Share Market News Today | Sensex, Nifty, Share Prices Highlights: Indian benchmark indices extended losses in late noon deals after the RBI Governor Shaktikanta Das in an unscheduled address announced that MPC has raised repo rates by 40 basis points to 4.40%. In a knee-jerk reaction to the rate hike by the central bank, the BSE Sensex plunged over 1,300 points to end at 55,669, and the NSE Nifty50 slipped below 16,700 to settle 300 points or 2.3% lower at 16,677. All the sectoral indices ended in the red with auto, bank, FMCG, power, metal, realty, healthcare, capital goods indices down 1-3 percent. In the broader markets, BSE midcap index shed 2.63% and the smallcap index fell 2.11%. Apollo Hospitals, Adani Ports, Hindalco Industries, Bajaj Finance and Bajaj Finserv were among the top Nifty losers, while gainers were ONGC, Britannia Industries, Power Grid Corporation, NTPC and Kotak Mahindra Bank.
Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Live Updates 4 May 2022
Indian benchmark indices extended losses in late noon deals after the RBI Governor Shaktikanta Das in an unscheduled address announced that MPC has raised repo rates by 40 basis points to 4.40%. In a knee-jerk reaction to the rate hike by the central bank, the BSE Sensex plunged over 1,300 points to end at 55,669, and the NSE Nifty50 slipped below 16,700 to settle 300 points or 2.3% lower at 16,677. All the sectoral indices ended in the red with auto, bank, FMCG, power, metal, realty, healthcare, capital goods indices down 1-3 percent. In the broader markets, BSE midcap index shed 2.63% and the smallcap index fell 2.11%.
As of 15:25 pm, the mega-IPO of Life Insurance Corporation of India had been subscribed 50 per cent, with the policyholder and employee categories seeing highest subscription at 1.69 times and 86%, respectively. The retail quota had received bids for up to 51%. Moreover, the offer period between May 4 and May 9 will be open for bidding on Saturday, May 7, as well.
"RBI has taken a rate hike of 40bps on 4th May 2022. This meeting of MPC is an off-cycle meeting which is done on 2nd May 2022, in which all MPC members have taken a decision for a rate hike. RBI also said that the inflation will rise in April 2022 also. It was not expected by the markets, Indian markets are keeping an eye on the Fed policy but in between RBI has hiked its interest rates by 40 bps to mitigate the inflation rate. Now the Repo rate is 4.40%."
~Yash Gupta- Equity Research Analyst, Angel One
Reserve Bank of India (RBI) Governor Shaktikanta Das announced a 40-basis-point hike in the key lending rate and raised the cash reserve ratio by 50 basis points in an unscheduled announcement. The revised repo rate stands at 4.40% and the CRR is increased to 4.5%.
Bears roared on Dalal Street as benchmark indices fell over 2% in a knee-jerk reaction to RBI's rate hike move. Sensex was trading at 55,655.02, down 1,320.97 points or 2.32%, while Nifty was at 16,669, down 400 points or 2.3%
LIC IPO: 44% issue booked; policyholders portion subscribed 1.50 times, employee 76%, retail investors 47%.
Markets extended losses after RBI Governor Shaktikanta Das announced rate hike. "We must remain in readiness to use policy tools to preserve macro stability and accordingly MPC decided to hold an off-cycle meeting. During the meeting, MPC voted unanimously to increase repo rate by 40 basis points," he said. Indices tanked more than 1.5%, while 10-year government bond yield jumped to 7.41%
Shares of Dixon Technologies slipped 5% to Rs 3,784.65 on the BSE in Wednesday's intra-day trade, falling 14% in the past two trading days, despite the company clarifying that there is no adverse impact on the business of the company due to the Enforcement Directorate's (ED) seizure of assets of Chinese mobile manufacturing company Xiaomi. The stock of the consumer electronics company traded close to its 52-week low of Rs 3,760 touched on August 24, 2021.
BSE Power index fell 1% dragged by Adani Green, Adani Power, Adani Transmission.
Shares of Zomato hit a new low of Rs 64.70, down 7% on the BSE in Wednesday's intra-day trade. The stock traded lower for a fifth straight day and has slipped 19% during the period. In the past one month, it has corrected 25% following reports that the Competition Commission of India (CCI) has ordered a detailed probe against food delivery platforms, Zomato and Swiggy, for alleged unfair business practices with respect to their dealings with restaurant partners.
LIC Policyholders have oversubscribed their portion of the issue.
Domestic benchmark indices have started the month of May on a subdued note, falling on the first trading day and today again trading with losses. This comes after Sensex and Nifty both fell more than 2% each. Dalal Street continues to face the heat owing to rising interest rates and inflationary scenarios along with geopolitical conflicts that have impacted supply chains. Analysts at Axis Securities have picked 7 large-cap stocks amid this, consisting of marquee names such as State Bank of India, ICICI Bank, and Bharti Airtel that they believe have the potential to move higher. The brokerage firm has also reiterated its December 2022 target for Nifty at 20,200.
The Reserve Bank of India said in a tweet Wednesday that the central bank's governor Shaktikanta Das will be giving a statement today at 2 PM. The statement will be telecast live on the central bank's YouTube page. It is not clear what the statement will be about.
LIC IPO has been subscribed 16% so far on day 1. Employee, policyholder categories were subscribed the most. Employee, Policyholder and retail categories were subscribed 36%, 37% and 23%, respectively.
Shares of Titan Company hit an over three-month low of Rs 2,309, down 3% on the BSE in Wednesday’s intra-day trade after the company reported a 7.21% on-year decline in its consolidated net profit at Rs 527 crore in the fourth quarter ended March 2022 (Q4FY22). The stock of the Tata group firm was trading at its lowest level since January 27, 2022. In the past one week, it has underperformed the market by falling 9 per cent as compared to a 0.87% decline in the S&P BSE Sensex.
