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Indices tumble in early trade on weak global stocks; breadth weak

Published on May 06, 2022 09:26

The key equity barometers tumbled in early trade amid across the board selling in index pivotals. The Nifty was trading tad above 16,400 mark. All the sectoral indices on the NSE traded with steep cuts. Weak global cues played the spoilsport.

At 09:25 IST, the barometer index, S&P BSE Sensex was down 902.79 points or 1.62% to 54,799.44. The Nifty 50 index lost 272.90 points or 1.64% to 16,409.75.

Tata Motors (down 3.69%), HCL Tech (down 3.64%), Bajaj Finance (down 2.84%), JSW Steel (down 2.79%) and Maruti Suzuki (down 2.76%) dragged the Nifty lower.

In the broader market, the S&P BSE Mid-Cap index fell 2.22% while the S&P BSE Small-Cap index declined 2.43%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 375 shares rose while 2286 shares fell. A total of 72 shares were unchanged.

Global markets:

Asian stocks are trading lower on Friday after an overnight drop on Wall Street sent the Dow Jones Industrial Average to its worst day since 2020. Technology stocks in the region sold off, following the tech-heavy Nasdaq Composite`s nearly 5% drop overnight stateside.

US stocks dropped sharply on Thursday amid a broad sell-off, as investor sentiment cratered in the face of concerns that the Federal Reserve`s interest rate hike the previous day would not be enough to tame surging inflation.

The focus now shifts to the U.S. Labor Department`s closely watched monthly employment report on Friday for clues on labor market strength and its impact on monetary policy.

In Europe, the Bank of England on Thursday raised interest rates to their highest level since the financial crisis and warned the economy is on course to shrink under pressure from double-digit inflation. The increase to 1% from 0.75% was backed by six of the bank`s nine policy makers, with three voting for a 50-basis-point move.

Stocks in Spotlight:

Marico fell 2.98% to Rs 504.95. The company reported 8% rise in consolidated net profit (excluding one-offs) to Rs 256 crore on 7% rise in revenue to Rs 2161 crore in Q4 FY22 over Q4 FY21.

Wipro slipped 2.64% to Rs 487.80. The IT major and HFCL have entered into a partnership to engineer a variety of 5G transport products that include Cell Site Router, DU (Distributed Unit) Aggregation Router, and CU (Centralized Unit) Aggregation Router.

TVS Motor Company shed 0.63% to Rs 626.25. The company reported consolidated net profit of Rs 275 crore in Q4 FY22 from Rs 289 crore in Q4 FY21. Revenue rose 4% to Rs 5530 crore from Rs 5322 crore.

Indus Towers declined 3.64% to Rs 194.80. The company reported 34% rise in consolidated net profit to Rs 1829 crore on 10% rise in revenue to Rs 7116 crore in Q4 FY22 over Q4 FY21.

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