Sensex drops 537 pts, Nifty holds 17,000 mark; Bajaj Finance slumps 7%

Domestic equity benchmarks ended a volatile trading session with modest losses on Wednesday. The Nifty managed to close above the 17,000 mark after hitting a day`s low of 16,958.45 in afternoon trade. Barring the Nifty Media index, all sectoral indices on the NSE ended in the red.

The barometer index, S&P BSE Sensex dropped 537.22 points or 0.94% at 56,819.39. The Nifty 50 index fell 162.40 points or 0.94% at 17,038.40.

Persistent FII selling in domestic shares, fears of aggressive monetary tightening in the US, Covid-related lockdowns in China and ongoing Russia-Ukraine war impacted sentiment.

Selling was wide spread. The S&P BSE Mid-Cap index lost 0.88% while the S&P BSE Small-Cap index declined 0.61%.

The market breadth was weak. On the BSE, 1,159 shares rose while 2,208 shares fell. A total of 118 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 7.38% to 20.6050.

LIC IPO Update:

The initial public offering of Life Insurance Corporation of India (LIC) will open on 4 May 2022 and will close on 9 May 2022. The price band has been set at Rs 902 to Rs 949, with a discount of Rs 60 for LIC policyholders. For retail investors and eligible employees, the discount will be of Rs 45 a share. The government aims to raise upto Rs 21,000 crore from the issue.

COVID-19 Update:

India reported 2,927 new coronavirus cases, up from the previous day`s 2,483 as of 8 A.M. on Wednesday, according to the Union Health Ministry. The active cases in India climbed to 16,279 from 15,636. The country also reported 32 deaths in the last 24 hours.

Prime Minister Narendra Modi, while interacting with the chief ministers of several states on Wednesday, warned that the �Covid challenge� has not yet been surpassed. �Despite managing the Covid crisis well as compared to other countries, we can see an uptick in cases in states now. We have to stay alert,� Modi said. The review meeting was attended by several chief ministers including West Bengal`s Mamata Banerjee, Chhattisgarh`s Bhupesh Baghel and Punjab`s Bhagwant Mann.

The Drugs Controller General of India (DCGI) on Tuesday granted emergency use authorisation to Bharat Biotech`s Covaxin for the age group 6-12 years and Corbevax for the age group 5-12 years. Zydus Cadila`s two-dose COVID-19 vaccine, meanwhile, has been approved for the 12 years and above population.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.083% from its previous close of 7.053%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.55, compared with its close of 76.56 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement shed 0.48% to Rs 51,336.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.22% to 102.53.

In the commodities market, Brent crude for June 2022 settlement rose 53 cents or 0.51% at $105.14 a barrel.

Global Markets:

The Dow Futures were up 302 points, indicating a positive start in the U.S. market today.

European markets advanced while Asian markets ended mixed on Wednesday. China`s industrial profits rose 8.5% year-on-year in the January-March period, official data showed.

U.S. stocks fell sharply on Tuesday with shares selling off into the close, as investors dumped equities on fears of an economic slowdown. Investors are worried about a Covid surge in China. Regarding the war in Ukraine, a top Russian official said the threat of nuclear war is real.

Buzzing Segment:

The Nifty Media index rose 0.07% to 2,285.20. The index has risen 1.97% in two days.

Hathway Cable and Datacom (up 5.74%), TV18 Broadcast (up 3.04%), PVR (up 2.07%), DishTV India (up 1.54%), INOX Leisure (up 1.1%), Saregama India (up 0.55%) and Nazara Technologies (up 0.03%) advanced.

Stocks in Spotlight:

Hindustan Unilever (HUL) fell 0.18%. The FMCG major reported 8.59% rise in standalone net profit to Rs 2,327 crore on 10.40% increase in sales to Rs 13,190 crore in Q4 FY22 over Q4 FY21.

During the quarter, HUL`s volume growth was flat. Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter stood at Rs 3,245 crore, a growth of 10% YoY. EBITDA margin at 24.6% remained healthy despite very high inflationary headwinds. Profit before tax (PBT) rose 10.84% to Rs 3,128 crore in Q4 FY22 over Q4 FY21.

Bajaj Finance tumbled 7.24%. The diversified NBFC`s consolidated net profit surged 80% to Rs 2,419.51 crore on 25.90% increase in total income to Rs 8,630.28 crore in Q4 March 2022 over Q4 March 2021. The company said it reported highest ever consolidated profit after tax in Q4 March 2022.

CARE Ratings dropped 14.66% after the company`s managing director and chief executive officer, Ajay Mahajan, resigned from his post citing personal reasons.

Syngene International fell 1.81%. The company`s consolidated net profit fell 7.97% to Rs 147.80 crore on a 15.10% rise in revenue from operations to Rs 758.10 crore in Q4 FY22 over Q4 FY21.

KPIT Technologies surged 12.76% after the company`s consolidated net profit rose 12.66% to Rs 78.87 crore on 4.72% increase in revenues to Rs 651.76 crore in Q4 March 2022 over Q3 December 2021. Profit before tax (PBT) rose 11.05% quarter-on-quarter (QoQ) to Rs 97.21 crore in Q4 FY22. EBITDA rose 5.58% to Rs 121.39 crore during the period under review.

Mahindra Logistics climbed 7.17%. The third-party logistics provider`s consolidated net profit declined 2.78% to Rs 12.23 crore on 10.13% rise in net sales to Rs 1072.68 crore in Q4 March 2022 over Q4 March 2021. The company`s profit before tax (PBT) fell 13.37% to Rs 14 crore as against Rs 16 crore last year. EBITDA rose 19.61% to Rs 61 crore compared with Rs 51 crore last year.

Som Distilleries & Breweries hit an upper circuit limit of 5% at Rs 67.20 after the company`s consolidated net profit jumped 72.70% to Rs 6.39 crore on 35.30% increase in net sales to Rs 145.80 crore in Q4 March 2022 over Q4 March 2021. Profit before tax (PBT) soared 1,053.13% to Rs 3.69 crore in Q4 March 2022 over Q4 March 2021. EBIDTA jumped 28% year-on-year to Rs 11.71 crore in Q4 FY22.

Schaeffler India jumped 6.68%. The company reported 48.4% increase in net profit to Rs 207.1 crore on a 19% rise in total revenue to Rs 1,567.5 crore in Q1 CY2022 over Q1 CY2021. EBIT improved by 52.4% to Rs 260.2 crore in Q1 CY2022 from Rs 170.8 crore in Q1 CY2021. EBIT margin was 16.6% in Q1 CY2022 as against 13% in Q1 CY2021

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