Benchmarks trade in narrow range; Nifty hovers at 17,000 level

Equity indices traded in a narrow range with moderate losses in mid afternoon trade. Baring Nifty Realty Index, all other sectoral indices were trading in red on the NSE. Sentiment was dented amid negative global cues. The Nifty continued to trade below its 50 days and 200 days simple moving average placed at 17,101.86 and 17,232.51 respectively.

At 14:23 IST, the barometer index, S&P BSE Sensex dropped 307.25 points or 0.54% at 56,753.62. The Nifty 50 index declined 103.25 points or 0.60% at 16,999.30.

The broader market underperformed the main indices. The S&P BSE Mid-Cap index lost 0.77% while the S&P BSE Small-Cap index declined 1.03%.

Sellers outpaced buyers. On the BSE, 1,108 shares rose while 2,317 shares fell. A total of 175 shares were unchanged.

Numbers to Watch:

The yield on the 10-year benchmark federal paper declined to 7.122% from its previous close of 7.139%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.455, compared with its close of 76.5 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement slipped 1.34% to Rs 51,063.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.36% to 103.33.

In the commodities market, Brent crude for June 2022 settlement fell $ 2.96 or 2.76% at $104.18 a barrel.

Broader Market Losers:

Dixon Technologies (down 8.93%), Astral (down5.08%), L&T Technology Services (down 4.68%), Max Healthcare Institute (down 4.62%) and Dr. Lal Path Labs (down4.28%) were top losers in Mid Cap Space.

HFCL (down 6.47%), CDSL (down 5.41%), JM Financials (down 5.27%), Angel One (down 5.15%) and Brightcom Group (down 4.76%) were top losers in Small Cap space.

Economy:

For the first time, gross GST collection crossed Rs 1.5 lakh crore mark. The gross GST revenue collected in the month of April, 2022 was Rs 1,67,540 crore, which is higher by 18% as compared to Rs 1,42,095 crore recorded in March 2022. The revenues for the month of April 2022 are 20% higher than the GST revenues in the same month last year, Finance Ministry said. Of the total GST collected, CGST was Rs 33,159 crore, SGST was Rs 41,793 crore, IGST was Rs 81,939 crore and cess was Rs 10,649 crore. The government has settled Rs 33,423 crore to CGST and Rs 26,962 crore to SGST from IGST. The total revenue of Centre and the States in the month of April 2022 after regular settlement was Rs 66,582 crore for CGST and Rs 68,755 crore for the SGST.

During April 2022, 1.06 crore GST returns in GSTR-3B were filed, of which 97 lakh pertained to the month of March 2022, as compared to total 92 lakh returns filed during April 2021. Similarly, during April 2022, 1.05 crore statements of invoices issued in GSTR-1 were filed. Till end of the month, the filing percentage for GSTR-3B in April 2022 was 84.7% as compared to 78.3% in April 2021 and the filing percentage for GSTR-1 in April 2022 was 83.11% as compared to 73.9% in April 2021. "This shows clear improvement in the compliance behaviour, which has been a result of various measures taken by the tax administration to nudge taxpayers to file returns timely, to making compliance easier and smoother and strict enforcement action taken against errant taxpayers identified based on data analytics and artificial intelligence,� Ministry of Finance said in a statement.

Stocks in Spotlight:

IndusInd Bank jumped 3.66% after the bank reported 55.4% rise in standalone net profit to Rs 1,361.37 crore on an 6.1% increase in total income to Rs 9,761.89 crore in Q4 FY22 over Q4 FY21. The bank`s consolidated net profit for the quarter ended 31 March 2022 was Rs 1,401 crore as compared to Rs 926 core during corresponding quarter of previous year, up by 51% YoY.

Shilpa Medicare fell 0.85% after its Analytical Service Division received four observations from USFDA. The facility underwent a United States Food and Drug Administration (USFDA) inspection from 26 April 2022 to 29 April 2022. The inspection was launched after the company submitted four abbreviated new drug applications (ANDAs) seeking approval to use Nacharam site as alternate testing laboratory.

Astral lost 4.53% after the company announced that its board has the approval to acquire 51% controlling equity stake in operating paint business of Gem Paints for Rs 194 crore. As a part of the company`s strategy to expand its product line under building material segment, Astral shall initially invest Rs 194 crore in Gem Paints by subscribing to optionally convertible debentures equivalent to value of 51% equity stake of operating paint business of Gem Paints.

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