Broader markets underperform; European markets edge higher

The domestic equity barometers continued to trade in a sideways manner in afternoon trade. The Nifty traded below the 18,150 mark. European markets advanced while most Asian stocks traded in the green.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 33.54 points or 0.05% to 61,465.28. The Nifty 50 index lost 6.75 points or 0.04% to 18,123.25.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index lost 0.15% while the S&P BSE Small-Cap index fell 0.33%.

The market breadth was negative. On the BSE, 1,476 shares rose and 1,885 shares fell. A total of 137 shares were unchanged.

Politics:

The swearing-in ceremony of the new Karnataka chief minister Siddaramaiah and deputy chief minister DK Shivakumar will be held on May 20. In the May 10 elections to the 224-member Karnataka Assembly, the Congress scored an emphatic victory by bagging 135 seats while the ruling BJP and Janata Dal (Secular) secured 66 and 19 seats, respectively.

Stocks in Spotlight:

InterGlobe Aviation (IndiGo) fell 1.06%. IndiGo reported a consolidated net profit of Rs 919.20 crore in Q4 FY23 as against a net loss of Rs 1,681.79 crore in Q4 FY22. Revenue from operations surged 76.55% to Rs 14,160.60 crore in the quarter ended 31 March 2023 from Rs 8,020.74 crore recorded in Q4 FY22.

Tata Elxsi declined 2.28%. The company reported 25.9% rise in consolidated net profit to Rs 201.5 crore on 22.9% rise in revenue to Rs 837.9 crore in the quarter ended 31 March 2023 over the quarter ended 31 March 2022.

PNB Housing Finance slipped 2.82%. The housing finance company posted 64.7% surge in consolidated net profit to Rs 279.28 crore in Q4 FY23 as against Rs 169.54 crore in Q4 FY22. Total income rose 14.9% to Rs 1,637.72 crore in the fourth quarter from Rs 1,425.83 crore in the corresponding year last year.

e Gland Pharma was locked in a lower circuit of 20% after the company reported 72% drop in net profit to Rs 78.7 crore in Q4 FY23 from Rs 285.9 crore in Q4 FY22. Revenue from operations fell by 29% YoY to Rs 785 crore during the quarter. The decline in revenue was on account of a production line shut down in Q4FY23 in Pashamylaram Penems facility due to line upgradation and reduced business from domestic B2C division during the year as compared to previous year.

Global Markets:

European markets advanced across the board while their most Asian peers traded in the green on Friday as U.S. debt ceiling talks boost investor sentiment.

Traders will be keeping an eye on the Group of Seven summit in Hiroshima, which starts Friday, where world leaders are expected to discuss international trade and security. China and Russia relations and sanctions are on the agenda for discussions between Canada, France, Germany, Italy, Japan, the United Kingdom and United States.

Meanwhile, Japan`s core inflation nationwide rose 3.4% year-on-year in April. The reading ticked up higher from the previous month`s inflation rate of 3.1% and marked levels above the central bank`s target of 2%. Overall inflation also ticked up from 3.2% in March to 3.5% in April.

The United States and Taiwan reached an agreement on a number of trade items, marking a deal on the first part of the bilateral �21st Century Trade� initiative.

US trade representative Katherine Tai said of the agreement, �This accomplishment represents an important step forward in strengthening the U.S.-Taiwan economic relationship.�

US stocks closed higher for a second straight day on Thursday on mounting optimism that a US debt ceiling deal could be reached within days, with discount retailer Walmart Inc providing additional support after an upbeat annual sales forecast.

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