Sensex down 198 pts; financial services stocks decline.

The benchmark indices continued to trade with limited losses in morning trade. The Nifty traded below the 19,650 mark. Financial services shares witnessed a bit of selling pressure for the second consecutive trading session.

The barometer index, the S&P BSE Sensex, was down 197.75 points or 0.30% to 66,069.07. The Nifty 50 index lost 46.55 points or 0.24% to 19,613.35.

In the broader market, the S&P BSE Mid-Cap index advanced 0.26% while the S&P BSE Small-Cap index gained 0.22%.

The market breadth was positive. On the BSE, 1,743 shares rose and 1,418 shares fell. A total of 161 shares were unchanged.

Earnings Today:

Indian Oil Corporation (up 0.71%), Bank of India (up 0.17%), M&M Financial Services (down 0.90%), Marico (up 0.57%), Chalet Hotels (down 1.66%), DCB Bank (down 0.08%), Equitas Small Finance Bank (down 2.73%), Exide Industries (down 0.37%), Fino Payments Bank (up 11.09%), KFin Technologies (down 1.05%), Laxmi Organic Industries (up 0.85%), Nazara Technologies (up 2.09%), NLC India (up 0.51%), Piramal Enterprises (down 2.72%), RITES (down 1.84%), Route Mobile (up 0.28%), Satin Creditcare Network (down 1.28%), SBI Cards and Payment Services (down 1.17%), Star Health (down 1.82%) and United Breweries (up 0.07%) are some of the companies that will announce their results today.

NTPC (up 2.82%), IDFC First Bank (up 1.01%), MCX India (down 0.75%), D-Link (India) (down 1.22%), Five-Star Business Finance (down 2.22%), Inox Wind (up 1.02%), Rossari Biotech (down 0.57%), Sonata Software (down 0.46%) and Stove Kraft (down 1.60%) will announce their June FY24 quarter earnings on 29 July 2023.

Buzzing Index:

The Nifty Financial Services index fell 0.71% to 20,237.35. The index declined 1.48% in two trading sessions.

HDFC Bank (down 1.14%), ICICI Bank (down 1.14%), Axis Bank (down 1.02%), Bajaj Finserv (down 0.94%), SBI Cards & Payment Services (down 0.44%), Shriram Finance (down 0.25%), SBI Life Insurance Company (down 0.19%), Muthoot Finance (down 0.12%), Bajaj Finance (down 0.1%) and Kotak Mahindra Bank (down 0.06%) slipped.

On the other hand, Indian Energy Exchange (up 3.08%) ,HDFC Asset Management Company (up 2.9%) and REC (up 2.58%) edged higher.

Stocks in Spotlight:

Indian Hotels (IHCL) rose 0.30% after the company's consolidated net profit jumped 30.8% to Rs 222.44 crore on 15.8% increase in net sales to Rs 1,466.37 crore in Q1 FY24 over Q1 FY23.

Intellect Design Arena surged 13.86% after the company's consolidated net profit rose 35.92% to Rs 93.47 crore on 18.12% increase in net sales to Rs 639.38 crore in Q1 June 2023 over Q1 June 2022.

Macrotech Developers gained 2.16%. The real estate developer's consolidated net profit dropped 34.1% to Rs 178.40 crore on 39.6% fall in revenue from operations to Rs 1,617.40 crore in Q1 FY24 over Q1 FY23.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper advanced 0.62% to 7.164 from its previous close of 7.120.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.2450, compared with its close of 81.92 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement rose 0.17% to Rs 59,050.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 100.82.

The United States 10-year bond yield declined 0.10% to 4.010.

In the commodities market, Brent crude for September 2023 settlement lost 40 cents or 0.47% to $83.84 a barrel.

Global markets:

Asian stocks are trading mixed ahead of the Bank of Japan's rate decision on Friday. Japan's central bank is expected to keep its benchmark policy rate unchanged at -0.1%, but investors will be keenly watching for any signs of a shift in stance towards its yield curve control policy.

US stocks ended lower on Thursday after news that the Bank of Japan will allow long-term interest rates to rise sent US yields higher, snapping the longest winning streak for the Dow since 1987.

Second-quarter US gross domestic product (GDP) rose at a 2.4% annual rate, according to the Commerce Department. That was up from a 2% growth rate in the first quarter

The European Central Bank (ECB) on Thursday increased the key interest rate in the eurozone by 0.25 percentage points to 4.25%. The decision to hike rates for a ninth straight time is part of an ongoing campaign to bring down inflation. ECB President Christine Lagarde told a press conference that the bank will keep an open mind on future rate decisions.

