Stock market highlights: Indian equities ended lower for a third straight day on Tuesday as investors anticipated aggressive rate hikes by central banks, including the US Federal Reserve, to tame multi-year high inflation, too climbed to 15.8 per cent in May, its highest level since 2012.
That apart, shares of oil marketing companies were under pressure on Tuesday as Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation hit their respective 52-week lows, while Indian Oil Corporation dipped 3 per cent on the BSE in intraday trade.
On the upside, shares of jumped 6.6 per cent to Rs 2,220 on the BSE in Tuesday's intraday trade after TotalEnergies of France entered into a new partnership to jointly create the world's largest green hydrogen ecosystem Vinod Nair, head of research at Financial Services, said: Domestic market restrained from heavy sell-off as CPI data moderated on an MoM basis and this had a calm down effect amidst global volatility. However, elevated data continued to dominate the broad market, which is cautious awaiting tomorrow’s outcome of Fed policy. Earlier the global market was anticipating a 50bps hike but now is worried about a higher rate hike due to persistent US equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession.
Asian shares tumbled on Tuesday after Wall Street hit a confirmed bear market milestone and bond yields struck a two-decade high on fears aggressive U.S. interest rate hikes would push the world’s largest economy into recession. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.9 per again gyrated in a volatile trading session as investors are worried about the rising inflation and hawkish stance being undertaken by central banks over the market is lacking conviction to bounce back select bouts of recovery are not ruled out. Technically, after a sharp decline, the Nifty is consolidating in the range of 15700- 15850 the short term formation is still on the weak side. And we are of the view that if the index slips below the level of 15700, it could hit 15600-15550 levels. On the flip side, 15850 would act as an immediate hurdle for the bulls. Above which it could move up to 15950-16000 In many parts of China, businesses were scheduled to resume work this past Monday, but a variety of data indicates progress has been slow as the virus remains an unresolved concern the lockdown measures, together with the substantial extension of the (Lunar New Year) holiday, have significantly delayed resumption of business and production. Ting Lu, chief China economist say in an email Friday even though a significant share of China's manufacturing plants have resumed operation this week, many plants are still operating at far below capacity due to labor force shortages. APAC chief economist, IHS Market, said in an email sent daily power coal consumption of six major power generation groups on Wednesday was 42.2% lower from the same post-Lunar New Year holiday period last year, Morgan Stanley economist Robin Xing and his team pointed out in a note Thursday. That's up 3% from the prior day of Monday, work had resumed at just over half, or 57.8%, of coal mines, according to data from 22 key provinces disclosed by Cong Liang, secretary general, member of the leading party group of the National Development and Reform Commission the number of people who have returned to major Chinese cities remains at about a quarter what it was a year ago, according to Lu's analysis of data from Baidu, an operator of a major map app and other apps. Cities with a low return rate include Guangzhou, the capital of China's largest province by exports.
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