Adani Enterprises said Wednesday its subsidiary Mumbai International Airport Ltd (MIAL) has raised $ 750 million senior secured private placement notes from global asset manager Apollo Global Management.
The initial public offering of the Life Insurance Corporation of India has commanded a 9% premium over its upper price band in the grey market as the Rs 21,000-crore issue opens for subscription on May 4. In fact, the traded grey market premium has increased from 5%, quoted last week. As per the data by IPO Watch and IPO Wala, LIC traded at a premium of Rs 85 per share in the grey market on Wednesday, against Rs 45 premium last Thursday. This translated into an expected listing premium for LIC around 10 percent over the upper price band. The price band for the offer is Rs 902-949 per share.
"We are facing intermittent technical issues on our trading platforms. We are working to resolve the issue. We regret the inconvenience caused and will share an update as soon as this is resolved," said Kotak Securities.
We believe gold is expected to struggle in the near term because of the rising US dollar. Gold investors need to have patience because we are not going to see a V shaped recovery but very fragile recovery. Momentum for gold has shifted from neutral to bearish because of aggressive Fed stance and next support for Gold in COMEX comes at $1822. Gold needs to breach above $1925 for momentum to shift from bearish to bullish. In MCX, support for gold comes at 50200 and 49600 while resistance is at 52100. Bears have the upper hand and we expect this week gold will remain under pressure. Read full story
"The Fed decision expected late tonight will be crucial in determining the trend of the markets globally. Markets already know and has discounted 50 bp rate hike and $ 95 billion worth balance sheet reduction. Therefore, market trend after the Fed announcement will be influenced by the Fed's guidance on inflation, future rate hikes and further balance sheet reduction. There is a clear trend of growth momentum in the Indian economy and surging exports (up 24% in April) is aiding this momentum. Q4 results of banks indicate impressive credit growth and improving asset quality. So, if the market trend turns positive after the Fed decision, banks are likely to lead the uptrend."
~V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
LIC IPO Opens: Life Insurance Corporation of India’s (LIC) IPO is set to open for subscription today, ending years of wait. The insurance behemoth has already raised Rs 5,627 crore, of the total Rs 21,000 crore, from anchor investors ahead of the public issue, with most demand coming from domestic institutional investors. Retail investors will get the opportunity to subscribe to the issue from today in a fixed price band of Rs 902-949 per share, and an additional discount of Rs 45 per share. Domestic brokerage and research firms seem gung-ho on the prospects of LIC with most pinning a ‘Subscribe’ rating on the issue. LIC shares were trading at a grey market premium of Rs 85 apiece in the unlisted space ahead of the issue.
Sectorally, Nifty Metals, Pharma, and consumer durable stocks were leading losses, down up to a per cent. While, Realty pack was the top gainer. Nifty Bank and IT also held marginal gains.
Britannia Industries, ONGC, Tata Motors, Bajaj Auto and Power Grid Corp were among major gainers on the Nifty, while losers were Hindalco Industries, Apollo Hospitals, Bharti Airtel, Shree Cements and HDFC Life.
Indian benchmark indices opened with marginal gains amid high volatility. The BSE Sensex was up 63.69 points or 0.11% at 57039.68, and the Nifty was up 23.90 points or 0.14% at 17093.
"Benchmark Indices are expected to open on a positive note as suggested by trends on SGX Nifty. The Fed today is expected to raise interest rate by 50 bps, Jerome Powell’s commentary or any action different from expectations will decide the the next move of global markets. The IPO of LIC will open today and close on 9th May. Earnings today include Kotak Mahindra Bank, Tata Consumer Products, ABB India, Deepak Nitrite, Rain Industries etc. Immediate support and resistance for Nifty are 16,800 and 17,200 respectively. Immediate support and resistance for Bank Nifty are 35,500 and 36,500 respectively."
~Mohit Nigam, Head - PMS, Hem Securities
Benchmark indices are trading mixed in the pre-opening session. The BSE Sensex was up 49.22 points or 0.09% at 57025.21, and the NSE Nifty 50 was down 53.30 points or 0.31% at 17015.80.
Adani Green, Kotak Mahindra Bank, Adani Total Gas, Havells India, Tata Consumer Products, ABB, EIH, Deepak Nitrite, Equitas SFB and Oracle Financial Services are among companies which will announce their Q3FY22 results today.
We may not see any trending move in the market unless the market is crossing the 17400 level or breaking the 16800 level. It is advisable to be a stock-specific trader in the market rather than focusing on the index. A close below the 16800 level will be negative for the market. The volatility index is well above the 20 level, which is an indication that the market is about to break the trading range in the near future.
The anchor investor portion of Life Insurance Corporation of India's (LIC) initial public offering (IPO) has been fully subscribed on May 2. Over 71% of the anchor book portion came from domestic mutual funds (MFs). In total, the state-owned insurance giant allotted nearly 59.3 million shares to 123 investors at Rs 949 apiece. Marquee investors who participated in the anchor book included Government of Singapore, Government Pension Fund Global, BNP Investments LLC, Monetary Authority of Singapore, Societe Generale, Invesco India, and Saint Capital Fund.
Delhi-based Plaza Wires Limited, engaged in the business of manufacturing, marketing and selling of wires, aluminium cables and fast moving electrical goods has filed its Draft Red Herring Prospectus dated April 30, 2022 with the markets regulator, Securities and Exchange Board of India on May 01, 2022, to raise funds through an initial public offering with a fresh issue of 1,64,52,000 equity shares.