The benchmark indices traded with modest gains in the mid-morning trade. The Nifty traded above the 15,300 level. Oil & gas shares extended their losing streak for the sixth day in a row. At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 106.29 points or 0.21% to 51,466.71. The Nifty 50 index gained 19.95 points or 0.13% to 15,313.45. In the broader market, the S&P BSE Mid-Cap index slipped 1.05% while the S&P BSE Small-Cap index lost 2.02%.

The market breadth was weak. On the BSE, 794 shares rose and 2,378 shares fell. A total of 156 shares were unchanged.

Covid-19 Update:

India's active Covid-19 caseload currently stands at 76,700. In the last 24 hours, 12,781 new cases and 8,537 recoveries have been recorded. The daily positivity rate is 4.32%. The recovery rate currently is at 98.61%. Under Nationwide Vaccination Drive, 196.18 cr vaccine doses have been administered so far.

Economy:

According to RBI data, India's foreign exchange reserves declined by $4.599 billion to $596.458 billion in the week ended June 10. In the previous week, the reserves had decreased by $306 million to $601.057 billion. During the week ended June 10, the fall in the forex reserves was on account of a dip in Foreign Current Assets (FCAs), a major component of the overall reserves. FCAs declined by $4.535 billion to $532.244 billion in the reporting week, according to the Weekly Statistical Supplement, released by the Reserve Bank of India (RBI). Gold reserves marginally fell by $1 million to $40.842 billion. The country's reserve position with the IMF also fell by $40 million to $4.985 billion in the reporting week.

Buzzing Index:

The Nifty Oil & Gas index fell 2.41% to 7,157.85. The index slumped 12.58% in six trading sessions.

Among the components of the Nifty Oil & Gas index, Oil India (down 9.6%), GAIL (India) (down 5.25%), Oil & Natural Gas Corpn (down 4.56%), Aegis Logistics (down 3.9%) and Adani Total Gas (down 3.68%) were the top losers.

Among the other losers were Reliance Industries (down 1.81%), Petronet LNG (down 1.43%), Mahanagar Gas (down 1.38%), Indian Oil Corporation (down 0.91%) and Bharat Petroleum Corporation (down 0.85%).

On the other hand, Gujarat Gas (up 2.86%), Indraprastha Gas (up 0.91%) and Hindustan Petroleum Corporation (up 0.26%) advanced.

Indian Oil Corporation fell 0.91% after the state-run oil marketing company issued 25,000, 7.79% unsecured, listed, rated, taxable, redeemable non-convertible debentures (NCDs) of Rs 10,00,000 each, aggregating to Rs 2,500 crore on private placement basis on 17 June 2022.

Stocks in Spotlight:

Alkem Laboratories rose 0.77% after the pharma company on Saturday announced that its manufacturing facility located at St. Louis, USA received Form 483 with three observations from the US drug regulator. The inspection was carried on from 6 June 2022 to 17 June 2022. The company said that it shall submit to U.S. Food and Drug Administration (USFDA) within the stipulated timeline, a detailed response to close out all the observations associated with this inspection.

Indian Hume Pipe Company advanced 2.94% after the company announced that it has secured a work order aggregating to Rs 110 crore from civic body in Rajasthan. The work order is from Public Health Engineering Department (PHED), Ajmer, Rajasthan. The order entails Cluster Water Supply Project Package-VII of Chambal Bhilwara Water Supply Project Phase II of Jahajpur-Kotri Tehsils of District Bhilwara under Jal Jeevan Mission (JJM) with operation and maintenance for 10 years.

Vodafone Idea declined 2.80% after the telco on Sunday, 19 June 2022, announced that its board will meet on 22 June 2022, to consider a proposal to raise upto Rs 500 crore via preferential issue of equity shares and / or convertible warrants. The company said it plans to issue equity shares and / or convertible warrants on a preferential basis to one or more entities belonging to Vodafone group, one of the promoters of the company.

Global Markets:

Asian stocks declined all across the board on Monday, as investors monitored market reaction to the release of China's latest benchmark lending rates. China stood pat on its benchmark lending rates for corporate and household loans, as expected, on Monday. The one-year loan prime rate (LPR) was kept at 3.70%, and the five-year was unchanged at 4.45%.

Markets in the U.S. are closed on Monday for a holiday. The Wall Street ended mixed Friday as the S&P 500 and the Nasdaq Composite bounced on Friday, but the Dow Jones Industrial Average erased gains late in the session. Stocks were volatile during Friday's trading, switching between gains and losses as investors grew increasingly worried about a potential economic slowdown.

In the latest Fed commentary, Governor Christopher Waller said he would support another 75-basis-point rate increase at the central bank's July meeting should economic data come in as he expects.

Production at US factories unexpectedly fell in May. Manufacturing output dipped 0.1% last month, the first decline since January, after increasing 0.8% in April, the Fed said.