Indices traded in narrow range with losses

Barometers traded in a narrow range with modest losses in mid morning trade. The Nifty hovered at the 17,000 mark. Banks and auto shares bucked the broader selloff.

At 11:26 IST, the barometer index, S&P BSE Sensex declined 459.27 points or 0.8% at 56,737.13. The Nifty 50 index fell 171.3 points or 1% at 17,000.65.

The broader market traded with losses. The S&P BSE Mid-Cap index fell 1.48% while the S&P BSE Small-Cap index declined 1.26%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 993 shares rose while 2,323 shares fell. A total of 132 shares were unchanged.

In the commodities market, Brent crude for June 2022 settlement fell $3.41 or 3.2% to $103.24 a barrel. The contract fell $1.55 to settle at $106.65 a barrel during the previous trading session. The fall in crude oil prices was on the backdrop of demand worries due to China`s Covid resurgence. In order to curb the resurgence, Chinese government has confined people to their homes, imposed strict lockdowns and facilitated multiple rounds of mass testing.

Economy:

Indonesia announced its plans to ban export of palm oil from 28 April 2022. The county is the world`s top palm oil producer while India is the world`s largest importer of edible oils, and specifically the highest importer of palm oil and soyabean oil. The media reported that the ban on palm oil could trigger further inflation worries for India.

Buzzing Index:

The Nifty Realty index fell 3% to 434.5, slipping for second trading session. The realty index has lost 4.38% in two days.

Sunteck Realty (down 5.04%), Macrotech Developers (down 3.12%), Oberoi Realty (down 3.07%), Indiabulls Real Estate (down 2.99%) and Sobha (down 2.88%) were the top losers. Among the other losers were DLF (down 2.87%), Brigade Enterprises (down 2.81%), Godrej Properties (down 2.74%), Prestige Estates Projects (down 2.38%) and Phoenix Mills (down 2.08%).

Stocks in Spotlight:

Torrent Power said that it has entered into a share purchase agreement (SPA) with SkyPower Southeast Asia III Investments and SkyPower Southeast Asia Holdings 2 for the acquisition of 100% securities of Sunshakti Solar Power Projects. The enterprise value for this acquisition is approximately Rs 417 crore, subject to closing price adjustments, if any. Sunshakti Solar Power Projects (SPV) operates 50 MW solar power project in the State of Telangana. The SPV has a long-term power purchase agreement (PPA) for its project with the Northern Power Distribution Company of Telangana (NPDCTL) for a period of 25 years at a fixed tariff of approximately Rs 5.35 per kWh, with remaining useful life of approximately 20 years. It had recorded a turnover of Rs 50.09 crore in FY 2021.

Kohinoor Foods was locked in an upper circuit of 5% at Rs 13.2 on BSE. The company`s board will consider raising funds through rights issue of equity shares on 27 April 2022.

Global Markets:

Asian stocks were trading lower on Monday following a sell-off on Wall Street on Friday. Wall Street tumbled on Friday as surprise earnings news and increased certainty around aggressive near-term interest rate rises took its toll on investors.

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