Indices edge higher, Nifty near 19,850, Tech Mahindra slips over 4%.

The frontline indices were trading with decent gains in early trade on buying demand in index pivotals. The Nifty traded near the 19,850 mark. Barring the Nifty Auto index, all the sectoral indices on the NSE were in the green.

The barometer index, the S&P BSE Sensex, was up 189.74 points or 0.28% to 66,896.94. The Nifty 50 index added 68.65 points or 0.35% to 19,846.95.

In the broader market, the S&P BSE Mid-Cap index advanced 0.61% while the S&P BSE Small-Cap index gained 0.50%.

The market breadth was strong. On the BSE, 1,891 shares rose and 741 shares fell. A total of 120 shares were unchanged.

Trading could be volatile as traders roll over positions in the F&O segment from the near month July series to August series. The July 2023 F&O contracts will expire today, 27 July 2023.

Foreign portfolio investors (FPIs) bought shares worth Rs 922.84 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 470.10 crore in the Indian equity market on 26 July, provisional data showed.

Economy:

Prime Minister Narendra Modi on Wednesday laid bare his blueprint for a third term of his government, saying India will become the third largest economy in the world with a faster growth rate than now. PM Modi government will complete 10 years in office next May and he is seeking a third term on development plank. He said that India will be one of the top three economies in the world in his third term. The next general elections are due in May 2024.

Stocks in Spotlight:

Axis Bank shed 0.25%. The private lender's net profit surged 40.53% to Rs 5,797.10 crore on 41.5% jump in total income to Rs 30,644.04 crore in Q1 FY23 over Q1 FY23. Net Interest Income (NII) grew 27% YoY to Rs 11,959 crore. Net interest margin (NIM) for Q1 FY24 stood at 4.10%, up 50 basis points (bps) YoY.

Tech Mahindra tumbled 4.31%. The IT major's consolidated net profit tumbled 38.04% to Rs 692.5 crore in Q1 FY24 as against Rs 1,117.7 crore posted in Q4 FY23. Revenue from operations declined 4.08% to Rs 13,159 crore in Q1 FY24 from Rs 13,718.2 crore recorded in Q4 FY23.

Dr Reddy's Laboratories fell 0.69%. The drug major reported 18.1% jump in consolidated net profit to Rs 1,402.5 crore on 29.2% increase in net sales to Rs 6,738.4 crore in Q1 FY24 over Q1 FY23. Consolidated profit before tax stood at Rs 1,846.3 crore in the quarter, up 25.98% from Rs 1,465.5 crore posted in Q1 FY23.

Tata Consumer Products declined 0.96%. The FMCG major's group consolidated net profit jumped 22.04% to Rs 337.71 crore on 12.46% rise in revenue from operations to Rs 3,741.21 crore in Q1 FY24 over Q1 FY23. The rise in the revenue was mainly driven by strong growth of 16% in India business, 3% (constant currency) in International business and 5% (constant currency) in Non-Branded business.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper fell 0.24% to 7.079 from its previous close of 7.096.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.9225, compared with its close of 82.0100 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement rose 0.17% to Rs 59,560.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.05% to 100.84.

The United States 10-year bond yield added 0.10% to 3.857.

In the commodities market, Brent crude for September 2023 settlement gained 85 cents or 1.03% to $83.77 a barrel.

Global Markets:

Asian stocks were trading higher Thursday after the U.S. Federal Reserve raised rates to their highest level in more than 22 years while leaving the door open for further tightening.

US stocks ended flat after a choppy trading session on Wednesday, unmoved by the Federal Reserve's latest action to raise benchmark interest rates.

The Federal Reserve raised rates by a quarter-point Wednesday, as was widely expected. The increase pushes the benchmark rate to a range of 5.25%-5.5%, its highest level in more than 22 years. The central bank also said it will ?continue to assess additional information and its implications for monetary policy,? echoing its data-dependent approach to monetary policy.

The European Central Bank and the Bank of Japan are due to announce their own policy moves on Thursday and Friday, respectively.

Nifty above 19,800; oil & gas shares in demand.

The benchmark indices extended gains in morning trade. The Nifty marched above the 19,800 level. Oil & gas shares advanced for second consecutive trading session.

The barometer index, the S&P BSE Sensex, was up 494.02 points or 0.74% to 66,849.73. The Nifty 50 index added 127.95 points or 0.65% to 19,808.55.

