China : 300 billion yuan stimulus declared Sources. @AlliesFin

*SGX Nifty +125 pts (16463) from last trade 16338 ,*


Nikkei +465 pts ,
Hangseng +236 pts ,
Now @6.52am .


Dow +575.57 pts ,Nsdq +390.48 pts, S&P
+100.40 pts , Bovespa +51 pts , Ftse +20 pts , Dax +230 pts , Cac +105 pts , Crude @ $115.58 brl (+0.51), Brent @ $119.75 brl (+0.52) , Gold @ 1847.70 (-3.60), Silver @ $22.105 (-0.00), Euro @ $1.0732, JPY @ $127.20,  INR @ 77.595





*Today's Corporate Action*
*30th May Ex Date*




JSWENERGY
Dividend - Rs. - 2.0000
SIL
Interim Dividend - Rs. - 1.7500





*Today's Key Results/Board Meetings*
*30-May-22*




Life Insurance Corporation of India, Jubilant Foodworks, Sun Pharma, Aurobindo Pharma, Campus Activewear, IRCTC, Coffe Day Enterprises, LT Foods (Daawat), Dilip Buildcon, DCM Shriram Industries, Delhivery, Dhampur Sugar, Dhani Services, Dish TV, Dixon Technologies, Dredging Corporation of India, Eureka Forbes, Jindal Steel & Power, Lux Industries, Mazagon Dock Shipbuilders, Mawana Sugar, Mcleod Russel, Medplus Health, Natco Pharma, Prudent Corporate Advisory Services, Radico Khaitan, Stove Kraft, and Wockhardt will be in focus ahead of March quarter earnings.






*Stock under F&O ban on NSE*
*30-May-22*



None

*Business news*

*Macro*
• India Plans $387 Milllion Project to Upgrade Paradip Port
• The World Isn’t Spending Enough to Prevent Disasters, UN Says
• More Russian Oil Than Ever Before Is Heading for China and India
• Indian State Energy Group’s $122M Dividend Stuck in Russia
• Ships Divert to India as Sri Lanka Crisis Slows Colombo Port
• India’s SEBI Updates Procedural Rules for Defaulting Brokers
• Mahindra Profit Exceeds Estimates as Automobile Sales Rebound
• Musk Wants Market Access for Tesla Before Building Local Plants
• India’s DGCA Fines IndiGo for Special Needs Child Incident
• India’s FX Reserves Rise $4.72b to $597.5b in Week to May 20
o India Official Reserves Rise After 10 Weeks of Decrease
• Supertanker Receives Urals Crude via STS Transfer off Fujairah
• Rice Giant Thailand Wants to Coordinate Price Hikes With Vietnam
• 2021-22 Sugar Market to Flip to Surplus on India Exports: ISO
• Indian Underwriters Partially Rescue Weekly Bond Auction
• Conditions Good for India Monsoon Onset Over Kerala
• Growth in Non-Par Policies, Dividend in Focus for LIC: Preview

*Fund flows*
• Global Funds Sell Net INR19.4B of India Stocks Friday: NSE
o Domestic funds buy net 27.3b rupees of stocks
• Foreign Investors Sell Net INR5.64B of Indian Equities Thursday
• Foreigners Buy Net INR68.05B of Indian Equity Derivatives Friday

