Barometers trades with small gains; Nifty above 16,300 level

The benchmark indices continued to make small gains during mid-morning trade, buoyed by a strong demand in auto stocks. The Nifty index hovered above 16,300 mark.

At 11:30 IST, the barometer index, S&P BSE Sensex rose 71.98 points or 0.13% at 54,542.65. The Nifty 50 index gained 15.10 points or 0.09% at 16,316.95.

The S&P BSE Mid-Cap index slipped 0.88%. The S&P BSE Small-Cap index lost 0.43%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,438 shares rose while 1,706 shares fell. A total of 137 shares were unchanged.

Results Today:

Asian Paints (up 1.37%), Cipla (down 1.41%), Vodafone Idea (up 0.67%), Gujarat Gas (down 1.37%), Ajanta Pharma (up 0.30%), Cera Sanitaryware (down 0.27%), Chalet Hotels (up 0.21%), Kansai Nerolac Paints (down 1.45%), Max Financial Services (up 0.04%), Mahanagar Gas (down 0.56%), MRF (up 0.91%), Polycab India (down 0.67%), Torrent Power (down 1.14%), Venky`s (India) (up 1.37%) and Welspun India (up 0.83%) will release quarterly earnings today, 10 May 2022.

Buzzing Index:

The Nifty FMCG index rose 0.84% to 37,039.25. The index had lost 4.05% in the past four trading sessions.

Among the components of the Nifty FMCG index, Hindustan Unilever (up 1.71%), Godrej Consumer Products (up 1.53%), Radico Khaitan (up 1%), Varun Beverages (up 0.95%) and Marico (up 0.86%) were the top gainers.

Among the other gainers were United Breweries (up 0.63%), ITC (up 0.59%), Colgate-Palmolive (India) (up 0.31%), Britannia Industries (up 0.3%) and United Spirits (up 0.28%).

On the other hand, Emami (down 3.46%), Dabur India (down 0.88%) and Procter & Gamble Hygiene and Health Care (down 0.8%) moved lower.

Stocks in Spotlight:

JSW Steel fell 1.47%. The steel maker`s standalone crude steel production for the month of April 2022 grew 22% year on year to 16.67 lakh tonnes as against 13.71 lakh tonnes in April 2021. While the production of flat rolled products increased by 25% to 12 lakh tonnes, production of long rolled products rose by only 5% to 3.54 lakh tonnes in April 2022 over April 2021.

Vedant Fashions rose 1.48%. The company reported a consolidated net profit of Rs 88.70 crore in Q4 FY22, which is higher by 86.3% as compared with a net profit of Rs 47.60 crore in Q4 FY21. Revenue from operations increased by 54.7% YoY to Rs 296.25 crore during the quarter. Profit before tax in Q4 FY22 stood at Rs 119.58 crore, up by 82.2% from Rs 65.64 crore in Q4 FY21.

LIC IPO:

The initial public offering (IPO) of insurance major Life Insurance Corporation (LIC) of India received bids for 47,83,67,010 shares as against 16,20,78,067 shares on offer. The issue was subscribed 2.95 times. The non institutional investors category was subscribed 2.91 times. The retail investors category was subscribed 1.99 times. The qualified institutional buyers (QIBs) category was subscribed 2.83 times.

The policyholders category was subscribed 6.12 times while the employees category was subscribed 4.40 times. The issue opened on 4 May 2022 and it closed on 9 May 2022. The IPO price band was Rs 902 to Rs 949 per equity share. The Government of India held 100% stake in LIC and it offered 221,374,920 shares, or 3.5% stake, through the initial offer.

The object of the offer is to achieve the benefits of listing the equity shares on the stock exchanges. LIC expects that the proposed listing of its equity shares will enhance visibility and brand image as well as provide a public market for the equity shares in India.

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