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Sensex up 104 pts, breadth remains weak

Published on May 24, 2022 12:31

The domestic equity benchmarks traded with minor gains in early afternoon trade. The Nifty was trading above the 16,200 level. Shares of financial services, banks and autos advanced while media, IT and pharma stocks declined.

At 12:27 IST, the barometer index, the S&P BSE Sensex, was up 104.33 points or 0.19% to 54,392.94. The Nifty 50 index added 3.90 points or 0.02% to 16,218.60.

The broader market was trading lower. The S&P BSE Mid-Cap index fell 0.54% while the S&P BSE Small-Cap index declined 0.36%.

The market breadth remained weak. On the BSE, 1,193 shares rose and 1,959 shares fell. A total of 143 shares were unchanged.

Investors continued to assess the global macroeconomic outlook as they await the minutes from the last U.S. Federal Reserve meeting, due on Wednesday, which could give clues on whether the monetary tightening would continue.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 7.28% to 25.1025. The Nifty 26 May 2022 futures were trading at 16,160 at a discount of 58.6 points as compared with the spot at 16,218.60.

The Nifty option chain for the 26 May 2022 expiry showed maximum Call OI of 105.3 lakh contracts at the 17,000 strike price. Maximum Put OI of 96.9 lakh contracts was seen at 16,000 strike price.

IPO Updates:

The initial public offer (IPO) of eMudhra received bids for 1,34,69,688 shares as against 1,13,64,784 shares on offer, according to stock exchange data at 12:12 IST on Tuesday (24 May 2022). The issue was subscribed 1.19 times.

The issue opened for bidding on Friday (20 May 2022) and it will close on Tuesday (24 May 2022). The price band of the IPO is fixed at Rs 243-256 per share. An investor can bid for a minimum of 58 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Media index fell 1.27% to 1,972.95 . The index declined 2.24% in the past two sessions.

PVR (down 3.5%), Inox Leisure (down 3.41%), Hathway Cable & Datacom (down 1.39%), Dish TV India (down 0.74%) and Sun TV Network (down 0.39%) were major losers.

Saregama India (down 0.13%), Nazara Technologies (down 0.07%), Network 18 Media & Investments (down 0.06%) also declined.

On the other hand, Zee Entertainment Enterprises (up 0.23%) ,TV18 Broadcast (up 0.12%) advanced.

Stocks in Spotlight:

Birlasoft trading marginally lower after the company reported 2.8% increase in revenue from operations to Rs 1,101.4 in Q4 FY22 over Q3 FY22. As compared Q4 FY21, the company`s net profit and revenue jumped 34% and 22%, respectively. EBITDA in Q4 FY22 stood at Rs 174.5 crore, rising 7.2% quarter on quarter and up 14.5% year on year. EBITDA margin improved 66 basis points sequentially to 15.8% from 15.2% reported in Q3 FY22. ON the other hand, margin declined 103 basis points year on year from 16.9% reported in Q4 FY21.

Maruti Suzuki Inida fell 0.71%. The automobile major after market hours on Monday announced that it will acquire an equity stake of 12.09% in Sociograph Solutions (SSPL) for a cash consideration of Rs 1.99 crore. Explaining the investment rationale, Maruti Suzuki said, �The investment would help to strengthen its offering to customers by creating customized sales experiences on the web, virtual reality and augmented reality.� The aggregate cost of acquisition is Rs 1,99,90,742 for acquiring 12.09% stake in SSPL. The indicative time period for completion of the acquisition is June 2022.

Alembic Pharmaceuticals advanced 1.50% after the company announced that it has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for pirfenidone tablets. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD) Esbriet Tablets, of Genentech, Inc. (Genentech). Pirfenidone is used to treat a certain lung disease called idiopathic pulmonary fibrosis (IPF). The disease causes the lungs to get scarred and become stiff, making it hard to breathe. Alembic has a cumulative total of 167 ANDA approvals (144 final approvals and 23 tentative approvals) from USFDA.

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