*Results & Developments*
• Aarti Industries (ARTO): 4Q Net Income 1.94b rupees, +43% Y/y, Beats Est. 1.66b; Revenue 17.6b rupees, +45% y/y
• Adani Enterprises (ADE): To Buy 50% in Local Agri-Focused Drone Maker
• Adani Green (ADANIGR): Says Unit Commissions 390-MW Wind- Solar Power Plant
• Bharat Petroleum (BPCL): Numaligarh Refinery Plans One-Month Maintenance From Mid-March
• City Union Bank (CUBK): 4Q Net Income 2.09b rupees, +88% y/y, est. 1.93b; Provisions +38% q/q to 1.71b; Gross NPA 4.7% vs. 5.21% q/q
• Crompton Greaves (CROMPTON): 4Q Net Income 1.82b rupees, -26% y/y, est. 1.86b
• Edelweiss Fin (EDEL): 4Q Net Income 424.5M Rupees Vs. 6.29B Rupees Y/y
• Engineers India (ENGR): 4Q group profit 791.2m rupees vs. 249.3m year ago; Revenue 8.18b vs. 11.3b
• Finolex Cables (FNXC): 4Q Net Income 2.24B Rupees Vs. 1.68B Rupees Y/y
• FSN E-Commerce Ventures (NYKAA): 4Q Net Income 85.6m rupees, -69% q/q, Misses est. 231.5m
• GAIL India (GAIL): Says No Disruption in Gazprom Supplies on Russia Sanctions
• Glenmark Pharma (GNP): 4Q Net Income 1.56b rupees, -33% y/y, misses est. 2.02b
• Hindustan Copper (HCP): 4Q Net Income 889.9M Rupees vs. loss 368.1m y/y; Revenue +4.4% to 5.45b
• Info Edge India (INFOE): 4Q Net Income 1.21b rupees, +74% y/y, est. 1.29b; Revenue +52% to 4.56b
• JSW Steel (JSTL): 4Q Profit 32.3b rupees, -23% Y/y, Misses Est. 45.58b; Seeks to Raise $1.8B
• Jubilant Pharmova (JUBLPHAR): 4Q Net Income 595.5m rupees, -72% y/y, est. 635.7m; Revenue -3.2% to 15.3b
• Karnataka Bank (KBL): 4Q Net Income 1.30B Rupees Vs. 313.6M Rupees Y/y
• Mahindra & Mahindra (MM):4Q Net Income 12.9b rupees vs. 2.45b y/y, beats est. 12.1b; Revenue +28% to 171.2b
• Oil India (OINL): 4Q Net Income 16.3b rupees, +92% y/y, est. 16.5b; Revenue +74% to 44.8b; Dividend INR5 rupees/share
• Oil & Natural Gas Corp (ONGC) 4Q Net Income 88.6b rupees, +32% y/y, Misses est. 109.3b; Revenue +63% to 345b; Dividend 3.25 rupees/share
• PB Fintech (POLICYBZ): 4Q Net Loss 2.2B Rupees Vs. Loss 2.98B Rupees Q/Q; Revenue +46% q/q to 5.4b
• Sun TV (SUNTV): 4Q Net Income 4.04b rupees, -10% y/y, est. 4.12b; Revenue +6.5% to 8.33b
• TCI Express (TCIEXP): Approves up to INR750m Buyback at INR2,050/Share
• United Spirits (UNSP): 4Q Net Income 1.36B Rupees, -19% Y/Y; Approves Sale of 32 Brands, Franchising of 11
o Diageo to Sell 32 Indian Brands to Inbrew for $106 Million

*🔹INSTL. INVESTORS EQUITY DERIVAT. TRADES AS ON : 30-05-2022 :*

*FIIS F & O : RS. CRS. :*

*TOTAL NET BUY : +3621* 😄

*INDEX FUT. : +1806*

*INDEX OPT. : +515*

*STOCK FUT. : +1459*

*STOCK OPT. : -169*


*🔹INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 30-MAY-22 : (Rs. CRS )*

*FIIS : BUY +502 (6,854-6,352)* 🙂

*DIIS : BUY +1,524 (5,979-4,454)* 😀

*BSE SENSEX : +1041 (55,925)🔼*

*NSE NIFTY : +309 (16,661)🔼*

*BSE MIDCAP. : +514 (23,031)*🔼

*BSE SMLCAP. : +571 (26,192)*🔼

*B. CRUDE : $ 120.12 (5pm)* 🔼 😭

*GOLD: $1856=INR 51950(10gr)(5pm)*↔️😳

*SILVER :* *RS. 62,500 (kg) (5pm) 🔽 😔*

*FOREX : RS. : $ 77.5375* 🔼 🙂

*6.54% GOI '32 : 7.4090% (94.08)* 🔼 😩

*5.74% GOI '26 : 7.1207% (94.80)* 🔼 😩

*6.67% GOI '35 : 7.5691% (92.46)* 🔼 😩

SGX Nifty -51 pts (16600) from last trade 16651 ,


Nikkei -56 pts ,
Hangseng -18 pts ,
Morning at 6.52am .


