Nifty at 17,850; Sensex adds 348 pts; IT shares advance.

The frontline equity benchmarks continued to trade with significant gains in mid-morning trade. The Nifty marched near the 17,850 level. Metal, IT and healthcare shares advanced while realty, auto and consumer durable stocks declined.

The barometer index, the S&P BSE Sensex, was up 348.27 points or 0.58% to 60,634.31. The Nifty 50 index added 128.95 points or 0.73% to 17,850.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.43% while the S&P BSE Small-Cap index gained 0.31%.

The market breadth was positive. On the BSE, 1,772 shares rose, and 1,495 shares fell. A total of 168 shares were unchanged.

The Reserve Bank of India on Wednesday hiked the repo rate by 25 basis points to 6.5%, Governor Shaktikanta Das announced. This was the first Monetary Policy Statement of the year. In December 2022, the repo rate was raised by 0.35 percentage points to 6.25%.

Buzzing Index:

The Nifty IT index jumped 1.91% to 30,888.95. The index slipped 0.94% in past two trading sessions.

Coforge (up 3.89%), Mphasis (up 2.38%), Infosys (up 2.24%), LTI Mindtree (up 2.17%), L&T Technology Services (up 2.05%), Tata Consultancy Services (up 1.73%), Tech Mahindra (up 1.44%), Persistent Systems (up 1.4%), HCL Technologies (up 1.36%) and Wipro (up 1.36%) edged higher.

Stocks in Spotlight:

NHPC fell 0.62%. The power generation company's consolidated net profit declined 17.4% to Rs 671.67 crore in Q3 FY23 from Rs 813.21 crore recorded in Q3 FY22. Revenue from operations was at Rs 2,582.76 crore in the quarter ended 31 December 2022 as against Rs 2,156.72 crore posted in Q3 FY22, registering a growth of 19.8%.

Aurobindo Pharma rose 0.85%. The drug maker said that its step-down subsidiary company, Aurolife Pharma, has received US Food & Drug Administration (USFDA) approval to manufacture and market Diclofenac Sodium Topical Solution USP.

Rail Vikas Nigam (RVNL) declined 1.04%. The company said that it emerged as lowest bidder for provision of automatic block signalling on Madar-Sakhun section (51.13 Kms) of Jaipur Division over North Western Railway. The cost of the project is Rs 69,48,11,094.74. It will be executed within 9 months. Letter of Award (LoA) is still awaited.

Global markets:

Asian stocks traded mixed on Wednesday, as Federal Reserve Chairman Jerome Powell overnight acknowledged that inflation is declining, a sign the central bank may soon pause its rate hikes.

US stocks advanced on Tuesday, but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank might need to tame inflation.

US inflation is starting to cool but the road ahead will likely be long and bumpy, Federal Reserve Chair Jerome Powell warned Tuesday, adding that stronger-than-expected economic data could bring more rate hikes.

Barometers hit fresh intraday low; realty shares rise for 2nd day.

The key equity benchmarks declined further as they hit fresh intraday low in early afternoon trade. The Nifty traded tad above the 17,700 merk after hitting day's high of 17,811.15 in early trade. Realty shares rose for second consecutive session.

The barometer index, the S&P BSE Sensex, was down 254.87 points or 0.42% to 60,252.03. The Nifty 50 index lost 56.45 points or 0.32% to 17,708.15.

In the broader market, the S&P BSE Mid-Cap index slipped 0.10% while the S&P BSE Small-Cap index shed 0.24%.

The market breadth was negative. On the BSE, 1,477 shares rose, and 1,874 shares fell. A total of 165 shares were unchanged.

The RBI policy review meeting began on 6 February and concludes on 8 February 2023. The central bank is projected to raise the repo rate but at a slower pace. In its December monetary policy committee meeting, the RBI raised the policy repo rate by 35 basis points (bps) to 6.25%.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.99% to 14.40. The Nifty 23 February 2023 futures were trading at 17,757, at a premium of 48.85 points as compared with the spot at 17,708.15.

The Nifty option chain for the 23 February 2023 expiry showed maximum Call OI of 34.8 lakh contracts at the 18,000 strike price. Maximum Put OI of 37.5 lakh contracts were seen at 17,500 strike price.

Buzzing Index:

The Nifty Realty index rose 0.43% to 409.75. The index has risen 0.95% in two sessions.

Godrej Properties (up 1.55%), DLF (up 0.97%), Phoenix Mills (up 0.87%), Sobha (up 0.59%), Prestige Estates Projects (up 0.49%) and Oberoi Realty (up 0.22%) advanced.

