MARKETS, P9 ECONOMY, P2 RISKY ASSETS Niftyvaluation declines below 5-year average, comes off 15% from Oct INTERNATIONAL, P8 CAUTIOUS APPROACH WTO MINISTERIAL CONFERENCE MATTER OF CONFIDENTIALITY Lenders go slower on gold loans amid intense competitive environment Covid response would not be complete without TRIPS waiver: Goyal Google suspends techie who claimed AI Bot had become sentient NEW DELHI, TUESDAY, JUNE 14, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 89, 20 PAGES, `10.00 (PATNA & RAIPUR `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 52,846.70 ▼ 1,456.74 NIFTY: 15,774.40 ▼ 427.40 NIKKEI 225: 26,987.44 ▼ 836.85 HANG SENG: 21,067.58 ▼ 738.60 `/$: 78.04 ▼ 0.20 `/€: 81.65 ▲ 0.84 BRENT: $120.09 ▼ $1.92 GOLD: `51,251 ▲ `472 SENSEX PLUNGES 2.68%, NIFTY 2.64% MONDAY MAYHEM At a time when the economic and monetary policy is at the centre of all conversations, the event to watch out for is the FE Modern BFSI Summit 2022, to be held in Mumbai on June 17. Previous close 54,303.44 ■ Monday’s crash wiped out `6.6 trn investor wealth as a fresh 40-year high inflation print in the US has raised aggressive bets on rate hikes by Fed ■ All BSE sectoral indices ended lower, with IT tumbling 3.92%, followed by tech (3.45%), metal (3.39%), industrials (3.35%), finance (3.17%) and banks (3.12%) One-year forward PE (X) Current smallcap gauge tanked 3.15% and midcap index by 2.73%. A total of 2,839 stocks declined, while 658 advanced and 116 remained unchanged RBI governor Shaktikanta Das and CEAAnantha Nageswaran Register at: www.financialexpress. com/events/modernbfsi-summit-2022 FE BUREAU Mumbai, June 13 INDIAN EQUITIESTANKED on Mondaywith investors rattled by the big sell-off in the US markets last Friday. On a day when prices of crude oil stayed steady, bonds sold off and the rupee sank to newlows,falling through the 78 mark against the dollar. Investors rushed for the exit, anxious about an unfriendly and uncertain macro environment, in which high inflation and rising interest rates could slow growth. The US market opened with Nifty50 17.40 Jakarta Composite 15.66 Taiwan TAIEX 11.10 Shanghai Composite 10.40 Hang Seng 10.11 Kospi Ibovespa deep cuts on Monday as the S&P 500 and the Nasdaq both slipped to 52-week lows. Market watchers believe investors maycontinue to take risk off the table given the uncertainty surrounding interest rates, liquidity and growth as central bankers reduce accommodation. The Sensex slumped 1,456.74 points, or 2.68%, to close the session at 52,846.70 while the broader Nifty plunged 427.40 points, or 2.64%, to 15,774.40. With a loss of over `6.64 trillion on Monday,investorwealth to the tune of `10 trillion has been 9.43 6.17 Source: Bloomberg Closing Open 53,184.61 Listen to the Reserve Bank of India Governor Shaktikanta Das and Chief Economic Advisor Anantha Nageswaran, as well as a host of leaders from the BFSI sector on the disruptions and opportunities that will shape the future of the sector. Sensex 18.38 ■ The BSE 52,846.70 `/$ wiped out in just two trading sessions. Most Asian markets ended in the red while the European markets too saw big cuts in midday trades. While the US Federal Reserve is tipped to raise rates by 50 basis points on Wednesday, there is a chance the hike could be a steeper 75 basis points after US inflation surged to 8.6%. The yield on the US treasury surged past 3% to hit 3.28% on Monday. (Inverted scale) Intra-day, June 13 78.04 78.00 Continued on Page 2 Relatedreportsonpages7&9 7.560 78.10 78.20 78.16 78.30 78.40 Open Close 10-year bond yield Intra-day (%), June 13 7.620 7.605 7.585 7.602 7.590 7.575 Open Close Retail inflation eases in May, outlook uncertain BANIKINKAR PATTANAYAK New Delhi, June 13 RETAIL INFLATION EASED to 7.04%inMayfroma95-month high of 7.79% in April,as price pressure across core and food products moderated, partly aidedbya conducive base. Inflation based on the consumer price index (CPI) still breached the upper band of the Reserve Bank of India's medium-term target (2-6%) for a fifth straight month. The RBI is still widely expected to go for a third round of rate hike in August but the moderation in inflation substantially reduces (% change, y-o-y) 9 7.97 8 7 CPI Core 6 6.1 5 CPI 7.04 4 CPI 3 Food 2 1 0 May 2021 May 2022 Source: MoSPI/India Ratings the possibility of any out-ofcycle rate action in between. However, the short-term outlook on inflation remains worrisome as weather shocks and high international commodity prices could jack up supply-side pressures. Continued on Page 2 NCLAT rejects Land prices rise IPLTV, digital Amazon appeal as stressed rights sold for IN A MAJOR setback for Ama- assets sold out over `44k cr zon,theNationalCompanyLaw Appellate Tribunal (NCLAT) on Monday rejected its appeal against the December 2021 orderoftheCompetitionCommissionofIndia(CCI)suspendingadealstruckbyittoacquire a49%stakeinFutureCoupons (FCPL).The NCLAT upheld the CCI's order, which had suspended the approval given in 2019 on the grounds that the e-commercefirmhadwithheld vital information from it. LAND PRICES HAVE shot up 30-40 % across the country since2019,asparcelsofstressed developers/land owners are being sold out. Besides, land parcelscurrentlyarefullypriced, saiddevelopersandconsultants involved in such deals.“Earlier bigdeveloperswerenegotiating with smaller developers whose projectswerestuckandgotvalue benefit,” said Mayank Saksena, CEO, land services at Anarock PropertyConsultants. Full report on Page 4 Full report on Page 20 New Delhi THE BIDDING PROCESS to secure IPL media rights for the 2023-2027 cycle has come to an end, with the television rights being sold for a whopping `57.5 crore (per match) and digital for `50 crore (per match), news agency ANI has reported.Thenamesofthewinners are expected to be disclosed on Wednesday, though unconfirmed reports suggest Sony has won the TV rights, while the digital rights have gone toViacom 18.