US MKT CLSD, Bovespa -909 pts , Ftse +14 pts , Dax +113 pts , Cac +46 pts , Crude @ $117.20 brl (+2.13), Brent @ $122.00 brl (+0.33) , Gold @ 1844.60 (-6.70), Silver @ $22.805 (-0.29), Euro @ $1.0741, JPY @ $128.25, INR @ 77.575





Today's Corporate Action
31st May Ex Date





HDFC
Dividend - Rs. - 30.0000
HDFCLIFE
Final Dividend - Rs. - 1.7000
INFY
Final Dividend - Rs. - 16.0000
PGINVIT
Income Distribution (InvIT)



Today's Key Results/Board Meetings
31-May-22



AAPLUSTRAD
Audited Results
AQFINTECH
Audited Results
AROMAENT
Audited Results;General
ASYL
Audited Results;General
BANKBARODA
Dividend
GGL
General
HARAFIN
Quarterly Results
IECEDU
Audited Results
INANISEC
Quarterly Results
MITSHI
Audited Results
MPCOSEMB
Audited Results
PTC
Quarterly Results
QUESS
Interim Dividend
SANWARIA
Audited Results
SHBAJRG
Audited Results
SRIMT
Audited Results
UBEINDL
Quarterly Results
VALENCIA
Audited Results
WISEC
Audited Results






Stock under F&O ban on NSE
31-May-22


None

Business News Headlines

Economic Times
Ø Tata Motors signs MoU for the potential acquisition of Ford India’s Sanand plant
Ø Analysts feel Jay Kotak being readied for top role at Kotak Mahindra Bank
Ø BPCL to expand capacity with Rs 30,000 crore
Ø Religare Finvest offers to pay ₹2,300 cr to lenders in bid to avert bankruptcy
Ø DLF to focus more on high-rises: Chairman Rajiv Singh
Ø Sebi slaps fine of Rs 1 crore on IIFL for misusing client funds
Ø Sebi asks angel funds for info on investor rights
Ø India is an attractive investment opportunity: Goldman Sachs CEO David Solomon
Ø M&M raises auto, farm equipment business capex by 27% till FY24
Ø Advance action on bank privatisation underway: DFS secretary
Ø Billionaire Gautam Adani’s food venture is best-performing Asia IPO
Ø Retro Tax: I-T department withdraws Sanofi appeal from Supreme Court

Business Standard
Ø Flipkart promotes several leaders as it gears up for blockbuster IPO
Ø Vodafone Idea in talks with Amazon, PEs for Rs 20,000 cr investment
Ø LIC's Q4 net profit falls 18% to Rs 2,372 cr, firm declares Rs 1.5 dividend
Ø Tata Motors to takeover Sanand plant; signs MoU with Ford and Gujarat govt
Ø Ukraine war-led spike in prices buoy Q4 performance of ONGC, Oil India
Ø DGCA fines SpiceJet Rs 10 lakh for training pilots on faulty simulator
Ø Rising inflation has led to marked slowdown in growth rates: HUL Chairman
Ø PayMate India files papers with Sebi to raise Rs 1,500 cr through IPO
Ø Power sector crisis could become a drag on India's economic growth
Ø RIL, Adani in three-horse race to strike a deal with Germany's Metro AG

Financial Express
Ø Implementation of Jet Airways resolution plan subject to outcome of order, says NCLAT
Ø Cogent E-Services gets Sebi’s go-ahead to float IPO
Ø Sebi tweaks cyber security, cyber resilience framework of KYC registration agencies
Ø Fintechs raise exposure to gig-economy workers as inflation raises loan demand
Ø JSW Steel to expand capacity to 36 mtpa, invest Rs 20,000 crore
Ø Govt allots Rs 3,683 cr project to Jio, Airtel for 4G services in uncovered villages
Ø Safety hazard: DGCA imposes Rs 10 lakh fine on SpiceJet for faulty training of Max aircraft pilots
Ø Sun Pharma reports Q4 net loss at Rs 2,277 cr
Ø Reliance Industries’s CSR spend in FY22 at Rs 1,185 crore
Ø Union Minister Piyush Goyal tells stakeholders to resolve cotton price issue
Ø High inflation rate in India and challenges being posed by it

UPCOMIMING IMPORTANT DATES

Q-4 GDP OF INDIA INDIA --- 31/5/2022

RBI MEETING ----- 8/6/2022, (40 BPS HIKE IS PRICED IN)

USA CPI INFLATION DATA ----- 10/06/022( EXPECTATIONS 7.4%)

Q-1 ADVANCE TAX LAST DATE : 15/6/2022.

