Closing bell: The Benchmark indices ended lower on Tuesday on a volatile day.

At close, the Sensex was down 184.08 points at 40,083.54, while Nifty was down 66.90 points at 12,021.65. About 1,115 shares have advanced, 1,448 shares declined, and 178 shares are unchanged.

Top losers in the Nifty pack include Zee Entertainment Enterprises, Hero MotoCorp, Asian Paints, Dr Reddy's Laboratories and Bharat Petroleum Corporation, shedding up to 3.7 per cent.

On the other hand, Yes Bank, Bharti Infratel, NTPC, Axis Bank and Coal India were among the top gainers, rising up to 2.61 per cent.

Among the sectors, except for Metals and PSU Banks, all other indices ended in red led by IT, Media, Auto and FMCG.

Monetary policy: BofA sees a 35 bp rate cut

Bank of America Merrill Lynch economist Indranil Sen Gupta is betting the Reserve Bank of India will lower its benchmark interest rate by an unconventional 35 basis points on Thursday.

Known for his contrarian calls in the past, Gupta is taking guidance from Governor Shaktikanta Das’ comments in Washington in April that central banks could be more flexible in the size of rate adjustments, rather than sticking to the usual moves of 25 basis points at a time.

Gupta sees inflation reaching 3.3 per cent in May, which is well within the RBI’s target range of 2 per cent to 6 per cent, with economic growth likely remaining weak for the next two quarters. Read more here

Penna Cement gets SEBI’s nod for ₹1,550-cr IPO

Penna Cement Industries has got markets regulator SEBI’s go ahead for its ₹1,550-crore initial public offering (IPO).

The IPO of Penna Cement comprises fresh issue of up to ₹1,300 crore and an offer for sale of up to ₹250 crore by the company’s promoter, PR Cement Holdings Limited.

In November last year, Penna Cement Industries had filed draft papers with SEBI to raise ₹1,550 crore through IPO.

The company obtained the regulator’s “observation” on May 31, 2019, as per the latest update with the capital markets watchdog. Read the full report here

Shyam Steel Industries files DRHP for IPO

Kolkata-headquartered Shyam Steel Industries Ltd, a manufacturer of thermo mechanically treated rebar (TMT Rebar), has filed Draft Red Herring Prospectus (DRHP) for an Initial Public Offering (IPO). Read more on IPO filing here

Tech sell-off spreads to Europe after US antitrust moves

European shares fell half a percent on Tuesday as the first signs of U.S. antitrust action against Google and other major technology companies drove peers in Europe lower, following losses on Wall Street and Asian markets overnight. Read more on the European markets here

Asian stocks' valuations hit a 4-month low in May

Valuations of Asian equities ended May at a four-month low, as regional shares slumped after the United States raised tariffs on Chinese goods, stoking concerns about a global economic downturn. Read more on Refinitiv data here

Fitch downgrades IDR ratings of ICICI , Axis Bank

In more trouble for the country’s private sector lenders, Fitch Ratings has downgraded the ratings of ICICI Bank and Axis Bank due to ‘challenges’ faced by them and lowering of India’s operating environment. Read more here

Top gainers and losers

Google selects Tata Elxsi as certified Widevine implementation partner

Tata Elxsi , a certified Widevine implementation partner, on Tudesday announced the availability of Widevine CAS solution on the Tata-Elxsi-branded platform.

With over 25 years of design and engineering experience in video broadcast specialization and OTT service delivery, Tata Elxsi has expanded product offerings to include Google Widevine CAS solutions in cloud and on premise solutions. These services include Widevine CAS integration and validation for Android TV deployments.

Dr Reddy’s re-launches Zenatane in US market

Pharma major Dr Reddy’s Laboratories has announced the re-launch of Zenatane (Isotretinoin Capsules), a therapeutic equivalent generic version of Accutane, approved by the US Food and Drug Administration (USFDA). Read more here

PSU oil refiners ink JV for Kandla-Gorakhpur pipeline project

Indian Oil Corporation Limited on Tuesday announced formation of a joint venture company for implementation and subsequent operation of 2,757 km long LPG pipeline from Kandla, Gujarat to Gorakhpur, UP. IndianOil, BPCL and HPCL would have 50%, 25% and 25% equity holding in the JV Company.

