The key equity indices reversed gains and traded with small losses in early afternoon trade. The Nifty traded below the 16,100 level. Shares of financial services, banks were in the green while IT, media and realty stocks corrected.
At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 120.33 points or 0.22% to 53,932.28. The Nifty 50 index fell 56.55 points or 0.35 % to 16,068.60.
Selling was broad based. The S&P BSE Mid-Cap index slipped 1.31% while the S&P BSE Small-Cap index declined 2.11%.
The market breadth was weak. On the BSE, 759 shares rose and 2,396 shares fell. A total of 129 shares were unchanged.
Investors awaited the release of minutes from the last U.S. Federal Reserve meeting, due later today. The minutes will give more clues on whether the monetary tightening would continue. Investors are worried about a potential U.S. recession caused by the monetary tightening.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 0.79% to 25.43. The Nifty 26 May 2022 futures were trading at 16,070.35 at a premium of 1.75 points as compared with the spot at 16,068.60
The Nifty option chain for the 26 May 2022 expiry showed maximum Call OI of 100.7 lakh contracts at the 16,200 strike price. Maximum Put OI of 88.5 lakh contracts was seen at 16,000 strike price.
Economy:
The government has announced a curb on export of sugar beyond 10 million tonnes during this sugar season ending September. The decision came in the light of record exports of the sugar. The government notification said that this has been done to maintain the domestic availability and price stability during the sugar season 2021-22. Export of sugar in the current sugar season is historically the highest.
As per the new guideline, sugar mills and exporters need to take approvals in form of Export Release Orders (EROs) from Directorate of Sugar, Department of Food and Public Distribution. Sugar exports have been allowed up to 31 May 2022 without any ERO or approval. For exports between 1 June 2022 and 30 October 2022, ERO will be required. The Ministry of Consumer Affairs, Food & Public Distribution said the decision will ensure that the closing stock of sugar at the end of sugar season (30th Sept 2022) remains 60-65 lakh tonnes which is 2-3 months stocks (monthly requirement is around 24 lakh tonnes in those months) required for domestic use.
IPO Updates:
The initial public offer (IPO) of Aether Industries received bids for 37,22,757 shares as against 93,56,193 shares on offer on Wednesday (25 May 2022), according to stock exchange data at 12:09 IST. The issue was subscribed 40%.
The issue opened for bidding on Tuesday (24 May 2022) and it will close on Thursday (26 May 2022). The price band of the IPO is fixed at Rs 610 - 642 per share. An investor can bid for a minimum of 23 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Media index fell 2.45% to 1,899.25.The index shed 5.89% in the past three trading sessions.
Among the components of the Nifty Media index, Saregama India (down 4.11%), Nazara Technologies (down 3.2%), TV18 Broadcast (down 3.03%), Dish TV India (down 2.62%) and Zee Entertainment Enterprises (down 2.57%) were major losers.
Other losers were PVR (down 2.33%), Network 18 Media & Investments (down 2.15%), Inox Leisure (down 1.91%), Hathway Cable & Datacom (down 1.42%) and Sun Network Ltd (down 0.66%).
Stocks in Spotlight:
Adani Ports And Special Economic Zone (APSEZ) slipped 4.45% after the company reported 20.5% fall in consolidated net profit to Rs 1,024 crore in Q4 FY22 from Rs 1,287.81 crore recoreded in Q4 FY21. Net sales rose 6.6% to Rs 3,845.03 crore for the quarter ended 31 March 2022 from Rs 3,607.90 crore recorded in the corresponding period last year. Profit before tax slumped 24% to Rs 1,170.43 crore in Q4 FY22 from Rs 1,539.05 crore in Q4 FY21.
Bayer Cropscience rallied 5.86%. The company's standalone net profit surged 146.69% to Rs 152.70 crore on 31.29% rise in net sales to Rs 963.30 crore in Q4 March 2022 over Q4 March 2021. On a standalone basis, profit before exceptional items & tax for the quarter surged 157.82% to Rs 189.50, compared to Rs 73.50 crore in the corresponding quarter of the previous year.
Metropolis Healthcare declined 2.18% after the diagnostic company posted a 34.8% declined in consolidated net profit of Rs 39.99 crore in Q4 FY22 from Rs 61.35 crore posted in Q4 FY21. Net sales grew 4.9% to Rs 305.90 crore in quarter ended 31 March 2022 from Rs 291.73 crore reported in the corresponding quarter previous year. Profit before tax tumbled 30.8% to Rs 56.47 crore in Q4 FY22 from Rs 81.65 crore recorded Q4 FY21.
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