Benchmark equity indices fell sharply on Wednesday, continuing their losing streak for the fourth consecutive day amid profit booking by the investors ahead of the results of the Lok Sabha polls and muted global market trends.
The BSE Sensex declined 667.55 points or 0.89 per cent to settle at 74,502.90. The NSE Nifty dropped 183.45 points or 0.80 per cent to 22,704.70 amid high volatility.
On the sectoral front, Banking & Financials largely dragged the market as Rating agency CRISIL expects bank credit growth to moderate from 16 per cent in FY24 to 14 per cent in FY25 on a high base effect and slower pace of GDP growth. Pharma and Metals were the only sectors to end in profit.
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“The better than expected consumer confidence data along with hawkish commentaries from US Fed officials led to a surge in US treasury yields to 1-month high at 4.55 per cent. All eyes will be now on Core PCE data which is elementary for the US Fed’s interest rate decision. On the domestic front, though FII selling intensity has reduced, the caution is increasing as we near the big event outcome which is resulting in profit booking,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
“The volatility is expected to remain heightened in coming sessions, thus it's advisable to traders to stay on sidelines and not get too aggressive. The weak global cues are further adding to the nervousness and thus markets are likely to remain weak in near future,” he added.
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Here are the key stocks to watch on May 30:
Tata Steel: The company reported a 64.59 per cent decline in net profit to Rs 554.56 crore for the March 2024 quarter, compared to Rs 1,566.24 crore in the year-ago period. Total income for the reported quarter slipped to Rs 58,863.22 crore as against Rs 63,131.08 crore in the corresponding quarter of previous fiscal.
RR Kabel: US-based private equity firm TPG Asia VII Pte Ltd is expected to sell its entire 5 per cent stake in wire and cable manufacturing company through block deals. TPG looks to sell 56.33 lakh shares worth Rs 1,000 crore, which is nearly 5 percent lower from Wednesday’s closing price at Rs 1,718.25 per share on BSE.
Edelweiss Financial Services: The RBI on May 29 directed ECL Finance to cease and desist from undertaking any structured transactions in respect of its wholesale exposures, other than repayment or closure of accounts in its normal course of business with immediate effect. Also, the central bank has stopped Edelweiss Asset Reconstruction Company Limited (EARCL) from acquisition of financial assets including security receipts (SRs), and reorganising the existing SRs into senior and subordinate tranches.
SJVN: The state-run hydropower generating company reported a net profit of Rs 61.1 crore in the March quarter of FY24, compared to Rs 17.2 crore in the year-ago period. Revenue for the quarter fell 4.1 per cent to Rs 482.9 crore compared to Rs 503.8 crore in the corresponding quarter of previous fiscal.
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Aditya Birla Capital: The company announced an investment of Rs 300 crore in its wholly-owned subsidiary, Aditya Birla Housing Finance Ltd (ABHFL) through a rights issue. The investment aims to support ABHFL’s growth, meet funding requirements, and improve leverage ratio.
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