Share Market UPDATE: Sensex crashes 1,300 pts, Nifty falls below 16,700 as repo rate hiked

Good afternoon!

Indian equity market ended lower for the second consecutive session on Monday, tracking a sell-off in Infosys and Reliance Industries along with weak global equities. Sensex fell 84.88 points to end at 56,975.99.

During the session, it tanked 648.25 points or 1.13 per cent to 56,412.62. Nifty declined 33.45 points or 0.20 per cent to end at 17,069.10.

What's next? Here are the latest updates.

3:36 PM: Sensex crashed 1306 points to 55,669 and Nifty ended 391 points lower at 16,677. 

3:30 pm: LIC IPO subscribed 50%

LIC IPO was subscribed 0.5 times till 3:30 pm. The issue received bids for 8.17 crore shares against the offer size of 16.20 crore shares.

3:17 pm: Expert take on RBI rate hike

Anuj Puri, Chairman - ANAROCK Group said, "With inflation edging higher in the aftermath of the Russia-Ukraine war and the surging oil prices, the RBI took a tough unscheduled decision - to increase the repo rates by 40 bps, bringing them to 4.40%. This was expected, as inflation has definitely moved into the threatening zone. Unfortunately, for home buyers, this hike signals an imminent end to the all-time low interest regime, which has been one of the major drivers behind home sales across the country since the pandemic began. Moreover, rising interest rates and inflationary trends in basic raw materials in construction including cement, steel, labour cost etc. will add to the burden of the residential sector, which did significantly well in the previous quarter - Q1 2022. This rise in interest rates will ultimately impact overall acquisition cost for homebuyers - and may dampen residential sales to some extent. The possibility of overall price hike was also highlighted in ANAROCK's recent consumer survey wherein at least 56% of the respondents felt that property prices will increase in 2022. A deep dive revealed that a price rise of  greater than 10% will have a 'high impact' on residential sales and below 10% rise will have a 'moderate-to-low impact' on sales. The current sales velocity will thus be impacted by rise of over 10% in overall acquisition costs.

3:13 pm: Expert take on RBI rate hike

Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities said, "The combination of 40 bps hike in repo rate and 50 bps hike in CRR is an attempt by the RBI to preempt the rising inflationary pressures and be ahead of the curve. The bigger surprise was the CRR hike which indicates the RBI's intent on withdrawing liquidity at a sharper pace. While inflation is unlikely to decline in the near term, today's move should help in pushing real rates towards neutral over the next few quarters. Rates across the curve will reprice factoring in a markedly more hawkish RBI. We continue to expect cumulative 100-125 bps of repo rate hikes in FY2023."

3:09 pm: Market breadth

Market breadth was negative with 752 shares rising against 2,596 falling on BSE. 96 shares were unchanged.

3:06 pm: Sensex losers

IndusInd Bank, Bajaj Finance, Bajaj Finserv, Titan , HDFC Bank and Dr Reddy's are the top Sensex losers, falling up to 4.49 per cent.

3:01 pm: All 19 sectoral indices on BSE are trading in the red.

2:55 pm: Market extends losses

Sensex crashes 1,465  points to 55,510 and Nifty fell 433 points to 16,636, extending losses in the afternoon session.

2:42 pm : Latest update

Sensex crashes 1,152 points to 55,823 and Nifty fell 348 points to 16,721, extending losses in the afternoon session.

2:39 PM: Rakesh Jhunjhunwala Portfolio: Titan shares tank 4% post Q4 numbers

Shares of Tata group firm Titan Company Ltd,  a part of Big Bull Rakesh Jhunjhunwala's portfolio tanked over 4 per cent to hit an intraday low of Rs 2,300.80 after the company reported a 7.21 per cent decline in its consolidated net profit at Rs 527 crore in the fourth quarter ended March 2022.

It had posted a net profit of Rs 568 crore in the January-March quarter of FY21, Titan Company said in a regulatory filing.

The stock opened lower at Rs 2,351 against the previous close of Rs 2386.60 on BSE. With a market capitalisation of more than Rs 2,00,000 crore, the shares stand higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages. READ MORE

2:19 pm: RBI rate hike effect

Sensex crashed 904 points to 56,071 and Nifty fell 291 points to 16,777. Before the repo rate hike announcement, Sensex lost 643 points to 56,332 and Nifty slipped 147 points to 16,921.

ALSO READ: Sensex crashes 900 points, Nifty falls below 16,800 as RBI raises repo rate

1:59 pm:  Sensex down 643 points to 56,332 and Nifty slips 147 points to 16,921 before the RBI's surprise announcement.

