Nifty holds 16,100 mark; PSU bank stocks down for eighth day

Benchmark indices traded sideways with major losses in the early afternoon trade. The Nifty traded tad above the 16,100 mark. All sectoral indices on the NSE were trading in the red with PSU Bank and metal shares losing the most.

At 12:24 IST, the barometer index, S&P BSE Sensex declined 455.78 points or 0.84% to 53,909.46. The Nifty 50 index fell 132.9 points or 0.82% to 16,107.20.

The broader market saw more selling pressure than frontline indices. The S&P BSE Mid-Cap index slipped 1.13% while the S&P BSE Small-Cap index slumped 2.56%.

The market breadth was weak. On the BSE, 635 shares rose while 2,614 shares fell. A total of 110 shares were unchanged

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 4.45% to 23.2950. The Nifty 26 May 2022 futures were trading at 16,129.75 at a discount of 1.45 points as compared with the spot at 16,131.20.

The Nifty option chain for the 26 May 2022 expiry showed maximum Call OI of 30.9 lakh contracts at the 17,000 strike price. Maximum Put OI of 44.1 lakh contracts was seen at 16,000 strike price.

Buzzing Index:

The Nifty PSU Bank index fell 1.35% to 2519.45, extending its losing run to eighth trading session. The index has fallen 10.19% in eight trading sessions.

Among the components of the Nifty PSU Bank index, Bank of Maharashtra (down 3.04%), Central Bank of India (down 2.82%), Indian Overseas Bank (down 2.66%), Bank of India (down 2.65%) and Union Bank of India (down 2.08%) were the top losers.

Earnings Impact:

Max Financial Services (MFSL) advanced 4.44% to Rs 732.15 after the company reported an 88.8% rise in consolidated net profit to Rs 117.68 crore despite an 8.2% fall in total income to Rs 8962.31 crore in Q4 FY22 over Q4 FY21. Total expenditure during the quarter declined 9.1% YoY to Rs 8,809.34 crore. Profit before tax was Rs 152.97 crore in Q4 FY22, which is higher by 127.8% compared with Rs 67.15 crore in Q4 FY21.

Vodafone Idea rose 0.23% to Rs 8.76. The telco reported consolidated net loss of Rs 6563.10 crore in Q4 March 2022 as against net loss of Rs 7230.90 crore in Q3 December 2021 and net loss of Rs 7022.80 crore in Q4 March 2021. On a consolidated basis, revenue for the quarter was Rs 10239.50 crore, a QoQ improvement of 5.4% (up 6.6% YoY), aided by tariff hikes taken in November 2021. The average daily revenue for the quarter witnessed a QoQ growth of 7.7%, highest since the merger.

Gujarat Gas jumped 6.03% to Rs 537.15 after the company reported 30.5% jump in standalone net profit to Rs 453.28 crore on a 36% rise in net sales to Rs 4,669.39 crore in Q4 FY22 over Q4 FY21. Profit before tax in Q4 FY22 stood at Rs 586.66 crore, up by 26.2% from Rs 464.89 crore in Q4 FY21.

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