Indices trade lower; Nifty below 16,550 mark

The key equity indices traded with minor cuts in early trade on Tuesday. Shares of auto, realty and oil & gas were in the green while IT, financial services and private banks corrected. Traders locked profits after shares rallied in the past three consecutive sessions. The Nifty 50 index climbed 3.97% in the past three days.

At 09:26 IST, the barometer index, S&P BSE Sensex was down 469.57 points or 0.84% to 55,456.17. The Nifty 50 index fell 125.75 points or 0.75% to 16,535.65.

The broader market outperform the benchmark indices. The S&P BSE Mid-Cap index rose 0.04% while the S&P BSE Small-Cap index added 0.13%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,338 shares rose while 1,168 shares fell. A total of 97 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 502.08 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,524.49 crore in the Indian equity market on 30 May 2022, provisional data showed.

Earnings Impact:

Life Insurance Corporation of India ("LIC") slipped 231%. For the year ended 31 March 2022, LIC registered an increase of 6.1% in the net premium income at Rs 4,27,419 crore as compared to Rs 4,02,844 crore in the year ended 31 March 2021. Profit after Tax (PAT) for the full year ended 31 March 2022 was Rs 4,043.12 crore as against Rs 2,900.57 crore for the year ended 31 March 2021, thereby registering an increase of 39.39%.

Indian Railway Catering and Tourism Corporation (IRCTC) fell 0.28%. The e-ticket booking platform for Indian Railways posted 105.97% surge in net profit to Rs 213.78 crore on 103.95% increase in net sales to Rs 690.96 crore in Q4 March 2022 over Q4 March 2021.

Sun Pharmaceutical Industries shed 2.75% after the drug maker reported a consolidated net loss of Rs 2,277.25 crore in Q4 FY22 as against a net profit of Rs 894.15 crore in Q4 FY21. Adjusted net profit for the quarter was at Rs 1582.10 crore, up by 18% YoY, after excluding the exceptional items of Rs 3935.70 crore and exceptional tax gain of Rs 76.40 crore. Further, Dilip Shanghvi has been re-appointed as the managing director for a further term of 5 years with effect from 1 April 2023 up to 31 March 2028.

Aurobindo Pharma rose 2.35%. The drug maker reported a 28% decline in its consolidated net profit at Rs 576.14 crore in Q4 March 2022. Net sales declined 3.28% YoY to Rs 5,795.34 crore during the quarter.

Global Markets:

The US Dow Jones index futures were up 13 points. The U.S. stock market was shut on Monday due to the Memorial Day holiday.

Most Asian shares advanced on Tuesday as investors reacted to the official Chinese factory activity data for May.

China`s official manufacturing Purchasing Managers` Index for May came in at 49.6, an improvement over April`s reading of 47.4, but still below the 50-point mark that separates growth from contraction.

Japan`s factories posted a sharp fall in output in April as China`s COVID-19 lockdowns and wider supply disruptions took a heavy toll on manufacturers. Factory output dropped 1.3% in April from the previous month, official data showed on Tuesday.

Separate data showed retail sales grew 2.9% in April from a year earlier, marking their sharpest gain since May 2021.

Oil prices rose after European Union leaders agreed on fresh sanctions against Russia for its invasion of Ukraine. The agreement would �effectively cut around 90% of oil imports from Russia to the EU by the end of the year,� European Commission President Ursula von der Leyen said in a tweet.

In the commodities market, Brent crude for July 2022 settlement was up $3.29 or 2.75% at $122.72 a barrel.

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