Indian equity benchmarks saw a choppy trading session on Tuesday
and settled with losses of around half percent, with Sensex and Nifty slipping
below their crucial 54,550 and 16,150 levels, respectively. Markets made a
positive start but soon lost gains to enter into negative territory, as traders
turned cautious after IVRA Ratings said the economic growth may have slowed to
3.5% in March quarter of 2021-22 from 5.4% in the previous quarter due to the
impact of higher commodity prices on margins, a decline in wheat yields and on
a higher base.
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The agency said the hiccups in the recovery of the
contact-intensive services attributable to the third wave of COVID-19 in the
country may have also affected the economic growth in the quarter.
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The Nifty50 has formed a bearish candle on the daily chart,
suggesting more weakness soon, according to Shrikant Chouhan, Head of Equity
Research (Retail) at Kotak Securities.”As long as the index is below
16,250, a correction wave is likely to continue that may make it retest levels
of 16,000-15,050. On the flip side, after a breakout above 16,250, the index
could move up to the 16,325-16,375 zone,” he said.
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Indian Indices
Sensex fell 236.00 points or 0.43% to 54,052.91 and Nifty was
down by 89.55 points or 0.55% to 16,125.15 in the previous session. Sensex
touched a high and low of 54,524.37 and 53,866.61, respectively. There were 8
stocks advancing against 22 stocks declining on the index. Nifty traded in a
range of 16,414.70 and 16,185.75. There were 14 stocks advancing against 36
stocks declining on the index.
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Broader Indices
The broader indices ended in red with the BSE Midcap index
falling 0.95%, while the Small cap index was down by 1.12%. On the sectoral
front, Bankex up by 0.26% was the only gainer, while IT was down by 1.97%, TECK
down by 1.81%, Utilities down by 1.76%, Power down by 1.70% and FMCG down by
1.47% were the top losing indices on BSE.
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India VIX Index
Nifty or India VIX, a gauge of the market’s expectation of
volatility over the near term, rose 9.56% to 25.54 on Tuesday.
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SGX Nifty
The trends on SGX Nifty indicate a positive opening for the
index in India with a 4-points gain. The Nifty futures were trading at
16,137.20 on the Singaporean Exchange around 06:40 hours IST.
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Support and Resistance levels
The key support level for the Nifty is placed at 16,048,
followed by 15,971. If the index moves up, the key resistance levels to watch
out for are 16,232 and 16,340, according to pivot charts.
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US Markets
The S&P 500 fell 32.27 points, or 0.8%, to 3,941.48.
The Dow Jones Industrial Average rose 48.38 points, or 0.2%, to 31,928.62.
The Nasdaq fell 270.83 points, or 2.3%, to 11,264.45.
The Russell 2000 index of smaller companies fell 27.94 points, or 1.6%, to 1,764.83.
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Asian Markets
Asian markets finished mostly lower on Tuesday. The Nikkei 225
fell 0.94% and the Hang Seng fell 1.75%. The Shanghai Composite fell 2.41%.
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European Markets
European markets were lower on Tuesday, Germany’s DAX was down
by 0.83% while France’s CAC 40 was down by 1.16% and London’s FTSE 100 was down
by 0.39%.
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Major News Headlines
Bank of India Q4 Results: Net profit jumps 142% to Rs 606 crore
Public sector lender Bank of India (BOI) reported a 142.3% rise
in net profit to Rs 606 crore for the March quarter of 2021-22, on improvement
in net interest margins. It had posted a net profit of Rs 250 crore in the
March quarter of 2020-21, the bank said in a statement. The board recommended a
dividend of Rs 2 per equity share (of the face value of Rs 10) for 2021-22
subject to shareholders’ approval.
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The Mumbai-based bank’s net interest income (NII) expanded by
35.77% to Rs 3,986 crore in the March quarter from Rs 2,936 crore in the
year-ago period. On the asset quality front, Gross Non-Performing Assets (NPAs)
declined to 9.98% as of March 31, 2022, from 13.77% in March 2021. Its Net NPA
stood at 2.34% at end of March 2022 down from 3.35% a year ago.
Indian Hotels reappoints Puneet Chhatwal as MD & CEO for 5
years
Tata Group hospitality firm Indian Hotels Company Ltd (IHCL)
said its board has approved the re-appointment of Puneet Chhatwal as Managing
Director and CEO for another term of five years. The board of directors, at its
meeting held on Tuesday, approved Chhatwal’s reappointment for another term
commencing from November 6, 2022, up to November 5, 2027, subject to shareholders’
approval, IHCL said in a regulatory filing. Chhatwal was appointed to the
company’s board on November 6, 2017, it added.
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Grasim Industries Q4 Results: Net profit jumps 56% to Rs 4,070
crore, revenue up 18%
Aditya Birla Group’s flagship firm posted a consolidated net
profit of Rs 3,656 crore for the March quarter of the financial year 2022, up
57% from the year-ago period, on the back of higher revenues and tax write
back. Revenue from operations grew 18% year on year to Rs 28,811 crore from Rs
24,402 crore. Tax write back for the quarter stood at Rs 464 crore against tax
paid of Rs 1,064 crore a year ago.
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Ipca Labs Q4 Results: Net profit declines 19% to Rs 130 crore on
higher expenses
Pharmaceuticals firm Ipca Laboratories Ltd reported a 19%
decline in consolidated net profit at Rs 130.23 crore in the March quarter of
2021-22, on account of higher expenses The company had posted a consolidated
net profit of Rs 161.34 crore in the year-ago period. Consolidated net total
income during the March quarter stood at Rs 1,303.64 crore, up 15% from Rs
1,134.58 crore in the same quarter of the previous financial year.
The company said its board approved merging Tonira Exports Ltd
and Ramdev Chemical Pvt Ltd, wholly-owned subsidiaries with the Company,
subject to necessary approvals.
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Bulk Deal data
CARNEX VINIMAY PRIVATE LIMITED sold 9,15,256 shares in Asian
Granito India Limited at Rs 53.33 per share on the NSE.
RAJASTHAN GLOBAL SECURITIES PVT LTD bought 1,25,010 shares in
Btrfly Gandhi Appl Ltd at Rs 1406.85 per share on the NSE.
VEDA INVESTORS FUND LP bought 783,63,000 shares in GMR
Infrastructure Limited at Rs 36.65 per share on the NSE.
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CD INVESTORS FUND LP bought 336,07,200 shares in GMR
Infrastructure Limited at Rs 36.65 per share as per NSE.
DECCAN VALUE INVESTORS FUND LP bought 588,81,100 shares in GMR
Infrastructure Limited at Rs 36.65 per share as per NSE.
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DII and FII data
Foreign institutional investors (FIIs) sold shares worth a net
Rs 2,393.45 crore, while domestic institutional investors (DIIs) bought shares
worth a net Rs 1,948.49 crore in the Indian equity market on May 24, as per
provisional data available on the NSE.
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NSE F&O Ban
Indiabulls Housing Finance Ltd is under the F&O ban for May
25. 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.
