Market extends losses; Nifty below 17,050 level

The benchmark indices extended losses, trading with modest cuts during afternoon trade. Private banks, FMCG and Realty shares were supported the market while Auto, IT and Consumer Durables corrected. The Nifty traded below 17,050 mark.

At 13:30 IST, the barometer index, S&P BSE Sensex declined 219.19 points or 0.38% to 56,841.68. The Nifty 50 index was down 77.90 points or 0.46% to 17,024.65.

In broader market, the S&P BSE Mid-Cap index slipped 0.61% while the S&P BSE Small-Cap index slided 0.91%.

The market breadth was weak. On the BSE, 1,115 shares rose while 2,252 shares fell. A total of 187 shares were unchanged.

Economy:

For the first time gross GST collection has crossed Rs 1.5 lakh crore mark. The gross GST revenue collected in the month of April, 2022 was Rs 1,67,540 crore, which is higher by 18% as compared to Rs 1,42,095 crore recorded in March 2022. The revenues for the month of April 2022 are 20% higher than the GST revenues in the same month last year, Finance Ministry said. Of the total GST collected, CGST was Rs 33,159 crore, SGST was Rs 41,793 crore, IGST was Rs 81,939 crore and cess was Rs 10,649 crore. The government has settled Rs 33,423 crore to CGST and Rs 26,962 crore to SGST from IGST. The total revenue of Centre and the States in the month of April 2022 after regular settlement was Rs 66,582 crore for CGST and Rs 68,755 crore for the SGST.

During April 2022, 1.06 crore GST returns in GSTR-3B were filed, of which 97 lakh pertained to the month of March 2022, as compared to total 92 lakh returns filed during April 2021. Similarly, during April 2022, 1.05 crore statements of invoices issued in GSTR-1 were filed. Till end of the month, the filing percentage for GSTR-3B in April 2022 was 84.7% as compared to 78.3% in April 2021 and the filing percentage for GSTR-1 in April 2022 was 83.11% as compared to 73.9% in April 2021. "This shows clear improvement in the compliance behaviour, which has been a result of various measures taken by the tax administration to nudge taxpayers to file returns timely, to making compliance easier and smoother and strict enforcement action taken against errant taxpayers identified based on data analytics and artificial intelligence,� Ministry of Finance said in a statement.

Gainers & Losers:

Indusind Bank (up 3.87%), Coal India (up 1.91), ITC (up 1.25%), UPL (up 0.97) and Housing Development Finance Corp. (HDFC) (up 0.87%) were major Nifty gainer.

SBI Life Insurance Company (down 3.65%), Eicher Motors (down 3.43%), Apollo Hospitals Enterprise (down 3.34%), Bajaj Auto (down 2.95%) and Wipro (down 2.91%) were majority Nifty losers.

Stocks in Spotlight:

Wipro lost 2.95% to Rs 494. The IT major reported 4% rise in consolidated net profit to Rs 3,087.3 crore on a 3% increase in revenue to Rs 20,860 crore in Q4 FY22 over Q3 FY22. As compared with Q4 FY21, the company`s net profit and revenue are higher by 4% and 28%, respectively. In dollar terms, Wipro`s gross revenue was $2.7 billion in the fourth quarter of financial year ended 2022. IT Services segment revenue was at $2,721.7 million, an increase of 3.1% QoQ and 26.4% YoY. IT Services operating margin for the quarter was at 17%, a decrease of 60 bps QoQ.

Non-GAAP constant currency IT Services segment revenue increased by 3.1% QoQ and 28.5% YoY. Wipro said that it expects the revenue from IT Services business to be in the range of $2,748 million to $2,803million. This translates to a sequential growth of 1% to 3%. The company recorded 13% rise in net profit to Rs 12,229.6 crore on a 28% increase in revenue to Rs 79,093.4 crore in FY22 over FY21. Total Headcount as on 31 March 2022 was 243,128. TTM attrition rate was 23.8%. The company closed 37 large deals resulting in a TCV of over $2.3 billion in FY22.

Housing Development Finance Corporation (HDFC) gained 0.98% to Rs 2,250. HDFC announced an increase in its retail prime lending rate (RPLR) on housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 5 basis points, with effect from 1 May 2022.

IndusInd Bank jumped 3.90% to Rs 1016.35. The private sector bank`s standalone net profit surged 55.4% to Rs 1,361.37 crore on an 6.1% increase in total income to Rs 9,761.89 crore in Q4 FY22 over Q4 FY21.

Coal India rose 1.91%. Coal India reported 27.6% rise in coal production to 53.5 million tons in April 2022 from 41.9 million tons in April 2021. Coal offtake during the month was 57.5 million tons, which is higher by 6% as compared with 54.2 million tons recorded in the same period last year.

Global Markets:

Most European markets declined with investors monitoring monetary policy, inflation data, and sharp moves on Wall Street.

Meanwhile, global investors continue to monitor the war in Ukraine and its geopolitical implications. EU leaders are set to work on a Russian oil embargo this week. Over the weekend, the United Nations and the International Committee of the Red Cross began evacuating civilians from the besieged southern port city of Mariupol. That operation is set to continue on Monday.

Asian markets closed mixed on Monday, with data released over the weekend showing Chinese factory activity contracted in April. Markets in Hong Kong, mainland China, Singapore and Taiwan are closed on Monday for a holiday.

China`s factory activity contracted at a steeper pace in April as Covid lockdowns hit industrial production. The official manufacturing Purchasing Managers` Index for April declined to 47.4, a second straight month of contraction following with March`s reading of 49.5, data from the National Bureau of Statistics showed Saturday.

A private survey also showed contraction in Chinese factory activity, with the Caixin/Markit manufacturing PMI coming in at 46, declining from the previous month`s reading of 48.1.

Wall Street slid on Friday to its deepest daily losses since 2020, as Amazon slumped following a gloomy quarterly report, and as the biggest surge in monthly inflation since 2005 spooked investors already worried about rising interest rates.

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