The key equity indices ended with strong gains on Friday, tracking positive global cues. The Nifty closed above the 16,350 mark. IT, banks, financials and auto stocks advanced. Oil & gas shares witnessed significant selling amid reports of possible levy of windfall tax by the government.

As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 632.13 points or 1.17% to 54,884.66. The Nifty 50 index added 182.30 points or 1.13% to 16,352.45.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.69% while the S&P BSE Small-Cap index gained 1.20%.

Buyers outnumbered sellers. On the BSE, 2,215 shares rose and 1,106 shares fell. A total of 127 shares were unchanged.

The most recent minutes of the Fed's meeting calmed fears of the American central bank turning more hawkish and thereby, contracting worries of aggressive rate-tightening policy by the US Fed. The minutes of Fed's May meeting released on Wednesday confirmed two more 50-basis point hikes each in June and July, but policymakers also suggested the potential for a pause later in the year.

New Listing:

Shares of Paradeep Phosphates closed at Rs 44.05, at a premium of 4.88% compared with the issue price of Rs 42.

The scrip was listed at Rs 43.55, representing a premium of 3.69% to the initial public offer (IPO) price. The scrip hit a high of Rs 47.25 and a low of Rs 42.95 during the day. Over 77.25 lakh shares changed hands in the counter.

The IPO of Paradeep Phosphates was subscribed 1.75 times. The issue opened for bidding on 17 May 2022 and it closed on 19 May 202). The price band of the IPO was fixed at Rs 39-42 per share.

Buzzing Index:

The Nifty Oil & Gas index fell 1% to 7,686.20. The index rose 0.69% to end at 7764.20 yesterday.

The media reported that India is considering a so-called windfall tax on oil and gas producers (state-owned as well as private) to offset ballooning public expenditure on fuel, food and fertiliser subsidies amid skyrocketing inflation. The tax, which may be levied when oil prices, for instance, cross a certain level, will boost the government's finances, and help fund efforts to protect vulnerable sections from rampant inflation, the reports added.

Oil India (down 4.5%), Hindustan Petroleum Corporation (down 1.92%), Petronet LNG (down 1.61%), Gujarat State Petronet (down 1.38%), Mahanagar Gas (down 1.12%), Bharat Petroleum Corporation (down 0.52%) and Reliance Industries Ltd (down 0.38%) declined.

Meanwhile, Adani Total Gas (up 2.85%), Gujarat Gas (up 2.35%) and Castrol India (up 1.56%) advanced.

GAIL (India) tumbled 5.17%. The company reported 38.91% rise in consolidated net profit to Rs 3,454.24 crore on a 73.44% surge in net sales to Rs 27295.24 crore in Q4 FY22 over Q4 FY21.

ONGC dropped 5.56%. The state-run oil major said it has drawn up a comprehensive roadmap to further intensify its exploration campaign, allocating a capital expenditure of about Rs 31,000 crore in the next three fiscal years during FY 2022-25. This is 150% of its exploration expenditure of Rs 20,670 crore in the last three fiscals during FY 2019-22, it said in a statement on Thursday.

Stocks in Spotlight:

Hindalco Industries advanced 0.40%. The company's consolidated net profit surged to Rs 3851 crore in Q4 March 2022 from Rs 1928 crore in Q4 March 2021. Revenue from operations rose to Rs 55764 crore from Rs 40507 crore.

Zee Entertainment Enterprises rose 3.39%. The company's consolidated net profit dropped 34% to Rs 1819 crore in Q4 March 2022 from Rs 2758 crore in Q4 March 2021. Operating revenue rose 18.2% to Rs 23229 crore from Rs 19658 crore.

Muthoot Finance declined 3.41%. The company's consolidated net profit fell to Rs 1,006.2 crore in Q4 March 2022 from Rs 1,023.7 crore in Q4 March 2021. Total income fell to Rs 3,041.1 crore from Rs 3,118.9 crore.

Berger Paints India rose 1.30%. The company's consolidated net profit rose 5.6% to Rs 220.29 crore in Q4 March 2022 from Rs 208.60 crore in Q4 March 2021. Revenue from operations rose 7.97% to Rs 2187.51 crore from Rs 2026.09 crore.

NMDC shed 0.75%. The PSU company reported a 36% fall in standalone net profit to Rs 1,815.05 crore in Q4 FY22 as against Rs 2,837.58 crore in Q4 FY21. Net sales declined 2.1% to Rs 6,702.24 crore in the quarter ended 31 March 2022.

Union Bank of India rose 1.13%. The board of the PSU bank has approved a proposal to raise funds to the tune of Rs 8,100 crore. The bank plans to raise funds up to Rs 3,800 crore via equity mode and the remaining amount of Rs 4,300 crore would be raised via issue of AT-1 and/or Tier-2 bonds.

Cummins India fell 1.01%. The company reported 1.9% rise in net profit to Rs 189.15 crore on a 19.3% surge in net sales to Rs 1,468.50 crore in Q4 FY22 over Q4 FY21.

Piramal Enterprises slumped 11.37%. The company reported a consolidated net profit of Rs 151 crore in Q4 March 2022 compared with net loss of Rs 510 crore in Q4 March 2021. On a consolidated basis, total income rose 23% year-on-year to Rs 4,401 crore in Q4 March 2022.

Delhivery jumped 6.53%. The company has been awarded a US Patent, which covers Delhivery's innovation in address verification and location mapping - 'System and method for validating geographic location accuracy for an address.'

Global Markets:

Shares in Europe and Asian advanced on Friday, as fears of monetary policy tightening subsided slightly.

Chinese authorities held an unprecedented nationwide meeting via teleconference on Wednesday in a bid to bolster an economy battered by Covid, with Premier Li Keqiang warning of difficulties “even greater than the severe shock of the pandemic in 2020.”

Wall Street closed sharply higher on Thursday after optimistic retail earnings outlooks and waning concerns about overly aggressive interest rate hikes by the Federal Reserve put investors in a buying mood.

On the data front, revised figures showed the world's biggest economy contracted at an annualised rate of 1.5% in the first quarter, slightly worse than the previous estimate of 1.4%.

The number of Americans filing new claims for unemployment benefits fell last week. Initial claims for state unemployment benefits decreased 8,000 to a seasonally adjusted 210,000 for the week ended May 21, the Labor Department said on Thursday.

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