Market ends lower for third day; Nifty closes below 22,900

Domestic equity benchmarks dipped slightly for a third day straight, ending a choppy session with limited losses. The Nifty could not hold onto morning gains and closed below 22,900. Healthcare and pharma stocks were bright spots, while real estate, PSU banks, and energy stocks dragged. This mild pullback likely reflects some profit-taking after a recent strong run. Uncertainty ahead of elections is keeping volatility high, but positive earnings surprises so far this quarter are a tailwind for valuations.

The S&P BSE Sensex was down 220.05 points or 0.29% to 75,170.45. The Nifty 50 index lost 44.30 points or 0.19% to 22,888.15.

Bharti Airtel (down 0.95%), Reliance Industries (down 0.72%) and ITC (down 0.60%) were top drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap and Small-Cap indices fell 0.63% and 1.09%, respectively.

The market breadth was weak. On the BSE, 1,236 shares rose and 2,594 shares fell. A total of 104 shares were unchanged.

The NSE`s India VIX, a volatility gauge, rose 4.32% to 24.20.

Numbers to Track:

The yield on India`s 10-year benchmark federal rose 0.23% to 6.997 as compared with previous close 6.981.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 83.1900, compared with its close of 83.1350 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement shed 0.17% to Rs 71,890.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.16% to 104.43.

The United States 10-year bond yield declined 0.20% to 4.464.

In the commodities market, Brent crude for July 2024 settlement gained $1.21 or 1.47% to $83.33 a barrel.

Global Markets:

Most shares in Europe and Asia declined on Tuesday, as investors awaited global inflation data for clues over future monetary policy.

The US market was closed on Monday, 27th May, for Memorial Day.

Stocks in Spotlight:

3M India soared 10% after the company`s consolidated net profit rose 27.36% to Rs 172.85 crore while net sales rose 4.64% to Rs 1094.55 crore in Q4 March 2024 over Q4 March 2023. The firm has set 5 July 2024 as record date for payment of final dividend of Rs 160 per share and special dividend of Rs 525 per share of Rs 10 each for FY24.

Adani Enterprises declined 1.33%. The company said that its board has approved a proposal to raise funds by way of issuance of equity shares for an aggregate amount not exceeding Rs 16,600 crore by way of qualified institutional placement.

Adani Energy Solutions declined 1.38%. The company said that its board has approved raising of funds by way of issuance of equity shares for an aggregate amount not exceeding Rs 12,500 crore by way of Qualified Institutional Placement (QIP).

Vishnu Prakash R Punglia rallied 3.87% after the company�s standalone net profit jumped 67.82% to Rs 67.13 crore in Q4 FY24 as compared with Rs 40 crore posted in Q4 FY23. Revenue from operations increased 44.22% YoY to Rs 657.20 crore in the quarter ended 31 March 2024.

Sumitomo Chemical India gained 1.85% after the company`s consolidated net profit jumped 52.09% to Rs 109.70 crore on a 3.47% increase in revenue from operations to Rs 674.20 crore in Q4 FY24 as compared with Q4 FY23.

Life Insurance Corporation of India (LIC) slipped 1.39%. The insurance giant reported 2.49% jump in net profit to Rs 13,762.64 crore in Q4 FY24 as compared with Rs 13,427.81 crore posted in Q4 FY23. Total premium income surged 15.58% to Rs 1,52,293.13 crore in the fourth quarter of FY24 as compared with Rs 1,31,761.11 crore recorded in the fourth quarter of FY23.

Meanwhile, the company�s board has declared a final dividend of Rs 6 per equity share for FY24. The board has fixed 19 July 2024 as the record date.

Automotive Axles fell 2.89% after the company`s standalone net profit declined 13.22% to Rs 44.09 crore on 17.53% decrease in revenue from operations to Rs 571.52 crore in Q4 March 2024 over Q4 March 2023.

Meanwhile, the board declared a final dividend of Rs 32 for the financial year ended 2024.

NMDC declined 1.48% after the company�s consolidated net profit from continuing operations declined 37.82% to Rs 1,415.88 crore in Q4 FY24 as compared with Rs 2,277.13 crore recorded in same quarter last year. Total income stood at Rs 6,908.37 crore in the fourth quarter of FY24, registering a growth of 18.24% year on year (YoY).

Garware Technical Fibres soared 9.4% after the company`s consolidated net profit jumped 16.44% to Rs 69.47 crore on 3.18% increase in revenue from operations to Rs 382.27 crore in Q4 March 2024 over Q4 March 2023.

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