Sensex, Nifty extend modest losses; global markets remain grim

The benchmark indices pared morning losses, to trade below flat line during mid-afternoon trade. Barring IT and pharma scrips, the sectoral indices on the NSE declined. The Nifty index traded tad below 16,350 mark.

Shares of index heavyweight Reliance Industries (RIL) fell 3.44% in reaction to its Q4 results declared after market hours on Friday. Weakness in global stocks weighed on sentiment adversely.

At 14:30 IST, the barometer index, S&P BSE Sensex skid 238.33 points or 0.43% at 54,597.25. The Nifty 50 index lost 70.10 points or 0.43% at 16,341.15.

The S&P BSE Mid-Cap index fell 1.60%. The S&P BSE Small-Cap index slipped 1.49%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 980 shares rose while 2,454 shares fell. A total of 143 shares were unchanged.

LIC IPO:

The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India received bids for 40.54 crore shares as against 16.20 crore shares on offer, according to stock exchange data at 14:18 IST on Monday (9 May 2022). The issue was subscribed 2.50 times.

The issue opened on 4 May 2022 and it will close today, 9 May 2022. The IPO price band is Rs 902 to Rs 949 per equity share. An investor can bid for a minimum of 15 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Auto index fell 1.04% to 10,409.30. The index lost 2.76% in two trading sessions.

Among the components of the Nifty Auto index, Bharat Forge (down 3.75%), TVS Motor Company (down 3.06%), Hero MotoCorp (down 2.57%), Ashok Leyland (down 2.26%) and Tata Motors (down 1.96%) were the top losers.

Among the other losers were Bosch (down 1.87%), MRF (down 1.69%), Sona BLW Precision Forgings (down 1.21%), Eicher Motors (down 0.86%) and Tube Investments of India (down 0.86%).

On the other hand, Bajaj Auto (up 1.52%) and Maruti Suzuki India (up 0.09%) advanced.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 7.473% as compared with 7.451% at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 77.48, compared with its close of 76.90 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement fell 0.30% to Rs 51,190.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.41% to 104.08.

In the commodities market, Brent crude for July 2022 settlement fell 85 cents at $111.54 a barrel.

Stocks in Spotlight:

Bajaj Consumer Care dropped 5.60%. The company`s net profit declined 28.81% to Rs 38.37 crore on 10.70% decline in net sales to Rs 216.05 crore in Q4 March 2022 over Q4 March 2021. On a standalone basis, profit before tax (PBT) fell 28.8% year-on-year to Rs 46.5 crore in Q4 March 2022.

EBITDA declined 37.9% to Rs 38.6 crore during the period under review. EBITDA margin stood at 17.9% in Q4 March 2022, lower than 18.4% in Q3 December 2021 and 25.7% in Q4 March 2021. During the quarter, total expenses fell 1.91% to Rs 183.42 crore. Cost of material consumed fell 13.50% to Rs 57.90 crore while employee expense declined 8.93% to Rs 18.96 crore.

SMS Lifesciences India slipped 0.98%. The company said it has completed disinvestment of up to 10% stake of Mahi Drugs and is raising fresh equity in Mahi Drugs, on a private placement basis. Following the transaction, Mahi Drugs will cease to be a wholly-owned subsidiary of the company but shall continue as a subsidiary company of the company with 60% equity stake.

Global Markets:

The US Dow Jones index futures were down 389 points, indicating a weak opening in the US stocks today.

European markets declined while most Asian markets traded lower on Monday, tracking negative sentiment globally as investors continued to mull over persistently high inflation.

Investors also kept an eye on the war in Ukraine as dozens are feared dead after a school in the Luhansk region in eastern Ukraine was hit by Russian shelling. Luhansk is one of the two regions that make up the Donbas, where Russian troops are now largely concentrating their attacks.

U.S. first lady Jill Biden made a surprise visit to Ukraine on Sunday. The U.S. and Group of Seven countries announced that they would increase short-term financial support for Ukraine as the war with Russia nears the three-month mark.

US stock indexes extended losses for a second day on Friday as elevated US Treasury yields dragged growth shares after stronger-than-expected jobs data amplified investor fears of bigger interest rate hikes to tame surging prices.

The Labor Department`s report showed nonfarm payrolls increased by 428,000 jobs in April. Unemployment rate remained unchanged at 3.6% in the month.

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