The domestic equities neared flat line, extending modest cuts during mid-afternoon trade. The Nifty traded below the 16,200 level. Shares of metal, private bank and financial services rose while IT, PSU bank and FMCG stocks corrected.
At 14:26 IST, the barometer index, S&P BSE Sensex was down 263.16 points or 0.48% to 54,101.69. The Nifty 50 index fell 67.65 points or 0.42% to 16,172.40.
In the broader market, the S&P BSE Mid-Cap index fell 0.38% while the S&P BSE Small-Cap index declined 1.87%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 616 shares rose while 2,726 shares fell. A total of 119 shares were unchanged.
Weather Update:
Cyclone Asani, which formed in the Bay of Bengal, is likely to come near the coast of Andhra Pradesh Wednesday, as per media reports. It is unlikely, however, to make landfall, and could slowly recurve north-northeastwards and move along Narsapur, Yanam, Kakinada, Tuni and Visakhapatnam coasts and emerge into westcentral Bay of Bengal by tonight. The 'severe cyclonic storm' is expected to gradually weaken into a 'cyclonic storm' today, and then into a depression by Thursday morning.
India Meteorological Department's (IMD) tweeted, Cyclonic Storm 'ASANI' over Westcentral Bay of Bengal-Cyclone Warning for Andhra Pradesh coast. Yesterday's severe cyclonic storm 'Asani' (pronounced as Asani) over Westcentral & adjoining south Bay of Bengal moved nearly west-northwestwards."
"It lay centred at 08:30 hours IST today, 11 May, over Westcentral Bay of Bengal as Cyclonic Storm and moved north-northeastwards with a speed of 6 kmph during past 6 hours, and lay centered at 08:30 hours IST of 11 May, over same region near latitude 15.9N and longitude 81.4E, about 40 km southeast of Machilipatnam (Andhra Pradesh), 140 km southwest of Kakinada (Andhra Pradesh), 280 km southwest of Visakhapatnam (Andhra Pradesh), 520 km southwest of Gopalpur (Odisha) and 630 km southwest of Puri (Odisha)."
"It is very likely to move north-northeastwards along Narsapur, Yanam, Kakinada, Tuni & Visakhapatnam coasts till evening of today and emerge into westcentral Bay of Bengal off North Andhra Pradesh coasts by today night. It is likely to weaken further into a depression by 12 May morning. Fishermen are advised not to venture into Westcentral Bay of Bengal along and off Andhra Pradesh and Odisha coasts on 11 May and into Northwest Bay of Bengal till 12 May. Fishermen to return to coast.
Numbers to Track:
The yield on India's 10-year benchmark federal paper fell to 7.239% as compared with 7.301% at close in the previous trading session.
In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 77.27, compared with its close of 77.34 during the previous trading session.
MCX Gold futures for 3 June 2022 settlement rose 0.08% to Rs 50,628.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.28% to 103.63.
In the commodities market, Brent crude for July 2022 settlement rose $2.96 or 2.89% at $105.42 a barrel.
Buzzing Index:
The Nifty FMCG index declined 1.10% to 36,507.10. The stock has risen 0.49% in the last trading session.
Among the components of the Nifty FMCG index, Radico Khaitan (down 3.77%), Emami (down 3.05%), Varun Beverages (down 2.94%), ITC (down 1.98%) and Hindustan Unilever (down 1.66%) were the top losers.
Among the other losers were Procter & Gamble Hygiene and Health Care (down 1.27%), Marico (down 0.93%), Colgate-Palmolive (India) (down 0.73%), Nestle India (down 0.46%) and Dabur India (down 0.43%).
On the other hand, Britannia Industries (up 0.35%), Godrej Consumer Products (up 0.27%) and Tata Consumer Products (up 0.25%) edged higher.
Stocks in Spotlight:
Kalyan Jewellers India fell 4.18% .The company's consolidated net profit fell 2.55% to Rs 72.29 crore on 6.53% decline in net sales to Rs 2,857.06 crore in Q4 March 2022 over Q4 March 2021. On a consolidated basis, the company recorded Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of Rs 218 crore during Q4 FY22, down 4.39% compared with Rs 228 crore in the same quarter of the previous year. The standalone India operations recorded revenue of Rs 2399 crore as against Rs 2615 crore in Q4 of the previous financial year. Total revenue from the Middle East operations during Q4 FY22 was Rs 425 crore, at similar levels to the corresponding quarter of the previous year. The Middle East region contributed about 15% to the overall consolidated revenue of the company.
Adani Ports And Special Economic Zone fell 1.22% to Rs 761.90 after the board rescheduled meeting for approval of audited financial results to 24 May 2022. In an exchange filing on Wednesday, Adani Ports announced that the company's board rescheduled meeting to 24 May 2022. The board meeting was earlier scheduled today, 11 May 2022.
Alembic Pharmaceuticals rose 0.88%. The company received a final approval from the drug regulatory body, U.S. Food & Drug Administration for its Abbreviated New Drug Application (ANDA) for Arformoterol Tartrate Inhalation Solution.
Global Markets:
The Dow Jones Futures were up 205 points, indicating a positive start to the US market.
European stocks advanced across the board while Asian markets mostly traded higher on Wednesday.
The producer price index (PPI) in China rose 8% year-on-year, the National Bureau of Statistics (NBS) said in a statement on Wednesday, following an 8.3% rise in March.Consumer inflation also rose more than expected. The consumer price index (CPI) gained 2.1% from a year earlier, the fastest pace in five months, speeding up from 1.5% growth in March.
In Europe, German inflation in April rose to an annual 7.4%, its highest print since 1981.
Meanwhile, President Gotabaya Rajapaksa extended the national curfew until Wednesday morning while urging people to stop the violence. As per reports, the former Prime Minister Mahinda Rajapaksa and his family have been moved to a naval base after protesters targeted his official residence in Colombo. On Tuesday, the Defence Ministry spokesman Nalin Herath, said, "Security forces have been ordered to shoot on sight anyone looting public property or causing harm to life."
Investors are looking ahead to U.S. inflation data for April on Wednesday which is reportedly expected to come in slightly below March's 8.5% and could signal that inflation has reached a peak.
Recent market volatility has been driven by investor concerns over rising interest rates and question marks over how aggressively the Federal Reserve will act to curb rising inflation. In addition, investors continue to monitor the ongoing conflict in Ukraine and lockdowns in China.
In US, the S&P 500 and Nasdaq ended higher on Tuesday, with big growth shares rising after the previous day's selloff as Treasury yields tumbled. Bank shares fell along with yields.
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