In the broader market, the S&P BSE Mid-Cap index advanced 0.31% while the S&P BSE Small-Cap index gained 0.48%.

The market breadth was strong. On the BSE, 2,033 shares rose and 1,171 shares fell. A total of 176 shares were unchanged.

Earnings Today:

Axis Bank (up 0.57%), Tata Consumer Products (up 1.22%), Bharat Petroleum Corporation (up 1.228%), Dr Reddy's Laboratories (up 0.26%), Tech Mahindra (up 0.69%), Bajaj Finance (up 0.81%), Cipla (down 0.27%), are the Nifty 50 companies that will announce their results today.

Colgate-Palmolive (India) (down 0.61%), Deepak Fertilisers & Petrochemicals Corporation (up 0.61%), Punjab National Bank (up 2.01%), Shree Cement (up 1.30%), Aditya Birla Sun Life AMC (up 0.49%), Aegis Logistics (down 0.08%), Glaxosmithkline Pharmaceuticals (down 0.10%), Godfrey Phillips India (up 1.64%), HFCL (up 0.51%), Indian Metals & Ferro Alloys (up 3.72%), Ion Exchange (India) (down 2.83%), Jindal Stainless (up 1.37%), Jubilant Ingrevia (down 0.29%), Kajaria Ceramics (up 0.11%), Mahindra Lifespace Developers (up 0.46%), Oracle Financial Services Software (down 0.81%), Omax Autos (up 2.75%), Praj Industries (up 0.75%), REC (down 0.35%), Schaeffler India (down 0.07%), Syngene International (down 1.64%), TeamLease Services (up 0.90%) are some of the other companies that will announce their results today.

Buzzing Index:

The Nifty Oil & Gas index added 1% to 8,140.55. The index advanced 1.69% in two trading sessions.

Reliance Industries (up 2.11%), Hindustan Petroleum Corporation (up 1.38%), Oil India (up 1.31%), Bharat Petroleum Corporation (up 1.01%), Indian Oil Corporation (up 0.86%), GAIL (India) (up 0.69%), Gujarat State Petronet (up 0.48%), Adani Total Gas (up 0.4%), Petronet LNG (up 0.27%) and Aegis Logistics (up 0.08%) advanced.

On the other hand, Mahanagar Gas (down 0.64%), Castrol India (down 0.51%) and Oil & Natural Gas Corpn (down 0.23%) edged lower.

Stocks in Spotlight:

Orient Electric added 0.39%. The company said that has completed the sale of land parcels admeasuring a total of 23 acres situated in Dusakal Village Secretariat and Mekaguda Gram Panchyat, Hyderabad, Telangana, for a total consideration of Rs 35 crore.

Man Infraconstruction declined 0.79%. The company reported a net profit of Rs 82 crore in Q1 FY34, which is higher by 112% as compared with Rs 39 crore in Q1 FY23. Revenue increased by 45% YoY to Rs 510 crore in the first quarter of FY24.

Delta Corp gained 1.24%. The gaming and casino firm's consolidated net profit grew by 18.9% to Rs 67.91 crore on 9% increase in revenue to Rs 272.80

Numbers to Watch:

The yield on India's 10-year benchmark federal paper fell 0.04% to 7.097 from its previous close of 7.100.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.9450, compared with its close of 81.8850 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement rose 0.12% to Rs 59,260.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 101.33.

The United States 10-year bond yield slipped 0.59% to 3.892.

In the commodities market, Brent crude for September 2023 settlement shed 37 cents or 0.44% to $83.27a barrel.

Global Markets:

Asian stocks are largely trading lower as investors brace for the U.S. Federal Reserve's rate decision on Wednesday.

On Wall Street, the three main indices closed higher on Tuesday, led by gains in shares of technology, materials and communication services companies.

Global central bank meetings are in focus. Markets reportedly anticipate a 25 basis points interest rate hike from the US Federal Reserve on Wednesday and European Central Bank on Thursday. Meanwhile, the Bank of Japan on Friday is likely to keep its super-loose policy intact. Investors are waiting for Chair Jerome Powell's statements on his outlook for the economy as it tackles inflation.

Market ends on flat note amid volatility; NSE VIX slumps over 12%.

The key equity indices ended a volatile session near the flat line on Tuesday. The Nifty settled above the 19,650 mark after hitting day's low of 19,615.95 in mid-afternoon trade. Metal, media and auto shares advanced while PSU bank, FMCG and realty stocks declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex declined 29.07 points or 0.04% to 66,355.71. The Nifty 50 index added 8.25 points or 0.04% to 19,680.60.

