Indian benchmark indices ended lower for the second consecutive session in the volatile trade. At close, the Sensex was down 388.20 points or 0.66% at 58,576.37, and the Nifty was down 144.70 points or 0.82% at 17,530.30. About 1146 shares have advanced, 2193 shares declined, and 90 shares are unchanged.
Axis Bank, Kotak Bank, Maruti Suzuki, Power Grid, SBI Life, and ICICI Bank were the top winners on the benchmark indices, rising upwards of 0.5 per cent each. However, losses in Hindalco, Coal India, Tata Steel, Tata Motors, Grasim, L&T, Bajaj Auto, BPCL, Wipro, Tech M, JSW Steel, UPL, Bharti Airtel, and RIL put a lid on recovery. All these shares skid between 1.8 per cent and 6 per cent.
In the broader markets, the BSE MidCap and SmallCap indices slipped 1.5 per cent each, dragged by JSW Energy, Bajaj Holdings, Godrej Properties, Mindtree, YES Bank, Birlasoft, GSFC, and Neuland Labs.
Sectorally, the Nifty Bank and Private Bank indices advanced 0.4 per cent each while the Nifty Metal index slumped 2.7 per cent.
Shares of Tata Consultancy Services ended mildly lower on the BSE on Tuesday in an otherwise weak market after the information technology (IT) major reported its highest-ever order book and crossed the revenue milestone of Rs 50,000 crore in the last quarter of 2021-22 (Q4FY22). The company also logged highest incremental revenue addition of Rs 350 crore in a year.
Shares of Bandhan Bank hit six-month high of Rs 335 in an otherwise weak market, up 4 per cent on the BSE in Tuesday’s intra-day trade. The stock of the private sector lender rebounded 6 per cent from its intra-day low of Rs 317.40.
Shares of shipbuilding & allied services companies are in focus as they rallied up to 14 per cent on the BSE in Tuesday’s intra-day trade on expectations of strong earnings. These companies are likely to report highest ever turnover for the financial year 2021-22 (FY22).
Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities, said: “Weakness continued for the second straight day taking a weaker global cue from the global market. US 10 year bond yields are hovering around 2.8%, on an expectation of higher inflation in the US market and the hawkish FED stance. As we have seen historically, value themes tend to do better in rising inflation and interest rate scenarios. We could see a good allocation in value-oriented sectors in the next 1-2 years. In Q4FY22, we expect commodities and services which include Banks, Metals, Oil & Gas, and IT to display robust earnings growth on a YoY basis. Keeping the heightened commodity cost pressure and the supply side constraints in view, it is likely to be a challenging quarter for commodity consumers like Automobiles, FMCG, Cement, and Specialty Chemical sectors.”Global Cues
Technology companies led a broad slide for stocks on Wall Street and bond yields rose again Monday as investors look ahead to the upcoming company earnings reporting season and what it will reveal about the impact inflation is having on corporate profits. The S&P 500 fell 1.7 per cent, adding to its recent losses. The Dow Jones Industrial Average fell 1.2 per cent and the tech-heavy Nasdaq slid 2.2 per cent. Both the benchmark S&P 500 and the Nasdaq are coming off their first weekly losses in four weeks.
Hong Kong shares open with modest gains Hong Kong stocks rose at the open on Tuesday, despite a weak lead from Wall Street and with eyes on key US inflation data later in the day.vThe Hang Seng Index was up 0.61 per cent, or 128.34 points, to 21,336.64. The Shanghai Composite Index edged up 0.16 per cent, or 5.09 points, to 3,172.22, while the Shenzhen Composite Index on China’s second exchange was up 0.52 per cent, or 10.45 points, to 2,021.90.
Tokyo shares opened down Tuesday, as Wall Street headed south overnight while players kept their eyes on US inflation data to be released later in the day. The benchmark Nikkei 225 index lost 0.80 per cent, or 214.23 points, to 26,607.29, while the broader Topix index slid 0.45 per cent, or 8.55 points, to 1,880.22. The dollar stood at 125.23 yen, compared with 125.37 yen on Monday in New York.