Market tumbles for 5th day, Nifty ends below 17,000

The benchmark indices ended with major losses on Tuesday, extending their losing run to fifth consecutive session. Major selling was witnessed in the fag end of the session. Weakness in the European markets amid the rising tensions between Russia and Ukraine weighed on the market sentiments. Intense selling in HDFC Twins and Infosys dragged the headline indices lower. Barring the Nifty Oil & Gas index, all the sectoral indices on the NSE ended in the red.

The barometer index, S&P BSE Sensex tumbled 703.59 points or 1.23% at 56,463.15. The Nifty 50 index declined 215 points or 1.25% at 16,958.65.

After hitting the day`s high of 17,275.65 in the mid-afternoon, the Nifty reversed trend and hit the day`s low of 16,824.70 in late trade. The 50-unit index has fallen 4.64% in five straight sessions.

Selling was broad based. The S&P BSE Mid-Cap index slipped 1.20%. The S&P BSE Small-Cap index declined 1.21%.

The market breadth was weak. On the BSE, 1,234 shares rose while 2,179 shares fell. A total of 123 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, advanced 2.27% to 19.7750.

COVID-19 Update:

India recorded 1,274 new COVID-19 cases and one death as on Tuesday, according to the Union Ministry of Health and Family Welfare. The active cases currently stand at 11,860 and comprise 0.03% of the total infections. The recovery rate remained unchanged at 98.76% and 928 recoveries were reported on Monday. The daily positivity rate was at 0.31% while the weekly positivity rate stood at 0.34%.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell to 7.152% from its previous close of 7.153%.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 76.48, compared with its close of 76.29 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.04% to Rs 53,295.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.11% to 100.875.

In the commodities market, Brent crude for June 2022 settlement fell $1.24 or 1.1% at $111.92 a barrel.

Global Markets:

European stocks declined across the board while Asian markets closed mixed on Tuesday, with investors` attention focused on the latest developments in the war between Russia and Ukraine.

Global investors are watching Ukraine closely after the country`s military reportedly said on Monday that a long-expected offensive push into the Donbas region in eastern Ukraine has started, with intensified assaults Monday in the Slobozhansky and Donetsk operational districts in the north and east of the country.

With the conflict showing no signs of ending soon, the World Bank has lowered its global growth forecast for 2022 by nearly a full percentage point, from 4.1% to 3.2%, citing the pressure that Russia`s invasion of Ukraine has placed on the global economy.

On Monday, the People`s Bank of China announced it will increase financial support for industries, businesses and people affected by COVID-19.

Buzzing Segment:

The Nifty Oil & Gas index rose 0.75% to 8,260.25. The index fell 0.30% in the previous session.

Reliance Industries (up 3.23%), Hindustan Petroleum Corporation (up 2.35%), Oil India (up 1.76%), Indian Oil Corporation (up 1.37%), Bharat Petroleum Corporation (up 0.61%), GAIL (India) (up 0.39%), Gujarat State Petronet (up 0.18%), ONGC (up 0.17%) advanced.

Stocks in Spotlight:

IT major Infosys fell 3.55% to Rs 1563.95. The stock has fallen 10.56% in two sessions.

The IT firm`s consolidated net profit fell 2.1% to Rs 5,686 crore on a 1.3% increase in revenues to Rs 32,276 crore in Q4 FY22 over Q3 FY22. Meanwhile, on a year-on-year basis, Infosys` net profit and revenue in Q4 FY22 increased 12% and 22.7%, respectively.

The company issued revenue growth guidance of 13%-15% in constant currency and operating margin guidance of 21%-23% for FY23.

HDFC Bank fell 3.73% to Rs 1343.30. The stock has fallen 18.90% in nine sessions. The private lender`s net profit rose 22.83% to Rs 10,055.18 crore on 8.07% increase in total income to Rs 41,085.78 crore in Q4 March 2022 over Q4 March 2021. The bank`s profit before tax (PBT) rose 20.35% year-on-year to Rs 13,044.66 crore in Q4 March 2022. The bank`s provisions and contingencies (excluding tax provisions) fell 29.43% to Rs 3,312.35 crore in Q4 March 2022 over Q4 March 2021.

Net interest income (interest earned less interest expended) in Q4 March 2022 grew by 10.2% to Rs 18,872.70 crore from Rs 17,120.20 crore in Q4 March 2021. Core net interest margin was at 4% on total assets, and 4.2% based on interest earning assets.

Housing finance major, HDFC fell 5.50% to Rs 2138.65. The stock has fallen 11.85% in three sessions. HDFC and HDFC Bank on 4 April 2022 announced merger, in which shareholders of HDFC will receive 42 shares of HDFC Bank, for 25 shares held in HDFC. As a result, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.

AU Small Finance Bank rose 2.65%. The lender`s board will consider a bonus share issue on 26 April 2022. The board will also consider Q4 March 2022 results and recommend dividend for the financial year ended 31 March 2022.

Coal India jumped 4.57% after the company said that it has raised the supplies to thermal power stations by 14.2% during the first half of April 2022 as compared to same period last April. CIL`s supplies have hit 1.64 million tonnes (MTs) per day during this period against 1.43 MTs supplied in the similar period during April 2021.

Indraprastha Gas (IGL) advanced 3.69% after the company received the Petroleum and Natural Gas Regulatory Board (PNGRB) approval for setting up city gas distribution (CGD) network in Banda, Chitrakoot and Mahoba districts in the state of Uttar Pradesh (UP).

Mishtann Foods rose 2.34% after the company reported a standalone net profit of Rs 13.15 crore in Q4 FY22 as against Rs 0.35 crore recorded in Q4 FY21. Revenue from operations increased 46% to Rs 153.47 crore in Q4 FY22 over Q4 FY21. Profit before tax surged to Rs 20.94 crore in Q4 FY22 from Rs 0.46 crore reported in Q4 FY21.

Meanwhile, the board of directors recommended bonus issue of shares in the ratio of 1:1 (one bonus equity shares for each equity share held).

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