Fed Meet : 14-15 June 2022 ( 50 BPS HIKE EXPECTED ), Big Event

*Instl. Investors EQUITY Cash Trades PROV. - 31/05/2022 : Rs. CRS. :*

*FIIS : SELL -1,003 (45,738-46,741)*

*DIIS : BUY +1,845 (8,620-6,775)*

*🔹INSTL. INVESTORS EQUITY DERIVAT. TRADES AS ON : 31-05-2022 :*

*FIIS F & O : RS. CRS. :*

*TOTAL NET BUY : +3001* 😄

*INDEX FUT. : -1174*

*INDEX OPT. : -292*

*STOCK FUT. : +4469*

*STOCK OPT. : -02*


*🔹INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 31-MAY-22 : (Rs. CRS )*

*FIIS : SELL -1,003 (45,738-46,741)* 😩

*DIIS : BUY +1,845 (8,620-6,775)* 😄

*BSE SENSEX : -359 (55,566)🔽*

*NSE NIFTY : -77 (16,584)🔽*

*BSE MIDCAP. : +113 (23,144)*🔼

*BSE SMLCAP. : +179 (26,371)*🔼

*B. CRUDE : $ 123.78 (5pm)* 🔼 😭

*GOLD: $1849=INR 51840(10gr)(5pm)*🔽😔

*SILVER :* *RS. 61,710 (kg) (5pm) 🔽 😩*

*FOREX : RS. : $ 77.64* 🔽 😔

*6.54% GOI '32 : 7.4154% (94.04)* 🔼 😔

*5.74% GOI '26 : 7.1379% (94.74)* 🔼 😔

*6.67% GOI '35 : 7.5781% (92.39)* 🔼 😔

*Very Good Morning!!!*
*US Markets in Detail....*

*SGX: 16,440 (-120) (-0.72%)*

*Today*
*Listing of Equity Shares of EMudhra*
7,80,72,371 Equity Shares of Rs.5/- each fully paid up …Issue Price: Rs. 256/- ….last heard (-3)

*Listing of new securities of Dr. Reddy's Laboratories Ltd*
4,13,25,300 Equity Shares of Rs. 5/- each issued pursuant to the Scheme of Amalgamation and Arrangement of Dr. Reddy's Holdings Ltd with Dr. Reddy's Laboratories Ltd.
Date of Allotment: 22/04/2022

*Listing of New Securities of ADF FOODS LTD.*
9,43,500 equity shares of Rs. 10/- each issued at premium of Rs. 352/- to Promoters and Non-Promoters on a preferential basis pursuant to conversion of warrants.
Date of Allotment: 16/03/2022

*Listing of New Securities of RELIANCE INDUSTRIES LTD*
47,133 Equity shares pursuant to conversion of partly paid shares to fully paid up of Rs. 10/- each issued on rights basis.

*Listing of New Securities of JTL INFRA LTD.*
13,50,000 equity shares of Rs. 2/- each issued at premium of Rs. 34/- to Non-Promoters on a preferential basis pursuant to conversion of warrants.
Date of Allotment: 05/05/2022

*Last Heard:*
Aether: +14/17
E-Mudra (-3)

*Provisional Cash Rs. In Crs. (31st May)*
FIIs: -1,004 (45,738 – 46,741)
DIIs: +1,845 (8,620 – 6,775)