L&T Technology: Offer-for-sale opens

The offer-for-sale of L&T Technology Services by Larsen & Toubro will open for subscription to the public on Tuesday (for non-retail investors only) and on June 6 (Thursday) for retail investors and for non-retail investors who choose to carry forward their unallocated bids.

L&T plans to sell up to 40.34 lakh shares of L&T Technology, representing 3.88 per cent of the total paid-up equity share capital of the latter. The floor price has been fixed at ₹1,650 a share.

Two thirds of UK firms unable to fill digital positions: study

Tata Consultancy Services , a leading global lT services, consulting and business solutions organisation, and the Confederation of British lndustry published a new research study that highlighted the UK's rapidly accelerating digital talent gap.

The study titled Deliverinq Skills for the New Economv surveyed 250 companies. The report highlights the UK's rapidly accelerating digital talent gap as new technologies transform the way we live and work. Currently, the UK is losing out on f63 billionl a year as companies struggle to find people with digital skills. This could jeopardise the UK's competitiveness, deter investment and limit people's ability to make the most of the opportunity technology brings.

According to the report, over two thirds (670/ol of companies across the UK have unfilled digital vacancies. One in five firms is unable to find employees with basic computer skills - including writing documents and using spreadsheets. Advanced digitalskillsare in greaterdemand in all sectors, with 55%of largerfirms reporting challenges in recruiting software engineers and 61 per cent struggling to hire data analysts.

Maruti Suzuki unveils all-new Mobile NEXA terminal

Maruti Suzuki on Tuesdy flagged off one-of-its-kind mobile NEXA terminal, taking the NEXA experience to markets where it is currently not present.

The NEXA terminal will reach out to prospective and existing customers throughout the country, giving them an opportunity to experience NEXA.

Maruti Suzuki’s endeavour is to reach closer to customers and extend the NEXA experiences across the length and breadth of the country. While offering a similar experience like NEXA showroom, this terminal is a combination of basics of a dealership with the very essence of NEXA in a mobile environment.

Sectoral Indices

Despite slowdown, India’s consumer story is positive, says Aditya Birla Sun Life MF

Flagging Indian sales of products like toothpaste and hair oil have been a drag on the share prices of the nation’s consumer goods makers, but each dip is a buying opportunity for a fund manager who sees the slowdown in demand as temporary. Read more here

Markets at 10.10 am: Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Tuesday as investors await RBI’s monetary policy decision, amid weak cues from global markets.

At 10.10 a.m., After scaling lifetime highs in the previous session, the 30-share index was trading 102.99 points, or 0.26 per cent, lower at 40,164.63, and the broader Nifty slipped 39.95 points, or 0.33 per cent, to 12,048.60.

Top losers in the Sensex pack include HCL Tech, TCS, Hero MotoCorp, Asian Paints, Infosys, Bajaj Auto, HUL and Maruti, shedding up to 2 per cent.

On the other hand, Yes Bank, NTPC, PowerGrid, L&T, Tata Motors and ITC were among the top gainers, rising up to 2.64 per cent.

On Monday, the BSE gauge settled 553.42 points, or 1.39 per cent, higher at 40,267.62, and the Nifty surged 165.75 points, or 1.39 per cent, to end at 12,088.55.

“With GDP growth and GST collections below expectations, market participants will keenly look ahead to RBI monetary policy and commentary. The market appears to be factoring at minimum a 25 bps rate cut in the upcoming RBI meet,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

The Reserve Bank of India’s Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews.

According to traders, investors also took cues from global markets, which are weak on account of renewed global trade tensions.

Meanwhile, foreign institutional investors bought equity worth Rs 3,068.88 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 462.69 crore, provisional data available with stock exchanges showed.

