Nifty slips below 17,500; broader market underperforms

Equity indices traded near the day`s low with major losses in afternoon trade. Selling pressure was seen across the board as all sectoral indices on the NSE traded in the red. The Nifty traded below the 17,500 mark.

At 13:30 IST, the S&P BSE Sensex shed 538.53 points or 0.91% at 58,426.32. The Nifty 50 index dropped 191.2 points or 1.08% at 17,483.65.

Selling pressure was more in broader market. The S&P BSE Mid-Cap index fell 1.91% while the S&P BSE Small-Cap index slipped 1.95%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, shares 987 rose and 2,373 shares fell. A total of 101 shares were unchanged.

Nifty Gainers & Losers:

Kotak Mahindra Bank (up 0.56%), Axis Bank (up 0.35%), TCS (up 0.33%) and Maruti Suzuki (up 0.31%) were top gainers in Nifty 50 index.

Hindalco Industries (down 5.94%), Coal India (down 5.17%), Tata Steel (down 3.84%), Tata Motors (down 3.42%) and JSW Steel (down 3.06%) were top losers in Nifty 50 index.

Stocks in Spotlight:

TCS rose 0.04%. The IT major`s consolidated net profit rose 1.61% to Rs 9,926 crore on 3.49% increase in net sales to Rs 50,591 crore in Q4 March 2022 (Q4 FY22) over Q3 December 2021 (Q3 FY22). On a year-on-year (YoY) basis, the IT major`s net profit rose 7.35% and net sales rose 15.76% in Q4 FY22. The board recommended a final dividend of Rs 22 per share. Constant currency revenue grew 14.3% YoY in Q4 FY22. Operating margin stood at 25% while net margin was at 19.6% in Q4 FY22. Profit before tax rose 1.31% to Rs 13,364 crore in Q4 FY22 over Q3 FY22. Operating cash flow during the quarter was 111.3% of net income. The company reported highest ever order book total contract value (TCV) of $11.3 billion in Q4 March 2022 and $34.6 billion in the year ended March 2022.

Gufic Biosciences jumped 7.87%. The company has received permission from Central Licensing Approving Authority for the manufacture, sale, and distribution of Isavuconazonium Sulfate API and the finished formulation of Isavuconazole for injection of 200 mg per vial.

Global Markets:

European markets opened lower while Asian stocks were trading with losses on Tuesday, as investors continue monitoring developments surrounding the COVID situation in mainland China.

The major Chinese city of Shanghai has accounted for most of mainland China`s new COVID cases and was in lockdown about a week after a two-part shutdown was originally supposed to end.

After weeks of economic crisis, Sri Lanka on Tuesday announced that it has defaulted on its $51 billion external debt after running out of foreign exchange to import desperately needed goods.

The World Health Organization said Monday it is monitoring the COVID situation in mainland China, where officials have been battling a major surge in cases.

US stocks fell Monday as investors grew increasingly concerned a three-year high in the benchmark U.S. interest rate would start to slow the economy.

U.S. inflation data is also expected to be out later Tuesday stateside and could provide more clues on the outlook for Federal Reserve policy.

Oil prices dropped on Monday amid fears that COVID lockdowns in China would depress global demand. International benchmark Brent crude declined 4.18% to settle at $98.48 per barrel.

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