Sensex: 55,566 (-360) (-0.64%)
Nifty: 16,585 (-77) (-0.46%)
BankNifty: 35,487 (340) (-0.95%)
NiftyIT: 29,679 (-74) (-0.25%)
MIDCAP: 23,144: +113: +0.49%
Dow: 32,990 (-223) (-0.67%)
S&P: 4,132 (-26) (-0.63%)
Nas: 12,081 (-50) (-0.41%)
Brazil: 111,351: +318: +0.29%
Ftse: 7,608: +8: +0.10%
Dax: 14,389 (-188) (-1.29%)
Cac: 6,469 (-94) (-1.43%)
MOEX: 2,356 (-45) (-1.86%)
WTI Oil: $114.67 (-0.35%)
Brnt: $122.84: +0.96%
Gold: $1,848 (-9) (-0.48%)
Silver: $21.69 (-1.85%)
Copper: $430 (-1) (-0.24%)
Copper (LME): $9,543: +84: +0.89%
Zinc (LME): $3,901: +57: +1.48%
Alluminum (LME): $2,889: +17: +0.59%
Tin (LME): $34,585: +479: +1.40%
Eur-$: 1.0733
GBP-$: 1.2601
Jpy-$: 128.69
Re: 77.6362: +0.12%
USD = RUB: 62.4851 (-1.5149) (-2.37%)
US10yr: 2.84%
GIND10YR: 7.415: +0.08%
$ Index: 101.7860: +0.12%
US Vix: 26.19 (-1.32%)
India Vix: 20.47: +2.45%
BalticDry: 2,571 (-110) (-4.10%)

*ADR/GDR*

Cogni (-0.04%)
Infy: +0.37%
Wit (-1.97%)
IciciBk (-0.57%)
HdfcBk (-2.32%)
DrRdy (-1.70%)
TataMo: +1.10%
TatSt (-1.13%)
Axis (-0.45%)
SBI (-2.47%)
RIGD (-1.32%)
INDA: +0.17 (IShares MSCI INDIA ETF)
INDY (-0.30%) (IShares MSCI INDIA 50 ETF)
EPI: +0.60% (Wisdom Tree India Earning)
PIN: +1.05% (Invesco India Etf)

*Stocks in Asia look set to kick off June lower after ending a month marked by intense volatility as fears of aggressive monetary tightening to fight inflation mounted. Treasury yields and the dollar jumped.*

*Futures fell in Japan, Australia and Hong Kong. The S&P 500 retreated, ending May virtually flat, while the Nasdaq 100 also pulled back, falling for a fourth month in five.*

*U.S. stocks fell in see-saw trading Tuesday as investors closed out a rocky month that saw the S&P 500 flirt with bear-market territory amid inflation and recession fears.*

*U.S. stocks end lower Tuesday as Biden, Powell meet on inflation; Dow, S&P eke out gains in May*

*A tumultuous May for markets ended almost exactly where it started in equities, with a late-session drop Tuesday depositing the S&P 500 less than a point higher than its level a month ago. It was a final twist in a month that saw volatility surge and debates rage around inflation, the Federal Reserve’s plan to subdue it and the impact on the economy.*

The S&P 500 fell 0.6% on Tuesday, bringing its monthly return to virtually zero. During the month of May, the benchmark index surged more than 8% after falling within points of a 20% drop from a record, signifying a bear market.

Equities began the day lower on worries inflation was proving more persistent, intensifying the debate over how quickly central banks will raise interest rates.

Treasury yields pushed higher following last week’s equity market bounce after a historic string of weekly losses. The Dow Jones Industrial Average and the S&P 500 each eked out gains in May, while the Nasdaq Composite fell for a second straight month.

Stocks bounced sharply last week, with the Dow Jones Industrial Average rising 6.2% to snap a run of eight straight weekly losses — its longest since 1932. The S&P 500, which earlier this month came within a whisker of the arbitrary 20% pullback threshold that marks a bear market, rose 6.6% last week for its biggest weekly gain since March 2020, while the Nasdaq Composite, which fell into a bear market earlier this year, rose 6.8%.

In May, the Dow and S&P 500 each eked out a gain of less than 0.1% while the Nasdaq fell 2.1%.

Federal Reserve policy was also top of mind for investors as U.S. President Joe Biden and Fed Chair Jerome Powell met on Tuesday to discuss inflation, which Biden said ahead of the meeting was his "top priority."

This was after Fed Governor Christopher Waller said on Monday the U.S. central bank should be prepared to raise rates by a half percentage point at every meeting from now on until inflation is decisively curbed.

