Sensex down 101 pts; media stocks extend rally

The domestic equity benchmarks continued trading with small losses in the early afternoon trade. Profit booking emerged after a three-day rally. The Nifty was trading a tad below the 16,650 level. Shares of realty, media and autos advanced while consumer durables, pharma and FMCG stocks corrected.

At 12:22 IST, the barometer index, S&P BSE Sensex was down 101.07 points or 0.18% to 55,824.67. The Nifty 50 index fell 11.75 points or 0.07% to 16,649.65.

The broader market traded higher. The S&P BSE Mid-Cap index added 0.65% while the S&P BSE Small-Cap index gained 0.96%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,907 shares rose while 1,284 shares fell. A total of 136 shares were unchanged.

The government will announce data of first quarter gross domestic product (GDP) on 31 May 2022.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 3.11% to 20.6025. The Nifty 30 June 2022 futures were trading at 16,645.15 at a discount of 4.5 points as compared with the spot at 16,649.65.

The Nifty option chain for the 30 June 2022 expiry showed maximum Call OI of 21.4 lakh contracts at the 17,000 strike price. Maximum Put OI of 34.1 lakh contracts was seen at 16,000 strike price.

Buzzing Index:

The Nifty Media index rose 1.78% to 2,057.50 continuing its gaining streak to the fourth day. The index rose 8.79% in four trading sessions.

Among the components of the Nifty Media index, Zee Entertainment Enterprises (up 3.66%), Network 18 Media & Investments (up 2.67%), Saregama India (up 2.49%), Nazara Technologies (up 1.98%) and Sun TV Network (up 1.72%) were the top gainers.

Earnings Impact:

Campus Activewear rose 1.99% to Rs 365.95 after the company`s consolidated net profit surged to Rs 39.61 crore in Q4 FY22 from Rs 10.02 crore in Q4 FY21. The company had incurred a one-time deferred tax charge of Rs 24.71 crore in FY21 due to amendment of Finance Act, 2021, where goodwill was considered as a non-tax-deductible asset resulting in de-recognition of DTA on goodwill. Revenue from operations increased 28.1% YoY to Rs 352.34 crore.

Trident gained 1.66% to Rs 48.85 after the company reported a 137.1% jump in consolidated net profit to Rs 181.25 crore on a 39% rise in revenue from operations to Rs 1,869.85 crore in Q4 FY22 over Q4 FY21. Consolidated profit before tax jumped 150.8% on a year on year basis to Rs 244.26 crore in Q4 FY22. The company`s operating margin stood at 21.67% in quarter ended March 2022 as compared to 20.7% as of March 2021.

Jindal Steel & Power (JSPL) fell 0.34% to Rs 386.05 after the company reported 65% decline in standalone net profit to Rs 1,198 crore despite a 33% rise in gross revenue to Rs 15,609 crore in Q4 FY22 over Q4 FY21. The fall in profitability was due to a write-off taken for mining investment and assets (Rs 192 crore) and expenses related to water charges for prior year; and relinquishment of long term power agreement, partially offset by a 9% sequential fall in interest expense.

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