Nifty above 16,000 level; broader market rallies

The key equity benchmarks traded with strong gains in early trade, tracking positive global cues. The Nifty traded a tad above the 16,000 level. All the sectoral indices on the NSE traded in the green.

At 09:27 IST, the barometer index, S&P BSE Sensex was up 589.69 points or 1.11% to 53,520. The Nifty 50 index rose 198.05 points or 1.25% to 16,006.05.

The broader market outperformed the main stock indices. The S&P BSE Mid-Cap index gained 1.90% while the S&P BSE Small-Cap index added 1.89%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,033 shares rose while 429 shares fell. A total of 74 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,255.75 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,815.64 crore in the Indian equity market on 12 May 2022, provisional data showed.

Economy:

India's retail inflation, which is measured by the Consumer Price Index (CPI), rose to 7.79% in the month of April 2022. The retail inflation for the month of March was 6.95%. This is the fourth consecutive month that the CPI data has breached the Reserve Bank of India's (RBI) upper margin of 6%. RBI aims to achieve the medium-term target for CPI inflation of 4% within a band of +/- 2%, while supporting growth.

India's factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 1.9% in March 2022. Industrial production grew 1.7% in February 2022. The IIP soared 24.2% in March 2021, the data showed. The manufacturing sector's output grew 0.9% in March 2022. Mining output rose 4% and power generation increased 6.1%.

Stocks in Spotlight:

Larsen & Toubro (L&T) fell 1.14%. The engineering and construction major's consolidated net profit rose 10% to Rs 3620.69 crore on 9.9% increase in revenues to Rs 52850.67 crore in Q4 March 2022 over Q4 March 2021.

Tata Motors jumped 6.41%. The auto major reported a consolidated net loss of Rs 1,032.84 crore in Q4 FY22 as against a net loss of Rs 7,605.40 crore in Q4 FY21. Revenue from operations declined by 11.5% YoY to Rs 78,439 crore during the quarter.

Sun Pharmaceutical Industries advanced 2.79%. The drug major has received final approval from USFDA for its Abbreviated New Drug Application (ANDA) for generic Mesalamine extended release capsules, 500 mg. The generic product approval is based on Pentasa Extended Release Capsules, 500mg as a reference product. As per March 2022 IQVIA Health data, Pentasa extended release capsules, 500mg had annualized sales of approximately $213 million in USA.

Zydus Lifesciences added 1.92%. The global lifesciences company announces the launch of Bemdac (Bempedoic acid), a new class of drug for the first time in India. The oral drug ushers in a new line of treatment for patients suffering from uncontrolled levels of LDL-Cholesterol (LDL-c) despite life-style modifications and the use of maximum tolerated dose of statins, which form the cornerstone of dyslipidemia management.

Global Markets:

The US Dow Jones index futures were up 176 points, indicating a strong opening in the US stocks on Friday.

Asian shares edged higher on Friday after a late recovery helped US stocks cut losses overnight.

In the US, the S&P 500 and the Dow Jones bounced off the day's low to end slightly lower, but the Nasdaq eked out a modest gain on Thursday. Investors weighed signs of peaking inflation with fears that it could remain elevated. All three major U.S. stock indexes seesawed and the S&P 500 came within striking distance of confirming it entered a bear market.

The latest US data showed producer prices jumped 11% from April last year, signaling that consumer inflation could continue to stay high.

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