Indices drift higher in early trade on positive global cues

Benchmark indices opened higher amid positive global cues and traded with gains in early trade. Barring Nifty FMCG Index, all other sectoral indices on the NSE opened in green. The Nifty rose above the 17,300 level.

At 9:28 IST, the barometer index, S&P BSE Sensex gained 318.02 points or 0.55% at 57,839.84. The Nifty 50 index rallied 83.8 points or 0.49% at 17,328.65.

In the broader market, the S&P BSE Mid-Cap index rose 0.54% while the S&P BSE Small-Cap index added 0.47%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,828 shares rose while 778 shares fell. A total of 77 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 743.22 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 780.94 crore in the Indian equity market on 28 April, provisional data showed.

Earnings Impact:

Axis Bank fell 3.09%. The private sector bank`s net profit rose 54% to Rs 4,117.77 crore on 16% increase in total income to Rs 21,999.58 crore in Q4 March 2022 over Q4 March 2021. The bank`s provisions and contingencies (excluding tax provisions) declined by 54% YoY to Rs 987.23 crore in Q4 March 2022 over Q4 March 2021. The bank`s gross non-performing assets (NPAs) stood at Rs 21,822.32 crore as on 31 March 2021 as against Rs 23,301.19 crore as on 31 December 2021 and Rs 25,314.84 crore as on 31 March 2020. The ratio of gross NPAs to gross advances stood at 2.82% as on 31 March 2021 as against 3.17% as on 31 December 2021 and 3.70% as on 31 March 2020. The ratio of net NPAs to net advances stood at 0.73% as on 31 March 2021 as against 0.91% as on 31 December 2021 and 1.05% as on 31 March 2020.

Vedanta fell 0.98%. The mining company reported a 10% drop in consolidated net profit to Rs 5,799 crore on a 41% increase in revenue from operations to Rs 39,342 crore in Q4 FY22 over Q4 FY21. The improved revenue was due to higher sale volumes and improved commodity prices. EBITDA improved by 51% to Rs 13,768 crore in Q4 FY22 from Rs 9,107 crore in Q4 FY21, mainly due to higher sales volume, supportive commodity prices and operational efficiencies despite higher cost of production amidst input commodity inflation. EBITDA margin in Q4 FY22 was 39% as against 38% in Q4 FY21.

Global Markets:

Asian stocks were trading higher on Friday following big gains overnight on Wall Street. Markets in Japan are closed on Friday for a holiday.

Wall Street ended sharply higher on Thursday after a strong quarterly report from Meta Platforms lifted beaten down technology and growth stocks and offset worries about the US economy`s contraction in the first quarter. The Facebook parent surged 17.6% after the social network reported a larger-than-expected profit and rebounded from a drop in users.

US economic growth fell 1.4% annualised in the first quarter of 2022, government data said Thursday. The data was far worse than the mild increase analysts had expected, and came after the economy had grown 6.9% in the final quarter of 2021.

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