Market snaps 5-day losing trend; Nifty above 17,100; RIL jumps over 3%

The benchmark indices settled with major gains on Wednesday, snapping a five-day losing streak. Auto, oil & gas and IT stocks boosted the main indices while PSU banks and metal stocks declined. The Nifty settled above 17,100 mark, rising from the day`s low of 16,978.95 in the morning trade.

The barometer index, S&P BSE Sensex rallied 574.35 points or 1.02% at 57,037.50. The Nifty 50 index rose 177.90 points or 1.05% at 17,136.55. The 50-unit index fell 4.64% in the past five sessions.

Reliance Industries (up 3.03%), TCS (up 2.35%) and Infosys (up 1.53%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index gained 0.45% while the S&P BSE Small-Cap index added 0.36%.

The market breadth was positive. On the BSE, 1,738 shares rose while 1,662 shares fell. A total of 110 shares were unchanged.

COVID-19 Update:

India reported 2,067 new cases of COVID-19 and 40 related deaths in the last 24 hours, the Union Ministry of Health and Family Welfare said on Wednesday. There were 1,247 cases and 1 death on Tuesday, according to the health ministry. The ministry`s data also showed that 480 active cases were recorded in the same period, taking the total active case count to 12,340.

Economy:

The International Monetary Fund (IMF) has cut its growth forecast for India for FY23 by 80 basis points to 8.2%, warning that Russia`s invasion of Ukraine would hurt consumption and hence, growth, by way of higher prices.

"Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand - as higher oil prices are expected to weigh on private consumption and investment - and a drag from lower net exports," the IMF said in its World Economic Report, released on 19 April 2022.

Numbers to Watch:

The yield on the 10-year benchmark federal paper fell to 7.105% from its previous close of 7.151%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.21, compared with its close of 76.50 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement lost 0.37% to Rs 52,554.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.67% to 100.285.

In the commodities market, Brent crude for June 2022 settlement rose 91 cents or 0.85% at $108.20 a barrel.

Global Markets:

European markets were trading higher on Wednesday, as investors monitored development in Ukraine and assess the IMF`s latest global economic forecasts.

The Russia-Ukraine conflict has entered a second phase in which fierce fighting has begun in the east of the country. Ukraine said on Monday that Russia`s offensive in the eastern Donbas region had begun, with a top official describing it as the �second phase� of the war. The eastern city of Kreminna fell to Russian forces on Tuesday, its regional governor said, marking the first city to be captured in this phase of the war.

On Tuesday, the IMF cut its global growth projections for 2022 and 2023, saying the economic impact from Russia`s invasion of Ukraine will "propagate far and wide."

Asian stocks closed on a mixed note on Wednesday as China defied expectations by keeping its benchmark lending rate unchanged. China on Wednesday kept its one-year loan prime rate unchanged at 3.7%, while also holding steady on the five-year LPR at 4.6%.

Buzzing Segment:

The Nifty Auto index rose 2.2% to 10848.70. The index fell 1.22% in the previous session.

Tata Motors (up 3.75%), Eicher Motors (up 3.63%), Maruti Suzuki India (up 3.51%) and Tube Investments of India (up 3.14%) rallied.

Sona BLW Precision Forgings ("Sona Comstar") jumped 4.45%. The company has formed a strategic partnership with Canada-based Enedym Inc. It will make Enedym`s switched reluctance motor (SRM) drive motors, controllers, and drive trains for the target applications exclusively in India with serial production expected to start in 2023.

Stocks in Spotlight:

ACC rallied 7.26%. The firm`s consolidated net profit dropped 29.66% to Rs 396 crore on a 2.58% increase in net sales to Rs 4,322 crore in Q1 March 2022 over Q1 March 2021. On a consolidated basis, profit before tax (PBT) skid 29.44% to Rs 532 crore in Q1 March 2022 from Rs 754 crore in Q1 March 2021. The company`s efficiency project `Parvat` helped it to deliver 1% lower per ton freight & forwarding cost despite fuel inflation and its cost control measures enabled reduction in fixed cost as compared to previous year.

Larsen & Toubro Infotech (LTI) dropped 5.78%. The technology consulting and digital solutions company reported 4.1% rise in consolidated net profit to Rs 637.50 crore on 4% increase in revenue to Rs 4301.60 crore in Q4 March 2022 over Q3 December 2021. As compared to Q4 March 2021, the company`s consolidated net profit and revenue increased by 16.8% and 31.6%, respectively.

Tata Steel Long Products tumbled 6.65%. The company reported 82.5% drop in net profit to Rs 59.62 crore in Q4 FY22 from Rs 339.85 crore in Q4 FY21. Net sales during the quarter increased by 16.3% YoY to Rs 1,799.40 crore. Total expenditure increased by 55.9% to Rs 1,635.06 crore in Q4 FY22 over Q4 FY21, due to higher raw material costs (up 68.5% YoY) and higher other expenses (up 28.6% YoY). Profit before tax in Q4 FY22 stood at Rs 85.43 crore, down by 77.7% from Rs 383.17 crore in Q4 FY21. The company wrote back taxes aggregating to Rs 6.42 crore during the period under review.

Mastek slipped 0.51%. The company reported 5.7% rise in net profit to Rs 88.2 crore on a 5.4% increase in revenue from operations to Rs 581.5 crore in Q4 FY22 over Q3 FY22. Total EBITDA improved by 13.7% to Rs 138.6 crore in Q4 FY22 from Rs 122 crore in Q3 FY22. Total EBITDA margin in the fourth quarter was 23.1% as compared with 21.9% recorded in the same period last year. In dollar terms, the company`s revenue was $77.2 million (CC growth of 5.3% QoQ). The company added 49 new clients in Q4FY22. Total active clients during Q4FY22 was 450 as compared to 421 in Q3FY22.

Alembic Pharmaceuticals rose 1.26%. The drug maker received tentative approval from the US Food & Drug Administration (USFDA) for ivabradine tablets. Ivabradine tablets are indicated to reduce the risk of worsening heart failure in adult patients with stable, symptomatic chronic heart failure with left ventricular ejection fraction.

HDFC fell 0.76%. The housing financer said it will sell 10% stake in HDFC Capital Advisors (HCAL) to an affiliate of the Abu Dhabi Investment Authority (ADIA) for around Rs 184 crore. Housing Development Finance Corporation (HDFC) will sell 2,35,019 equity shares, or 10% equity, or HCAL at Rs 7,841.49 per equity share. India`s largest private mortgage lender will continue to hold the balance 90% stake in HCAL post the stake sale that values the private equity real estate firm at over Rs 1,840 crore. The sovereign wealth fund owned by the Emirate of Abu Dhabi is also the primary investor in the alternative investment funds managed by HCAL.

PI Industries lost 0.43%. The company said that the company and Polymath Holding mutually decided not to pursue the intended joint ventures and record termination of the joint venture agreements. Earlier in October 2021, PI Industries announced execution of two joint venture agreements with Polymath Holding. The first joint venture was executed to undertake the business of manufacturing and selling the products for bio chemistry. Meanwhile, the second was formed to undertake the business of manufacturing and selling the bio chemical enabled pharmaceutical intermediates.

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