Indices trim losses; Nifty above 21,900; PSU bank slips

The benchmark indices pared some losses in mid-morning trade. The Nifty traded above the 21,900 level after hitting the days low of 21,821.05. PSU Bank stocks extended losses for the third consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 446.12 points or 0.61% to 72,218.35. The Nifty 50 index lost 121.20 points or 0.55% to 21,934.

In the broader market, the S&P BSE Mid-Cap index slipped 0.99% and the S&P BSE Small-Cap index declined 0.98%.

The market breadth was weak. On the BSE, 1,145 shares rose and 2,618 shares fell. A total of 139 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, zoomed 11.63% to 20.62.

Economy:

Indias industrial output expanded 4.9% year-over-year in March, slower than the 5.6% in February. Among the major three sectors, electricity output grew the most, up by 8.6%. This was followed by a 5.2% rise in manufacturing output. The slowdown in growth was largely due to a weaker upturn in mining output, which rose 1.2% annually in March versus 8.1% surge in the prior month. During April to March, industrial production expanded 5.8% from the same period last year, data showed.

Buzzing Index:

The Nifty PSU Bank index slipped 2.52% to 6,895.95. The index dropped 3.7% in three days in a row.

Bank of India (down 11.21%), Union Bank of India (down 7.64%), Punjab & Sind Bank (down 4.82%), Central Bank of India (down 3.87%), Indian Overseas Bank (down 3.63%), Punjab National Bank (down 3.31%), Bank of Maharashtra (down 3.05%), UCO Bank (down 3.02%), State Bank of India (down 1.68%) and Canara Bank (down 1.6%) edged lower.

Bank of India tumbled 11.21%. The state-run banks net profit increased 6.55% to Rs 1,438.91 crore on 8.24% rise in total income to Rs 17,913.03 crore in Q4 FY24 over Q4 FY23.

Union Bank of India dropped 7.64%. The public sector bank's standalone net profit rose 18.99% to Rs 3,310.55 crore on 13.87% increase in total income to Rs 31,057.52 crore in Q4 FY24 over Q4 FY23.

Stocks in Spotlight:

JK Cement rose 1.39% after the cement maker's consolidated net profit zoomed 100.6% to Rs 219.75 crore in Q4 FY24 as compared to Rs 109.52 crore recorded in Q4 FY23. Revenue from operations jumped 11.8% year on year to Rs 3,105.77 crore in the quarter ended 31 March 2024.

Finolex Industries declined 2.08%. The company has reported 1.9% rise in net profit to Rs 161.43 crore on a 8.3% increase in total income from operations to Rs 1,235.42 crore in Q4 FY24 as compared with Q4 FY23.

Global Markets:

Most Asian equity markets declined on Monday, with Chinese stocks leading the downward trend. The release of China's April inflation data, which fell within a moderate range, coincided with a shift towards investor caution ahead of key U.S. inflation data scheduled for release this week.

Chinese stocks faced additional downward pressure due to potential new U.S. trade tariffs. Several media outlets reported last week that the Biden administration is considering imposing import tariffs on specific sectors within China, including electric vehicles and solar energy technology.

Regional markets largely followed the muted performance of Wall Street on Friday, with investor focus shifting towards the upcoming U.S. inflation data which could impact future interest rate decisions.

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