The benchmark indices ended with modest losses on Tuesday, snapping a three-day rising streak. Realty, media and metal shares advanced while PSU banks, financial services and oil & gas shares corrected. The Nifty 50 index hit a low of 16,521.90 in early trade. After hovering near the flat line for most part of the session, the index declined sharply in the final hour of the trade.
As per provisional closing data, the barometer index, the S&P BSE Sensex, down 359.33 points or 0.64% to 55,566.41. The Nifty 50 index fell 76.85 points or 0.46% to 16,584.55. The 50-unit index climbed 3.97% in the past three days.
The broader market ended with gains. The S&P BSE Mid-Cap index gained 0.49% while the S&P BSE Small-Cap index added 0.68%.
The market breadth was positive. On the BSE 1,766 shares rose while 1,583 shares fell. A total of 128 shares were unchanged.
Buzzing Index:
The Nifty Oil & Gas index fell 1.01% to 7,806.30. The index saw profit booking after rising 2.6% in previous trading session.
Among the components of the Nifty Oil & Gas index, Adani Total Gas (down 7.2%), Gujarat State Petronet (down 2.25%), Hindustan Petroleum Corporation (down 1.4%), Bharat Petroleum Corporation (down 1.18%) and Reliance Industries (down 0.41%) and Indian Oil Corporation (down 0.04%) edged lower
On the other hand, Oil India (up 6.14%) ,Oil & Natural Gas Corpn (up 4.48%) and Aegis Logistics (up 4.05%) advanced.
In the commodities market, Brent crude for July 2022 settlement was up $4.40 or 3.68% at $123.83 a barrel.
Oil prices rose after European Union leaders agreed on fresh sanctions against Russia for its invasion of Ukraine. The agreement would effectively cut around 90% of oil imports from Russia to the EU by the end of the year, European Commission President Ursula von der Leyen said in a tweet.
Stocks in Spotlight:
Life Insurance Corporation of India ("LIC") slipped 3.05%. For the year ended 31 March 2022, LIC registered an increase of 6.1% in the net premium income at Rs 4,27,419 crore as compared to Rs 4,02,844 crore in the year ended 31 March 2021. Profit after Tax (PAT) for the full year ended 31 March 2022 was Rs 4,043.12 crore as against Rs 2,900.57 crore for the year ended 31 March 2021, thereby registering an increase of 39.39%.
Indian Railway Catering and Tourism Corporation (IRCTC) fell 0.27%. 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 shed 3.11% 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.
Jindal Steel & Power (JSPL) fell 2.38% after the company reported 65% decline in standalone net profit to Rs 1,198 crore despite a 33% rise in gross revenue to Rs 15,609 crore in Q4 FY22 over Q4 FY21. The fall in profitability was due to a write-off taken for mining investment and assets (Rs 192 crore) and expenses related to water charges for prior year; and relinquishment of long term power agreement, partially offset by a 9% sequential fall in interest expense.
Aurobindo Pharma rose 0.88%. The drug maker reported a 28% decline in its consolidated net profit at Rs 576.14 crore in Q4 March 2022. Net sales declined 3.28% YoY to Rs 5,795.34 crore during the quarter.
Trident fell 0.52% after the company reported a 137.1% jump in consolidated net profit to Rs 181.25 crore on a 39% rise in revenue from operations to Rs 1,869.85 crore in Q4 FY22 over Q4 FY21. Consolidated profit before tax jumped 150.8% on a year on year basis to Rs 244.26 crore in Q4 FY22. The company's operating margin stood at 21.67% in quarter ended March 2022 as compared to 20.7% as of March 2021.
Campus Activewear rose 1.78% after the company's consolidated net profit surged to Rs 39.61 crore in Q4 FY22 from Rs 10.02 crore in Q4 FY21. The company had incurred a one-time deferred tax charge of Rs 24.71 crore in FY21 due to amendment of Finance Act, 2021, where goodwill was considered as a non-tax-deductible asset resulting in de-recognition of DTA on goodwill. Revenue from operations increased by 28.1% YoY to Rs 352.34 crore.
Global Markets:
The Dow Jones futures were down 210 points, indicating a negative opening in the US stock market today.
Most European indices declined on Tuesday as hot German inflation reading reignited concerns about the pace of monetary tightening from central banks.
Data showed that the German EU-harmonized inflation came in at an annual 8.7% in May, marking a sharp increase from the 7.8% seen in April. French inflation also surpassed expectations in May to a record of 5.8%, up from 5.4% in April, preliminary data showed on Tuesday.
Meanwhile, Asian shares ended mixed on Tuesday as investors reacted to the official Chinese factory activity data for May.
China's official manufacturing Purchasing Managers' Index for May came in at 49.6, an improvement over April's reading of 47.4, but still below the 50-point mark that separates growth from contraction.
Japan's factories posted a sharp fall in output in April as China's COVID-19 lockdowns and wider supply disruptions took a heavy toll on manufacturers. Factory output dropped 1.3% in April from the previous month, official data showed on Tuesday. Separate data showed retail sales grew 2.9% in April from a year earlier, marking their sharpest gain since May 2021.
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