Markets halt gaining spree as BFSI stocks weigh; Sensex falls 500 pts; HCL Tech, RIL in focus

22 Apr 2022 , 09:32 AM

Indian markets halted their gaining spree and were trading on a bearish note during Friday’s session weighed down by heavyweights banking and financial stocks. Also, a selloff in other Asian counterparts on broader term played a role. The stock markets reacted negatively after Federal Reserve Chair Jerome Powell reinforced expectations of sharp rate hike next month.

Meanwhile, the consistent sea saw battle arising on US Yield bonds and brent crude price also hindered investors appetite for stocks. On  Thursday, bond yields closed close to 2.96% which is a level last seen in 2018. However, oil prices heads to 4% weekly decline on demand concerns, weaker global cues.

Corporate earnings of heavyweights which had been one of the factors in lifting Sensex and Nifty earlier this week, failed to lift the benchmarks today.

At around 09:35 AM, Sensex is trading at 57,370.23 down by 541.45 points or 0.93%. Nifty 50 trades at 17,220 lower by 172.60 points or 0.99%.

Gainers on Nifty 50 were – HCL Tech (+3%), ONGC (+0.7%) and Adani Ports (+0.6%). Other stocks like Power Grid and Bharti Airtel jumped marginally.

Underperforming stocks on Nifty 50 were – Hindalco (-3.5%), M&M and Eicher Motors (-2.3%) followed by HDFC Life, Dr Reddy’s and Tata Consumers plunging more than 2% each.

Index heavyweight Reliance Industries is in focus as it clocked new record high on Thursday and market cap hit $247 billion so far. Also, HCL Tech zooms 3% as the IT giant delivered strong set of numbers where its Q4 profit zooms 226% yoy to Rs3,593 crore.

The companies that are set to announce their Q4 result today are – Aditya Birla Money, Hindustan Zinc, Sundram Fasteners, Tata Metaliks, Tejas Networks, MMTC, Wendt (India), Bhakti Gems and Jewellery, Eiko Lifesciences, Jhandewalas Foods, Khaitan Chemicals & Fertilizers, Quest Capital Markets, RS Software India, and Sharad Fibres & Yarn Processors.

In terms of sectoral indices, Bank Nifty shed over 420 points or 1.1%. Nifty Finance Services also tumbled by 1.17% followed by all other indices trading in the red.