Benchmarks trade with strong gains; European markets advance

The domestic equity barometers traded with strong gains in afternoon trade. The Nifty marched towards the 17,150 mark. Oil & gas, auto, FMCG and IT shares advanced.

At 13:22 IST, the barometer index, S&P BSE Sensex rallied 615.4 points or 1.09% to 57,078.55. The Nifty 50 index rose 187.75 points or 1.11% to 17,146.40.

Ultratech Cement (up 3.35%), Reliance Industries (up 3.30%), BPCL (up 3.26%), Shree Cement (up 3.11%) and Asian Paints (up 2.94%) were the top Nifty gainers.

Bajaj Finance (down 2.40%), Apollo Hospitals Enterprise (down 0.86%), Tata Steel (down 0.84%), Larsen & Toubro (down 0.77%) and ONGC (down 0.71%) were the top Nifty laggards.

In the broader market, the S&P BSE Mid-Cap index gained 0.56% while the S&P BSE Small-Cap index added 0.63%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,829 shares rose while 1,471 shares fell. A total of 138 shares were unchanged.

Economy:

The International Monetary Fund (IMF) has cut its growth forecast for India for FY23 by 80 basis points to 8.2%, warning that Russia`s invasion of Ukraine would hurt consumption and hence, growth, by way of higher prices.

"Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand - as higher oil prices are expected to weigh on private consumption and investment - and a drag from lower net exports," the IMF said in its World Economic Report, released on 19 April 2022.

Earnings Impact:

ACC jumped 6.84% to Rs 2198.60. The cement maker`s consolidated net profit dropped 29.66% to Rs 396 crore on a 2.58% increase in net sales to Rs 4,322 crore in Q1 March 2022 over Q1 March 2021.

Larsen & Toubro Infotech (LTI) tumbled 6.04% to Rs 5155. The company reported 4.1% rise in consolidated net profit to Rs 637.50 crore on 4% increase in revenue to Rs 4301.60 crore in Q4 March 2022 over Q3 December 2021.

Tata Steel Long Products slumped 5.62% to Rs 754.55. The company reported 82.5% drop in net profit to Rs 59.62 crore in Q4 FY22 from Rs 339.85 crore in Q4 FY21. Net sales during the quarter increased by 16.3% YoY to Rs 1,799.40 crore.

Mastek shed 0.93% to Rs 2782.10. The company reported 5.7% rise in net profit to Rs 88.2 crore on a 5.4% increase in revenue from operations to Rs 581.5 crore in Q4 FY22 over Q3 FY22.

Global markets:

European stocks opened around the flatline, with some positive bias on Wednesday as investors monitor developments in Ukraine and assess the IMF`s latest global economic forecasts.

The Russia-Ukraine conflict has entered a second phase in which fierce fighting has begun in the east of the country.

Ukraine said on Monday that Russia`s offensive in the eastern Donbas region had begun, with a top official describing it as the �second phase� of the war. The eastern city of Kreminna fell to Russian forces on Tuesday, its regional governor said, marking the first city to be captured in this phase of the war.

On Tuesday, the IMF cut its global growth projections for 2022 and 2023, saying the economic impact from Russia`s invasion of Ukraine will �propagate far and wide.�

Meanwhile, Asian stocks traded mixed on Wednesday as China defied expectations by keeping its benchmark lending rate unchanged.

China on Wednesday kept its one-year loan prime rate unchanged at 3.7%, while also holding steady on the five-year LPR at 4.6%.

Investors have been watching for signs of policy support from Chinese authorities as the mainland continues to grapple with its worst Covid outbreak since the initial shock of the pandemic in 2020.

US stocks surged on Tuesday on the back of stronger-than-expected corporate earnings, but bleak forecasts on global economic growth pushed bond yields up and drove oil down.

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