Nifty ends below 17,550; broader market witnesses sharp selloff

12 Apr 2022 , 03:36 PM

The domestic equity barometers ended with significant losses after a weak session on Tuesday. The Nifty traded below the 17,550 mark. Most shares across sectors declined with metals, IT, and oil & gas stocks declining the most.

As per provisional closing data, the S&P BSE Sensex shed 388.20 points or 0.66% to 58,576.37. The Nifty 50 index dropped 144.65 points or 0.82% to 17,530.30.

Heating global inflation, tightening monetary policies, and COVID-induced lockdowns in China weighed on investors sentiment.

In the broader market, the S&P BSE Mid-Cap index fell 1.45% while the S&P BSE Small-Cap index slipped 1.47%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,178 shares rose and 2,243 shares fell. A total of 95 shares were unchanged.

Buzzing Index:

The Nifty IT index fell 1.59% to 34,341.80. The index has declined 5.83% in five sessions.

L&T Technology Services (down 4.40%), MindTree (down 4.17%), Coforge (down 3.76%), Larsen & Toubro Infotech (down 2.59%), Tech Mahindra (down 2.49%), Mphasis (down 2.46%), Wipro (down 2.21%) and Infosys (down 1.52%) declined.

Among mid-cap IT stocks, Birlasoft (down 7.03%), KPIT Technologies (down 4.78%), Cyient (down 3.37%), Persistent Systems (down 2.86%), and Happiest Minds Technologies (down 1.94%) edged lower.

Stocks in Spotlight:

TCS shed 0.23% to Rs 3687.85. The IT majors 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 majors net profit rose 7.35% and net sales rose 15.76% in Q4 FY22.

UltraTech Cement declined 1.56% to Rs 6751. 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 fell 1.29% to Rs 757.35. 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).

Nestle India shed 0.16% to Rs 18393.10. The board of directors declared an interim dividend of Rs 25 per equity share of Rs. 10 each for the year 2022.

G.M. Breweries declined 3.94% to Rs 682. The company reported 11.6% fall in net profit to Rs 40.08 crore despite a 11.2% rise in total revenue from operations to Rs 142.03 crore in Q4 FY22 over Q4 FY21.

Info Edge (India) slipped 2.28% to Rs 4770. The company said that it has invested about Rs 3.70 crore in Terralytics Analysis. It has agreed to acquire 6,650 compulsorily convertible preference shares as part of a larger fundraising exercise by Terralytics. The aggregate shareholding of the company in the said entity would be 20.50% on a fully converted & diluted basis.

Shiva Texyarn jumped 5.70% to Rs 240. The company has received an order from the Government of India, Ministry of Defence for the supply of the NBC HAVERSACK MK-11 (bags for defense personnel) quantity 35,000, and the value of the order is Rs 11.90 crore.

Gufic Biosciences surged 8.55% to Rs 269.05. The company has received permission from Central Licensing Approving Authority for the manufacture, sale, and distribution of Isavuconazonium Sulfate API and the finished formulation of Isavuconazole for injection of 200 mg per vial.

Alembic Pharmaceuticals fell 1.80% to Rs 762. The company said that Aleor Dermaceuticals, its wholly-owned subsidiary, has received final approval from the USFDA for lidocaine and prilocaine cream. According to IQVIA, lidocaine and prilocaine cream has an estimated market size of $29 million for twelve months ending December 2021.

Sunteck Realty shed 0.96% to Rs 473.10. The realtors pre-sales jumped 36% YoY to Rs 503 crore in Q4 FY22. Collections stood at Rs 404 crore in Q4 FY22, up 26% YoY.

Global Markets:

European markets opened lower while Asian stocks were trading with losses 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 Chinas new COVID cases and was in lockdown about a week after a two-part shutdown was originally supposed to end.

After weeks of economic crisis, Sri Lanka on Tuesday announced that it has defaulted on its $51 billion external debt after running out of foreign exchange to import desperately needed goods.

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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