Indian market indexes failed to retain their early gains as the rally faded in the last leg of trade as traders chose to book profits amid concerns about rising inflation and the potential of additional rate cuts, which will hamper GDP in the future. Markets got off to a good start as attitudes remained bullish in response to the result of the US Fed meeting, which was in line with market expectations.
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The Nifty50 has formed a long negative candle on the daily chart following the previous day’s huge long bear candle, in a sign of lack of strength to sustain the highs, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
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However, it also signals a halt in sharp follow-through weakness after a sharp downside breakout of 16,800, he added.
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The Sensex gained 33.20 points, or 0.06 % to 55,702.23, while the Nifty gained 5.05 points, or 0.03%, to 16,682.65 in the previous session. The Sensex reached highs of 56,566.80 and lows of 55,613.82, respectively. On the index, there were 14 stocks that advanced and 16 stocks that declined. The Nifty traded between 16,651.85 and 16,945.70. On the index, there were 21 stocks that advanced and 29 stocks that declined.
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Broader Indices
The broader indexes finished in the red with the BSE Mid size index falling 0.21%, while the Small-cap index fell 0.32%. The top gaining sectoral indices on the BSE were Power, which gained 1.94%, IT, which gained 1.86%, TECK, which gained 1.81%, Utilities, which gained 1.51%, and Capital Goods, which gained 0.96%, while Realty, which lost 1.57%, Healthcare, which lost 0.56%, FMCG, which lost 0.51%, Energy, which lost 0.43%, and Basic Materials, which lost 0.42%.
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India VIX Index
Nifty or India VIX, a gauge of the market’s expectation of volatility over the near term, fell 7.24% to 20.29 on Thursday.
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SGX Nifty
The trends on SGX Nifty indicate a negative opening for the index in India with an 18-points loss. The Nifty futures were trading at 16,466.50 on the Singaporean Exchange at around 07:00 hours IST.
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Support and Resistance levels
The key support level for the Nifty is placed at 16,574, followed by 16,466. If the index moves up, the key resistance levels to watch out for are 16,868 and 17,054, according to pivot charts.
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The S&P 500 fell 153.30 points, or 3.6%, to 4,146.87.
The Dow Jones Industrial Average fell 1,063.09 points, or 3.1%, to 32,997.97.
The Nasdaq fell 647.16 points, or 5%, to 12,317.69.
The Russell 2000 index of smaller companies fell 78.77 points, or 4%, to 1,871.15.
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Asian Markets
Asian markets finished mixed on Thursday. The Shanghai Composite gained 0.68%, while the Hang Seng led the Nikkei 225 lower. They fell 0.36% and 0.11% respectively.
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European Markets
European markets finished mixed on Thursday. The FTSE 100 gained 0.21%, while the DAX led the CAC 40 lower. They fell 0.49% and 0.43% respectively.
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Major News Headlines
Adani Power Q4 Results: Profit jumps to Rs 4,645 crore, EBIDTA rises 271%
Adani Power reported a multifold jump in consolidated net profit at Rs 4,645.47 crore in the March quarter of the financial year 2021-22 compared with Rs 13 crore in the corresponding quarter of fiscal 2021. The consolidated revenue of the company surged 93% YoY to Rs 13,307.92 crore in the March 2022 quarter from Rs 6,902.01 crore same quarter of the previous financial year. The consolidated net profit for the financial-year 2021-22 jumped to Rs 4,911.58 crore from Rs 1,269.98 crore in 2020-21. In the financial year 2022, total revenue increased to Rs 31,686.47 crore from Rs 28,149.68 crore in fiscal 2020-21. The March 2022 quarter revenues included prior period revenues of Rs 2,946 crore and prior period other income of Rs 1,982 crore. Consolidated EBITDA rose 271% YoY to Rs 7,942 crore in March 2022 quarter from Rs 2,143 crore in the March 2021 quarter. EBITDA stands for earnings before interest, taxes, depreciation, and amortization.
