Market trades with major volatility; breadth weak

The benchmark indices traded with modest gains during mid-afternoon trade, buoyed by a strong demand in banks, financial services and FMCG scrips. The Nifty index moved towards 16,400 level.

At 14:30 IST, the barometer index, S&P BSE Sensex rose 277.53 points or 0.51% at 54,748.20. The Nifty 50 index gained 58.80 points or 0.36% at 16,360.65.

The S&P BSE Mid-Cap index slipped 1.01%. The S&P BSE Small-Cap index lost 1.17%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,175 shares rose while 2,113 shares fell. A total of 155 shares were unchanged.

Prudent Corporate Advisory Services IPO:

The initial public offering (IPO) of insurance behemoth Prudent Corporate Advisory Services received bids for 18.27 lakh shares as against 60.18 lakh shares on offer, according to stock exchange data at 14:18 IST on Tuesday (10 May 2022). The issue was subscribed 30%.

The issue opened on 10 May 2022 and it will close on 12 May 2022. The IPO price band is Rs 595 to Rs 630 per equity share. An investor can bid for a minimum of 23 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Bank index rose 1.34% to 34,749.55. The index had lost 5.22% in the past four trading sessions.

Among the components of the Nifty Bank index, IndusInd Bank (up 2.97%), HDFC Bank (up 2.28%), Kotak Mahindra Bank (up 1.78%), ICICI Bank (up 0.9%) and State Bank of India (SBI) (up 0.4%) were the top gainers.

Among the other gainers were Axis Bank (up 0.35%) and Bandhan Bank (up 0.08%).

On the other hand, Federal Bank (down 0.91%), Bank of Baroda (down 0.82%) and AU Small Finance Bank (down 0.78%) edged lower.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 7.328% as compared with 7.465% at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 77.3850, compared with its close of 77.44 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.16% to Rs 51,038.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.04% to 103.61.

In the commodities market, Brent crude for July 2022 settlement rose 30 cents at $106.24 a barrel.

Stocks in Spotlight:

VST Tillers & Tractors dropped 5.16%. The company reported 70.9% jump in net profit to Rs 22.10 crore on a 12.1% increase in net sales to Rs 218.36 crore in Q4 FY22 over Q4 FY21. Profit before tax surged 66.6% to Rs 29.16 crore in Q4 FY22 from Rs 17.50 crore in Q4 FY21. Total expenses rose marginally by 0.7% year on year to Rs 188.21 crore in the quarter ended 31 March 2022.

Sun Pharmaceutical Industries declined 2.82%. The pharmaceutical major after the USFDA issued a Form-483 with 10 observations post the conclusion of the inspection of its Halol facility. The Gujarat-based facility of Sun Pharma was inspected by the United States Food and Drug Administration (US FDA) from 26 April to 9 May 2022. The company is preparing the response to the observations, which will be submitted to the US FDA within 15 business days.

Global Markets:

The US Dow Jones index futures were up 285 points, indicating a positive opening in the US stocks today.

European stocks advanced while most Asian markets declined on Tuesday as global markets looked to rebound from a broad sell-off in recent days, prompted mainly by concerns over inflation and rising interest rates � and the potential for a global recession. The war in Ukraine remains another source of market tension.

In the US, the S&P 500 ended below 4,000 for the first time since late March 2021 and the Nasdaq dropped more than 4% on Monday in a selloff led by mega-cap growth shares as investors grew more concerned about rising interest rates.

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