Sensex tanks over 1,300 points; ITC bucks weak trend

Equity indices further extended losses and hit a fresh intraday low in afternoon trade. The Nifty traded below the 15,850 mark. All the sectoral indices on the NSE were traded in red, with IT, metal, and media stocks falling the most. Global cues were weak amid fears over rampant inflation.

At 13:24 IST, the barometer index, S&P BSE Sensex was down by 1,338.92 points or 2.47% to 52,869.61. The Nifty 50 index lost 408.15 points or 2.51% to 15,832.15.

Selling pressure was broad based. The S&P BSE Mid-Cap index fell 2.59% while the S&P BSE Small-Cap index declined 2.26%.

Sellers outnumbered buyers. On the BSE, 694 shares rose while 2,542 shares fell. A total of 111 shares were unchanged.

IPO Update:

The initial public offer (IPO) of Paradeep Phosphates (PPL) received bids for 22,42,46,050 shares as against 26,86,76,858 shares on offer, according to stock exchange data at 13:15 IST on Thursday (19 May 2022). The issue was subscribed 83%.

The issue opened for bidding on Tuesday (17 May 2022) and it will close on Thursday (19 May 2022). The price band of the IPO is fixed at Rs 39-42 per share. An investor can bid for a minimum of 350 equity shares and in multiples thereof.

The initial public offer (IPO) of ETHOS received bids for 12,48,786 shares as against 39,79,957 shares on offer, according to stock exchange data at 13:15 IST on Thursday (19 May 2022). The issue was subscribed 31%.

The issue opened for bidding on Wednesday (18 May 2022) and it will close on Friday (20 May 2022). The price band of the IPO is fixed at Rs 836-878 per share. An investor can bid for a minimum of 17 equity shares and in multiples thereof.

Gainers & Losers:

In weak trending market ITC (up 2.81%) was the only Nifty 50 gainer. The FMCG company`s standalone net profit rose 11.81% to Rs 4,190.96 crore on 16.49% increase in net revenue to Rs 15,331.48 crore in Q4 March 2022 over Q4 March 2021.EBITDA improved by 16.8% to Rs 5,224 crore in Q4 FY22 from Rs 4,473 crore in Q4 FY21. Profit before tax in the fourth quarter stood at Rs 5,442 crore, up by 12.1% from Rs 4,854 crore reported in the same period last year.

Meanwhile, Wipro (down 5.76%), Infosys (down 5.55%), Tech Mahindra (down 5.49%), HCL Technologies (down 5.1%) and Hindalco Industries (down 4.88%) were top losers in Nifty 50 index.

Earnings Impact:

Pidilite Industries fell 2.69%. The company reported a 17.7% fall in consolidated net profit to Rs 254.35 crore in Q4 FY22 compared with the net profit of Rs 308.89 crore in Q4 FY21. Net sales stood at Rs 2,507.10 crore for the quarter ended 31 March 2022 as against Rs 2,235.52 crore during the same period in the previous year, registering a growth of 12.1%.

Lupin slumped 6.80% after the drug maker reported a consolidated net loss of Rs 518 crore in Q4 FY22 as against a net profit of Rs 460.4 crore in Q4 FY21. Income from operations rose by 2.8% YoY to Rs 3,864.5 crore during the quarter. While the total revenue from formulations was Rs 3,644.2 crore (up 4% YoY), the revenue from API was Rs 220.3 crore (down 13.8% YoY) in Q4 FY22.

Ratnamani Metals & Tubes rose 1.60% after the company reported a 2.01% rise in consolidated net profit to Rs 111.63 crore on a 39.94% rise in net sales to Rs 974.06 crore in Q4 FY22 over Q4 FY21. The company`s board approved issuing one bonus share for two equity shares held (1:2). The board also recommended a dividend of Rs 14 a share for the fiscal year 2022.

Manappuram Finance tumbled 10.90% after the NBFC reported a 44.2% fall in consolidated net profit to Rs 261.10 crore on an 8.5% decline in total income to Rs 1,491.31 crore in Q4 FY22 over Q4 FY21. The NBFC`s revenue declined after its flagship Gold loans business income fell 17.6% to Rs 1109.18 in Q4 FY22 from Rs 1346.48 crore posted in Q4 FY21.

LIC Housing Finance rose 0.42%. The housing finance company reported an 180% rise in net profit to Rs 1118.64 crore in Q4 FY22 from Rs 398.92 crore in Q4 FY21. Revenue from operations grew 7% YoY during the quarter to Rs 5,299.66 crore. Net interest income improved 9% to Rs 1637.49 crore in Q4 FY22 over Q4 FY21.

Granules India slumped 5.74%. The drug maker reported a 13% fall in consolidated net profit to Rs 111 crore in Q4 FY22 from Rs 128 crore posted in Q4 FY21. Consolidated income from operations grew by 29% year on year to Rs 1,030 crore in Q4 FY22 as compared to Rs 799 crore posted in Q4 FY21, across all geographies and segments.

Global Markets:

European stocks opened lower across the board while Asian stocks edged lower on Thursday, mirroring heavy losses on Wall Street overnight, as investors fretted over rising global inflation.

Wall Street ended sharply lower on Wednesday, with Target losing around a quarter of its stock market value and highlighting worries about the US economy after the retailer became the latest victim of surging prices.

US retail giant Target plunged 25% as higher costs and disrupted logistics hit its profit margins. Walmart, the world`s largest bricks-and-mortar retailer, cut its earnings guidance on challenging soaring inflationary trends.

In the U.K., data showed inflation soared to a 40-year high of 9% in April as food and energy prices spiraled.

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