The domestic equity barometers ended with steep cuts after a weak session on Friday. The Nifty managed to close a tad above the 16,400 level. Shares declined across the board with banks, financials, auto, IT and metals falling the most.

As per provisional closing data, the barometer index, S&P BSE Sensex tumbled 866.65 points or 1.56% to 54,835.58. The Nifty 50 index was down by 271.40 points or 1.63% to 16,411.25.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 4.71% to 21.25.

Investor sentiment were dented on concerns that the US Federal Reserve's 50 basis points rate hike would not be enough to control the multi-year high inflation.

In broader market, the S&P BSE Mid-Cap index fell 2.06% while the S&P BSE Small-Cap index lost 2.10%.

Sellers outnumbered buyers. On the BSE, 850 shares rose while 2,503 shares fell. A total of 107 shares were unchanged.

LIC IPO:

The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India received bids for 20.46 crore shares as against 16.20 crore shares on offer, according to stock exchange data at 15:30 IST on Friday (06 May 2022). The issue was subscribed 1.26 times.

The issue opened on 4 May 2022 and it will close on 9 May 2022. The IPO price band is Rs 902 to Rs 949 per equity share. An investor can bid for a minimum of 15 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Bank index fell 1.65% to 34,651.15. The index has declined 4.18% in three sessions.

Axis Bank (down 4.09%), RBL Bank (down 3.37%), HDFC Bank (down 2.41%), AU Small Finance Bank (down 2.30%), IndusInd Bank (down 1.95%), and ICICI Bank (down 1.17%) edged lower.

Further, Punjab National Bank (down 1.16%), IDFC First Bank (down 1.15%), Kotak Mahindra Bank (down 1.04%) and Bandhan Bank (down 0.56%) declined while SBI advanced 1.16%.

Stocks in Spotlight:

Reliance Industries (down 0.44%) and Tata Power (down 0.34%) will announce their quarterly earnings today.

Canara Bank fell 2.76% to Rs 218.45. The bank reported a 64.8% jump in standalone net profit to Rs 1,666.22 crore in Q4 FY22 from Rs 1,010.87 crore posted in Q4 FY21. The bank's total income stood rose 6.1% to Rs 22,323.11 crore in Q4 FY22 from Rs 21,040.63 crore posted in Q4 FY21.

Adani Transmission shed 0.29% to Rs 2794.10. The company reported 7.6% fall in consolidated net profit to Rs 237 crore on a 13.5% increase in revenue to Rs 2,582 crore in Q4 FY22 over Q4 FY21.

Fertilizers & Chemicals Travancore (FACT) jumped 5.90% to Rs 128.25. The company's consolidated net profit rose 57.46% to Rs 233.44 crore on 106.12% jump in net sales to Rs 1692.55 crore in Q4 March 2022 over Q4 March 2021.

Marico slipped 3.49% to Rs 502.30. The company reported 13.2% rise in the net profit to Rs 257 crore on a 7.4% increase in net sales to Rs 2,161 crore in Q4 FY22 over Q4 FY21.

TVS Motor Company lost 0.37% to Rs 627.85. The company reported consolidated net profit of Rs 275 crore in Q4 FY22 from Rs 289 crore in Q4 FY21. Revenue rose 4% to Rs 5530 crore from Rs 5322 crore.

Indus Towers slipped 2.05% to Rs 198. The company reported a 34.1% jump in net profit to Rs 1,828.50 crore on 9.6% increase in net sales to Rs 7,116.30 crore in Q4 FY22 over Q4 FY21.

Voltas slumped 7.61% to Rs 1070.05. The company's consolidated net profit declined 23.15% to Rs 182.70 crore on 0.22% rise in net sales to Rs 2633.72 crore in Q4 March 2022 over Q4 March 2021.

CEAT declined 2.73% to Rs 1060.50. The company reported consolidated net profit of Rs 25.4 crore in Q4 FY22 from Rs 153 crore in Q4 FY21, down 83.4% YoY. Net revenue from operations rose 13% to Rs 2592 crore from Rs 2289.70 crore.

Hindustan Foods surged 5.91% to Rs 1890. The company said its board will consider a stock split on Friday, 20 May 2022. At the same meeting, the company's board will also consider audited standalone & consolidated financial results of the company for the quarter and financial year ended 31 March 2022.

Global Markets:

Shares in Europe and Asia declined on Friday following the sharp sell-off on Wall Street yesterday.

Monetary policy remains a key dictator of market sentiment. Global bond yields have surged in recent weeks as investors react to interest rate hikes from the Fed and the Bank of England. The European Central Bank has yet to follow suit, but momentum appears to be building for a summer hike.

US stocks dropped sharply on Thursday amid a broad sell-off, as investor sentiment cratered in the face of concerns that the Federal Reserve's interest rate hike the previous day would not be enough to tame surging inflation.

The focus now shifts to the U.S. Labor Department's closely watched monthly employment report on Friday for clues on labor market strength and its impact on monetary policy.

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