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Nifty nears 16,000 mark; auto stocks snap 5-day losing streak

Published on May 13, 2022 11:30

The benchmark barometers resumed their uptrend and marched towards the day`s high in mid-morning trade. The Nifty hovered near the 16,000 mark. All the sectoral indices on the NSE were currently trading in the green, with autos, PSU banks and FMCG stocks rising the most.

At 11:28 IST, the barometer index, S&P BSE Sensex was up 519.66 points or 0.98% to 53,449.97. The Nifty 50 index rose 182 points or 1.15 % to 15,990.

The broader market outperformed the main stock indices. The S&P BSE Mid-Cap index gained 2.24% while the S&P BSE Small-Cap index added 2.13%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,476 shares rose while 660 shares fell. A total of 123 shares were unchanged.

IPO Update:

The initial public offer (IPO) of Delhivery received bids for 1,76,87,520 shares as against 6,25,41,023 shares on offer, according to stock exchange data at 11:06 IST on Friday (13 May 2022). The issue was subscribed 28%.

The issue opened for bidding on Wednesday (11 May 2022) and it will close on Friday (13 May 2022). The price band of the IPO is fixed at Rs 462-487 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.

The initial public offer (IPO) of Venus Pipes and Tubes received bids for 2,08,17,208 shares as against 35,51,914 shares on offer, according to stock exchange data at 11:06 IST on Friday (13 May 2022). The issue was subscribed 5.86 times.

The issue opened for bidding on Wednesday (11 May 2022) and it will close on Friday (13 May 2022). The price band of the IPO is fixed at Rs 310-326 per share. An investor can bid for a minimum of 46 equity shares and in multiples thereof.

Economy:

India`s retail inflation, which is measured by the Consumer Price Index (CPI), rose to 7.79% in the month of April 2022. The retail inflation for the month of March was 6.95%. This is the fourth consecutive month that the CPI data has breached the Reserve Bank of India`s (RBI) upper margin of 6%.

India`s factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 1.9% in March 2022. Industrial production grew 1.7% in February 2022. The IIP soared 24.2% in March 2021, the data showed. The manufacturing sector`s output grew 0.9% in March 2022. Mining output rose 4% and power generation increased 6.1%.

Buzzing Index:

The Nifty Auto index rose 3.45% to 10,514.85. The index had declined 5.06% in the past five session.

Among the components of the Nifty Auto index, Ashok Leyland (up 5.7%), TVS Motor Company (up 4.87%), Bharat Forge (up 4.74%) and Hero MotoCorp (up 3.61%) were the top gainers.

Among the other gainers were Mahindra & Mahindra (up 3.55%), MRF (up 3.54%), Bajaj Auto (up 3.18%), Escorts (up 2.73%) and Eicher Motors (up 2.37%).

On the other hand, Sona BLW Precision Forgings (down 0.25%), edged lower.

Tata Motors jumped 9.4%. The company reported a consolidated net loss of Rs 1,032.84 crore in Q4 FY22 as against a net loss of Rs 7,605.40 crore in Q4 FY21.

With respect to outlook, Tata Motors said: �The demand remains strong despite geopolitical and inflation concerns. The supply situation is gradually improving, whereas commodity inflation is likely to remain at elevated levels. We expect performance to improve through the year as the China COVID and semiconductor supplies improve and aim to deliver strong EBIT improvement and free cash flows in FY 2023 to get to near net auto debt free by FY 2024.�

Stocks in Spotlight:

Larsen & Toubro (L&T) advanced 2.73%. The company`s construction arm secured `significant` contract for its water & effluent treatment business. As per L&T`s classification, the value of the `significant` contract lies between Rs 1,000 crore to Rs 2,500 crore.

Matrimony.com surged 16.70%. The company`s board approved share buyback worth Rs 75 crore at price not exceeding Rs 1,150 per share. The buyback price represents 72.5% premium as compared with the scrip`s yesterday`s closing price of Rs 666.65.

The company also announced its earnings for the quarter and the year ended on 31 March 2022. Matrimony.com recorded 15.6% rise in consolidated net profit to Rs 11.7 crore on a 9.4% increase in revenue to Rs 110.6 crore in Q4 FY22 over Q4 FY21. Consolidated billing during the quarter was at Rs 115.1 crore, up 7.9% YoY.

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