The key equity indices ended lower after a volatile session on Tuesday. The Nifty closed below the 16,150 mark, reversing from the day's high of 16,262.80 hit in afternoon trade. IT, metals, and pharma shares declined while financials and private banks ended in the green.
As per provisional closing data, the barometer index, the S&P BSE Sensex, fell 236 points or 0.43% to 54,052.61. The Nifty 50 index lost 89.55 points or 0.55% to 16,125.15.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 0.85% while the S&P BSE Small-Cap index declined 1.14%.
The market breadth was weak. On the BSE, 1,042 shares rose and 2,266 shares fell. A total of 122 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 9.56% to 25.64.
Investors continued to assess the global macroeconomic outlook as they await the minutes from the last U.S. Federal Reserve meeting, due on Wednesday, which could give clues on whether the monetary tightening would continue.
New Listing:
Shares of Delhivery closed at Rs 538 on the BSE, at a premium of 10.47% compared with the issue price of Rs 487. The scrip was listed at Rs 493, representing a premium of 8.56% to the issue price.
Shares of Venus Pipes and Tubes were locked in an upper circuit of 5% at Rs 351.75, a premium of 7.90% compared with the issue price of Rs 326. The scrip was listed at Rs 335, representing a premium of 2.76% to the initial public offer (IPO) price.
Stocks in Spotlight:
Life Insurance Corporation rose 0.80%. The life insurance provider said that its board will meet on 30 May 2022 to consider and approve the audited standalone and consolidated financial results and dividend, if any, for the quarter and year ended 31 March 2022.
Maruti Suzuki India (MSIL) fell 1.22%. The company has agreed to acquire an equity stake of 12.09% in Sociograph Solutions Private Limited (SSPL) for about Rs 2 crore. SSPL is an artificial intelligence (AI) software company that specializes in a visual AI platform predominantly used to help enterprises improve sales experiences and improve efficiency in their business.
Marico shed 0.47%. The company has made a strategic investment and acquired stake in HW Wellness Solutions Private Limited, a leading Digital first brand in the healthy breakfast and snack segment under the brand name 'True Elements'. As part of the aforesaid transaction, the company has acquired 53.98% of the paid-up share capital of HW Wellness and it has accordingly become a subsidiary of the company.
Zomato surged 15.61%. The food delivery platform on Monday said its consolidated net loss widened to Rs 359.70 crore in Q4 March 2022 compared with net loss of Rs 134.20 crore in the corresponding quarter last year. Revenue from operations came in at Rs 1,211.80 crore, rising 75.01% compared to Rs 692.40 crore in the same quarter last year.
IPCA Laboratories fell 2.27%. The company reported 19% drop in consolidated net profit to Rs 130.23 crore despite a 15% growth in net total income to Rs 1,303.64 crore in Q4 FY22 over Q4 FY21.
Bharat Electronics (BEL) rose 0.48%. The PSU company reported a 15.6% fall in standalone net profit of Rs 1,141.81 crore in Q4 FY22 from Rs 1,352.38 crore posted in Q4 FY21. Net sales declined 8.2% to Rs 6,200.69 crore for the quarter ended 31 March 2022 from Rs 6,757.05 crore recorded in the corresponding period last year.
Rupa & Co slumped 16.49%. The innerwear maker accepted the resignation of Dinesh Kumar Lodha as the chief executive officer and Ramesh Agarwal as the chief financial officer, with effect from 31 May 2022. Rupa & Company said that Dinesh Kumar Lodha has resigned for personal reasons, and he is and will be a part of the selection process for the new CEO to ensure a smooth transition.
The company also announced its Q4 results on Monday, 23 May 2022. On a consolidated basis, Rupa & Company's net profit declined 25.2% to Rs 49.30 crore on 0.3% increase in total revenue to Rs 455.50 crore in Q4 March 2022 over Q4 March 2021.
Ramco Cements tumbled 4.42%. On a consolidated basis, Ramco Cements' net profit fell 45% to Rs 118.57 crore on 5% increase in total income to Rs 1,722.68 crore in Q4 FY22 over Q4 FY21.
Bank of India rose 1.18%. The public sector bank reported a net profit of Rs 606.27 crore in Q4 FY22, steeply higher than Rs 250.19 crore posted in Q4 FY21. Standalone total income stood at Rs 11,443.46 crore for the quarter ended 31 March 2022, registering a YoY growth of 2.6%.
Global Markets:
Dow Jones Futures was down 243 points, indicating a weak opening in the US stocks today.
Shares in Europe and Asia declined on Tuesday, as investors weighed a possible thawing of U.S.-China trade relations as U.S. President Joe Biden floated the idea of tariff cuts on Chinese goods.
China announced that it will offer more than 140 billion yuan ($21 billion) in additional tax relief as it seeks to offset the impact of coronavirus lockdowns that have battered the economy.
US stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally. Sentiment appeared to have gotten a boost after President Joe Biden said he was considering reducing tariffs on some products imported from China.
The United States announced on Monday the Indo-Pacific Economic Framework with Asian partners including Australia, Japan and the Republic of Korea. The group wants to set international rules on the digital economy, supply chains, decarbonization and regulations applying to workers.
U.S. President Joe Biden has said tackling inflation is a priority and this framework is designed to help lower costs by making supply chains more resilient in the longer term.
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