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Barometers pare gains; Nifty holds 17,900 level

Published on Apr 04, 2022 12:40

The benchmark indices pared gains in early afternoon trade. Barring the Nifty IT index, all the sectoral indices on the NSE advanced. The Nifty hovered above 17,900 mark.

At 12:30 IST, the barometer index, S&P BSE Sensex rose 947.97 points or 1.60% at 60,224.66. The Nifty 50 index gained 262 points or 1.48% at 17,932.45.

The S&P BSE Mid-Cap index added 0.82%. The S&P BSE Small-Cap index rose 1.33%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, shares 2,551 rose and 853 shares fell. A total of 157 shares were unchanged.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, declined 2.11% to 18.0450. The Nifty 28 April 2022 futures were trading at 17,977.55, at a premium of 45.10 points as compared with the spot at 17,932.45.

The Nifty option chain for 31 March 2022 expiry showed maximum Call OI of 38.42 lakh contracts at the 19,000 strike price. Maximum Put OI of 41.75 lakh contracts was seen at 17,500 strike price.

Economy:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) stood at 54 in March, falling from 54.9 in February. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.

"Business conditions in India improved in March, but the latest results showed slower expansions in factory orders and production as well as a renewed decline in new export orders. At the same time, price indices increased since February to signal mounting price pressures. Inflation concerns meanwhile dampened business confidence, which fell to its lowest level in two years," said S&P Global on 4 April.

Goods producers indicated that new orders continued to increase in March. The rate of expansion eased to a six-month low, but remained marked, the release stated.

Separately, India`s merchandise exports spurt to a record high of $418 billion in the 2021-22 fiscal on higher shipments of petroleum products, engineering goods, gem and jewellery and chemicals, according to official data released on Sunday.

India`s annual median GDP growth forecast stood at 7.4% for 2022-23, according to a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) released on April 3. The Economic Outlook Survey estimates a minimum and maximum growth of 6% and 7.8%, respectively.

Hariom Pipe Industries IPO:

The initial public offer (IPO) of Hariom Pipe Industries received bids for 1,59,48,226 shares as against 85,00,000 shares on offer, according to stock exchange data at 17:00 IST on Friday (1 April 2022). The issue was subscribed 1.88 times.

The issue opened for bidding on Wednesday (30 March 2022) and it will close on Tuesday (5 April 2022). The price band of the IPO is fixed at Rs 144 - Rs 153 per share. An investor can bid for a minimum of 98 equity shares and in multiples thereof.

The offer comprises fresh issue of 85,00,000 equity shares with Rs 130.10 crore at upper price band of Rs 153 and Rs 122.40 crore at lower price band of Rs 144. The company proposes to utilize the net proceeds from the issue towards funding capital expenditure requirements amounting Rs 50.05 crore, funding the working capital requirements amounting Rs 40 crore and balance towards general corporate purposes.

Buzzing Index:

The Nifty Metal index rose 1.37% to 6,565.80. The index added 2.21% in two trading sessions.

Steel Authority of India (SAIL) (up 3.33%), Jindal Steel & Power (JSPL) (up 2.79%), National Aluminium Co. (NALCO) (up 2.34%), Tata Steel (up 1.88%) and Vedanta (up 1.87%) were the top gainers in the Metal segment.

Stocks in Spotlight:

Avenue Supermarts (D-Mart) rose 0.90%. The standalone revenue stood at Rs 8,606.09 crore in Q4 March 2022. Avenue Supermarts, which owns and operates retail chain D-Mart, on Sunday said its standalone revenue from operations during the quarter ended March 2022 increased 17.8% to Rs 8,606.09 crore from Rs 7,303.13 crore in the same quarter last year. The company`s revenue stood at Rs 6,193.53 in Q4 March 2020, while it was Rs 5,033.37 crore in Q4 March 2019. The total number of stores as of 31 March 2022 stood at 284, Avenue Supermarts said in an exchange filing.

Kalyan Jewellers India spurted 4.29%. The company witnessed a sustained buoyancy in consumer sentiments and the continuing shift in consumer demand from the unorganized to the organized segment. The business in India saw a 7% decline in revenues when compared to the same quarter in the prior year, although when compared to the same quarter two years ago (Q4 FY20), the recently concluded quarter saw over 47% growth, as a result of acceleration in the business performance through the COVID pandemic and the increase in footfalls across the store network over the past several quarters. On a consolidated basis (including the Middle East), the business has seen 6% decline in revenues when compared to the same quarter in the prior year and over 33% growth when compared to the same quarter two years ago (Q4 FY20).

The online jewellery platform, Candere, recorded a revenue growth of over 80% during the quarter, as compared to the same period during the last year, demonstrating a continued positive traction of the digitally-oriented initiatives, particularly around e-commerce. The company is witnessing trends in the advance collections for both Akshaya Tritiya as well as for wedding purchases during the quarter.

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