The equity benchmarks ended with small losses on Monday, extending losses for the second day. The Nifty managed to close above the 17,050 level after hitting day's low of 16,917.25 in the early trade. The rising dollar index, continuous selling of domestic shares by FIIs and firm commodity prices triggered selling. However, India's robust GST collection and improving Manufacturing PMI for the month of April supported the sentiment.

The barometer index, S&P BSE Sensex declined 84.88 points or 0.15% at 56,975.99. The Nifty 50 index fell 33.45 points or 0.20% at 17,069.10.

In the broader market, the S&P BSE Mid-Cap index slipped 0.47% while the S&P BSE Small-Cap index fell 0.87%.

The market breadth was weak. On the BSE, 1,235 shares rose while 2,228 shares fell. A total of 181 shares were unchanged.

The Nifty Metal index (up 0.57%), the Nifty Private Bank index (up 0.48%) and the Nifty Media index (up 0.42%) outperformed the Nifty. The Nifty Consumer Durables index (down 2.02%), the Nifty IT index (down 1.53%) and the Nifty Auto index (down 1.26%) underperformed the Nifty.

The domestic stock market will remain closed tomorrow, 3 May 2022, on account of Ramzan Eid.

India Manufacturing PMI:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose at 54.7 in April, from 54 in march. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.

India's GST Collection:

India's Gross Goods and Services Tax (GST) revenue collection has touched an all-time high of Rs 1,67,540 crorein April 2022. Of the total GST collection in April this year, Central Goods and Services Tax, CGST collection is 33,159 crore, State Goods and Services Tax, SGST is 41,793 crore, Integrated Goods and Services Tax, IGST is 81,939 crore and cess is 10,649 crore.

The revenues for the month of April 2022 are 20% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 30% higher and the revenues from the domestic transaction are 17% higher than the revenues from these sources during the same month last year.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper declined to 7.122% from its previous close of 7.139%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.455, compared with its close of 76.5 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement slipped 1.34% to Rs 51,063.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.36% to 103.33.

In the commodities market, Brent crude for June 2022 settlement fell $ 2.96 or 2.76% at $104.18 a barrel.

Global Markets:

The Dow Futures were up 146 points, indicating a positive start in the U.S. market today.

Most European markets declined with investors monitoring monetary policy, inflation data, and sharp moves on Wall Street.

Meanwhile, global investors continue to monitor the war in Ukraine and its geopolitical implications. EU leaders are set to work on a Russian oil embargo this week. Over the weekend, the United Nations and the International Committee of the Red Cross began evacuating civilians from the besieged southern port city of Mariupol. That operation is set to continue on Monday.

Most Asian markets closed higher on Monday, with data released over the weekend showing Chinese factory activity contracted in April. Markets in Hong Kong, mainland China, Singapore and Taiwan are closed on Monday for a holiday.

China's factory activity contracted at a steeper pace in April as Covid lockdowns hit industrial production. The official manufacturing Purchasing Managers' Index for April declined to 47.4, a second straight month of contraction following with March's reading of 49.5, data from the National Bureau of Statistics showed Saturday.

A private survey also showed contraction in Chinese factory activity, with the Caixin/Markit manufacturing PMI coming in at 46, declining from the previous month's reading of 48.1.

Wall Street slid on Friday to its deepest daily losses since 2020, as Amazon slumped following a gloomy quarterly report, and as the biggest surge in monthly inflation since 2005 spooked investors already worried about rising interest rates.