1:01 pm: Market breadth is negative with 2,184 shares falling against 1,069 stocks falling on BSE.

12:59 pm: Top losers

Bajaj Finserv, Titan, Reliance, Industries, HUL and HDFC Bank are the top Sensex losers , falling up to  3 percent in afternoon session.

12:40 pm: Sensex slips 727 points to 56248 and Nifty falls 218 points to 16,850 in the afternoon session. 

12:15 pm: RailTel Corp share rises 4%

Shares of RailTel Corp climbed 4 per cent amid a falling market today after the state-owned firm said it has received work order from South Western Railway at a total cost of Rs 107.44 crore. RailTel Corp stock rose 4.02 per cent intra-day to Rs 108.70 against the previous close of Rs 104.50 on BSE.

The stock opened 3.92 per cent higher at Rs 108.60 today. It has gained after four sessions of consecutive fall. RailTel Corp stock is trading higher than 50 day moving averages but lower than 5-day, 20-day, 100-day and 200-day moving averages. The small cap share has lost 11.19 per cent in a year and fallen 9.37 per cent this year. Market cap of the firm rose to Rs 3,390.71 crore. READ MORE

12:00 pm: LIC IPO gets thumbs up from policyholders; fully subscribed on Day 1

Life Insurance Corporation of India (LIC) policyholders quota has been fully subscribed with retail portion receiving bid 33 per cent till 12:30 pm on Day 1. The insurance behemoth has fixed a price band of Rs 902-949 for the public issue and offered a special discount of Rs 60 to policyholders and Rs 45 per share to retail investors and employees of LIC. The employees' quote has been subscribed 51 per cent so far. According to statistics, the largest insurance company has currently around 29 crore policyholders, 2 lakh plus employees and 13 lakh agents covering 91 per cent of districts of the country. It manages Asset under management (AUM) of 39 lakh crore, which is more than the GDP of 150 countries and more than total AUM managed by the mutual fund industry which is around 38 lakh crore.

Market analysts believe that it is a milestone event for the Indian capital markets as it may bring millions of new investors from Tier 2 and Tier 3 towns for the first time. Most of the brokerage houses have given a positive rating to the IPO given its fair valuation. Read more

11:30 am: Titan shares trade lower post Q4 earnings

Shares of Tata group firm Titan Company Ltd were trading lower after the company reported a 7.21 per cent decline in its consolidated net profit at Rs 527 crore in the fourth quarter ended March 2022.

It had posted a net profit of Rs 568 crore in the January-March quarter of FY21, Titan Company said in a regulatory filing.

Its total income was up 4.25 per cent to Rs 7,872 crore during the period under review as against Rs 7,551 crore in the corresponding period of the preceding fiscal.

The company's revenue from sales of products was down 1.14 per cent to Rs 7,267 crore in the fourth quarter of FY22 as against Rs 7,351 crore a year ago.

11:00 am: Adani Wilmar stock hits 5% lower circuit post Q4 earnings

Shares of Adani Wilmar hit lower circuit of 5 per cent today after the Adani Group firm reported a 25.6 per cent year-on-year decline in its consolidated net profit for the quarter ended March 2022. Stock of Adani Wilmar slipped 5 per cent to Rs 716 against the previous close of Rs 753.65 on BSE.

Market cap of the firm fell to Rs 93,056 crore. Total 14.81 lakh shares of the firm changed hands amounting to a turnover of Rs 109.07 crore.

The stock has now slipped 18.37 per cent from its all-time high of Rs 878.35 hit on April 28 this year.

In a month, the stock has gained 29.57 per cent. The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. The stock has been falling for the last three sessions.

The firm reported a profit of Rs 234.3 crore for the quarter ended 31 March, 2022 against a net profit of Rs 315 crore in the year-ago period.

However, the company clocked a 40 per cent YoY rise in its consolidated revenue from operations to Rs 14,960.4 crore in Q4 against Rs 10,672 crore in the same quarter last fiscal.

10:30 am: Britannia Industries shares zoom 10% post Q4 results

Shares of FMCG major Britannia Industries zoomed over 10 per cent to hit an intraday high of Rs 3590.85 on BSE after the company posted better than expected results for the quarter ended March 2022.

Britannia Industries Ltd on Monday reported an increase of 4.96 per cent in consolidated net profit at Rs 377.95 crore for the fourth quarter ended March 2022.

The company had posted a net profit of Rs 360.07 crore in the January-March quarter a year ago, it said in a BSE filing.

