Benchmarks off the day's low; bank stocks decline for 2nd day

The domestic equity barometers managed to pare some losses and came off the day's low in mid-morning trade. The Nifty was trading above the 17,500 mark. Banks stocks extended their decline for second consecutive session.

At 11:27 IST, the S&P BSE Sensex was down 489.27 points or 0.83% to 58,475.30. The Nifty 50 index lost 169.80 points or 0.96% to 17,505.15.

In the broader market, the S&P BSE Mid-Cap index fell 1.27% while the S&P BSE Small-Cap index declined 1.26%.

The market breadth was weak. On the BSE, shares 979 rose and 2,295 shares fell. A total of 100 shares were unchanged

Heating global inflation, tightening monetary policies and COVID-induced lockdowns in China weighed on investors' sentiment.

Buzzing Index:

The Nifty Bank index shed 0.56% to 37,402.05. The index has lost 0.93% in the two sessions.

IDFC First Bank (down 2.12%), Punjab National Bank (down 2%), Federal Bank (down 1.70%), SBI (down 1.27%), ICICI Bank (down 0.84%), and Axis Bank (down 0.73%) declined.

Stocks in Spotlight:

Alembic Pharmaceuticals fell 1.20% to Rs 766.65. The company said that Aleor Dermaceuticals, its wholly-owned subsidiary, has received final approval from the USFDA for lidocaine and prilocaine cream. According to IQVIA, lidocaine and prilocaine cream has an estimated market size of $29 million for twelve months ending December 2021.

Sunteck Realty added 0.48% to Rs 480. The realtor's pre-sales jumped 36% YoY to Rs 503 crore in Q4 FY22. Collections stood at Rs 404 crore in Q4 FY22, up 26% YoY.

Global Markets:

Asian stocks are trading lower on Tuesday, as investors continue monitoring developments surrounding the COVID situation in mainland China.

The major Chinese city of Shanghai has accounted for most of mainland China's new COVID cases and was in lockdown about a week after a two-part shutdown was originally supposed to end.

The World Health Organization said Monday it is monitoring the COVID situation in mainland China, where officials have been battling a major surge in cases.

US stocks fell Monday as investors grew increasingly concerned a three-year high in the benchmark U.S. interest rate would start to slow the economy.

U.S. inflation data is also expected to be out later Tuesday stateside and could provide more clues on the outlook for Federal Reserve policy.

Oil prices dropped on Monday amid fears that COVID lockdowns in China would depress global demand. International benchmark Brent crude declined 4.18% to settle at $98.48 per barrel.

Powered by Capital Market - Live News