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Market slumps in early trade; breadth weak

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Last Updated : Apr 18 2022 | 9:50 AM IST

Local indices opened on a weak note on Monday as trading resumed after long weekend. Weak global cues weighed on the sentiment. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 947.78 points or 1.62% at 57,391.15. The Nifty 50 index was down 245 points or 1.4% at 17,230.65.

The S&P BSE Mid-Cap index was down 0.79%. The S&P BSE Small-Cap index was down 0.72%.

The market breadth, indicating the overall health of the market, is weak. On the BSE, 1165 shares rose and 1830 shares fell. A total of 127 shares were unchanged.

Stocks in news:

Infosys lost 5.8%. The IT firm's consolidated net profit fell 2.1% to Rs 5,686 crore on a 1.3% increase in revenues to Rs 32,276 crore in Q4 FY22 over Q3 FY22. On a year-on-year basis, Infosys' net profit and revenue in Q4 FY22 increased 12% and 22.7%, respectively.

The company issued strong revenue growth guidance of 13%-15% in constant currency and operating margin guidance of 21%-23% for FY23.

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Tata Steel rose 1.51%. The company said that the meeting of the board of directors of the company is scheduled on 3 May 2022 to consider a proposal for sub-division of the equity shares.

HDFC Bank fell 2.44%. The private sector bank's net profit rose 22.83% to Rs 10,055.18 crore on 8.07% increase in total income to Rs 41,085.78 crore in Q4 FY22 over Q4 FY21.

Meanwhile, the board of directors of HDFC Bank approved the issuance of Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of Infrastructure and Affordable Housing) up to a total amount of Rs 50,000 crore in the period of next twelve months through private placement mode.

Mahindra & Mahindra (M&M) rose 0.68%. M&M announced a price hike of 2.5% on its range of vehicles. This will result in an increase of Rs. 10,000 to Rs. 63,000 on the ex-showroom prices across the range, depending upon the model and the variant. The price hike will be effective from 14 April 2022.

Global Markets:

Overseas, Asian stocks are trading lower on Monday, with investors reacting to the release of Chinese economic data, including first-quarter gross domestic product figures.

China has reported gross domestic product of 4.8% in the first quarter of 2022, as against 4% in the fourth quarter. Markets in Australia and Hong Kong are closed on Monday for a holiday.

Wall Street stocks finished lower on Thursday as investors worried about the potential for aggressive US policy tightening as other central banks around the world moved to reduce support.

Back home, the domestic equity benchmarks reversed early gains and ended with small losses on Wednesday. The S&P BSE Sensex declined 237.44 points or 0.41% to 58,338.93. The Nifty 50 index slipped 54.65 points or 0.31% to 17,475.65. The market was shut on account of Mahavir Jayanti and Ambedkar Jayanti on April 14 and Good Friday on April 15.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,061.04 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,410.85 crore in the Indian equity market on 13 April, provisional data showed.

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First Published: Apr 18 2022 | 9:35 AM IST

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