Indices trade with minor gains; India VIX up over 8%

The key equity indices traded with minor gains, amid bouts of volatility, in early trade. The Nifty traded above the 16,250 mark. While FMCG, pharma and IT shares declined, metals, banks and auto stocks managed to trade in the green.

At 09:25 IST, the barometer index, the S&P BSE Sensex, was up 154.75 points or 0.29% to 54,443.36. The Nifty 50 index added 39.70 points or 0.24% to 16,254.40.

Mahindra & Mahindra (up 1.74%), IndusInd Bank (up 1.27%), Coal India (up 1.20%), ONGC (up 1.19%) and Adani Ports (up 1.15%) were the top Nifty gainers.

Meanwhile, Hindustan Unilever (down 2.47%), Divi`s Lab (down 2.16%) and Grasim (down 1.64%) lagged behind.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 8.54% to 25.40.

In the broader market, the S&P BSE Mid-Cap index rose 0.23% while the S&P BSE Small-Cap index gained 0.52%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,445 shares rose and 901 shares fell. A total of 94 shares were unchanged.

Stocks in Spotlight:

Maruti Suzuki India (MSIL) rose 0.30%. The company has agreed to acquire an equity stake of 12.09% in Sociograph Solutions Private Limited (SSPL) for about Rs 2 crore. SSPL is an artificial intelligence (AI) software company that specializes in a visual AI platform predominantly used to help enterprises improve sales experiences and improve efficiency in their business.

Marico advanced 0.52%. The company has made a strategic investment and acquired stake in HW Wellness Solutions Private Limited, a leading Digital first brand in the healthy breakfast and snack segment under the brand name `True Elements`. As part of the aforesaid transaction, the company has acquired 53.98% of the paid-up share capital of HW Wellness and it has accordingly become a subsidiary of the company.

Rupa & Company slumped 13.30%. The company`s board has accepted the resignation of Dinesh Kumar Lodha from the post of chief executive officer of the company, w.e.f. 31 May 2022. The board has also accepted the resignation of Ramesh Agarwal from the post of chief financial officer of the company, w.e.f 31 May 2022.

Ramco Cements slipped 1.24%. On a consolidated basis, Ramco Cements` net profit fell 45% to Rs 118.57 crore on 5% increase in total income to Rs 1,722.68 crore in Q4 FY22 over Q4 FY21.

Global markets:

Asian stocks traded lower on Tuesday, as investors weighed a possible thawing of U.S.-China trade relations as U.S. President Joe Biden floated the idea of tariff cuts on Chinese goods.

US stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally. Sentiment appeared to have gotten a boost after President Joe Biden said he was considering reducing tariffs on some products imported from China.

The United States announced on Monday the Indo-Pacific Economic Framework with Asian partners including Australia, Japan and the Republic of Korea. The group wants to set international rules on the digital economy, supply chains, decarbonization and regulations applying to workers.

U.S. President Joe Biden has said tackling inflation is a priority and this framework is designed to help lower costs by making supply chains more resilient in the longer term.

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