Market at day's low, Nifty below 17,850 mark. 12 Jan 2023

The headline equity indices traded with modest losses and hit a fresh intraday low in mid-morning trade. The Nifty traded below the 17,850 mark after the hitting the day's high of 17,945.80 in early trade. The Sensex traded below the key 60,000 level. IT, realty and consumer durables stocks edged higher, oil & gas, bank and private bank shares corrected.

The barometer index, the S&P BSE Sensex, was down 335.62 points or 0.56% to 59,769.88. The Nifty 50 index lost 88.25 points or 0.49% to 17,807.45.

In the broader market, the S&P BSE Mid-Cap index shed 0.11% while the S&P BSE Small-Cap index rose 0.01%.

The market breadth was negative. On the BSE, 1,482 shares rose and 1,792 shares fell. A total of 160 shares were unchanged.

Investors look ahead to the U.S. consumer price index report due later in the day. The December CPI report will inform investors as to whether the Federal Reserve needs to move forward with more aggressive interest rate hikes to tame inflation, or if the central bank can pull back as inflation is showing signs of steadily cooling off.

On the macro front, the Industrial Production and Manufacturing Production data for November will be released today. Inflation rate for December will also be declared today.

Buzzing Index:

The Nifty Bank index declined 0.75% to 41,914.25. The index added 0.52% in the past trading session.

Axis Bank (down 2.19%), Kotak Mahindra Bank (down 1.55%), Bandhan Bank (down 1.53%), Punjab National Bank (down 1.42%), ICICI Bank (down 0.93%), State Bank of India (down 0.79%), Federal Bank (down 0.26%), IDFC First Bank (down 0.17%), IndusInd Bank (down 0.12%) and HDFC Bank (down 0.05%).

Stocks in Spotlight:

TVS Motor Company shed 0.78%. The company announced its intention to invest in Madhya Pradesh (MP) for its potential future two-wheeler and three-wheeler expansion in electric and internal combustion engine vehicles. This expansion plan entails an investment of over Rs 1,000 crores and could create direct and indirect employment in Madhya Pradesh of over 2,000 jobs.

Zydus Lifesciences declined 1.12%. The drug maker said that Worldwide DMCC , subsidiary of Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) to market Brexpiprazole tablets and 180 days shared exclusivity for Brexpiprazole Tablets. Brexpiprazole is an atypical antipsychotic indicated for use as an adjunctive therapy to antidepressants for the treatment of major depressive disorder (MDD) in adults.

Global Markets:

Asian stocks were trading mixed as investors look ahead to the U.S. consumer price index report Thursday.

Inflation in China accelerated 1.8% in December compared with a year ago as food prices rose, data from the National Bureau of Statistics showed. The CPI figure was in line with expectations and higher than the previous month's reading of 1.6%.

US stocks ended up sharply on Wednesday as investors were optimistic ahead of an inflation report that could give the Federal Reserve room to dial back on its aggressive interest rate hikes.

Indices edge lower, Sensex below 60,000 level, breadth positive. 11 January 2023

 

The frontline indices were trading with modest losses in early trade on a bit of a selling pressure in index pivotals. The Sensex traded below the psychological 60,000 level. Metal, IT and consumer durables stocks advanced while bank, financial services and FMCG shares declined .

The barometer index, the S&P BSE Sensex, was down 234.86 points or 0.39% to 59,880.62. The Nifty 50 index declined 65.40 points or 0.37% to 17,848.75.

In the broader market, the S&P BSE Mid-Cap index shed 0.23% while the S&P BSE Small-Cap index rose 0.17%.

The market breadth was positive. On the BSE, 1,604 shares rose and 1,004 shares fell. A total of 147 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,109.34 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,806.62 crore in the Indian equity market on 10 January, provisional data showed.

Stocks in Spotlight:

Tata Motors rose 1.39%. Tata Passenger Electric Mobility (TPEML) and Ford India (FIPL) had executed a unit transfer agreement on 7 August 2022 for acquisition of Ford India's manufacturing plant situated at Sanand, Gujarat for Rs 725.70 crore.

Adani Ports and Special Economic Zone (APSEZ) added 0.13%. The consortium of APSEZ and Israel's Gadot Group (Gadot) has completed the acquisition of Haifa Port Company (HPC) from the government of Israel.

Bank of Baroda declined 1.39%. The bank has approved the revision in Marginal Cost of Funds Based Lending Rate (MCLR) with effect from 12 January 2023.

Uttam Sugar Mills rallied 4.77%.The board of directors of the company approved the increase/enhancement in the 'Distillery Capacity (Ethanol)' from 150 KLPD to 250 KLPD at Barkartpur plant and increase/enhancement in the 'Cane Crushing Capacity' from 23750 TCD to 26200 TCD.

PC Jeweller rose 0.24%. In its business update for the quarter ended 31 December 2022, the company recorded domestic turnover of Rs.829.10 crore as compared to the turnover of Rs.600.18 crore in the corresponding quarter of the previous year, indicating a growth of more than 38%.

Global Markets:

Asian stocks were trading higher as investors looked ahead to the U.S. consumer price index, which would set the Federal Reserve's trajectory in its attempt to tackle inflation.

US stocks ended firmly higher on Tuesday on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy.

Fed Chairman Jerome Powell on Tuesday stressed the need for the central bank to be free of political influence while it tackles persistently high inflation. In a speech delivered to Sweden's Riksbank, Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.

Meanwhile, the World Bank slashed its growth forecasts for most countries and regions and warned that new adverse shocks could tip the global economy into a recession. Global gross domestic product will probably increase 1.7% this year, about half the pace forecast in June, the Washington-based lender said Tuesday. The bank, which also cut its growth estimates for 2024, said persistent inflation and higher interest rates are among the key reasons. It also cited the impact of Russia's invasion of Ukraine, and a decline in investment.