Nifty rallies above 16,680 mark; breadth remains strong

The key equity indices rallied further and hit a fresh intraday high in mid-morning trade, mirroring positive global cues. The Nifty was trading above the 16,650 mark. Auto stocks advanced for the third consecutive trading session.

At 11:23 IST, the barometer index, S&P BSE Sensex was up 1149.4 points or 2.09% to 56,034.06. The Nifty 50 index rose 332.25 points or 2.03% to 16,684.70.

In the broader market. The S&P BSE Mid-Cap index rose 1.89% while the S&P BSE Small-Cap index advanced 2.09%.

The market breadth was strong. On the BSE, 2,363 shares rose while 885 shares fell. A total of 157 shares were unchanged.

Buzzing Index:

The Nifty Auto index rose 2.05% to 11,501.10 . The index added 4.45% extending its wining streak to third trading sessions.

Mahindra & Mahindra (up 3.9%), Tube Investments of India (up 2.87%), Balkrishna Industries (up 2.68%), Tata Motors (up 2.39%), Sona BLW Precision Forgings (up 2.05%), Bosch (up 1.94%), TVS Motor Company (up 1.58%), Hero MotoCorp (up 1.44%), Eicher Motors (up 1.35%) and Bajaj Auto (up 1.3%) edged higher.

Shares of Mahindra & Mahindra (M&M) hit a 52 week high of Rs 1,006.50 today, jumped 8.44% in three trading sessions after the vehicle manufacturer reported a 427% jump in standalone net profit before exceptional items to Rs 1,292 crore in Q4 FY22 as compared with Rs 245 crore in Q4 FY21. Revenue rose by 28% year on year to Rs 17,124 crore during the quarter ended 31 March 2022. Profit before tax surged 147.8% to Rs 1,572 crore during the period under review. EBITDA fell by 0.5% to Rs 1,946 crore in Q4 FY22 from Rs 1,955 crore in Q4 FY21. EBITDA margin fell to 11.4% in Q4 FY22 from 14.6% in Q4 FY21.

Tata Motors rose 2.39% after the company`s subsidiary signed Memorandum of Understanding with Govt of Gujarat for potential acquisition of Ford India`s Sanand plant. Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors signed Memorandum of Understanding with the Government of Gujarat for potential acquisition of Ford India`s Sanad vehicle manufacturing facility. The acquisition includes land & buildings, vehicle manufacturing plant, machinery and equipment and transfer of all eligible employees, subject to the signing of definitive agreements and receipt of relevant approvals.

Earnings Impact:

Oil and Natural Gas Corporation (ONGC) fell 1.43% after the company reported 31.6% year-on-year (YoY) growth in standalone net profit to Rs 8,860 crore in Q4 FY22. Net sales in the January-March 2022 quarter jumped 62.8% to Rs 34,497.24 crore from Rs 21,188.91 crore recorded in the same period last year. Profit before tax in Q4 FY22 stood at Rs 11,714 crore, up by 31.2% from Rs 8,928 crore reported in Q4 FY21.

FSN E-Commerce Ventures (Nykaa) advanced 2.56%. The company`s consolidated net profit fell 49.29% to Rs 8.56 crore in Q4 March 2022 as against net profit of Rs 16.88 crore in Q4 March 2021. Revenue from operations declined 11.38% sequentially ("QoQ") and 31.44% Year on Year ("YoY") to Rs 973.32 crore in Q4 FY22. Gross profit grew 40% YoY to Rs 425.30 crore in Q4 FY22 at a margin of 43.7%, up 254 bps YoY. EBITDA fell 14% to Rs 38.50 crore in Q4 FY22 at a margin of 4% (vs 6.3% in Q3 FY22 and 6% in Q4 FY21).

Sun Tv Network rose 1.54% after the media company`s standalone net profit declined 10.1% to Rs 404.35 crore despite of a 6.5% rise in net sales to Rs 833 crore in Q4 FY22 over Q4 FY21. Sun TV Network`s advertisement revenue rose 7% to Rs 337.13 crore for the quarter ended 31 March 2022. The subscription revenue for the quarter declined 2.8% to Rs 416.03 crore in Q4 FY22 from Rs 428.12 crore reported in Q4 FY21.

Global Markets:

Asian stocks advanced on Monday as investors look ahead to major economic data releases later in the week.

Markets in the U.S. are closed on Monday for a holiday. Wall Street closed sharply higher on Friday as signs of peaking inflation and consumer resilience boosted sentiment.

The core personal consumption expenditures price index rose 4.9% in April, down from the 5.2% pace seen the previous month. This particular report is watched closely by the Federal Reserve when setting policy.

US consumer spending rose more than expected in April as households boosted purchases of goods and services. Consumer spending increased 0.9% last month. Data for March was revised higher to show outlays racing 1.4% instead of 1.1% as previously reported.

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