0.3% decrease

Among the commodities, Brent Crude futures went up by 2 per cent almost reaching the $71 mark ahead of an OPEC+ meeting.

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