Barometers off day`s low; breadth weak

The benchmark indices came off the day`s low during mid-morning trade. IT, pharma and healthcare shares bucked the weak market trend. The Nifty reclaimed the 16,300 level.

Shares of index heavyweight Reliance Industries (RIL) fell 2.82% in reaction to its Q4 results declared after market hours on Friday. Weak global stocks weighed on the sentiment.

At 11:30 IST, the barometer index, S&P BSE Sensex skid 466.07 points or 0.85% at 54,369.51. The Nifty 50 index lost 133.05 points or 0.81% at 16,278.20.

The S&P BSE Mid-Cap index fell 1.45%. The S&P BSE Small-Cap index slipped 1.52%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 804 shares rose while 2,407 shares fell. A total of 125 shares were unchanged.

LIC IPO:

The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India received bids for 32.61 crore shares as against 16.20 crore shares on offer, according to stock exchange data at 11:27 IST on Monday (9 May 2022). The issue was subscribed 2.01 times.

The issue opened on 4 May 2022 and it will close today, 9 May 2022. The IPO price band is Rs 902 to Rs 949 per equity share. An investor can bid for a minimum of 15 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Bank index slipped 1.34% to 34,129.40. The index lost 5.62% in four trading sessions.

Among the components of the Nifty Bank index, IndusInd Bank (down 3.69%), Bandhan Bank (down 2.63%), Bank of Baroda (down 2.53%), Axis Bank (down 2.12%) and IDFC First Bank (down 1.94%) were the top losers.

Among the other losers were AU Small Finance Bank (down 1.76%), State Bank of India (SBI) (down 1.67%), Punjab National Bank (down 1.62%), HDFC Bank (down 1.46%) and ICICI Bank (down 1.09%).

Meanwhile, Federal Bank Ltd (up 0.27%) advanced.

Stocks in Spotlight:

Sundaram-Clayton slipped 1.64%. The company reported 2.2% fall in consolidated net profit to Rs 163.50 crore on a 7.2% rise in net sales to Rs 6,901.63 crore in Q4 FY22 over Q4 FY21. Total expenditure increased by 7% YoY to Rs 6,002 crore during the quarter. Interest payments were at Rs 274.60 crore (up 25.1% YoY) and depreciation costs amounted to Rs 234.49 crore (up 31.4% YoY) in Q4 FY22. Profit before tax in Q4 FY22 stood at Rs 414.64 crore, down by 7.2% from Rs 446.71 crore in Q4 FY21. Current tax outgo during the period under review was Rs 124.06 crore (down 2% YoY).

Navin Fluorine International gained 0.46%. The firm reported a 3% rise in consolidated net profit to Rs 75.1 crore on a 22% increase in net sales to Rs 408.9 crore in Q4 FY22 over Q4 FY21. Profit before tax declined 15% year on year to Rs 94.1 crore in Q4 FY22. Meanwhile, total expenses rose 24.8% year on year to Rs 314.68 crore in the quarter ended 31 March 2022. Consolidated operating EBITDA advanced 10% to Rs 94.3 crore in Q4 FY22 from Rs 85.5 crore posted in Q4 FY21. EBITDA margin declined by 238 basis points to 23% in Q4 FY22 from 25.4% posted in Q4 FY21. The chemical maker said that margins were impacted largely due to higher employee cost and input costs.

Global Markets:

The US Dow Jones index futures were down 275 points, indicating a weak opening in the US stocks today.

Asian stocks declined across the board on Monday as US stock futures took an early skid on rate worries, while a tightening lockdown in Shanghai stoked concerns about global economic growth and possible recession. Markets in Hong Kong are closed today for a holiday.

US stock indexes extended losses for a second day on Friday as elevated US Treasury yields dragged growth shares after stronger-than-expected jobs data amplified investor fears of bigger interest rate hikes to tame surging prices.

The Labor Department`s report showed nonfarm payrolls increased by 428,000 jobs in April. Unemployment rate remained unchanged at 3.6% in the month.

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