Market hovers near intraday low; Nifty holds 17,200 level

The benchmark indices tumbled back to trade near its day`s low during mid-afternoon trade. Bank, metal and pharma stocks pulled the market lower. The Nifty index managed to hover above 17,200 mark. Sentiment was dented after Federal Reserve Chair Jerome Powell hinted a two or more half percentage-point interest-rate increases in the upcoming policy meeting.

At 14:30 IST, the barometer index, S&P BSE Sensex declined 554.80 points or 0.96% at 57,356.88. The Nifty 50 index shed 177.05 points or 1.02% at 17,215.55.

The S&P BSE Mid-Cap index slipped 0.49%. The S&P BSE Small-Cap index fell 0.18%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,517 shares rose while 1,847 shares fell. A total of 123 shares were unchanged.

COVID-19 Update:

India recorded 2,451 new COVID-19 cases and 54 deaths on Friday, according to the Union Ministry of Health and Family Welfare. The active cases increased to 14,241 while the recovery rate remained unchanged at 98.75%.

Results Today:

Aditya Birla Money (up 0.93%), Hindustan Zinc (up 0.44%), Tata Metaliks (up 1%), Tejas Networks (up 2.56%) and Wendt (India) (down 0.16%) will release quarterly earnings on 22 April 2022. Meanwhile, ICICI Bank (down 2.08%) will announce its quarterly earnings on 23 April 2022.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 7.180% as compared with 7.144% at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 76.47, compared with its close of 76.17 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.19% to Rs 52,510.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.40% to 100.98.

In the commodities market, Brent crude for June 2022 settlement fell 62 cents at $107.71 a barrel. Meanwhile, oil prices rose on Thursday, buffeted by concerns about tightened supply as the European Union (EU) mulls a potential ban on Russian oil imports that would further restrict worldwide oil trade.

Crypto Market:

Among the popular crypto currencies, Tether (USDT) (up 0.46%) advanced.

However, Ethereum (ETH) (down 2.53%), Bitcoin (BTC) (down 2.32%), Binance Coin (BNB) (down 2.24%) and Doge Coin (Doge) (down 2.03%) declined.

Buzzing Index:

The Nifty Pharma index fell 1.90% to 13,559.35. The index rose 2.21% in the past two trading sessions.

Among the components of the Nifty Pharma index, Lupin (down 4.09%), Torrent Pharmaceuticals (down 3.51%), Cipla (down 3.38%), Dr Reddys Laboratories (down 3.25%) and Gland Pharma (down 2.94%) were the top losers.

Among the other losers were Sun Pharmaceuticals Industries (down 2.34%), Pfizer (down 2.33%), Zydus Lifesciences (down 2.25%), Glenmark Pharmaceuticals (down 1.76%) and Strides Pharma Science (down 1.59%).

On the other hand, Natco Pharma (up 1.1%), Biocon (up 0.68%) and Granules India (up 0.5%) turned up.

Earnings in Spotlight:

Zen Technologies gained 1.36%. The company signed an annual maintenance contract worth Rs 55 crore for simulators for a period of five years from the date of signing of the contract (i.e. 22 April 2022). As of date, Zen Technologies` total order book stood at Rs 477.04 crore, including Rs 304.78 crore from domestic and Rs 172.26 crore from exports.

TVS Motor Company lost 0.87%. The company, a manufacturer of two-wheelers and three-wheelers, announced an additional investment of �100 million in Norton Motorcycles, a British sporting motorcycle brand, which was acquired in April 2020. Norton recently opened its new manufacturing facility in Solihull, West Midlands, building British bikes in England using traditional hand-crafted techniques with modern-day machinery. This new facility is supported by the West Midlands Growth partnership with the UK Government.

Global Markets:

European markets skid across the board while markets in Asia mostly edged lower on Friday after Federal Reserve Chair Jerome Powell said a half-percentage point rate hike is �on the table� for next month.

Earlier on Thursday, Federal Reserve Chair Jerome Powell commented on the possibility of a larger-than-usual rate hike next month, spooking markets. Speaking during an International Monetary Fund panel, Powell reportedly said that taming inflation is "absolutely essential.�

"I would say 50 basis points will be on the table for the May meeting,� he reportedly added.

French voters are heading to the polls Sunday. The second � and final � round of the election puts incumbent Emmanuel Macron up against anti-immigrant party leader Marine Le Pen.

China`s central bank will maintain prudent monetary policy and increase support for the economy, Governor Yi Gang has reportedly said on Friday as part of the annual Boao Forum for Asia. Yi reportedly said the priority for China`s monetary policy is ensuring stable prices, especially in food and energy.

Yi`s comments come as investors have been watching for signs of policy support from Chinese authorities. China`s markets have struggled for gains most of this week as investors worry about a range of concerns from the country`s economic outlook to an ongoing Covid outbreak on the mainland.

Wall Street reversed course and posted losses on Thursday while oil gained as Federal Reserve Chairman Jerome Powell suggested the US central bank would move aggressively to curb inflation.

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