RBI seen cutting rates, may turn “accommodative” after dismal GDP

A worrying slowdown in India's economy makes a cut in the Reserve Bank of India’s benchmark interest rate highly likely this week, but analysts say policy makers should also find ways to boost banks’ liquidity to ensure they drop their lending rates too. Read more here

Rupee Opening : The Indian rupee opened higher by 11 paise at 69.15 per dollar on Tuesday against its previous close of 69.26.

Airtel Africa to file for London IPO

Airtel Africa Ltd, a subsidiary of  Bharti Airtel Ltd , on Tuesday said it will proceed with its plan to list shares on the main market of the London Stock Exchange through an initial public offering (IPO).

The company said the offer is targeted to raise $750 million and proceeds will be used to reduce debt.

Adani Ports: Focus on buyback offer

The board of A dani Ports and Special Economic Zone will meet on Tuesday to consider a buyback proposal. The board will also recommend a final dividend, if any, for FY 2018-19.

Shareholders will closely monitor the buyback size, quantum of shares to be bought back and, most importantly, the price. Besides, the mode of buyback — from the open market or through tender route on a proportionate basis — and promoters’ intention on the buyback will also be monitored.

Opening bell: It is a weak start for the benchmark indices on Tuesday with Nifty opening around 12,000 level.

At 09:17 am, the Sensex is down 121.19 points at 40,146.43, while Nifty down 35.90 points at 12,052.65.

Dr Reddy's, UPL, Bajaj Finance, Wipro and Titan are trading higher, while on the other hand Zee, BPCL, ICICI Bank, Infosys and TCS are trading lower.

Among the sectors, Metal, Pharma, PSU banks and Realty are trading higher while Media, IT, Banks and Financial Services are among major losers.

Broker's call: Ahluwalia Contracts (Buy)

Strong FY19 inflows of about ₹4,700 crore (the best in any given year) far exceed the management’s revised FY19 inflow guidance of about ₹3,900-4,000 crore. With L1 status for about ₹200 crore, about ₹700 crore of bids not-yet-opened and a healthy about ₹4,300 crore bid pipeline, the opportunity landscape is bright to say the least. Management expects to acquire orders of about ₹2,000 crore in FY20.  Read more on buy call here

Broker's call: Sonata Software (Buy)

Sonata Software delivered a steady performance for Q4FY19 with in-line IT services revenues and margins. PAT was 8 per cent ahead of our estimates aided by higher other income. Sonata’s IT services dollar-term revenues grew by 12 per cent for FY19 (11 per cent organic growth). We build 18 per cent dollar-term revenue growth for FY20 (organic growth is 12 per cent and rest is owing to full impact of Scalable Data Systems and Sopris acquisitions). Both these acquisitions are being consolidated effective 4QFY19 and hence will have the full impact on revenues for FY20. Read more on buy call here

Dollar on defensive as US bonds surge on Fed rate cut prospects

The dollar was on the defensive on Tuesday after taking a beating against peers such as the euro and yen, hurt by a sharp slide in US Treasury yields as traders raised their bets for a near-term rate cut by the Federal Reserve. Read more on global forex market here

Oil prices fall amid economic slowdown, despite ongoing OPEC supply cuts

Oil prices were pressured on Tuesday by an economic slowdown that has started to impact fuel consumption, although some support came from a Saudi Arabian statement that consensus was emerging with other producers over extending supply cuts. Read more on global crude prices here

Nasdaq confirms correction, bond yields fall further

The Nasdaq confirmed it was in a correction on Monday as stocks extended their recent sell-off, and the continued flight to safe-haven assets pushed 10-year U.S. Treasury yields to their lowest since September 2017. Read more about US markets here

Asian shares edge up but growth worries cap gains

Shares in Asia inched higher and safe-haven assets gave up some overnight gains on Tuesday, as investors paused for breath after a volatile Wall Street session, but deeper concerns about growth have capped broader improvements in risk sentiment. Read more here

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