Barometers trade flat; realty index snaps 4-day streak

The domestic equity benchmarks were trading sideways near the flat line in the early afternoon trade. The Nifty was trading below 16,580 mark. Banks and financial stocks advanced while healthcare, pharma and realty corrected.

At 12:24 IST, the barometer index, S&P BSE Sensex was up 5.31 points or 0.01% to 55,571.72. The Nifty 50 index fell 8.05 points or 0.05% to 16,576.50.

The broader market was trading higher. The S&P BSE Mid-Cap index rose 0.18% while the S&P BSE Small-Cap index gained 0.77%.

Buyers outpaced sellers. On the BSE, 1,902 shares rose while 1,273 shares fell. A total of 156 shares were unchanged.

 

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.19% to 20.7225. The Nifty 30 June 2022 futures were trading at 16,572.95 at a discount of 3.55 points as compared with the spot at 16,576.50.

The Nifty option chain for the 30 June 2022 expiry showed maximum Call OI of 22.4 lakh contracts at the 17,000 strike price. Maximum Put OI of 39.1 lakh contracts was seen at 16,000 strike price.

India Manufacturing PMI:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 54.6 in May, little-changed from 54.7 in April, pointing to a sustained recovery across the sector. The above-50.0 reading was the eleventh in as many months and consistent with a solid improvement in operating conditions.

Economy:

India's GDP growth in Q4 FY22 was at 4.1% year-on-year, compared to a revised growth of 5.4% for Q3 FY22. Gross Value Added (GVA), which excludes the impact of subsidies and indirect taxes, grew 3.9% year-on-year in the fourth quarter.

For the full fiscal year, GDP grew 8.7% year-on-year, compared to a contraction of 6.6% in FY21. GVA for FY22 grew 8.1% year-on-year, compared to a contraction of 4.8% in FY21.

The combined Index of Eight Core Industries stood at 143.2 in April 2022, which is an increase of 8.4% (provisional) as compared to the Index of April 2021. The production of Coal, Electricity, Refinery Products, Fertilizers, Cement and Natural Gas industries increased in April 2022 over the corresponding period of last year. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Final growth rate of Index of Eight Core Industries for January 2022 is revised to 4.0% from its provisional level 3.7%. The growth rate of ICI during April-March 2021-22 was 10.4% (P) as compared to the corresponding period of last FY.

Buzzing Index:

The Nifty Realty index fell 0.84% to 408.25 snapping its four days gaining streak. The index rose 8.14% in four trading sessions.

Among the components of the Nifty Realty index, Indiabulls Real Estate (down 6.92%), DLF (down 1.78%), Brigade Enterprises (down 1.74%), Phoenix Mills (down 1.62%) and Godrej Properties (down 1.59%) were the top losers.

Stocks in Spotlight:

Natco Pharma rose 3.29% to Rs 714.85 after the company announced the launch of first generic version of Nexavar (Sorafenib) tablets in the US market. Viatris, a global pharma company and commercial partner of Natco, will launch the product. Sorafenib is prescribed for treatment of unresectable Hepatocellular Carcinoma (HCC), advanced Renal Cell Carcinoma (RCC) and Differentiated Thyroid Carcinoma (DTC). It is an oral multi-kinase inhibitor that is used in the therapy of advanced renal cell, liver and thyroid cancer.

Ashok Leyland rose 0.85% to Rs 138.70 after the company's total commercial vehicle (CV) sales soared 315% to 13,273 units in May 2022 from 3,199 units sold in May 2021. Sequentially, the company's total CV sales declined 10.74% last month from 11,847 units sold in April 2022. While the total sales of medium & heavy commercial vehicles (M&HCV) jumped 307% to 7,945 units, sales of light commercial vehicles (LCVs) climbed 328% to 5,328 units in May 2022 over May 2021.

BPCL rose 0.29% to Rs 327.35. Moody's Investors Service has affirmed the 'ba1' baseline credit assessment (BCA) rating and the 'Baa3' issuer and senior unsecured ratings of Bharat Petroleum Corporation (BPCL). The credit rating agency has also affirmed the '(P)Baa3' senior unsecured rating on the medium-term note (MTN) program of BPCL and the '(P)Baa3' backed senior unsecured rating on the medium-term note (MTN) program of BPRL International Singapore (BPRL). It has further affirmed the 'Baa3' backed senior unsecured rating of BPRL. BPRL is a wholly owned subsidiary of BPCL and its bonds are guaranteed by BPCL.

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