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Sensex slides 483 pts, Nifty ends below 17,700; IT stocks drag

Published on Apr 11, 2022 17:15

The domestic equity benchmarks ended with modest losses on Monday, tracking weak global stocks. Investors booked profits ahead of European Central Bank (ECB) meeting on Thursday, and the release of US inflation data on Tuesday. Traders were also nervous as the Q4 result season kicked off in India. The Nifty closed below the 17,700 mark after hitting the day`s high of 17,779.05 in afternoon trade. IT stocks dragged while energy and realty stocks rallied.

The S&P BSE Sensex shed 482.61 points or 0.81% at 58,964.57. The Nifty 50 index fell 109.40 points or 0.62% at 17,674.95.

The broader indices ended with gains. The BSE Mid-Cap index rose 0.41% and the BSE Small-Cap index gained 0.38%.

The market breadth was positive. On the BSE, shares 2,099 rose and 1,456 shares fell. A total of 130 shares were unchanged.

Adani Green Energy (up 16.25%), Shree Renuka Sugars (up 14.67%), Godfrey Phillips India (up 13.64%), Gujarat Ambuja Exports (up 12.23%) and Neuland Laboratories (up 9.94%) were some of the prominent gainers today.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 7.149% as compared with 7.119% at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 75.93, compared with its close of 75.9350 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.76% to Rs 52,465.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.01% to 99.79.

In the commodities market, Brent crude for June 2022 settlement fell $2.47 at $100.31 a barrel. The contract rose $2.20 or 2.19% to settle at $102.78 a barrel during the previous trading session.

Foreign Markets:

Shares in Europe and Asia declined on Monday. European Central Bank policymakers will meet in Frankfurt on Thursday to discuss their next monetary policy move, faced with the tough task of weighing surging consumer prices against downward pressure on economic growth from the war in Ukraine.

Meanwhile, China`s producer inflation for March was higher than expected. The producer price index surged 8.3% as compared with a year ago, official data showed Monday. Chinese consumer inflation also rose more than expected in March, with the consumer price index climbing 1.5% year on year.

Buzzing Segment:

The Nifty IT index fell 1.41% to 34,895.90. The index has fallen 4.31% in four straight sessions.

L&T Technology Services (down 3.91%), HCL Technologies (down 2.65%), Infosys (down 2.47%), MindTree (down 2.17%) and Wipro (down 2.09%) declined.

Sector bellwether TCS rose 0.26% ahead of its Q4 results today.

Stocks in Spotlight:

Sandur Manganese & Iron Ores hit an upper circuit limit of 20% at Rs 4522.80 after the company said its board has approved a rights issue of equity shares. The board of Sandur Manganese & Iron Ores has approved issuing upto 1,80,03,882 equity shares of face value Rs 10 each under the proposed rights issue. The entitlement ratio is set at 2:1 (two rights equity shares for each equity share held).

Further, the board approved a proposal for entering into power purchase agreement and share subscription and shareholding agreement with Renew Green Energy Solutions for supply of solar and wind power to the company and its associates.

The company also said that it will enhance capacity at the Karnataka plant with an estimated investment of Rs 900-950 crore. This capacity and product addition will help to cater growing demands for the product and meets company`s internal consumption requirements as well, it added.

Ruchi Soya Industries fell 0.74%. The stock surged as much as 8% in intraday trade after the board of Ruchi Soya Industries at its meeting held on 10 April 2022, approved evaluating the most efficient mode of enhancing synergies with the Patanjali Ayurved food portfolio in any manner on an arm`s length basis. The board also decided to change the company`s name to Patanjali Foods or any other name as may be made available by Registrar of Companies, Maharashtra, Mumbai, subject to all other applicable approval.

Suryoday Small Finance Bank surged 10.93% after the company`s gross advances jumped 21% year-on-year and 4% quarter-on-quarter to Rs 5,072 crore in Q4 March 2022. Disbursements for the January-March 2022 quarter fell 7% YoY and 13% QoQ to Rs 980 crore. Total deposits jumped 18% YoY and 21% QoQ to Rs 3,850 crore last quarter.

Hindustan Aeronautics (HAL) advanced 3.68% while L&T slipped 2.72%. HAL and L&T consortium has emerged as lowest bidder to make 5 Polar Space Launch Vehicles (PSLVs) for ISRO. HAL is the lead partner with L&T sharing the work. Other vendors too will be involved with the consortium in the manufacturing of the launch vehicles. However, the contract is yet to be formalised/ awarded.

Axis Bank fell 1.2%. The bank said that its board is scheduled to meet on Thursday, 28 April 2022, to consider raising funds by issue of debt Instruments, including but not limited to bonds and non-convertible debentures.

SMS Lifesciences jumped 11.03%. The company on Friday announced that its manufacturing facility located at Sangareddy district in Telangana completed USFDA without any observations.

New Listing:

Shares of Veranda Learning Solutions closed at Rs 160.40 on the BSE, at a premium of 17.08% compared with the issue price of Rs 137.

The scrip was listed at Rs 157, representing a premium of 14.60% to the initial public offer (IPO) price. The scrip has hit a high of Rs 164.85 and a low of Rs 149.15. Over 22.89 lakh shares of the company have changed hands in the counter.

The IPO of Veranda Learning Solutions was subscribed 3.53 times. The issue opened for bidding on 29 March 2022 and it closed on 31 March 2022. The price band of the IPO was fixed at Rs 130-137 per share.

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