*On U.S. exchanges 15.52 billion shares changed hands on Tuesday, compared with the 20-day moving average of 13.25 billion.*

Treasuries extended their slump in New York, driving the yield on the benchmark 10-year note up by the most in more than three weeks, as renewed inflation concerns and economic data supported expectations for multiple Federal Reserve hikes in coming months.

Intermediate-dated benchmarks led the decline, with yields on five-, seven-and 10-year Treasuries rising by around 12 basis points and they were near those peaks late in New York. The moves were spurred by hawkish comments from Fed Governor Christopher Waller and gained steam after stronger-than-expected reports on US consumer confidence and Chicago-area business conditions.

*Oil’s rally fizzled following a report that OPEC members are exploring the idea of exempting Russia from its oil-production deal, which could open the door for other producers to pump more oil.*

*West Texas Intermediate futures in New York s7hed nearly all of its gains to settle under $115 after earlier rising almost $5. Exempting Russia from oil-production targets could potentially pave the way for Saudi Arabia, the UAE and other producers in the cartel to pump more crude, the Wall Street Journal reported.*

*Euro-zone consumer prices jumped 8.1% to a record from a year earlier in May, exceeding the 7.8% median estimate in a Bloomberg survey. Treasury yields climbed across the curve, joining the selloff in German bunds and European bonds. The dollar advanced.*

*What drove markets?*

In the final day of the month, the bounce from recent lows appeared to be stalling.

Federal Reserve Chair Jerome Powell is expected to meet President Joe Biden in a rare Oval office meeting on Tuesday to discuss inflation ahead of US payroll numbers later this week.

*Fears central-bank rate hikes may tip the economy into a recession are keeping investors watchful as rising food and energy costs squeeze consumers. May saw nearly unprecedented volatility in stocks as the S&P 500 plunged more than 3% three different times and capped its longest streak of weekly losses since 2001 only to surge at the month’s end.*

*The advances come amid skepticism about whether the market is near a trough and as volatility stays elevated. Swaps show traders have almost fully priced in two half-point rate increases in June and July, with even odds of a third such hike in September.*

*When you throw-in the likelihood that earnings estimates are going to have go be cut in a significant way as we move through the summer, it emboldens our view that the stock market will have to see lower-lows before the ultimate bottom for this decline is reached.*

“What remains critical is that even though the Federal Reserve is likely to remain hawkish until the peak in interest rates and the Fed balance sheet reduction -- both of which are expected in September -- inflation expectations are plummeting and nominal rates are cooling down,” Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, said in a note. “We sense not only are we passing ‘peak Fed’ but that more positive catalysts will arrive by the fourth quarter as inflation decelerates, China stimulus accelerates and the US midterm election campaigns heat up.”

“I don’t think we’ve seen the bottom,” said Steve Sosnick, chief strategist at Interactive Brokers, in a phone interview Tuesday. Investors “haven’t thrown in the towel,” he said, meaning they haven’t yet capitulated in this year’s slump.

Analysts said last week’s bounce was technically overdue, coming as the selloff that took the S&P 500 to the brink of a bear market on May 19 left the market stretched to the downside by several measures.

The move to the downside saw steep sector selloffs that ranged from -2.6% for consumer staples to 34.3% for consumer discretionary, while the percentage of sub-industries trading below their 50- and 200-day moving averages were more than two standard deviations below their 27-year means, noted Sam Stovall, chief investment strategist at CFRA, in a note. The S&P 500 12-month forward earnings-per-share estimates declined to 16.8 times price — down 1.1% from its 20-plus year average and the lowest reading since April 2020.

“These extremes hinted quite loudly that, like the release of an overstretched rubber band, the market was primed for at least a short-term snapback,” Stovall said. “And snap it did…The only question remaining is whether this rally will extend or evaporate. We remain skeptical of this rally’s sustainability.”

*A hawkish speech delivered Monday by Christopher Waller, a Fed governor, didn’t seem to help sentiment in early trade. Waller said he supports half percentage point interest rate increases until there are signs inflation is cooling toward its 2% target. The core reading of the Fed’s preferred inflation gauge was 4.9% in April.*

The yield on the 10-year Treasury note rose 9.4 basis points Tuesday to 2.842%, according to Dow Jones Market Data.

