Benchmarks turn rangebound; Asian markets mostly decline

The domestic equity barometers traded in a narrow range, near the day`s low in afternoon trade. Lower-than-expected Q4 results from Infosys and HDFC Bank, firm crude oil prices and a steep rise in new Covid cases in the country dampened investors sentiment.

At 13:22 IST, the barometer index, S&P BSE Sensex was down 1364.69 points or 2.34% to 56,974.24. The Nifty 50 index tumbled 360.25 points or 2.06% to 17,115.40 .

Infosys (down 7.29%), Tech Mahindra (down 5.07%), HDFC (down 4.57%), HDFC Bank (down 4.40%) and Apollo Hospitals Enterprise (down 4.30%) were the top Nifty losers.

Meanwhile, NTPC (up 4.68%), SBI Life (up 1.93%), Nestle India (up 1.12%), Tata Steel (up 1.02%) and Hindustan Unilever (up 1.01%) managed to outperform.

In broader market, the S&P BSE Mid-Cap index declined 1.65% while the S&P BSE Small-Cap index fell 1.34%.

The market breadth, indicating the overall health of the market, remained weak. On the BSE, 1,226 shares rose while 2,242 shares fell. A total of 131 shares were unchanged.

Economy:

India`s inflation based on wholesale price index (WPI) stood at 14.55% in March 2022 compared with 7.89% in March 2021.

"The high rate of inflation in March, 2022 is primarily due to rise in prices of crude petroleum & natural gas, mineral oils, basic metals, etc owing to disruption in global supply chain caused by Russia-Ukraine conflict," the Ministry of Commerce & Industry said in a statement today.

WPI grew 13.11% in February 2021, while the figure for January was 13.68%.

Meanwhile, the poverty in India is 12.3% lower in 2019 compared with 2011. The poverty headcount rate has declined from 22.5% in 2011 to 10.2% in 2019. According to policy research working paper of World Bank, poverty reduction was higher in rural areas as against urban India. Rural poverty dropped by 14.7% while urban poverty declined by 7.9% during 2011 to 2019.

Stocks in Spotlight:

Tata Power Company tumbled 5.38% to Rs 258.35. The company and BlackRock Real Assets-led consortium, including Mubadala Investment Company, have entered into a binding agreement to invest in Tata Power Renewable Energy, Tata Power`s renewable energy subsidiary.

BlackRock Real Assets, together with Mubadala, shall invest Rs 4,000 crore (approximately $525 million) by way of equity / compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore. The final shareholding will range from 9.76% to 11.43% on final conversion.

Man Infraconsruction slipped 1.26% to Rs 117.45. The company has received a letter of acceptance (LoA) from Bharat Mumbai Container Terminal for execution of Phase-II works at JNPT, Navi Mumbai, Maharashtra being "Reclamation- Construction Works" for Rs 402 crore.

Windlas Biotech zoomed 14.18% to Rs 269.75. The company said that the European Union`s inspection at its Plant-IV in Dehradun has been concluded with zero critical observations.

Salzer Electronics advanced 2.13% to Rs 196.50 after the company announced the receipt of a patent for its integral cam operated rotary switches. The company has received the patent for this invention from the Patent Office, Government of India, for a duration of 20 years, ending 2031.

Global Markets:

Most Asian stocks declined on Monday, with investors reacting to the release of Chinese economic data, including first-quarter gross domestic product figures. Markets in Australia and Hong Kong are closed on Monday for a holiday.

China has reported gross domestic product of 4.8% in the first quarter of 2022, as against 4% in the fourth quarter. Retail sales in March, however, fell by a more-than-anticipated 3.5% as compared with a year earlier.

The data come as mainland China has for weeks been battling its worst Covid wave in two years. In particular, the major city of Shanghai has been among the areas most affected.

Last week, the Chinese central bank also unexpectedly held steady on a key interest rate, despite anticipation for more stimulus.

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