Shares trade with minor gains amid heightened volatility; HDFC trio drag

19 Apr 2022 , 01:26 PM

The domestic equity barometers traded with minor gains in afternoon trade. The Nifty managed to hold above the 17,200 mark. Oil & gas, PSU banks, metals and consumer durable stocks advanced.

At 13:22 IST, the barometer index, S&P BSE Sensex was up 122.14 points or 0.21% to 57,288.88. The Nifty 50 index gained 50.50 points or 0.29% to 17,224.15.

Meanwhile, the NSE India VIX, a gauge of the markets expectation of volatility over the near term, tumbled 4.49% to 18.47.

Apollo Hospitals Enterprise (up 5.80%), Reliance Industries (up 4.37%), BPCL (up 3.11%), ICICI Bank (up 2.34%) and ONGC (up 2.19%) were the top Nifty gainers.

HDFC (down 4.59%), HDFC Bank (down 2.63%), HDFC Life (down 2.40%), Infosys (down 1.44%) and SBI Life (down 1.35%) were the top Nifty losers.

The broader market outperformed the main indices. The S&P BSE Mid-Cap index rose 0.67% and the S&P BSE Small-Cap index added 0.76%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,084 shares rose while 1,250 shares fell. A total of 122 shares were unchanged.

Economy:

The debt piled on by the private sector during the COVID-19 pandemic could lower growth for emerging markets by 1.3% over three years, the International Monetary Fund (IMF) has warned. For developed nations, the hit to growth is seen marginally lower at 0.9% over the same period, the IMF said in a chapter of its World Economic Outlook report released on 18 April 2022.

The surge in global private debt in 2020 – 13% of GDP – was widespread, faster than during the global financial crisis and almost as large as the rise in public debt, the IMF said in the report.

Indian private sector has to drive the carbon transition efforts as the countrys significant economic development needs will constrain the governments ability to extend sufficient financial support, said Moodys Investors Service. According to Moodys, many large corporations have launched a wide range of emission targets through 2050.

Indias (Baa3 stable) 2070 net-zero target and intermediate goals through 2030 present significant policy implementation challenges for the government, carving a more central role for private companies and investors to drive the transition, according to a new report by Moodys.

Stocks in Spotlight:

Coal India (CIL) surged 6.39% to Rs 201.50 after the company said that, amid rising demand, it has raised the supplies to thermal power stations by 14.2% during the first half of April 2022 as compared to same period last April. CILs supplies have hit 1.64 million tonnes (MTs) per day during this period against 1.43 MTs supplied in the similar period during April 2021.

Aurionpro Solutions jumped 7.09% to Rs 364.10. One of the largest public sector banks in India has selected Aurionpro for the supply, implementation, maintenance & support of the integrated transaction banking solution. The project is valued at nearly Rs 18 crore and will be implemented within this year followed by the maintenance & support for a five-year period.

Ajmera Realty & Infra India added 0.74% to Rs 385.60 after the company said it targets sales value realization of Rs 5000 crore in the next three-five years. It has announced plans to launch six projects during the FY 2023 & FY 2024 itself, which has a revenue potential of about Rs 4,000 crore. The developer will be launching 5 new projects in Mumbai and 1 new project in Pune.

Global Markets:

European stocks were lower on Tuesday, with investors attention focused on the latest developments in the war between Russia and Ukraine.

Global investors are watching Ukraine closely after the countrys military reportedly said on Monday that a long-expected offensive push into the Donbas region in eastern Ukraine has started, with intensified assaults Monday in the Slobozhansky and Donetsk operational districts in the north and east of the country.

With the conflict showing no signs of ending soon, the World Bank has lowered its global growth forecast for 2022 by nearly a full percentage point, from 4.1% to 3.2%, citing the pressure that Russias invasion of Ukraine has placed on the global economy.

Asian markets were trading mixed on Tuesday, as investors watched for market reaction to Chinas central bank announcing financial support for COVID-hit sectors.

On Monday, the Peoples Bank of China announced it will increase financial support for industries, businesses and people affected by COVID-19.

Wall Street ended the day lower in a choppy trading day on Monday, while US Treasury yields jumped as investors juggled strong earnings with what Russias invasion of Ukraine could mean for global growth.

The World Bank lowered its annual global growth forecast for 2022 on Monday by nearly a full percentage point, down from 4.1% to 3.2%, citing the impact that Russias invasion of Ukraine is having on the world economy.

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