Its total revenue from operations climbed 13.40 per cent to Rs 3,550.45 crore during the quarter under review. In the year-ago period, the same stood at Rs 3,130.75 crore. Volume growth came in at 4 per cent against an expectation of 0-2 per cent.

9:16 am: Market opening

Sensex opened 163 points higher at 57,139.60 and Nifty rose 27 points to 17,096.60.

Tata Steel was the top gainer on Sensex, advancing over 2 per cent, followed by NTPC, ITC, Axis Bank and Infosys.

Bharti Airtel and TCS were among the top losers.

8:40 am: Should you subscribe to India's largest share sale? 

The Rs 21,000-crore initial public offer (IPO) of Life Insurance Corporation of India (LIC) will open today. The public issue, which is the largest ever in the Indian market, has already collected Rs 5,620 crore from anchor investors on May 2. 

The government is offloading 3.5 per cent stake or 22,13,74,920 shares in the insurer through the IPO. Stake of the government, which currently stands at 100 per cent, will be trimmed to 96.50 per cent after the IPO. 

Shares in the IPO will be available in a price band of Rs 902- Rs 949.  

The allotment of shares will be done on May 12, 2022. Lot size of the IPO is 15 shares bidding for which one will have to spend Rs 14,235. A retail individual investor can apply for up to 14 lots or 210 shares by spending Rs 1,99,290. Read more

8:45 am: Global updates

Wall Street stocks ended higher on Tuesday after a choppy session in which each of the major indexes fluctuated between gains and losses as a key meeting of the Federal Reserve got underway.

The Dow Jones Industrial Average rose 67.29 points, or 0.2%, to 33,128.79, the S&P 500 gained 20.1 points, or 0.48%, to 4,175.48 and the Nasdaq Composite added 27.74 points, or 0.22%, to 12,563.76.

Shares in Asia-Pacific were mixed in Wednesday morning trade, with investors looking ahead to the US Federal Reserve’s interest rate decision expected later stateside. Hong Kong’s Hang Seng index shed 0.68% as shares of Tencent and Alibaba both declined around 2% each.

Elsewhere, the Kospi in South Korea rose 0.1% while the S&P/ASX 200 in Australia gained 0.19%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded little changed.

8:30 am: LIC IPO to open today

The much-awaited initial public offer (IPO) of Life Insurance Corporation of India (LIC) will open today. The issue will close on May 9.  The issue comes amid a highly volatile market, which has forced the government to offer 3.5 per cent stake against the earlier planned 5 per cent stake sale. The insurance major plans to raise Rs 21,000 crore from investors. 

On Monday, LIC collected Rs 5,620 crore from anchor investors signalling strong interest ahead of the share sale. 

Here’s a look at five things that you need to know before you put in bids in the country’s largest IPO: 

1. The price band of the IPO is Rs 902- Rs 949. The government will sell 3.5 per cent stake or 22,13,74,920 shares in the insurer through the IPO. Stake of the government, which currently stands at 100 per cent, will be trimmed to 96.50 per cent after the IPO. 

2. The allotment of shares will be done on May 12, 2022 and shares will be listed on bourses on May 17.  Read more

8:15 am: SGX Nifty

The Indian equity market is likely to open on a positive note today as SGX Nifty was trading higher at 17,080.

The Singapore Stock Exchange is considered to be the first indication of the opening of the Indian market.

8:10 am: Market on Monday

Indian equity market ended lower for the second consecutive session on Monday, tracking a sell-off in Infosys and Reliance Industries along with weak global equities.

Sensex fell 84.88 points to end at 56,975.99. During the session, it tanked 648.25 points or 1.13 per cent to 56,412.62. Nifty declined 33.45 points or 0.20 per cent to end at 17,069.10.

Titan, Wipro, Tech Mahindra, Infosys, Maruti, Asian Paints, Larsen & Toubro and SBI were the top Sensex losers, falling up to 2.95 per cent. IndusInd Bank, NTPC, Power Grid, Tata Steel, HDFC and ITC were among the top Sensex gainers, rising up to 4.17 per cent. Of 30 Sensex stocks, 19 ended lower.

Market cap of BSE-listed firms fell to Rs 265.88 lakh crore.

BSE mid-cap and small-cap indices slumped 114 points and 250 points, respectively.

The market breadth was negative with 1235 shares ending higher against 2228 stocks falling in the red. 181 shares were unchanged. Consumer durables shares and IT stocks were the top sectoral losers with their BSE indices falling 1010 points and 470 points, respectively.