Indices drop in early trade on weak global stocks; breadth negative

The key equity indices dropped in early trade amid selling pressure in index pivotals. Shares across sectors declined with metals, banks and financials declining the most. The fear of the economic and the financial fallout from rising global inflation, tightening monetary policy and COVID induced lockdowns in China weighed on investor sentiment.

At 09:22 IST, the S&P BSE Sensex was down 249.75 points or 0.42% to 58,714.82. The Nifty 50 index lost 87.50 points or 0.50% to 17,587.45.

In the broader market traded, the S&P BSE Mid-Cap index shed 0.63% while the S&P BSE Small-Cap index slipped 0.41%.

The market breadth was negative. On the BSE, shares 1,134 rose and 1,530 shares fell. A total of 97 shares were unchanged

Stocks in Spotlight:

TCS rose 0.18% to Rs 3703.10. The IT major's consolidated net profit rose 1.61% to Rs 9,926 crore on 3.49% increase in net sales to Rs 50,591 crore in Q4 March 2022 (Q4 FY22) over Q3 December 2021 (Q3 FY22). On a year-on-year (YoY) basis, the IT major's net profit rose 7.35% and net sales rose 15.76% in Q4 FY22. The board recommended a final dividend of Rs 22 per share.

UltraTech Cement declined 0.58% to Rs 6817.70. The company participated in the e-auction of Diggaon Limestone Block conducted by the Government of Karnataka and has been declared as the preferred bidder.

JSW Steel shed 0.16% to Rs 766. JSW Utkal Steel (JUSL), a wholly-owned subsidiary of JSW Steel, has received the environmental clearance (EC) for setting up of a greenfield integrated steel plant (ISP) of 13.2 million tonnes per annum (MTPA) crude steel from the Union Ministry of Environment & Forest and Climate Change (MoEF&CC).

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.

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