Market tumbles in early trade; breadth weak

Key benchmark indices are trading sharply lower in early trade on selling pressure in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 1157.01 points or 2.37% at 47,675.02. The Nifty 50 index was down 350.40 points or 2.4% at 14,267.45. Sharply rising Covid-19 cases in the country dampened sentiment.

The S&P BSE Mid-Cap index was down 2.54%. The S&P BSE Small-Cap index was down 2.65%.

The market breadth, indicating the overall health of the market, is weak. On the BSE, 389 shares rose and 1841 shares fell. A total of 103 shares were unchanged.

On the coronavirus front, the Centre on Sunday banned the supply of oxygen for industrial purposes except in nine specified industries in view of shortage of the essential public health commodity in several states amid a spike in COVID-19 infections. The decision will come into effect from April 22.

Stocks in news:

HDFC Bank lost 2.92%. HDFC Bank reported 18.2% rise in net profit to Rs 8186.50 crore on 16.4% increase in net revenues to Rs 24714.10 crore in Q4 March 2021 over Q4 March 2020.

HDFC Bank said that the board of directors of the bank, has granted an enabling approval to the bank for issuance of Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crores in the period of next twelve months through private placement mode.

Bharti Airtel dropped 2.53%. The Government of Ghana, Bharti Airtel (Airtel) and Millicom International Cellular S.A. (Millicom) (through their respective subsidiaries), on Friday announced that they have executed the definitive agreement for the transfer of `AirtelTigo` (Airtel Ghana Limited and Millicom Ghana Limited) to the Government of Ghana on a going concern basis.

In the proposed agreement, the Government of Ghana will acquire 100% shares of AirtelTigo along with all customers, assets and liabilities. Basis the agreement, the transaction will entail a seamless takeover by the Government of Ghana post which AirtelTigo would become and operate as a State entity.

Mindtree rose 0.76%. Mindtree reported a 2.8% decline in consolidated net profit to Rs 317.30 crore on 4.2% increase in revenues to Rs 2,109.30 crore in Q4 March 2021 over Q3 December 2020.

In dollar terms, the company posted a decline of 1.9% in consolidated net profit to $43.3 million on a 5.2% increase in revenues to $288.2 million in Q4 FY21 over Q3 FY21.

Kolte-Patil Developers lost 4.27%. Kolte-Patil Developers announced sales volume of 0.85 million square feet (msf) in Q4FY21 against 0.67 msf in Q4FY20. Realisation per square feet increased to Rs 5,988 from Rs 5,333 in same period.

Global Markets:

Overseas, Asian stocks are trading mixed on Monday, with investors watching Alibaba`s stock in Hong Kong following yet another development between affiliate Ant Group and billionaire Jack Ma.

Japan`s exports posted their strongest growth in more than three years in March. Ministry of Finance data showed on Monday exports surged 16.1% in March from a year earlier, marking the steepest rise since November 2017. That was followed by a 4.5% contraction in February.

U.S. stocks rose again on Friday as the market`s rally to records carried on amid strong earnings from blue-chip companies as well as solid data signaling a snapback in the economy.

Federal Reserve Governor Christopher Waller said Friday the U.S. economy is set to take off, but there`s still no reason to start tightening policy.

The University of Michigan said Friday its preliminary consumer sentiment index rose to a one-year high of 86.5 in the first half of this month from 84.9 in March.

Back home, the equity indices ended with minor gains amid a volatile session on Friday. The barometer index, the S&P BSE Sensex, added 28.35 points or 0.06% to 48,832.03. The Nifty 50 index advanced 36.40 points or 0.25% to 14,617.85.

Foreign portfolio investors (FPIs) bought shares worth Rs 437.51 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 657.55 crore in the Indian equity market on 16 April, provisional data showed.

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