Sensex, Nifty sharply pare gains; PSU banks witness bargain buying

The domestic equity barometers sharply pared gains in mid-afternoon trade. The Nifty slipped below the 15,900 level. While FMCG, pharma and PSU bank stocks managed to hold in the positive territory, metals, financials and private banks traded with significant cuts.

At 14:29 IST, the barometer index, S&P BSE Sensex was up 196.45 points or 0.37% to 53,126.76. The Nifty 50 index added 74.55 points or 0.47 % to 15,882.55.

In the broader market, the S&P BSE Mid-Cap index gained 1.47% while the S&P BSE Small-Cap index added 1.81%.

The market breadth, however, remained strong. On the BSE, 2,446 shares rose while 850 shares fell. A total of 115 shares were unchanged.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.327% as compared with 7.244% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 77.3450, compared with its close of 77.50 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement fell 0.21% to Rs 50,070.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.27% to 104.56.

In the commodities market, Brent crude for July 2022 settlement rose 43 cents or 0.40% at $107.88 a barrel.

Buzzing Index:

The Nifty PSU Bank index rose 2.76% to 2,469.75. The index saw bargain hunting after declining 10.47% in last nine trading sessions.

Among the components of the Nifty PSU Bank index, Union Bank of India (up 10.67%), Indian Bank (up 8.46%), Bank of India (up 5.85%), UCO Bank (up 4.98%) and Punjab National Bank (up 4.72%) were the top gainers.

Among the other gainers were Bank of Maharashtra (up 4.52%), Canara Bank (up 4.25%), Punjab & Sind Bank (up 3.89%), Central Bank of India (up 3.6%) and Indian Overseas Bank (up 3.13%).

Stocks in Spotlight:

State Bank of India (SBI) fell 1.90% to Rs 453.65. The bank reported 41.28% rise in standalone net profit to Rs 9,114 crore on a 1.58% increase in total income to Rs 82,613 crore in Q4 FY22 over Q4 FY21.

CreditAccess Gramen rallied 7.79%. The company`s consolidated net profit soared 104.41% to Rs 157.13 crore on 13.5% increase in total income to Rs 824.48 crore in Q4 FY22 over Q4 FY21.

Patel Engineering hit an upper circuit limit of 5% at Rs 22.05 after the company said it bagged new order worth Rs 2,461 crore from Chenab Valley Power Projects.

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