The key equity benchmarks ended with significant losses after a weak session on Monday. The Nifty managed to end above the 17,700 mark after hitting the day's low of 17,574.05 in morning trade. Shares of PSU banks, FMCG firms and consumer durable makers managed to end in the green while those of IT, healthcare and pharma shares ended in the red.
As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 661.5 points or 1.09% to 59,769.50. The Nifty 50 index lost 163.35 points or 0.92% to 17,664.65.
In the broader market, the S&P BSE Mid-Cap index rose 0.56% while the S&P BSE Small-Cap index added 0.13%.
The market breadth turned positive. On the BSE, 1,856 shares rose and 1,730 shares fell. A total of 182 shares were unchanged.
Disappointing performance by domestic IT giant Infosys (down 9.53%) coupled with the prospect of more rate hikes by major central banks and a global economic slowdown dented the domestic investor sentiment.
Economy:
India's annual wholesale price index (WPI) based inflation eased to 29-month low of 1.34% in March 2023 as compared to 3.85% recorded in February 2023 and 14.63% in March 2022.
“Decline in the rate of inflation in March, 2023 is primarily contributed by fall in prices of basic metals, food products, textiles, non-food articles, minerals, rubber & plastic products, crude petroleum & natural gas and paper and paper products,” the Ministry of Commerce & Industry said in a statement today.
Separately, India's March goods exports declined 13.9% to $38.38 billion and imports declined 7.9% to $58.11 billion. In March 2022, goods exports were $44.57 billion and imports were $63 billion. March's trade deficit is at $19.73 billion. The total trade deficit for 2022-23 is at $122 billion, according to the government.
Buzzing Index:
The Nifty IT index tumbled 4.72% to 27,004.90. The index has declined 6.82% in two sessions.LTI Mindtree (down 6.82%), Tech Mahindra (down 5.28%), Persistent Systems (down 4.37%) and Coforge (down 3.63%) were the top losers.
Among the other losers were L&T Technology Services (down 2.97%), Mphasis (down 2.04%), Wipro (down 1.9%) and Tata Consultancy Services (down 1.61%).
Stocks in Spotlight:
Infosys slumped 9.53%. The IT major reported 7% decline in consolidated net profit to Rs 6,128 crore on a 2.3% fall in revenues to Rs 37,441 crore in Q4 FY23 over Q3 FY23. On a year-on-year basis, the company's net profit and revenues are higher by 7.8% and 16%, respectively as compared with Q4 FY22.
The IT giant issued a revenue growth guidance of 4% - 7% in constant currency and operating margin guidance of 20% - 22% for FY24.
HDFC Bank fell 1.58%. The bank's net revenue grew by 21% to Rs 32,083 crore in Q4 March 2023 from Rs 26,509.8 crore in Q4 March 2022. The bank's net profit rose 19.8% to Rs 12,047.5 crore in Q4 March 2023 over in Q4 March 2022.
The board of directors of HDFC Bank approved the issuance of Perpetual Debt Instruments, Tier II Capital Bonds and Long-Term Bonds up to total amount of Rs. 50,000 crore over the period of next twelve months through private placement mode.
HCL Technologies slipped 2.78%. Anand Birje, head of Digital Business Services, resigned from the company to pursue another opportunity.
Adani Green Energy (AGEL) added 2.68%. AGEL said its sale of energy for solar portfolio increased by 6% YoY at 2,872 million units in Q4 FY23 as against 2,717 million units in Q4 FY22.
Zee Entertainment Enterprises declined 1.87%. As per reports, Invesco Oppenheimer Developing Markets Fund is reportedly likely to sell 5.65% stake in the company through block deals. On the BSE, 5.76 crore shares of the company had changed hands at the counter as against an average trading volume of 1.75 lakh shares in the past two weeks.
TV18 Broadcast rose 1.39%, Reliance Industries added 0.44% and Bodhi Tree Multimedia advanced 2.52%. Viacom18, a subsidiary of the company, closed the merger of Reliance Storage with itself and integrated JioCinema as well. Viacom18 allotted shares to RIL group entities and Bodhi Tree Systems as consideration for the scheme of merger.
KIOCL zoomed 13.68%. The company received two mineral exploration projects in Karnataka for a reconnaissance survey for polymetallic mineralisation in Nagavanda gold and base metal blocks in parts of Dhanvangere, Haveri, and Shimoga districts at Rs 1.48 crore and preliminary exploration for amalgamated Kalaburagi limestone blocks in the Jevargi region at Rs 2.33 crore.
Jubilant Ingrevia advanced 3.65%. The company announced that it has commissioned new acetic anhydride plant, at its manufacturing facility at Bharuch, Gujarat. The plant adds around 60,000 MT of capacity, whereby scaling the company's overall annual acetic anhydride capacity to 210,000 MT.
Brightcom Group was locked in 5% lower circuit. SEBI found that the company overstated profit after tax for fiscals 2019 and 2020 by more than Rs 1,280 crore. The regulator has ordered the company to publish the correct shareholding pattern and its managing director and directors not to sell their shares.
Global Markets:
Shares in Europe and Asia advanced on Monday, as U.S. earnings season gets into full swing, while a raft of Chinese data will offer insight into how the world's second-largest economy is recovering.
Chinese data on retail sales, industrial output and gross domestic product are due on Tuesday.
Wall Street ended lower on Friday as a barrage of mixed economic data appeared to affirm another Federal Reserve interest rate hike, dampening investor enthusiasm after a series of big US bank earnings launched first-quarter reporting season.
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