Overnight Digest: Stocks likely to be in focus on May 25

Dr Reddy’s Labs, Kotak Mahindra Bank, HDFC, Nestle India and HDFC Bank were among the top Nifty gainers, while losers included Divis Labs, Tech Mahindra, Grasim Industries, Hindalco Industries and HUL.

Worries over slowing economy and rising interest rates supported by soaring inflation kept on haunting the global market. The benchmark indices ended lower in the volatile session with Nifty slipping below 16,150.

At the close, Sensex was down by 236 points or 0.43 per cent at 54,052.61 level while Nifty plunged 89.50 points or 0.55 per cent at 16,125.20 level.  

Among sectors, IT, pharma, metal, FMCG, power, and realty indices slipped 1 per cent each. In the broader markets, BSE Midcap index contracted 0.8 per cent while Smallcap index declined 1 per cent. 

Keep an eye on these stocks for Wednesday's trading session - 

Maruti Suzuki India- After the previous trading session, the company announced that it will acquire an equity stake of 12.09 per cent in Sociograph Solutions Pvt Ltd (SSPL) for about Rs 2 crore. SSPL is artificial intelligence (AI) software company that specialises in visual AI platforms predominantly used to help enterprises improve sales experiences as well as efficiency in their business. The investment would help MSIL to strengthen its offering to customers by creating customised sales experiences on the web, virtual reality, and augmented reality. The share ended 1.24 per cent lower during Tuesday’s trading session.  

IPCA Laboratories - IPCA Laboratories declared Q4FY22 results and has posted a 19.3 per cent fall in consolidated Q4 net profit, recording Rs 130.2 crore as compared to Rs 161.3 crore whereas its revenue went up by 15.6 per cent at Rs 1,289.1 crore on a YoY basis. Earnings before interest, tax, depreciation & amortisation (EBITDA) contracted by 4.2 per cent, standing at Rs 219.3 crore in comparison to Rs 229 crore while the margin lowered to 17 per cent versus 20.5 per cent on a YoY basis. The share fell 2.47 per cent on an intraday basis.  

Zee Entertainment - The company announced the signing of a long-term global media rights contract with UAE’s T20 League, giving the broadcaster access to 34 matches of the cricket tournament. The league matches will air on both - Zee's linear channels along with the streaming platform - ZEE5. The tournament will also air on ten linear channels in the Hindi-speaking markets, south and east regions in English, Hindi & Tamil languages. The broadcaster expressed that its global presence across more than 190 countries will help in taking the league to more than 100 million households.  

Sugar stocks - The shares of sugar companies lost their sweetness today on news that the Government of India is planning to limit exports of sugar. This news comes post restriction on the export of wheat put by the Centre. This new move to cut the sugar exports is likely to be posed a new risk to global food prices. Balrampur Chini Mills and Shree Renuka Sugars fell up to 10 per cent each while Dhampur Sugar, Sakthi Sugars, and Bajaj Hindusthan Sugar slumped 5 per cent, 7 per cent & 4 per cent, respectively.