The domestic benchmarks ended with limited losses on Wednesday. The Nifty settled below the 18,100 level. FMCG, media and realty shares saw buying demand while IT, metal and PSU bank stocks witnessed a bit of selling pressure.
As per provisional closing data, the barometer index, the S&P BSE Sensex declined 161.41 points or 0.26% to 61,193.30. The Nifty 50 index lost 57.80 points or 0.32% to 18,089.85.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.35% while the S&P BSE Small-Cap index rose 0.20%.
The market breadth was negative. On the BSE, 1,722 shares rose and 1,774 shares fell. A total of 156 shares were unchanged.
Investors were awaiting the Federal Open Market Committee's (FOMC) interest rate decision due later today. Traders were also anxious for indications from the Fed regarding whether the anticipated hike on Wednesday will be the final one in the cycle or if additional increases are possible if inflation persists at high levels.
Economy:
Service sector growth in India quickened substantially in April, with demand strength promoting the fastest increases in new business and output in close to 13 years. The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 62.0 in April from 57.8 in March, signaling the fastest expansion in output since mid 2010.
Buzzing Index:
The Nifty PSU Bank declined 0.98% to 4,143.20, snapping its six days gaining streak. The index jumped 7.75% in six trading sessions.
Punjab & Sind Bank (down 8.54%), UCO Bank (down 5.2%), Central Bank of India (down 5.13%), Indian Overseas Bank (down 2.71%), Bank of Baroda (down 1.89%), Bank of Maharashtra (down 1.33%), Bank of India (down 1.24%), Union Bank of India (down 0.98%), State Bank of India (down 0.83%) and Punjab National Bank (down 0.38%) declined.
On the other hand, Indian Bank (up 1.61%) advanced.
Punjab & Sind Bank tumbled 8.54%. The bank reported 32.04% jump in net profit to Rs 456.99 crore on 32.08% rise in total income to Rs 2,651.98 crore in Q4 FY23 over Q4 FY22. Net interest income zoomed 154.42% YoY to Rs 547 crore in Q4 FY23 from Rs 215 crore recorded in Q4 FY22.
Stocks in Spotlight:
Tata Steel fell 0.50%. On consolidated basis basis, the steel major reported net profit of Rs 1566 crore in Q4 March 2023 as compared to net profit of Rs 9835 crore in Q4 March 2022. Turnover dropped to Rs 62,962 crore in Q4 March 2023 from Rs 69,324 crore in Q4 March 2022.
Ambuja Cements slipped 3.02%. On consolidated basis basis, the cement major's net profit declined 2.11% year on year to Rs 644.94 crore in March 2023 quarter. Revenue rose marginally to Rs 7,965.98 crore in quarter ended 31 March 2023 from Rs 7,900.04 crore posted in the corresponding quarter last year.
Cipla added 0.42%. A routine current Good Manufacturing Practices (cGMP) inspection was conducted by the United States Food and Drug Administration (USFDA) at the manufacturing facility of InvaGen Pharmaceuticals Inc. (wholly owned subsidiary of Cipla) located in Fall River, Massachusetts, USA, from 24th April 2023 to 1 May, 2023. The inspection concluded with zero Form 483 observations.
JSW Steel shed 0.49%. The steel major on Wednesday announced that its US-based subsidiary, JSW Steel USA Ohio, Inc will invest $145 million in new projects to upgrade its manufacturing operations at Mingo Junction, Ohio. This is in alignment with President Biden Administration's Buy America policies, the company stated in the press release. JSW Steel USA aims to meet the demand for quality steel products that are melted & manufactured in the US. These new projects are expected to be completed & commissioned in FY26.
MRF surged 5.23% after the tyre maker's consolidated net profit zoomed 106.2% to Rs 340.67 crore in Q4 FY23 as against Rs 165.21 crore in Q4 FY22. Revenue from operations was at Rs 5,841.72 crore in Q4 FY23, registering a growth of 10.12% from Rs 5,304.82 crore recorded in the corresponding quarter previous year.
Spandana Sphoorty Financial jumped 3.78%. On consolidated basis basis, the company reported net profit of Rs 105.6 crore in Q4 March 2023 as compared to net profit of Rs 28.6 crore in Q4 March 2022. Total income rose to Rs 533 crore in Q4 March 2023 from Rs 299.10 crore in Q4 March 2022.
Adani Wilmar (AWL) slipped 4.58% after the company's consolidated net profit slumped 60.05% to Rs 93.61 crore in Q4 FY23 as against Rs 234.29 crore in Q4 FY22. Revenue from operations stood at Rs 13,872.64 crore in Q4 FY23, down 7% from Rs 14,917.26 crore recorded in the corresponding quarter previous year.
Godrej Properties rose 0.04%. The realtor reported 58% rise in consolidated net profit to Rs 412.14 crore on 23.72% increase revenue from operations to Rs 1,646.27 crore in Q4 FY23 over Q4 FY22. On the operational front, total booking value increased by 25% to Rs 4,051 crore in Q4 FY23 as compared with Rs 3,248 crore posted in Q4 FY22. Total booking volume rose 24% to 5.25 million sq. ft. in Q4 FY23 as compared to 4.24 million sq. ft. in Q4 FY22.
Global Markets:
Markets in Europe advanced while Asian stocks ended mixed on Wednesday, as global investors brace themselves for the U.S. Federal Reserve's latest monetary policy decision.
Markets in Japan and mainland China are closed for a holiday Wednesday.
Investors remain cautious ahead of the US Fed's interest rate decision, which is due later in the day. The Fed is reportedly likely to hike rates by 25 basis points.
Overnight in the U.S., all three major indexes fell for a second-straight session on Tuesday as banking fears returned to Wall Street ahead of the Fed rate decision.
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