MARKET AT DAY`S LOW; NIFTY HOLDS 15,800 LEVEL

The domestic equities hit intraday low during mid-morning trade. The Nifty traded above the 15,800 level. The sectoral indices declined across the board on the NSE with PSU bank, consumer durables and metal scrips being the top laggards.

At 11:22 IST, the barometer index, S&P BSE Sensex was down 1,089.14 points or 2.01% to 52,999.25. The Nifty 50 index lost 338.65 points or 2.09% to 15,830.60.

In the broader market, the S&P BSE Mid-Cap index lost 2.30% while the S&P BSE Small-Cap index slipped 1.88%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 615 shares rose while 2,542 shares fell. A total of 92 shares were unchanged.

IPO Updates:

Prudent Corporate Advisory Services: The initial public offer (IPO) of Prudent Corporate Advisory Services received bids for 36,38,324 shares as against 60,18,689 shares on offer, according to stock exchange data at 11:06 IST on Thursday (12 May 2022). The issue was subscribed 60%.

The issue opened for bidding on Tuesday (10 May 2022) and it will close on Thursday (12 May 2022). The price band of the IPO is fixed at Rs 595-630 per share. The company will offer a discount of Rs 59 per share to eligible employees. The offer includes a reservation of shares worth upto Rs 6.50 crore for eligible employees. An investor can bid for a minimum of 23 equity shares and in multiples thereof.

Delhivery: The initial public offer (IPO) of Delhivery received bids for 1,37,71,800 shares as against 6,25,41,023 shares on offer, according to stock exchange data at 11:09 IST on Thursday (12 May 2022). The issue was subscribed 22%.

The issue opened for bidding on Wednesday (11 May 2022) and it will close on Friday (13 May 2022). The price band of the IPO is fixed at Rs 462-487 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.

Venus Pipes and Tubes: The initial public offer (IPO) of Venus Pipes and Tubes received bids for 1,06,82,856 shares as against 35,51,914 shares on offer, according to stock exchange data at 11:09 IST on Thursday (12 May 2022). The issue was subscribed 3.01 times.

The issue opened for bidding on Wednesday (11 May 2022) and it will close on Friday (13 May 2022). The price band of the IPO is fixed at Rs 310-326 per share. An investor can bid for a minimum of 46 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Metal index declined 3.08% to 5,460.75. The stock had risen 0.01% in the last trading session.

Among the components of the Nifty Metal index, Jindal Stainless (Hisar) (down 5.24%), Hindalco Industries (down 5.02%), Jindal Steel & Power (JSPL) (down 4.56%), Tata Steel (down 3.74%) and Steel Authority of India (SAIL) (down 2.98%) were the top losers.

Among the other losers were Vedanta (down 2.88%), JSW Steel (down 2.87%), Hindustan Copper (down 2.48%), NMDC (down 2.17%) and Adani Enterprises (down 2.01%).

On the other hand, Welspun Corp (up 1.84%) advanced.

Hindalco Industries lost 5.02%. Novelis reported 15% fall in adjusted EBITDA to $431 million in Q4 FY22 from $505 million in Q4 FY21. Net sales of Novelis increased 34% to $4,849 million for the fourth quarter of fiscal year 2022, compared to $3,631 million in the prior year period, primarily driven by higher average aluminum prices and local market premiums. Adjusted EBITDA of $431 million in the fourth quarter of the fiscal year 2022 included approximately $55 million of higher operational costs, primarily in North America, as a result of production and logistics challenges that are not expected to continue in fiscal 2023. The current year quarter also included a $15 million non-recurring regulatory provision. Other higher inflationary cost pressures were largely offset by favorable product pricing. For the fourth quarter, net income attributable to its common shareholder increased 22% versus the prior year to $215 million.

Stocks in Spotlight:

Petronet LNG fell 2.30%. The company reported 20.3% rise in standalone net profit to Rs 750.14 crore on a 47.3% increase in net sales to Rs 11,160.37 crore in Q4 FY22 over Q4 FY21. Profit before tax in Q4 FY22 stood at Rs 984.38 crore, up by 15% from Rs 856.12 crore in Q4 FY21. Petronet LNG said that during the quarter ended 31 March 2022 (current quarter), Dahej terminal processed 178 trillion British thermal units (TBTU) of LNG as against 196 TBTU processed during the previous quarter ended 31 December 2021 and 204 TBTU processed during the corresponding quarter ended 31 March 2021.

SKF India shed 0.31%. The company reported a 4.4% rise in consolidated net profit to Rs 109.48 crore in Q4 FY22 from Rs 104.83 crore posted in Q4 FY21. Net sales grew by 22.6% to Rs 1039crore in Q4 FY22 from Rs 847.53 crore registered in Q4 FY21. Profit before tax was up by 5.1% to Rs 145.68 crore in Q4 FY22 over Q4 FY21. Total expenditure spiked 25.8% year on year to Rs 879.57 crore in the quarter ended 31 March 2022. Cost of raw materials consumed surged 31.6% to Rs 265.47 crore in Q4 FY22 as against Rs 201.79 in Q4 Fy21.

KRBL jumped 7.58%. The company said that it received substantial relief against the impugned tax demand raised by the income tax department. The Income Tax Appellate Tribunal has granted relief for income tax demand of Rs 97.88 crore for the appeals filed by the company. It also dismissed all the appeals for income tax demand of Rs 1170.36 crore filed by the income tax department (ITD) for the subject years. As result, the tax demand is reduced to approximately Rs 0.96 crore.

Global Markets:

Asian stocks declined across the board on Thursday as investors kept an eye on high inflation and tightening monetary policies. Adding to the uncertainty for investors are the war in Ukraine and COVID-19 lockdowns in China that threaten to hurt the global economy.

US stocks dropped overnight following the release of the U.S. consumer inflation data. The tech-heavy Nasdaq Composite tanked 3.18% while the broader S&P 500 shed 1.65%. The Dow Jones Industrial Average declined 1.02%.

The U.S. consumer-price index increased 8.3% in April from the same month a year ago, data released Wednesday showed, decelerating from an 8.5% annual rate in March.

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