TVS Motor Q4 Results: Net profit falls 14% YoY to Rs 275 crore, revenue rises
TVS Motor Company reported a 14% year-on-year (YoY) decline in consolidated net profit at Rs 275 crore in the March quarter of the financial year 2022 as compared to a profit of Rs 319 crore in the March 2021 quarter. On a sequential basis, the profit declined 5% from Rs 288 crore recorded in the December quarter of fiscal 2022. Revenue from operations for the Chennai-based automobile company rose to Rs 6,585 crore during the March 2022 quarter, as against Rs 6,132 crore in the year-ago period, the company said in a regulatory filing. TVS Motor’s overall two-wheeler and three-wheeler sales, including exports in the March quarter stood at 8.56 lakh units as against 9.27 lakh units recorded in the quarter ended March 2021. For the financial year ended March 31, 2022, the company reported a consolidated net profit of Rs 731 crore, up 20% from Rs 607 crore in the fiscal year 2020-21. The company’s board has declared an interim dividend of Rs 3.75 per share (375%) for the fiscal year 2021-22, amounting to a sum of Rs 178 crore.
LIC IPO to remain open on Saturday, Sunday for retail investors
In an unusual move, Life Insurance Corporation of India’s (LIC) initial public offering (IPO) will remain open for public subscriptions even on Saturday and Sunday, to attract investors for India’s biggest public issue launched on May 4. According to a notification from the National Stock Exchange (NSE), LIC IPO will remain open until May 9, including Saturday, May 7, 2022. On the other hand, the Reserve Bank of India (RBI) has asked all Application Supported by Blocked Account (ASBA) designated bank branches to remain open on Sunday, May 8, 2022, to facilitate bidding for the mega initial public offering of LIC. LIC IPO will remain open for a subscription even on weekends, considering the large amount the government is looking to raise from the market. At the end of day one, the LIC IPO was subscribed 67% or 0.67 times, driven by strong interest from its policyholders, employees and the retail segment. The issue will remain open till May 9.
Explained: Changes in repo rates and their impact on stock market
The Reserve Bank of India (RBI) unexpectedly hiked the key interest rate by 40 basis points on Wednesday to contain inflation, which has stayed persistently over goal in recent months. The announcement caused market indexes to fall substantially, with the BSE Sensex falling more than 1,400 points in intraday trade. Investors’ wealth on the BSE plunged by more than 6.27 lakh crore in a single day, showing that investors were caught off guard by the RBI’s unexpected move. However, the potential of the same was in the cards, but not so soon. Another unexpected issue was the continuation of the accommodative stance. The link between the stock market and interest rates is inverse. When the central bank raises the repo rate, the stock market reacts immediately. This implies that a rise in the repo rate causes companies to scale back on expansion investment, resulting in a drop in growth and an impact on earnings and future cash flows, culminating in a drop in equity prices. Furthermore, the impact of a lower repo rate does not affect all sectors in the same way.
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TANGO COMMOSALES LLP sold 1,43,500 shares in Akash Infra-Projects Limited at Rs 44.62 per share on the NSE.
NIRAJ RAJNIKANT SHAH sold 15,600 shares in Bombay Metrics S C Limited at Rs 510.07 per share on the NSE.
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VISTRA ITCL INDIA LIMITED sold 180,31,074 shares in Future Consumer Limited at Rs 2.85 per share on the NSE.
AXIS INVESTMENTS sold 1,00,000 shares in Jeena Sikho Lifecare Limited at Rs 168.00 per share on the NSE.
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RAJASTHAN GLOBAL SECURITIES PVT LTD sold 3,60,000 shares in Krishna Def and Ald Ind Limited at Rs 83.50 per share on the NSE.
URMILA SHASTRI sold 3,35,000 shares in Vaxtex Cotfab Limited at Rs 29.38 per share on the NSE.
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Foreign institutional investors (FIIs) sold shares worth a net Rs 2,074.74 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 2,229.31 crore in the Indian equity market on May 5, as per provisional data available on the NSE.
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No stock/security has been put under the F&O ban for May 6. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