On the other hand, Sunteck Realty (down 1.5%), Indiabulls Real Estate (down 1.29%) and Brigade Enterprises (down 0.87%) moved lower.

Stocks in Spotlight:

Mold-Tek Packaging slumped 9.59%. The company reported 16% fall in net profit to Rs 16.31 crore on a 15% decline in revenue to Rs 154.83 crore in Q3 FY23 over Q2 FY23. As compared with Q3 FY22, the company's net profit and revenue are lower by 2.10% and 3%, respectively.

JK Paper fell 1.12%. The company's consolidated net profit zoomed 119.2% to Rs 329.32 crore in Q3 FY23 from Rs 150.21 crore posted in Q3 FY22. Net revenue from operations was at Rs 1,643.06 crore in the quarter ended 31 December 2022, registering a growth of 60.5% as against Rs 1,023.62 crore reported in the same period last year.

Benchmarks trade with minor cuts; Sensex down 80 pts.

The key equity barometers slipped into the negative terrain and traded with small losses in morning trade. The Nifty traded near the 17,750 level. FMCG stocks snapped its five-day gaining streak.

The barometer index, the S&P BSE Sensex, was down 79.9 points or 0.13% to 60,427. The Nifty 50 index lost 5.60 points or 0.03% to 17,759.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index shed 0.10%.

The market breadth was almost even. On the BSE, 1,594 shares rose, and 1,567 shares fell. A total of 148 shares were unchanged.

The RBI policy review meeting began on 6 February and concludes on 8 February 2023. The central bank is projected to raise the repo rate but at a slower pace. In its December monetary policy committee meeting, the RBI raised the policy repo rate by 35 basis points (bps) to 6.25%.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,218.14 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,203.09 crore in the Indian equity market on 6 February, provisional data showed.

Results Today:

Bharti Airtel (up 0.22%), Hero MotoCorp (down 2.02%), Ambuja Cements (up 3.57%), Adani Ports and Special Economic Zone (up 6.99%), Adani Green Energy (up 2.30%), NDTV (up 5%), Aditya Birla Fashion and Retail (down 1.90%), Astral (down 1.11%), Barbeque-Nation Hospitality (up 0.17%), Bharat Dynamics (up 0.26%), Computer Age Management Services (down 0.37%), Deepak Nitrite (down 3.33%), Gujarat Fluorochemicals (up 0.15%), GSK Pharma (up 0.93%), Kalyan Jewellers India (down 0.42%), Motherson Sumi Wiring India (down 0.38%), Navin Fluorine International (up 1.22), NHPC (up 0.24%), Phoenix Mills (down 0.81%), Ramco Cements (down 0.51%), Rashtriya Chemicals & Fertilizers (down 0.64%), Sobha (up 0.93%) and Thermax (down 0.47%) will announce their quarterly earnings later today.

Buzzing Index:

The Nifty FMCG index declined 0.92% to 45,865.15. The index advanced 4.69% in past five trading sessions.

ITC (down 2.46%), Dabur India (down 1.85%), Emami (down 1.8%), Marico (down 1.4%), Hindustan Unilever (down 1.02%), Tata Consumer Products (down 0.83%), Nestle India (down 0.58%), Radico Khaitan (down 0.53%), United Spirits (down 0.51%) and Godrej Consumer Products (down 0.48%) declined.

Stocks in Spotlight:

Markolines Pavement Technologies jumped 9.56% after the company said its associate firm, UniqueUHPC Markolines, has received a Letter of Award ('LoA') for a construction project worth Rs 225.17 crore in Jammu & Kashmir.

Tata Steel tumbled 3.57% after the company reported a consolidated net loss of Rs 2,502 crore in Q3 FY23 as against a net profit of Rs 9,598 crore in Q3 FY22. Total revenue from operations during the quarter amounted to Rs 57,084 crore, down 6% YoY. The fall in revenues was primarily driven by drop in realisations across geographies.

Tejas Networks rallied 2.61% after the company reported a consolidated net loss of Rs 10.88 crore in Q3 FY23 as against a net loss of Rs 24.30 crore posted in Q3 FY22. Revenue from operations zoomed 156.4% to Rs 274.55 crore in the quarter ended 31 December 2022 from Rs 107.06 crore recorded in the same period a year ago.

Benchmarks drift lower in early trade; Nifty below 17,750.

The key equity indices were trading with minor losses in early trade. The Nifty traded below the 17,750 level. Banking and media shares advanced while metal, IT and oil & gas stocks declined.