*Waller said the May employment and CPI reports will be key pieces of data “to get information about the continuing strength of the labor market and about the momentum in price increases.” The May jobs report is due on Friday, and the CPI report is set for release the following Friday.*

*President Joe Biden met with Federal Reserve Chair Jerome Powell Tuesday afternoon to discuss the economy and inflation. In an op-ed in The Wall Street Journal, Biden said he would not seek to influence the Fed’s decisions.*

*In U.S. economic data released Tuesday, the Conference Board’s index of consumer confidence fell slightly in May to 106.4 from 108.6 in April, reflecting worries about high inflation and a slowdown in the economy. Economists polled by The Wall Street Journal had forecast the index to total 103.9.*

“The consumer is not panicking,” said Sosnick, of Interactive Brokers. He found the survey “relatively encouraging,” saying the results beat expectations while the findings for April were revised higher.

*Spending plans are cooling but not plummeting as financial conditions tighten. This is exactly what Federal Reserve policy makers want to see. Buying plans for large ticket items such as autos and homes are holding steady, revealing a fairly stable consumer sector. The economy will most likely avoid a recession in the near term as the Fed successfully navigates a ‘softish’ landing.*

*U.S. home prices rose again in March even as higher mortgage rates began to bite, leaving prices at all-time highs. The S&P CoreLogic Case-Shiller 20-city price index was up a record 21.2% year over year while the federal government’s price tracker climbed 19% in the same span.*

*Meanwhile, West Texas Intermediate crude for July delivery fell 0.4% to finish at $114.67 a barrel Tuesday after the European Union reached a watered-down agreement that will partially ban imports of Russian oil. For the month of May, the U.S. oil benchmark climbed 9.5%.*

The stock market doesn’t like higher oil prices as that feeds into concerns over high inflation, as consumers worried about paying more for gas could pull back spending in other areas of the economy, said Sosnick.

*At the start of May, the Federal Reserve hiked interest rates by half a percentage point in a bid to tamp down generationally hot inflation. Recession fears have mounted as market participants fear the Fed’s policy tightening will trigger an economic decline.*

*“Higher inflation and slower growth are now the consensus view but that doesn’t mean it’s fully discounted,” Morgan Stanley’s Mike Wilson said in a note Tuesday.*

*Disappointing quarterly reports in May from the likes of Walmart and Snap showed inflation hurting American consumers and eating into corporate profits.*

*Investors also eyed the continuing war in Ukraine and Covid outbreaks in China, raising concerns about global commodities and supply chain challenges.*

Stocks struggled during the month amid the negative cross currents. The S&P 500 on May 20 dipped into bear-market territory briefly, falling 20% below its high at one point during the session. Meanwhile, the Dow saw its longest weekly losing streak since 1923, falling for eight consecutive weeks before last week’s rally.

Last week, the Dow and the S&P 500 notched their best weekly gains since November 2020. The blue-chip average closed up 6.2% for the week, ending an eight-week losing streak. The S&P 500 gained 6.5%, and the Nasdaq added 6.8% on the week, ending positive after seven continual weeks of losses.

Still, stocks remain well off their highs. The Dow is 10.7% below its record. The S&P 500 is down 14.2%, and the Nasdaq is off by 25.5%.

*Bear markets are incredibly difficult to navigate, because they are inherently volatile and prone to sharp upside rallies*

In corporate earnings, Salesforce, HP and Victoria’s Secret are expected to report results after the closing bell Tuesday.

Among individual stock moves, Deutsche Bank AG slipped after the lender and its asset management unit had their Frankfurt offices raided by police. Unilever Plc jumped as activist investor Nelson Peltz joined its board. US energy stocks rose following the advance in crude oil prices. And US-listed Chinese stocks also climbed, on track to wipe out their monthly losses as easing in lockdown measures

*Despite a potential strong finish to a historically weak month, the SPX is still coming into June with a loss of more than 10%. The good news is that for similar performance years, the index has historically rebounded into year-end. For years with losses of more than 10% from January to May, the SPX has posted average and median June to December returns of 6.3% and 5.8%, respectively.*

*Elsewhere, Bitcoin was back above $32,000 as investors and strategists said the digital currency is showing signs of bottoming out*

*Which companies were in focus?*
Shares of Yamana Gold Inc. gained 3.7% after Gold Fields Ltd. announced a $6.7 billion deal for the Canadian miner.

