Barometers trim losses; broader market outperforms

The domestic equity barometers came off initial lows and traded with minor cuts in the morning trade. The Nifty was hovering above 16,590 mark, bouncing off early low of 16,521.90. Auto stocks advanced for the fourth consecutive trading session. Traders locked profits after shares rallied in the past three consecutive sessions.

At 10:24 IST, the barometer index, S&P BSE Sensex was down 309.08 points or 0.55% to 55,616.66. The Nifty 50 index fell 69.30 points or 0.42% to 16,592.10.

The broader market outperforms the frontline indices. The S&P BSE Mid-Cap index rose 0.58% while the S&P BSE Small-Cap index added 0.88%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,804 shares rose while 1,186 shares fell. A total of 123 shares were unchanged.

The government will announce data of first quarter gross domestic product (GDP) on 31 May 2022.

Buzzing Index:

The Nifty Auto index rose 1.18% to 11,627.50. The index jumped 5.59% in four trading sessions.

Among the components of the Nifty Auto index, Bharat Forge (up 3.65%), Bajaj Auto (up 1.88%), Balkrishna Industries (up 1.23%) and Tata Motors (up 1.2%) were the top gainers.

Among the other gainers were Bosch (up 1.13%), TVS Motor Company (up 0.8%), MRF (up 0.57%), Hero MotoCorp (up 0.43%) and Eicher Motors (up 0.43%).

On the other hand, Escorts (down 0.85%) and Sona BLW Precision Forgings (down 0.09%), edged lower.

Mahindra & Mahindra (M&M) rose 3.38%. Following the sale, M&M holding in TVS Automobile Solutions (TASL) will become NIL. M&M on Monday (30 May) announced that it will sell all of its 2.76% stake in TASL. Consideration received from such sale/disposal would be Rs 45 crore, M&M added. Currently, M&M holds 3,32,195 equity shares of Rs 10 each and 100 compulsorily convertible preference shares of Rs 10 each in TASL.

Stocks in Spotlight:

Life Insurance Corporation of India (LIC) shed 2.05% after the state-run life insurer recorded 18% YoY fall in standalone net profit to Rs 2,372 crore in Q4 FY22. The corporation reported a net profit of Rs 2,893 crore in the same period last year. Benefits Paid (net) during the period under review increased by 19% to Rs 1,21,949 crore as compared with the same period last year. During the quarter ended on 31 March 2022, the corporation wrote-back doubtful debts provisions aggregating to Rs 1,085 crore. It had made a provision of Rs 9,382 for doubtful debts in Q4 FY21. Net premium income increased 18% to Rs 1,43,746 crore in the fourth quarter from Rs 121,626 crore in the same period last year. Income from investments remained flat at Rs 67,498 crore.

Indian Railway Catering and Tourism Corporation (IRCTC) fell 0.58%. The e-ticket booking platform for Indian Railways posted 105.97% surge in net profit to Rs 213.78 crore on 103.95% increase in net sales to Rs 690.96 crore in Q4 March 2022 over Q4 March 2021.

Sun Pharmaceutical Industries slipped 3.16% after the drug maker reported a consolidated net loss of Rs 2,277.25 crore in Q4 FY22 as against a net profit of Rs 894.15 crore in Q4 FY21. Adjusted net profit for the quarter was at Rs 1582.10 crore, up by 18% YoY, after excluding the exceptional items of Rs 3935.70 crore and exceptional tax gain of Rs 76.40 crore. Further, Dilip Shanghvi has been re-appointed as the managing director for a further term of 5 years with effect from 1 April 2023 up to 31 March 2028.

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