The barometer index, the S&P BSE Sensex, was down 262.15 points or 0.43% to 60,579.73. The Nifty 50 index lost 105 points or 0.59% to 17,749.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.24% while the S&P BSE Small-Cap index gained 0.49%.

The market breadth was positive. On the BSE, 1,468 shares rose, and 933 shares fell. A total of 176 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 932.44 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,264.74 crore in the Indian equity market on 3 February, provisional data showed.

Stocks in Spotlight:

SBI rose 1.05%. The banking giant reported 68.47% jump in standalone net profit to Rs 14,205.34 crore on a 25.18% rise in total income to Rs 98,083.77 crore in Q3 FY23 over Q3 FY22.

ITC was up 1.20%. The company's standalone net profit rose 21.05% to Rs 5,031.01 crore on 2.51% increase in net sales to Rs 16,082.40 crore in Q3 December 2022 over Q3 December 2021. EBITDA improved 22% to Rs 6,223 crore in Q3 FY23 from Rs 5,102 crore in Q3 FY22.

InterGlobe Aviation (Indigo) advanced 1.16%. Indigo reported a consolidated net profit of Rs 1,422.6 crore in Q3 FY23, steeply higher than Rs 129.79 crore posted in Q3 FY22. Revenue from operations surged 60.66% to Rs 14,932.97 crore in the quarter ended 31 December 2022 from Rs 9,294.77 crore recorded in Q3 FY22.

Global markets:

Asian stocks are trading lower on Monday as a stronger-than-expected jobs report from the U.S. worrying investors the Federal Reserve has room for more interest rate hikes, as it continued its efforts to control inflation.

US stocks dropped on Friday after a shockingly strong US jobs report renewed concerns the Federal Reserve may remain aggressive in its path of interest rate hikes as it tries to tame inflation.

US job growth accelerated sharply in January while the unemployment rate hit more than a 53-1/2-year low of 3.4%. The survey of establishments showed nonfarm payrolls surged by 517,000 jobs last month. Data for December was revised higher to show 260,000 jobs added instead of the previously reported 223,000.

Sensex jumps 813 pts, PSU bank shares rally.

The frontline indices traded marched higher and hit a fresh intraday high in mid-afternoon trade. The Nifty traded above the 17,800 mark after hitting day's low of 17,584.20 in mid-morning trade. Banks, financial services and consumer durables scrips were in demand while healthcare, pharma and realty stocks tumbled.

The barometer index, the S&P BSE Sensex, was up 814.53 points or 1.36% to 60,746.77. The Nifty 50 index added 217.20 points or 1.23% to 17,827.60.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index lost 0.41% while the S&P BSE Small-Cap index fell 0.62%.

The market breadth was weak. On the BSE, 1,137 shares rose and 2,341 shares fell. A total of 140 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.290 from its close of 7.296 recorded in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.2600, compared with its close of 82.2050 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement rose 0.22% to Rs 57,820.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.17% to 101.05.

The United States 10-year bond yield declined 0.71% to 3.374.

In the commodities market, Brent crude for April 2023 settlement declined 35cents or 0.43% to $81.82 a barrel.

Buzzing Index:

The Nifty PSU Bank index gained 2.14% to 3,853.30. The index slipped 5.84% in the past two trading sessions.

Bank of Baroda (up 5.03%), Canara Bank (up 1.84%), State Bank of India (up 1.78%), Bank of India (up 1.48%) and Indian Bank (up 0.1%) were the top gainers.

On the other hand, Central Bank of India (down 2.85%), UCO Bank (down 1.78%) and Union Bank of India (down 1.77%) edged lower.

Stocks in Spotlight:

Divis Laboratories tumbled 12.71% after the pharmaceutical company's consolidated net profit slumped 66% to Rs 306.80 crore on 31.51% decline in revenue from operations to Rs 1,707.68 crore in Q3 FY23 over Q3 FY22.

Mahanagar Gas (MGL) shed 0.08%. The company reported a consolidated net profit of Rs 172.07 crore in Q3 FY23, which is significantly higher as compared with a net profit of Rs 56.79 crore in Q3 FY22. Net revenue from operations increased by 62.62% YoY to Rs 1671.39 crore during the quarter.

Zydus Lifesciences rose 0.36%. The pharma company's consolidated net profit jumped 24.48% to Rs 622.9 crore on a 19.85% increase in total revenue from operations to Rs 4,362.3 crore in Q3 FY23 over Q3 FY22.