The key equity indices ended lower after a volatile session on Tuesday. The Nifty closed below the 16,150 mark, reversing from the day's high of 16,262.80 hit in afternoon trade. IT, metals, and pharma shares declined while financials and private banks ended in the green.

The barometer index, the S&P BSE Sensex, fell 236 points or 0.43% to 54,052.61. The Nifty 50 index lost 89.55 points or 0.55% to 16,125.15.

The S&P BSE Mid-Cap index fell 0.85% while the S&P BSE Small-Cap index declined 1.14%. Both these indices underperformed the Sensex.

The market breadth was weak. On the BSE, 1,036 shares rose and 2,270 shares fell. A total of 124 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 9.56% to 25.64.

Investors continued to assess the global macroeconomic outlook as they await the minutes from the last U.S. Federal Reserve meeting, due on Wednesday, which could give clues on whether the monetary tightening would continue.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper fell to 7.359% as compared with 7.386% at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 77.60, compared with its close of 77.55 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.22% to Rs 51017 .

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, decreased 0.10% to 101.98.

In the commodities market, Brent crude for July 2022 settlement fell 11 cents or 0.10% at $ 113.31 a barrel. The contract rose 87 cents or 0.77% to settle at $ 113.42 a barrel during the previous trading session.

Foreign Markets:

Dow Jones Futures was down 175 points, indicating a weak opening in the US stocks today.

Shares in Europe and Asia declined on Tuesday, as investors weighed a possible thawing of U.S.-China trade relations as U.S. President Joe Biden floated the idea of tariff cuts on Chinese goods.

China announced that it will offer more than 140 billion yuan ($21 billion) in additional tax relief as it seeks to offset the impact of coronavirus lockdowns that have battered the economy.

US stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally. Sentiment appeared to have gotten a boost after President Joe Biden said he was considering reducing tariffs on some products imported from China.

The United States announced on Monday the Indo-Pacific Economic Framework with Asian partners including Australia, Japan and the Republic of Korea. The group wants to set international rules on the digital economy, supply chains, decarbonization and regulations applying to workers.

U.S. President Joe Biden has said tackling inflation is a priority and this framework is designed to help lower costs by making supply chains more resilient in the longer term.

New Listing:

Shares of Delhivery closed at Rs 537.25 on the BSE, at a premium of 10.32% compared with the issue price of Rs 487. The scrip was listed at Rs 493, representing a premium of 8.56% to the issue price.

Shares of Venus Pipes and Tubes were locked in an upper circuit of 5% at Rs 351.75, a premium of 7.90% compared with the issue price of Rs 326. The scrip was listed at Rs 335, representing a premium of 2.76% to the initial public offer (IPO) price.

Buzzing Segment:

The Nifty IT index fell 1.88% to 28,531.50. The index rose 2.56% in the past two sessions.

Tech Mahindra (down 4.02%), Larsen & Toubro Infotech (down 3.26%), Coforge (down 3.07%), Mindtree (down 2.54%), HCL Technologies (down 2.48%), Mphasis (down 1.71%), Infosys (down 1.66%), L&T Technology Services (down 1.48%), Wipro (down 1.14%) and TCS (down 0.9%) advanced.

Birlasoft fell 1.18% to Rs 373.80. The company reported a 16.6% rise in net profit to Rs 132.9 crore on a 2.8% increase in revenue from operations to Rs 1,101.4 in Q4 FY22 over Q3 FY22.

Meanwhile, the board approved buyback of upto 78 lakh fully paid equity shares at Rs 500 per equity share, for an aggregate amount not exceeding Rs 390 crore.

Stocks in Spotlight:

Rupa & Co slumped 16.45%. The innerwear maker accepted the resignation of Dinesh Kumar Lodha as the chief executive officer and Ramesh Agarwal as the chief financial officer, with effect from 31 May 2022. Rupa & Company said that Dinesh Kumar Lodha has resigned for personal reasons, and he is and will be a part of the selection process for the new CEO to ensure a smooth transition.

The company also announced its Q4 results on Monday, 23 May 2022. On a consolidated basis, Rupa & Company's net profit declined 25.2% to Rs 49.30 crore on 0.3% increase in total revenue to Rs 455.50 crore in Q4 March 2022 over Q4 March 2021.

Zomato surged 13.95%. The food delivery platform on Monday said its consolidated net loss widened to Rs 359.70 crore in Q4 March 2022 compared with net loss of Rs 134.20 crore in the corresponding quarter last year. Revenue from operations came in at Rs 1,211.80 crore, rising 75.01% compared to Rs 692.40 crore in the same quarter last year.

Life Insurance Corporation of India (LIC) rose 0.84%. The life insurance provider said that its board will meet on 30 May 2022 to consider and approve the audited standalone and consolidated financial results and dividend, if any, for the quarter and year ended 31 March 2022.

Maruti Suzuki India (MSIL) fell 1.22%. The company has agreed to acquire an equity stake of 12.09% in Sociograph Solutions Private Limited (SSPL) for about Rs 2 crore. SSPL is an artificial intelligence (AI) software company that specializes in a visual AI platform predominantly used to help enterprises improve sales experiences and improve efficiency in their business.

IPCA Laboratories fell 2.47%. The company reported 19% drop in consolidated net profit to Rs 130.23 crore despite a 15% growth in net total income to Rs 1,303.64 crore in Q4 FY22 over Q4 FY21.

Ramco Cements tumbled 3.12%. On a consolidated basis, Ramco Cements' net profit fell 45% to Rs 118.57 crore on 5% increase in total income to Rs 1,722.68 crore in Q4 FY22 over Q4 FY21.

Bank of India rose 1.51%. The public sector bank reported a net profit of Rs 606.27 crore in Q4 FY22, steeply higher than Rs 250.19 crore posted in Q4 FY21. Standalone total income stood at Rs 11,443.46 crore for the quarter ended 31 March 2022, registering a YoY growth of 2.6%.

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