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Indices slump in early trade on weak global stocks

Published on May 09, 2022 09:27

The domestic equity benchmarks traded with deep cuts in early trade amid sharp sell-off in index pivotals. Shares across sectors declined, with metals, IT, and banks falling the most. Shares of index heavyweight Reliance Industries (RIL) dropped in reaction to its Q4 results declared after market hours on Friday. Weakness in global stocks weighed on sentiment adversely.

At 09:24 IST, the barometer index, S&P BSE Sensex was down 796.63 points or 1.45% to 54,038.95. The Nifty 50 index lost 228.05 points or 1.39% to 16,183.20.

Tech Mahindra (down 4.71%), Tata Motors (down 2.68%), Hindalco (down 2.42%), Adani Ports (down 2.41%) and IndusInd Bank (down 2.39%) dragged the Nifty lower.

In the broader market, the S&P BSE Mid-Cap index fell 1.64% while the S&P BSE Small-Cap index declined 1.85%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 643 shares rose while 2032 shares fell. A total of 96 shares were unchanged.

Global markets:

Asian stocks are trading lower on Monday as US stock futures took an early skid on rate worries, while a tightening lockdown in Shanghai stoked concerns about global economic growth and possible recession. Markets in Hong Kong are closed today for a holiday.

US stock indexes extended losses for a second day on Friday as elevated US Treasury yields dragged growth shares after stronger-than-expected jobs data amplified investor fears of bigger interest rate hikes to tame surging prices.

The Labor Department`s report showed nonfarm payrolls increased by 428,000 jobs in April. Unemployment rate remained unchanged at 3.6% in the month.

Stocks in Spotlight:

Reliance Industries (RIL) fell 2.26% to Rs 2561.85. On a consolidated basis, RIL reported 20.2% increase in net profit to Rs 18,021 crore on 38.64% rise in net sales to Rs 207,375 crore in Q4 March 2022 over Q4 March 2021. Profit before tax (PBT) rose 36.8% to Rs 22,411 crore in Q4 March 2022 over Q4 March 2021.

Mindtree declined 3.68% to Rs 3250.60 while Larsen & Toubro Infotech (LTI) slipped 1.12% to Rs 4541.75. The boards of Mindtree and LTI at their respective meetings approved a composite scheme of amalgamation of both these independently listed IT services companies under the Larsen & Toubro Group. Upon the scheme becoming effective, all shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares of LTI for every 100 shares of Mindtree.

Tata Power Company slumped 7.04% to Rs 227.95. The company reported 28% rise in consolidated net profit to Rs 503.11 crore on a 15.4% increase in net sales to Rs 11,959.96 crore in Q4 FY22 over Q4 FY21.

CSB Bank tumbled 5.76% to Rs 214.50. The bank reported a net profit of Rs 130.67 crore in Q4 FY22 as against a net profit of Rs 42.89 crore in Q4 FY21. Net Interest Income (NII) during the quarter increased by 10.20% YoY to Rs 303.83 crore. Total income rose by 4% YoY to Rs 583.17 crore in Q4 FY22 over Q4 FY21.

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