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Benchmarks slide for 2nd day, Nifty settles at 16,301.85

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Capital Market
Last Updated : May 09 2022 | 6:04 PM IST

The benchmark indices ended with modest fall on Monday, extended losses for the second consecutive day. Weakness in global stocks weighed on investors' sentiment. Barring the Nifty IT index, all the sectoral indices ended in the red. Media, PSU banks and oil & gas stocks were under pressure.

The barometer index S&P BSE Sensex dropped 364.91 points or 0.67% at 54,470.67. The Nifty 50 index lost 109.40 points or 0.67% at 16,301.85.

After hitting the day's low of 16,142.10 in morning trade, the Nifty recovered as the session progressed and hit the day's high of 16,403.70 in mid-afternoon trade. Selling in late trade dragged the index near 16,300 mark.

In the broader market, the S&P BSE Mid-Cap index fell 1.89%. The S&P BSE Small-Cap index slipped 1.67%.

The market breadth was weak. On the BSE, 1,052 shares rose while 2,416 shares fell. A total of 146 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, advanced 3.68% to 22.0325.

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Numbers to Watch:

The yield on India's 10-year benchmark federal paper rose to 7.473% as compared with 7.451% at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 77.48, compared with its close of 76.90 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement fell 0.61% to Rs 51,031.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.19% to 103.86.

In the commodities market, Brent crude for July 2022 settlement fell $2.08 per barrel, or 1.85% at $110.31 a barrel.

Global Markets:

The US Dow Jones index futures were down 504 points, indicating a weak opening in the US stocks today.

Shares in Europe and Asia declined on Monday, tracking negative sentiment globally as investors continued to mull over persistently high inflation. Investors also kept an eye on the Russia-Ukraine war.

In the US, the Labor Department's report showed nonfarm payrolls increased by 428,000 jobs in April. Unemployment rate remained unchanged at 3.6% in the month.

LIC IPO:

The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India received bids for 47.54 crore shares as against 16.20 crore shares on offer, according to stock exchange data at 17:12 IST on Monday (9 May 2022). The issue was subscribed 2.93 times.

The issue opened on 4 May 2022 and it will close today, 9 May 2022. The IPO price band is Rs 902 to Rs 949 per equity share. An investor can bid for a minimum of 15 equity shares and in multiples thereof.

Buzzing Segment:

The Nifty IT index rose 0.05% at 30,733.30. The index fell 2.27% in the previous session.

HCL Technologies (up 2.47%), Infosys (up 1.78%), L&T Technology Services (up 0.75%) and Tata Consultancy Services (up 0.36%) advanced.

Stocks in Spotlight:

Indostar Capital Finance hit a lower circuit limit of 10% at Rs 184.30 after an independent external agency found irregularities in the company's commercial vehicles portfolio. The company said that it may have to make additional expected credit loss (ECL) provisions between Rs 557 crore-Rs 677 crore due to the "certain observations and control deficiencies" made by an external auditor.

Reliance Industries (RIL) declined 3.97%. On a consolidated basis, RIL reported 20.2% increase in net profit to Rs 18,021 crore on 38.64% rise in net sales to Rs 207,375 crore in Q4 March 2022 over Q4 March 2021. Profit before tax (PBT) rose 36.8% to Rs 22,411 crore in Q4 March 2022 over Q4 March 2021. EBITDA increased by 27.7% to Rs 33,968 crore from Rs 26,602 crore in the corresponding quarter of the previous year. EBITDA growth was driven by strong operating performance across businesses. Finance cost decreased by 12.1% to Rs 3,556 crore as against Rs 4,044 crore in the corresponding quarter of the previous year. Lower finance costs reflect large paydown of debt and other liabilities.

Revenue of O2C was driven by improved price realization on the back of steep rise in crude oil prices and higher volumes. Retail segment revenues increased by robust performance with broad-based double-digit growth across all consumption baskets. Revenue of oil & gas segment increased primarily due to higher Gas price realization in KG D6 & CBM. Digital services revenues was primarily driven by higher ARPU and ramp up of wireline services.

Vesuvius India jumped 6.91% after the company's net profit rose 46.50% to Rs 23.63 crore on 25.23% rise in net sales to Rs 310.12 crore in Q1 March 2022 over Q1 March 2021.

DCB Bank rose 3.14% after net profit rose 45.60% to Rs 113.44 crore on 7% rise in total income to Rs 1,034.71 crore in Q4 March 2022 over Q4 March 2021. The operating profit for Q4 FY 2022 was Rs 220.84 crore as against Rs 201.08 crore for Q4 FY 2021, up 9.83% YoY. The bank earned net interest income of Rs 380 crore for Q4 FY 2022 as against Rs 311 crore for Q4 FY 2021. In Q4 FY 2022, Net Interest Margin (NIM) was at 3.93% as against 3.46% in Q4 FY 2021.

Tata Power Company dropped 6.24%. The firm reported 28% rise in consolidated net profit to Rs 503.11 crore on a 15.4% increase in net sales to Rs 11,959.96 crore in Q4 FY22 over Q4 FY21. Total expenses during the quarter increased by 15.4% YoY to Rs 11,951.68 crore. Profit before exceptional items and tax in Q4 FY22 was Rs 688.83 crore, which is higher by 48.9% as compared with Rs 462.65 crore in Q4 FY21. During the quarter ended 31 March 2022, based on current operational performance, the company has reassessed the recoverability of its investment in Adjaristsqali Netherlands B.V. (ABV), held through its wholly-owned subsidiary Tata Power International (TPIPL), and accordingly has recognized an impairment provision of Rs 150 crore as an exceptional item in the financial results. Profit before tax in the fourth quarter stood at Rs 538.56 crore, up 16.4% YoY.

Bajaj Consumer Care skid 5.94%. The company's net profit declined 28.81% to Rs 38.37 crore on 10.70% decline in net sales to Rs 216.05 crore in Q4 March 2022 over Q4 March 2021. On a standalone basis, profit before tax (PBT) fell 28.8% year-on-year to Rs 46.5 crore in Q4 March 2022. EBITDA declined 37.9% to Rs 38.6 crore during the period under review. EBITDA margin stood at 17.9% in Q4 March 2022, lower than 18.4% in Q3 December 2021 and 25.7% in Q4 March 2021. During the quarter, total expenses fell 1.91% to Rs 183.42 crore. Cost of material consumed fell 13.50% to Rs 57.90 crore while employee expense declined 8.93% to Rs 18.96 crore.

New Listing:

Shares of Campus Activewear settled at Rs 378.60 on the BSE, at a premium of 29.66% compared with the issue price of Rs 292.

The scrip was listed at Rs 355, representing a premium of 21.58% to the initial public offer (IPO) price.

The scrip has hit a high of Rs 417.70 and a low of Rs 336.80. Over 34.99 lakh shares of the company have changed hands in the counter.

The IPO of Campus Activewear was subscribed 51.75 times. The issue opened for bidding on 26 April 2022 and it closed on 28 April 2022. The price band of the IPO was fixed at Rs 278 - 292 per share.

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First Published: May 09 2022 | 5:20 PM IST

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