Stock Market Highlights: Sensex ends 1,017 pts lower and Nifty50 gives up 16,202 amid global sell-off ahead of US inflation data

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Too many issues around auto pack, particularly two-wheelers: Inditrade Capital's Sudip Bandopadhyay 

Sudip Bandopadhyay, Group Chairman of Inditrade Capital, tells CNBC-TV18 that he will not recommend buying Bajaj Auto, Hero MotoCorp or TVS. "Eicher Motors is one stock you can look at because it has got a differentiated business and a major international presence. It is one company that I will look at," he says.

"The entire EV thing is unfolding in front of us and one doesn't know which one is going to be the winner... So I will probably stay away. If somebody really wants to be in the auto space, my recommendation will be to buy auto ancillary as a much safer and better bet but under the current circumstances," he adds. 

Market This Week | Sensex and Nifty50 halt three-week gaining streak

--Sensex and Nifty fall over two percent

--Worst week for Sensex, Nifty and Nifty Bank in a month

--All sectoral indices in the red

--IT and metal indices top losers

--34 Nifty stocks in the red

--Shree Cement, Asian Paints, Bajaj Finance top losers

Sensex and Nifty50 end 2% higher

Exclusive | Rajiv Bajaj says no company able to meet  EV demand at present

Raghuram Rajan warns that inflation peak yet to come

If you are an alpinist climbing Mount Inflation, the peak is still some distance away, according to terrain expert and former governor of the Reserve Bank of India, Raghuram Rajan.

Rising inflation across the globe has resulted in central banks raising key interest rates in an effort to fight it.

On Wednesday, RBI Governor Shaktikanta Das announced the unanimous decision of the Monetary Policy Committee (MPC) to hike the key interest rate at which the central bank lends money to banks — by 50 basis points to 4.9 percent. (Read more)

A combination of factors fuels sell-off on D-Street

--The RBI's recent hikes in the repo rate -- the key interest rate at which it lends money to commercial banks -- as well as upward revisions in inflation projections.

--Oil remains at elevated levels despite Thursday's dip. Brent and WTI futures are still above $121 a barrel.

--The rupee hits its lowest intraday level against the US dollar.

--Sustained selling by FPIs (outflow at Rs 15,000 crore in cash in June so far)

--A 25-bps rate hike by the ECB and its announcement of an end to its bond buys by July.

--Fresh restrictions related to COVID in parts of China

--US CPI data due later on Friday

Sell on rise advisable for the near term: Sahaj Agrawal

Sahaj Agrawal, Head of Research - Derivatives at Kotak Securities said that Nifty June series sentiment remains weak and only a strong matured reversal will change the monthly outlook. "Selective stocks are available at medium term value levels while broadly risk reward remains skewed. Liquidity remains the main reason behind the current corrective phase,” he added. 

Transformers and Rectifiers (India) Limited hovering near day's high at Rs 31.20

Not expecting rise in defaults: Shanti Ekambaram

Shanti Ekambaram, President - Consumer Banking, Kotak Mahindra Bank told CNBC, “Not expecting any rise in defaults. It is early days yet." He thinks that there would be an increase in requirement of working capital. "So I expect actually customers to increase their utilisation," he added. 

Vikas Khemani of Carnelian Capital Advisors remains bullish on IT

"Most tech companies are guiding a very robust demand despite the recession. This time around companies are indicating that the demand is non-discretionary, it has to be done because it is also deflationary, it is supposed to reduce costs for operations of the companies. So to that extent, we think that it will continue to remain (bullish) and the weak currency also helps them to withstand some of the cost pressures," he explained.  

IT would be an interesting sector that can deliver 15-18 percent return after the recent corrections from here on, Khemani said.

Ajay Srivastava, CEO of Dimensions Corporate Financial Services shares investing mantra

There is nothing called long-term because if you were worried about long-term, the return becomes zero at the end of the day,  Srivastava said.

“So you need to look at shorter terms and booking profits, I think the mantra has to be book profits. Because if you are not booking profits you could have seen the bank index going from there to 45,000 plus, and back to 34,000 and it is all paper profits,” he explained.  

Although there are lots of merits of long-term investing, for most investors, the merit is to book profits because sectorally one churns and sees money in the bank.

Sell Kotak Mahindra Bank, L&T Finance: Mitessh Thakkar

Mitessh Thakkar of earningwaves.com shares two trading calls: 

--Sell Kotak Mahindra Bank for a target of Rs 1,760 with a stop loss at Rs 1,822 

--Sell L&T Finance for a target of Rs 70.5-71 with a stop loss at Rs 76 

Abu Dhabi Investment to invest Rs 2,200 crore in IIFL Home Finance

R Venkatraman, Co-Promoter, IIFL Group said the Abu Dhabi Investment will invest R 2,200 crore in IIFL Home Finance, which translates to 20 percent stake post the transaction.

The proceeds will be used for expansion in the affordable housing segment and branch network and will be invested in technology to pare down some loans, he said.

He also expressed the intent to list IIFL Home Finance in the long term. “The long-term answer is yes and since the investor has come it is our responsibility to give them an exit. But it's too early for me to comment, when and how this entire listing will take place. At this point in time, the investment has just come in so we should look to grow the book and consolidate our market position,” he said. 

IIFL Finance shares were trading 8 percent higher

Berger Paints shares rise 

Berger Paints said its expected quantum of loss/damage due to fire at Howrah factory is Rs 75 lakh to Rs 1 crore, which is fully covered by insurance, and the total sum insured for Howrah factory is Rs 218 crore.

Here's how the stock reacted to the development