The domestic equity benchmarks sharply reversed early gains and settled with small losses on Friday. After hitting the day's high of 16,793.85 in early trade, the Nifty 50 index moved lower as the session progressed and turned negative in late trade. The market witnessed steep selling in the final hour of the trade. Cement stocks crashed as UltraTech's capex plan sparked competition fear. Autos, metals and banks shares tumbled. However, IT and oil & gas shares bucked the trend.
As per provisional closing data, the barometer index, the S&P BSE Sensex, fell 48.88 points or 0.09% to 55,769.23. The Nifty 50 index slipped 43.70 points or 0.26% to 16,584.30.
The broader indices slumped. The S&P BSE Mid-Cap index fell 1.45% while the S&P BSE Small-Cap index declined 1.16%.
Sellers outnumbered buyers. On the BSE 1,374 shares rose while 1,957 shares fell. A total of 135 shares were unchanged.
COVID-19 Update:
India's active caseload currently stands at 21,177. In the last 24 hours, 4,041 new cases and 2,363 recoveries have been recorded. The daily positivity rate is 0.95%. The recovery rate currently is at 98.74%. Under Nationwide Vaccination Drive, 193.83 cr vaccine doses have been administered so far.
Economy:
The seasonally adjusted S&P Global India Services PMI Business Activity Index stood at 58.9 in May, up from 57.9 in April. The latest figure indicated the fastest rate of expansion in over 11 years.
Meanwhile, the S&P Global India Composite PMI Output Index rose to 58.3 in May, from 57.6 in April. The latest figure pointed to the fastest rate of expansion since last November.
India's merchandise exports rose by 15.46% to $37.29 billion in May 2022 on account of healthy performance by sectors like petroleum products, electronic goods and chemicals, even as the trade deficit widened to $23.33 billion during the month. Imports during the month too grew by 56.14% to $60.62 billion. The surge was driven by petroleum and crude oil imports, which increased by 91.6% to $18.14 billion.
The trade deficit, in the same month last year, stood at $6.53 billion. The period was marked by a second COVID-19 wave, which dampened the international trade. According to data released by the Ministry of Commerce and Industry on Thursday, India's merchandise export in April-May 2022-23 was $77.08 billion with an increase of 22.26% over $63.05 billion in April-May 2021-22.
New Listing:
Shares of Aether Industries hit an upper circuit of Rs 776.75 on the BSE, a premium of 20.99% compared with the issue price of Rs 642.
The scrip was listed at Rs 706.15, representing a premium of 9.99% compared with the IPO price.
So far, the scrip hit a low of Rs 699.85. Over 5.69 lakh shares of the company have changed hands in the counter till now.
The IPO of Aether was subscribed 6.26 times. The issue opened for bidding on Tuesday (24 May 2022) and it closed on Thursday (26 May 2022). The price band of the IPO was fixed at Rs 610-642 per share.
Buzzing Index:
The Nifty Metal index fell 1.20% to 5,332.80. The index added 3.57% in past four trading sessions.
Among the components of the Nifty Metal index, Jindal Steel & Power (down 3.74%), Welspun Corp (down 3.6%), Ratnamani Metals & Tubes (down 2.44%), JSW Steel (down 2.27%) and Hindustan Zinc (down 1.9%) were the top losers.
Among the other losers were Vedanta (down 1.63%), Tata Steel (down 1.34%), Steel Authority of India (down 0.98%), Hindalco Industries (down 0.9%) and Adani Enterprises (down 0.9%).
On the other hand, Jindal Stainless (up 0.74%) and APL Apollo Tubes (up 0.17%) edged higher.
Stocks in Spotlight:
Deepak Nitrite slipped 4.02% after the company informed about a fire incident that occurred yesterday (2 June 2022), around warehouse section of its manufacturing site located at Nandesari district in Vadodara, Gujarat. The company said that an emergency response team, with the support of local authorities, brought the fire under control within couple of hours. There has been no casualty and few people are being given first aid treatment.
