Indices pare early gains; breadth remains strong

Benchmark indices trimmed early gain but still traded higher in morning trade with the Nifty above 15,950 level. Media, autos and IT stocks were in demand.

At 10:27 IST, the barometer index, S&P BSE Sensex was up 441.71 points or 0.83% to 53,372.02. The Nifty 50 index rose 142.65 points or 0.90% to 15,950.65.

The broader market outperformed the main stock indices. The S&P BSE Mid-Cap index gained 1.92% while the S&P BSE Small-Cap index added 1.69%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,316 shares rose while 714 shares fell. A total of 106 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,255.75 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,815.64 crore in the Indian equity market on 12 May 2022, provisional data showed.

Economy:

India`s retail inflation, which is measured by the Consumer Price Index (CPI), rose to 7.79% in the month of April 2022. The retail inflation for the month of March was 6.95%. This is the fourth consecutive month that the CPI data has breached the Reserve Bank of India`s (RBI) upper margin of 6%. RBI aims to achieve the medium-term target for CPI inflation of 4% within a band of +/- 2%, while supporting growth.

India`s factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 1.9% in March 2022. Industrial production grew 1.7% in February 2022. The IIP soared 24.2% in March 2021, the data showed. The manufacturing sector`s output grew 0.9% in March 2022. Mining output rose 4% and power generation increased 6.1%.

Results Today:

State Bank of India (SBI) (up 1.07%), Tech Mahindra (up 0.78%), Eicher Motors (up 1.37%), Hindustan Aeronautics (up 1.92%), Bank of Baroda (up 2.13%), Bandhan Bank (up 4.50%), Balkrishna Industries (down 0.49%), Alkem Laboratories (up 1.83%), Linde India (up 1.45%), REC (up 0.39%), APL Apollo Tubes (up 4.50%), Nazara Technologies (up 11.69%) and Emami (down 2.14%) will announce their earnings today.

Prudent Corporate Advisory Services IPO:

The initial public offer (IPO) of Prudent Corporate Advisory Services received bids for 73,30,928 shares as against 60,18,689 shares on offer. The issue was subscribed 1.22 times.

The retail investors category was subscribed 1.29 times. The qualified institutional buyers (QIBs) category was subscribed 1.26 times. The employees category was subscribed 1.23 times. The non institutional investors category was subscribed 0.99%.

The issue opened for bidding on Tuesday (10 May 2022) and it closed on Thursday (12 May 2022). The price band of the IPO was fixed at Rs 595-630 per share. The company will offer a discount of Rs 59 per share to eligible employees. The offer includes a reservation of shares worth upto Rs 6.50 crore for eligible employees.

Buzzing Index:

The Nifty Media index rose 2.49 % to 1,972.45. The index saw bargain hunting after declining 4.53% in last seven trading sessions.

Among the components of the Nifty Media index, Nazara Technologies (up 11.69%), Dish TV India (up 4.28%), Zee Entertainment Enterprises (up 3.79%), Network 18 Media & Investments (up 3.64%), Hathway Cable & Datacom (up 2.67%), Saregama India (up 2.55%), Sun TV Network (up 1.41%), PVR (up 0.93%), Inox Leisure (up 0.92%) and TV18 Broadcast (up 0.72%) advanced.

Earnings Impact:

Siemens fell 0.73%. The company reported a standalone net profit of Rs 328.90 crore in Q2 FY 2022, which is marginally higher as compared with a net profit of Rs 328.30 crore recorded in Q2 FY 2021. Net sales during the quarter increased by 8.2% YoY to Rs 3,568.10 crore. The company recorded a pre-tax profit of Rs 444.80 crore in Q2 FY 2022 as against a pre-tax profit of Rs 445.10 crore in Q2 FY 2021.

Apollo Tyres declined 0.28%. On a consolidated basis, the tyre maker`s net profit dropped 60.5% to Rs 113.45 crore in Q4 FY22 as against Rs 287.27 crore in Q4 FY21. Net sales grew 11% to Rs 5,578.32 crore in Q4 FY22 from Rs 5,025.70 crore posted in Q4 FY21. Profit before tax declined 62.17% to Rs 160.19 crore in Q4 FY22 as against Rs 423.40 crore recorded in the same quarter last year. Total expense rose 17.6% year on year to Rs 4,952.02 in the quarter ended 31 March 2022. Cost of raw materials stood at Rs 3,110.72, rising by 29.5% year on year during the period under review.

Honeywell Automation India tumbled 5.15%. The company reported 30.1% fall in net profit to Rs 72.67 crore in Q4 FY22 from Rs 104.02 crore in Q4 FY21. Net sales during the quarter declined by 0.7% YoY to Rs 667.98 crore. Profit before tax in Q4 FY22 stood at Rs 98.61 crore, down by 28.7% from Rs 138.26 crore in Q4 FY21. Current tax outgo during the period under review fell by 47.1% YoY to Rs 17.64 crore.

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