Share Market

The key Indian equity indices pared their initial gains after a gap-up opening to trade on a flat-to-negative note on Wednesday morning. Selling pressure was witnessed in oil and gas, power and banking stocks. Around 10.15 a.m., Sensex was trading at 52,555.34, lower by 33.37 points or 0.06 per cent from its previous close of 52,588.71.

A Goldman Sachs report noted that after growing 5x over FY16-FY20, RIL's core retail revenue growth has taken a pause in FY21 due to Covid related macro headwinds. "However, we believe retail business (including e-commerce) is set to be the next growth engine for RIL, with potential for retail EBITDA to grow 10x over the next 10 years," it said.

Reliance Retail is best placed to win share in fresh food, rapidly accelerate store rollout and target the widest assortment through multiple formats and channels, Goldman Sachs said. Organised grocery retail has seen two major shifts due to the pandemic-a shift to online and omni-channel and entry into large, new categories, which pre-Covid had been considered less profitable, like fresh food and dairy, the report added.

The key Indian equity indices have somewhat recovered from the initial losses, however, they are still in the red. The BSE Sensex fell as much 604.26 points during the initial trade to touch an intra-day low of 51,740.19. At around 10.05 a.m., it was trading at 52,042.18, lower by 302.27 points or 0.58 per cent from its previous close of 52,344.45.

"If we exclude the 2003-08 bull market, the average duration of the other four bull markets is 72 weeks, compared with 64 weeks for the ongoing one. Given our view of a likely new profit cycle, the 2003-08 bull market duration may be the template for the ongoing bull market," Morgan Stanley said in a report.

The subdued investor sentiments follow the US Federal Reserve's projection at least two interest rate hikes in 2023, a year earlier than forecasted in the March meeting. Around 10.15 a.m., Sensex was trading at 52,403.34, lower by 98.64 points or 0.19 per cent from its previous close of 52,501.98. It opened at 52,122.25 and has touched an intra-day high of 52,403.93 and a low of 52,099.72 points.

According to market estimates, among the upcoming issues, insurance major, LIC is likely to launch a Rs 70,000-90,000 crore issue. The IPO list is dominated by financial services sector. Food delivery chain, Zomato will launch a Rs 8,250 crore IPO while private sector airline, Go First will launch a Rs 3,600 crore primary market issue.

The BSE and NSE have decided to suspend trading in the shares of Dewan Housing Finance Corporation Ltd (DHFL) from Monday. The development follows the approval of the resolution plan of Piramal Capital & Housing Finance Ltd to acquire the bankrupt company.

Inflows into equity funds declined to Rs 3,400 crore compared to Rs 9,100 crore in March but the inflow trend remain, said a report by ICICI Direct. SIP flows are now back at pre-Covid levels with April inflow at Rs 8,590 crore, it said.

Accordingly, the two key indices had a gap up opening in line with positive global cues . However, they have been trading flat in a range since opening levels. Besides, marginal profit booking decline in Pharma counters, all other sectors traded in the green out of which banking and realty space outperformed.