In Asia, the Shanghai Composite closed 1.2% higher Tuesday for a monthly gain of 4.6%. The Hang Seng Index rose 1.4% in Hong Kong Tuesday, advancing 1.5% in May. Japan’s Nikkei 225 edged down 0.3% Tuesday and rose 1.6% in May.

*European stocks closed lower on Tuesday after hot inflation readings reignited concerns about the pace of monetary tightening from central banks.*

*Euro zone inflation hit an annual 8.1% in May, exceeding expectations and marking a seventh consecutive record high. The record annual consumer price increase was driven by soaring energy costs, which hit 39.2% (up from 37.5% in April) and a 7.5% increase in food, alcohol and tobacco prices (up from 6.3%).*

Data on Monday also showed that German EU-harmonized inflation came in at an annual 8.7% in May, significantly outstripping analyst expectations of 8.0% in a Reuters poll and marking a sharp incline from the 7.8% seen in April.

*French inflation also surpassed expectations in May to a record of 5.8%, up from 5.4% in April, preliminary data showed on Tuesday.*

*Investors were watching the data closely for indications as to the speed and scale of interest rate hikes that may be required from the European Central Bank from July onward.*

*Unilever shares climbed 8.9%* after the British consumer goods giant named American activist investor Nelson Peltz to its board.

Global markets are also reacting to another jump in oil prices after EU leaders agreed late on Monday to ban 90% of Russian crude by the end of the year, as part of the bloc’s sixth sanctions package against Moscow since its invasion of Ukraine.

Russia vowed to find other importers for its crude shortly after the embargo was announced.

*Here are some key events to watch this week:*
# The Federal Reserve is set to start shrinking its $8.9 trillion balance sheet Wednesday
# The Fed releases its Beige Book report on regional economic conditions Wednesday
# New York Fed President John Williams, St. Louis Fed President James Bullard speak at separate events Wednesday
# OPEC+ virtual meeting Wednesday
# Cleveland Fed President Loretta Mester discusses the economic outlook Thursday
# US May employment report Friday
# The UN’s Food and Agriculture Organization releases its monthly food price index at a time of maximum concern about global supplies on Friday

*Currencies*
# The Bloomberg Dollar Spot Index rose 0.3%
# The euro fell 0.3% to $1.0744
# The British pound fell 0.3% to $1.2620
# The Japanese yen fell 0.8% to 128.62 per dollar

*Bonds*
# The yield on 10-year Treasuries advanced 10 basis points to 2.84%
# Germany’s 10-year yield advanced seven basis points to 1.12%
# Britain’s 10-year yield advanced 11 basis points to 2.10%

*Commodities*
# West Texas Intermediate crude fell 0.2% to $114.87 a barrel
# Gold futures fell 0.7% to $1,844.60 an ounce

*May-2022 Auto Sales Estimates YoY:*

*Ashok Leyland:* 11800 units versus 3199 units ( *Up 268.9%* )

*Tata Motors:* 73900 units versus 26661 units ( *Up 177.2%* )

*M&M Tractor:* 33500 units versus 24184 units ( *Up 38.0%* )

*M&M Auto:* 46400 units versus 17447 units ( *Up 34.0%* )

*Maruti:* 159200 units versus 46555 units ( *Up 241.9%* )

*Hero Motocorp:* 520000 units versus 183044 units ( *Up 184.0%* )

*TVS Motors:* 310000 units versus 166889 units ( *Up 85.8%* )

*Bajaj Auto:* 3125000 units versus 271862 units ( *Up 15.9%* )

*Eicher Motors RE:* 62200 units versus 27294 units ( *Up 128.0%* )

*Escorts:* 7815 units versus 6423 units ( *Up 22.0%* )

(Numbers seen higher on YoY basis as during May 2021 sales impacted on account of Omicron wave and shortages of semiconductor)

1,40,885 crore gross GST Revenue collection for May 2022; increase of 44% YoY and down 15.9% MoM

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