In the broader market, the S&P BSE Mid-Cap index advanced 0.39% while the S&P BSE Small-Cap index gained 0.31%.

The market breadth was negative. On the BSE, 1,731 shares rose and 1,808 shares fell. A total of 141 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 12.10% to 10.24.

Stocks in Spotlight:

Bajaj Auto declined 0.80%. The auto major reported consolidated net profit jumped 41.33% to Rs 1,644.14 crore on 28.82% increase in net sales to Rs 10,311.91 crore in Q1 FY24 over Q1 FY23. The company's total auto sales rose 10% to 10,27,407 units in Q1 FY24 over Q1 FY23. During the said period, domestic sales jumped 82% while exports slipped 34%.

Tata Steel advanced 3.25%. The steel major's consolidated net profit tumbled 91.8% to Rs 633.95 crore in Q1 FY24 as against Rs 7,764 crore reported in Q1 FY23. Total revenue from operations slipped 6.5% year on year to Rs 59,015.80 crore in the quarter ended 30 June 2023.

Asian Paints slipped 3.95%. The paint major's consolidated net profit jumped 52.46% to Rs 1,550.37 crore on 6.7% increase in revenue from operations to Rs 9,153.79 crore in Q1 FY24 over Q1 FY23.

SpiceJet rose 1.08% after the media reported that aviation watchdog DGCA has taken off the low cost air carrier from its enhanced surveillance regime. The airline had been placed under enhanced surveillance due to concerns about inadequate maintenance and incidents during the previous monsoon season.

Maruti Suzuki India rose 0.65%. The auto major has announced a recall of 87,599 vehicles, specifically the S-Presso and Eeco models, which were produced between the period of 5 July 2021, and 15 February 2023. This recall comes as a result of a suspected defect in a component known as the steering tie rod, utilized in these vehicles. In rare instances, this part may fracture, thereby compromising the steerability and handling of the affected vehicles.

Larsen & Toubro (L&T) fell 1.51%. L&T said that its power transmission & distribution business has secured new 'significant' orders in India and abroad. As per L&T's classification, the value of the said contract lies between Rs 1,000 crore and Rs 2,500 crore.

Jyothy Labs was locked in an upper circuit of 20%. The company's consolidated net profit jumped 98.74% to Rs 96.29 crore in Q1 FY24 as compared with Rs 48.45 crore in Q1 FY23.

Chennai Petroleum Corporation tumbled 9.04% after the company's standalone net profit slumped 76.8% to Rs 548.32 crore in Q1 FY24 as against Rs 2,358.79 crore recorded in Q1 FY23. Revenue from operations (excluding excise duty) dropped 36.3% to Rs 14,744.80 crore in the quarter ended 30 June 2023 from Rs 23,162.55 crore recorded in the corresponding quarter previous year.

Shoppers Stop added 1.76%. The company reported 36.5% decline in consolidated net profit to Rs 14.49 crore in Q1 FY24 from Rs 22.83 crore recorded in Q1 FY23. Revenue from operations grew by 4.8% year on year to Rs 993.61 crore in the quarter ended 30 June 2023.

KPIT Technologies rose 0.63% after the IT firm's consolidated net profit jumped 20.06% to Rs 133.99 crore on 7.89% increase in revenue from operations to Rs 1,097.62 crore in Q1 FY24 over Q4 FY23.

Global Markets:

European and Asian stocks advanced on Tuesday as markets awaited more cues from a Federal Reserve meeting this week, while Chinese markets rose sharply after top officials promised more policies to support growth.

China's Politburo- the top decision-making body of the Communist Party- promised more policy measures to support slowing economic growth in the coming months. Measures will be aimed at the country's biggest growth engines- real estate and private consumption, both of which have deteriorated substantially over the past three years.

South Korea's gross domestic product grew 0.9% year-on-year in the second quarter of 2023, according to advance estimates. This was unchanged from the 0.9% seen in the first quarter.

Global central bank meetings will be in focus. Markets reportedly anticipate a 25 basis points interest rate hike from the US Federal Reserve on Wednesday and European Central Bank on Thursday. Meanwhile, the Bank of Japan on Friday is likely to keep its super-loose policy intact. Investors are waiting for Chair Jerome Powell's statements on his outlook for the economy as it tackles inflation.

US stocks settled higher on Monday as investors bet on sectors beyond technology in a week filled with earnings reports and a Federal Reserve meeting.