Sensex down 338 points; Nifty below 17,000 level

Equity indices trimmed some losses but continued to trade in negative territory in morning trade. Barring realty and pharmaceutical indices, all the sectoral indices on the NSE were trading in red. The Nifty traded below the crucial 17,000 mark.

At 10:27 IST, the barometer index, S&P BSE Sensex fell 338.95 points or 0.59% at 56,721.92. The Nifty 50 index declined 115.90 points or 0.68% at 16,986.65.

In the broader market, the S&P BSE Mid-Cap index fell 0.79% while the S&P BSE Small-Cap index declined 0.99%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,081 shares rose while 2,135 shares fell. A total of 162 shares were unchanged.

Results Today

HDFC (up 1.33%) and Britannia Industries (down 1.91%) are two Nifty 50 companies that will announce their results today.

Adani Wilmar, Jindal Stainless, INOX Leisure, IDBI Bank, Castrol India, Meghmani Organics, Mahindra Holidays & Resorts, Mahindra and Mahindra Financial Services, JBM Auto, EIH Associated Hotels, Dwarikesh Sugar, Devyani International, CG Power and Industrial Solutions, Alembic Pharmaceuticals, Saregama India, Olectra Greentech are some of the other companies that will announce their results today.

Economy:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) rose at 54.7 in April, from 54 in march. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.

Pollyanna De Lima, Economics Associate Director at S&P Global said, �The Indian manufacturing PMI remained well inside positive territory during April, recovering some of the ground lost in March. Factories continued to scale up production at an above-trend pace, with the ongoing increases in sales and input purchasing suggesting that growth will be sustained in the near-term. Yet, the survey continued to show a lack of pressure on firms` operating capacities alongside only mild job creation. Moreover, expectations regarding growth prospects remained subdued. A major insight from the latest results was an intensification of inflationary pressures, as energy price volatility, global shortages of inputs and the war in Ukraine pushed up purchasing costs. Companies responded to this by hiking their fees to the greatest extent in one year. This escalation of price pressures could dampen demand as firms continue to share additional cost burdens with their clients."

Buzzing Index :

The Nifty IT Index was down 1.81% to 31,050.10, extending its losing streak to second day. The index has lost 2.7% in two days.

Among the components of the Nifty IT index, L&T Technology Services Ltd (down 3.51%), Mindtree Ltd (down 3.13%), Wipro Ltd (down 2.71%), Larsen & Toubro Infotech Ltd (down 2.52%) and Coforge Ltd (down 2.31%) were the top losers. Among the other losers were Infosys Ltd (down 2.12%), Mphasis Ltd (down 1.87%), Tech Mahindra Ltd (down 1.76%), Tata Consultancy Services Ltd (down 1.03%) and HCL Technologies Ltd (down 0.95%).

Stocks in Spotlight :

Ashok Leyland declined 1.3% to Rs 125.55. The Hinduja Group company`s total commercial vehicle (CV) sales surged 42% to 11,847 units in April 2022 from 8,340 units sold in April 2021. On a sequential basis, the company`s total CV sales declined 41.1% last month from 20,123 units sold in March 2022. While the total sales of medium & heavy commercial vehicles (M&HCV) jumped 77% to 7,688 units, sales of light commercial vehicles (LCVs) rose just 4% to 4,159 units in April 2022 over April 2021.

GE Power India spurted 7.68% to Rs 190.70 after the company secured a contract worth Rs 863.40 crore from GREENKO KA01 IREP. The contract entails "design, engineering, model testing, manufacture, shop testing, packing, supply, insurance, transportation and deliver at project site, of complete electro-mechanical package from Main Inlet Valve (MIV) to LV Terminal connection of Generator Transformer including critical and mandatory spares.

Maruti Suzuki India fell 0.58% to Rs 7,687.60. The auto company`s total sales declined by 6% to 150,661 units in April 2022 from 159,691 units sold in April 2021. While total domestic sales fell by 7% to 132,248 units, total export rose by 7% to 18,413 units in April 2022 over April 2021. Maruti Suzuki India produced 157,392 vehicles in April 2022, which is lower by 2% as compared to April 2021.

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