Sensex drops 356 points; Nifty below 16,980

Benchmark indices traded in a narrow range with losses in mid morning trade. Barring Nifty Realty index, all the sectoral indices on the NSE traded in red. The Nifty continued to trade below the 17,000 mark. Domestic sentiment was dented on the back of negative global cues.

At 11:20 IST, the barometer index, S&P BSE Sensex declined 356.67 points or 0.63% to 56,704.03. The Nifty 50 index fell 128.25 points or 0.75% at 16,974.30.

In broader market, the S&P BSE Mid-Cap index slipped 0.88% while the S&P BSE Small-Cap index slided 0.96%.

The market breadth was weak. On the BSE, 1,085 shares rose while 2,163 shares fell. A total of 176 shares were unchanged.

Stocks in Spotlight:

Tata Motors declined 1.67% to Rs 430.25. The company`s sales in the domestic & international market for April 2022 stood at 72,468 vehicles as compared to 41,729 units during April 2021, rising 73.66% year-on-year. Tata Motors` total domestic sales soared 81% to 71,467 units in April 2022 as against 39,401 units in April 2021. Total commercial vehicles (CV) (domestic + exports) jumped 87% to 30,838 units in April 2022 over 16,515 units in April 2021.

Escorts fell 0.94% to Rs 1,619.05. The tractor maker`s sales surged by 19.3% year on year to 8,325 units in April 2022 from 6,979 units sold in April 2021. On a sequential basis, tractor sales declined 17.36% in April 22 from 10,074 units sold in March 2022. The domestic tractor sales in April 2022 stood at 7,676 units, registering a growth of 20.2% as against 6,386 tractors sold in April 2021.

Man Industries (India) rose 3.15% to Rs 95.10 after the company said it received new order worth approximately Rs 807 crore from Indian Oil Corporation. The order is for supplying API high grade large diameter carbon steel pipes along with coating.

Buzzing Index :

The Nifty PSU Bank index fell 1.27% to 2,723.50 continuing its losing streak on the second day. The index has declined 3% in two consecutive days.

Among the components of the Nifty PSU Bank index, Indian Bank (down 2.14%), State Bank of India (down 2.02%), Central Bank of India (down 1.33%), Indian Overseas Bank (down 1.1%) and Bank of India (down 1.04%) were the top losers. Among the other losers were Punjab & Sind Bank (down 0.94%), Punjab National Bank (down 0.85%), UCO Bank (down 0.84%), Bank of Baroda (down 0.84%) and Bank of Maharashtra (down 0.56%).

Global Markets:

Asian markets were trading were lower on Monday, with data released over the weekend showing Chinese factory activity contracted in April. Markets in Hong Kong, mainland China, Singapore and Taiwan are closed on Monday for a holiday.

China`s factory activity contracted at a steeper pace in April as Covid lockdowns hit industrial production. The official manufacturing Purchasing Managers` Index for April declined to 47.4, a second straight month of contraction following with March`s reading of 49.5, data from the National Bureau of Statistics showed Saturday.

A private survey also showed contraction in Chinese factory activity, with the Caixin/Markit manufacturing PMI coming in at 46, declining from the previous month`s reading of 48.1.

Wall Street slid on Friday to its deepest daily losses since 2020, as Amazon slumped following a gloomy quarterly report, and as the biggest surge in monthly inflation since 2005 spooked investors already worried about rising interest rates.

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