The benchmark indices ended with minor cuts on Tuesday, sliding for the third trading session. Trading was volatile as the Nifty 50 index reversed trend after hitting the day's high of 16,404.55 in early afternoon trade. Small-cap and mid-cap shares witnessed major sell off. Shares of FMCG, private banks, financial service companies bucked the trend. On the flip side, metals, oil & gas and realty shares tanked.

The barometer index, S&P BSE Sensex fell 105.82 points or 0.19% at 54,364.85. The Nifty 50 index lost 61.80 points or 0.38% at 16,240.05. The 50-unit index has fallen 2.65% in three sessions.

The broader market tumbled. The S&P BSE Mid-Cap index slipped 1.98%. The S&P BSE Small-Cap index lost 2.11%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 879 shares rose while 2476 shares fell. A total of 132 shares were unchanged.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper fell to 7.296% as compared with 7.465% at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 77.32, compared with its close of 77.44 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement fell 0.07% to Rs 50,921.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.12% to 103.78.

In the commodities market, Brent crude for July 2022 settlement fell 1.86% at $103.97 a barrel.

Global Markets:

The US Dow Jones index futures were up 235 points, indicating a positive opening in the US stocks today.

European stocks advanced while Asian markets ended mixed on Tuesday as global markets looked to rebound from a broad sell-off in recent days, prompted mainly by concerns over inflation and rising interest rates — and the potential for a global recession. The war in Ukraine remains another source of market tension.

In the US, the S&P 500 ended below 4,000 for the first time since late March 2021 and the Nasdaq dropped more than 4% on Monday in a selloff led by mega-cap growth shares as investors grew more concerned about rising interest rates.

Buzzing Segment:

The Nifty Metal index tumbled 5.2% to 5633.85. The index has dropped 9.08% in three sessions.

Welspun Corp (down 8.37%), Jindal Steel & Power (down 7.34%), Tata Steel (down 7.27%), National Aluminium Company (down 6.84%), Vedanta (down 5.44%), Hindalco Industries (down 4.88%) and Steel Authority of India (down 4.78%) declined.

JSW Steel dropped 5.14%. The steel maker's standalone crude steel production for the month of April 2022 grew 22% year on year to 16.67 lakh tonnes as against 13.71 lakh tonnes in April 2021. While the production of flat rolled products increased by 25% to 12 lakh tonnes, production of long rolled products rose by only 5% to 3.54 lakh tonnes in April 2022 over April 2021.

Stocks in Spotlight:

Asian Paints advanced 2.46%. On a consolidated basis, the paint major's net profit fell 0.20% to Rs 850.42 crore on 18.66% increase in revenue from operations to Rs 7,892.67 crore in Q4 March 2022 over Q4 March 2021. Consolidated sales increase 20.6% to Rs 7,889.94 crore in Q4 March 2022 over Q4 March 2021. Profit before exceptional items and tax increased 12.8% to Rs 1,304.88 crore from Rs 1,156.31 crore. PBDIT [profit before depreciation, interest, tax, other income, and exceptional items] (before share in profit of associates) increased 9.5% to Rs 1,443.29 crore from Rs 1,318.26 crore. PBDIT margin improved from 12.9% in Q2 to 18.3% in Q4.

Sun Pharmaceutical Industries shed 2.74%. The US FDA issued a Form-483 with 10 observations post the conclusion of the inspection of its Halol facility. The Gujarat-based facility of Sun Pharma was inspected by the United States Food and Drug Administration (US FDA) from 26 April to 9 May 2022.

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) jumped 8.08% after the company's standalone net profit rose 108.24% to Rs 643.26 crore on 59.93% jump in net sales to Rs 2771.71 crore in Q4 March 2022 over Q4 March 2021. Profit before tax (PBT) rose 94% year-on-year to Rs 871 crore in Q1 March 2022. EBITDA rose 88% YoY and 31% QoQ to Rs 886 crore in Q4 FY22.

Godrej Agrovet declined 3.82%. The company reported 120.6% YoY rise in consolidated net profit to Rs 139.8 crore in Q4 FY22. The company had recorded a net profit of Rs 63.4 crore in Q4 FY21. Revenues increased by 42.3% to Rs 2,080.8 crore in Q4 FY22 over Q4 FY21. EBITDA improved by 82.1% to Rs 222.4 crore in Q4 FY22 from Rs 122.2 crore in Q4 FY21. EBITDA margin in Q4 FY22 was 10.7% as compared with 8.4% in Q4 FY21. Profit before tax in Q4 FY22 stood at Rs 174.43 crore, up by 122% from Rs 78.57 crore in Q4 FY21. Godrej Agrovet recorded 20.6% rise in consolidated net profit to Rs 419.2 crore on a 32.5% increase in revenues to Rs 8,306.1 crore in FY22 over FY21.

Ajanta Pharma skid 3.96%. The company reported 5% fall in consolidated net profit to Rs 151 crore despite a 15% increase in revenue from operations to Rs 870 crore in Q4 FY22 over Q4 FY21. On the segmental front, revenue from Exports was Rs 616 crore (up 17% YoY) while that from the Domestic business was Rs 245 crore (up 13% YoY) during the quarter. EBITDA declined by 20% to Rs 207 crore in Q4 FY22 from Rs 259 crore in Q4 FY21. EBITDA margin was 24% in Q4 FY22 as against 34% in Q4 FY21.

Vedant Fashions (Manyavar) fell 1.84%. The company reported a consolidated net profit of Rs 88.70 crore in Q4 FY22, up 86.3% compared with a net profit of Rs 47.60 crore in Q4 FY21. Revenue from operations increased by 54.7% YoY to Rs 296.25 crore during the quarter. Profit before tax in Q4 FY22 stood at Rs 119.58 crore, up by 82.2% from Rs 65.64 crore in Q4 FY21.

New Listing:

Shares of Rainbow Childrens Medicare settled at Rs 450.10 on the BSE, at a discount of 16.96% compared with the issue price of Rs 542. The scrip was listed at Rs 506, representing a discount of 6.64% to the initial public offer (IPO) price.

The scrip hit a high of Rs 519.35 and a low of Rs 421. Over 9.19 lakh shares of the company have changed hands in the counter.

The IPO of Rainbow Childrens Medicare was subscribed 12.43 times. The issue opened for bidding on 27 April 2022 and it closed on 29 April 2022. The price band of the IPO was fixed at Rs 516-542 per share.

Prudent Corporate Advisory Services IPO:

The initial public offering (IPO) of insurance behemoth Prudent Corporate Advisory Services received bids for 21.63 lakh shares as against 60.18 lakh shares on offer, according to stock exchange data at 16:48 IST on Tuesday (10 May 2022). The issue was subscribed 36%.

The issue opened on 10 May 2022 and it will close on 12 May 2022. The IPO price band is Rs 595 to Rs 630 per equity share. An investor can bid for a minimum of 23 equity shares and in multiples thereof.

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