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The frontline indices traded in a narrow range with significant cuts in mid-morning trade. The Nifty traded below the 19,700 level. IT stocks declined for the third day in a row.
The barometer index, the S&P BSE Sensex, was down 363.85 points or 0.55% to 66,044.54. The Nifty 50 index shed 102.50 points or 0.52% to 19,691.50.
The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.06% while the S&P BSE Small-Cap index gained 0.18%.
The market breadth was positive. On the BSE, 1,794 shares rose and 1,682 shares fell. A total of 160 shares were unchanged.
Economy:
India's retail inflation, as measured by the Consumer Price Index (CPI), declined to a three-month low of 5.02% in September due to easing food prices, according to data released by the National Statistics Office (NSO) on Thursday. In July 2023, India's CPI stood at 7.44%, while in August 2023, it was at 6.83%.
Industrial output as measured by the Index of Industrial Production (IIP) was 10.3% in August 2023. Factory output measured in terms of the IIP had contracted by 0.7% in August 2022.
Buzzing Index:
The Nifty IT index declined 0.97% to 31,692.40. The index fell 2.69% in three trading sessions.
Mphasis (down 3.29%), Infosys (down 2.42%), Wipro (down 1.76%), Tech Mahindra (down 1.29%), LTIMindtree (down 1.02%), Coforge (down 0.95%), Persistent Systems (down 0.9%), L&T Technology Services (down 0.28%) slipped.
On the other hand, HCL Technologies (up 1.32%) and Tata Consultancy Services (up 0.41%) edged higher.
Infosys declined 2.42% after the IT major trimmed its FY24 revenue guidance agsin to 1% - 2.5%. The company has lowered its FY24 revenue guidance from the previous quarter's projection of 1% - 3.5% to 1% - 2.5% in constant currency, while maintaining the operating margin guidance at 20% - 22% for the same fiscal year.
The IT giant's consolidated net profit rose 4.5% to Rs 6,215 crore on 2.8% increase in revenues to Rs 38,994 crore in Q2 FY24 over Q1 FY24. On a year on year basis, the company's net profit and revenues grew by 3.1% and 6.7%, respectively as compared with Q2 FY23. The total contract value (TCV) of large deal wins was $7.7 billion in Q2 FY24, with net new of 48%.
HCL Technologies added 1.32% after the IT major reported 8.43% rise in consolidated net profit to Rs 3,832 crore on 1.43% increase in revenue from operations to Rs 26,672 crore in Q2 FY24 over Q1 FY24. Compared with Q2 last year, the company's net profit and revenue were higher by 9.83% and 8.05%, respectively.
For FY24, the company slashed its revenue growth guidance to 5%-6% YoY in CC from 6%-8% estimated in the previous quarter, while maintaining the EBIT margin guidance at 18% - 19%. Services revenue guidance is revised to be in between 4.5%-5.5% from 6.5%-8.5% YoY in CC and company's organic revenue growth is expected to be between 4%-5% YoY in CC for the same fiscal year. In Q2 FY24, the company bagged 16 large deals - 10 in the Services segment & 6 in the Software segment. Total contract value (TCV) of new deal wins was $3,969 million.
Stocks in Spotlight:
Anand Rathi Wealth fell 2.45%. The company reported 34% rise in consolidated net profit to Rs 57.7 crore on a 37% increase in total income to Rs 189.1 crore in Q2 FY24 as compared with Q2 FY23.
Panacea Biotec declined 1.25%.the drug maker said that the United States Food and Drug Administration (USFDA) conducted an inspection at its material wholly-owned subsidiary, Panacea Biotec Pharma at Baddi facility, Himachal Pradesh. The inspection was conducted from 3 October 2023 to 12 October 2023 at Baddi, Himachal Pradesh, India facility.
At the end of inspection, USFDA issued a FDA Form 483 with nine observations which are related to improvements in existing procedures and are addressable.
Global Markets:
Asian stocks declined across the board on Friday as Treasury yields surged after the latest US inflation data bolstered bets on Federal Reserve rate hikes. Latest data on continued weakness in China's economy added to the gloom.
China's Consumer Price Index (CPI) stagnated at 0% YoY in September after accelerating by 0.1% in August. China's Producer Price Index (PPI) dropped 2.5% YoY in September, compared with a 3% decline registered previously.
Singapore's central bank kept its monetary policy unchanged for a second straight meeting, maintaining the rate of appreciation of its Singapore dollar nominal effective exchange rate policy band. Singapore's GDP grew faster than expected and expanded 0.7% year-on-year in the third quarter, advanced estimates from the government showed.
US stocks indices fell on Thursday after a treasury auction sent bond yields higher.
Consumer prices rose 3.7% over last year in September, matching August's increase. On a month-over-month basis, consumer prices rose 0.4%.
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