The company has kept all concerned authorities informed and the plant operations are expected to resume in a day or two upon clearance of damaged warehouse. The cause of fire is being investigated and the company is committed to extend all assistance to the relevant authorities investigating into this matter.
UltraTech Cement fell 5.49%. The cement major's board approved capex of Rs 12,886 crore towards increasing capacity by 22.6 mtpa with a mix of brown field and green field expansion. This will be achieved by setting-up integrated and grinding units as well as bulk terminals. The additional capacity will be created across the country.
G R Infraprojects traded flat after the company's wholly owned subsidiary, GR Madanapalli Pileru Highway, executed concession agreement with National Highways Authority of India (NHAI) for Rs 1,577 crore. The agreement constitutes construction of four lanning of NH-1 from Madanapalli to Pileru and package-1 on hybrid annuity mode (HAM) in Andhra Pradesh under Bharatmala Pariyojna. The completion of the project is expected to be within 730 days from appointed date. The operational period stands for 15 years from commercial operation date.
Adani Ports and Special Economic Zone fell 1.23% after the company said that it had handled a cargo volume of 30.37 MMT in May 2022, implying 4% YoY growth. Total coal volumes increased 6% YoY, on the back of thermal coal growth of 5% and coking coal by 9%. Despite record crude prices, volumes jumped 15% YoY. Key ports reflecting this volume growth are Mundra (7%), Dhamra (35%), Dahej (42%) and Kattupalli & Ennore combined (50%).
Angel One rose 0.49%. The stock broker's client base stood at 10.10 million in May 2022 as against 4.84 million in the month of May 2021, registering a jump of nearly 109% year on year. Sequentially, the company's client base rose by 4.7% month-on-month (MoM) last month from 9.64 million clients in April 2022. Gross client acquisition stood at 0.47 million in May 2022 compared with 0.44 million in April 2022 (up 6%) and 0.43 million in May 2021 (up 10.2%).
Angel's overall average daily turnover (ADTO) was Rs 8,94,200 crore in May 2022 (down 5.7% month on month and up 88.2% year on year). The company's ADTO from the F&O segment stood at Rs 8,72,900 crore, accounting for 97.61% of the overall ADTO during the month. The company's F&O market share stood at 19.9% (down 151 bps month on month and down 388 bps year on year). Retail turnover market share in commodity segment was reported at 45.1% (up 184 bps month on month and up 1,915 bps year on year) in May 2022.
Mahindra & Mahindra Financial Services gained 0.59% after the company recorded disbursement of approximately Rs 2,973 crore in May 2022, delivering a 272% YoY growth. The YTD disbursements at approximately Rs 5,686 crore, registered a YoY growth of 169%. The collection efficiency (CE) was at 95% for May 2022 in comparison to a subdued CE of 67% for May 2021 which was affected due to Covid related lockdowns. The CE is in line with pre-Covid levels. "With momentum in collections witnessed so far, we expect a lower volatility on Stage 3 assets during Q1 FY 2023," Mahindra Financial said in a statement. The company continued to hold adequate liquidity buffer of approximately Rs 8,775 crore as on 31 May 2022 which covers approximately 3 months funds requirement.
Va Tech Wabag rallied 3.04% after the company announced that it secured consortium order for 50 million litres per day (MLD) desalination project in Senegal, worth about 146 million euros. The company secured a consortium design, build, operate (DBO) order, for the 50 MLD (expandable to 100 MLD) Mamelles Sea Water Desalination Project from the National Water Company of Senegal, SociNationale Des Eaux du Sal (SONES). The order is worth 146 million euros.
Global Markets:
The Dow Jones futures were down 73 points, indicating a negative opening in the US stock market today.
European shares were mixed while most Asian shares advanced today, following overnight gains on Wall Street. Markets in mainland China, Hong Kong and Taiwan were closed on Friday for a holiday.
In the US, the three major indices snapped two-day losing streaks. The S&P 500 jumped 1.84% to 4,176.82. The Dow Jones Industrial Average climbed 435.05 points, or 1.33%, to 33,
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