Nifty below 17,550 mark, metal stocks lose shine.

The frontline indices traded with modest losses in morning trade. The Nifty traded below the 17,550 mark after hitting the day's high of 17,653.90 in morning trade. FMCG, IT and media scrips advanced while oil & gas, metal and financial services shares tumbled.

The barometer index, the S&P BSE Sensex, was down 178.11 points or 0.30% to 59,529.97. The Nifty 50 index lost 90.90 points or 0.52% to 17,525.40.

In the broader market, the S&P BSE Mid-Cap index fell 0.08% while the S&P BSE Small-Cap index gained 0.68%.

The market breadth was positive. On the BSE, 1,736 shares rose and 1,405 shares fell. A total of 129 shares were unchanged.

The US Federal Reserve hiked its key interest rate by 25 basis points on Wednesday, taking the rate to a target range of 4.50-4.75%. Further, the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.

Earnings Today:

Housing Development Finance Corporation (HDFC) (down 1.99%), Tata Consumer Products (down 0.63%), Titan Company (up 0.36%), Aditya Birla Capital (up 1.55%), Dabur India (down 0.98%), Godrej Properties (down 0.52%), Apollo Tyres (up 1.05%), Bajaj Electricals (down 1.33%), Berger Paints India (down 0.19%), Birlasoft (down 8.09%), Cera Sanitaryware (up 1.60%), Coromandel International (up 0.85%), Aegis Logistics (up 0.21%), Crompton Greaves Consumer Electricals (up 1.77%), Deepak Fertilisers (up 2.13%), Karnataka Bank (up 1.95%), Max India (up 1.48%), SIS (up 0.54%), Ujjivan Small Finance Bank (up 0.52%), and Welspun Corp (up 3.31%) will announce their quarterly earnings later today.

Buzzing Index:

The Nifty Metal index slipped 2.69% to 6,011.05. The tumbled 7.07% in the two trading sessions.

Adani Enterprises (down 6.54%), Jindal Steel & Power (down 4.78%), Tata Steel (down 2.62%), Hindalco Industries (down 1.21%), Steel Authority of India (down 1.01%), JSW Steel (down 0.99%), National Aluminium Company (down 0.55%), Hindustan Copper (down 0.34%), MOIL (down 0.03%) slumped.

On the other hand, Hindustan Zinc (up 3.4%) ,Welspun Corp (up 2.34%) and APL Apollo Tubes Ltd (up 2.25%) edged higher.

Adani Enterprises dropped 6.54% after the company's board on Wednesday (1 February 2023) decided to call off the Rs 20,000 crore follow-on public offer (FPO).

A press release issued by the conglomerate late on Wednesday stated, Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction.

Stocks in Spotlight:

Britannia Industries jumped 3.75% after the company's consolidated net profit surged 151.2% to Rs 932.39 crore on 16.2% increase in net sales to Rs 4,101.49 crore in Q3 FY23 over Q3 FY22.

Tata Chemicals shed 0.60%. The company reported 27% rise in consolidated net profit to Rs 432 crore on a 32% increase in revenue to Rs 4,148 crore in Q3 FY23 over Q3 FY22. The company said that the soda ash realisations robust across geographies. Cost environment is stabilizing and likely to stay at the current levels in the near term, it added.

IDFC rose 1.95 and IDFC First Bank advanced 2.74%. IDFC said on Wednesday that it is investing Rs 2,200 crore in IDFC First Bank to increase its stake in the bank to 40% from 36.38% currently. This will provide growth capital to IDFC First Bank, the company said in a statement.

Further, the IDFC board has declared a special interim dividend of Rs 11 per share, due to which the Government of India, the largest shareholder in IDFC, would receive a payout of Rs 287 crore.

Market drift lower in early trade, Adani Enterprises tumble.

The key equity indices were trading with minor cuts in early trade. The Nifty traded near the 17,550 mark. IT, media and consumer durables stocks were in demand while metal, oil & gas and financial services shares witnessed a bit of a selling pressure.

The barometer index, the S&P BSE Sensex, was down 96.34 points or 0.16% to 59,611.74. The Nifty 50 index lost 65.95 points or 0.37% to 17,550.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.42% while the S&P BSE Small-Cap index gained 1%.

The market breadth was strong. On the BSE, 1,782 shares rose and 944 shares fell. A total of 129 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,785.21 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 529.47 crore in the Indian equity market on 1 February, provisional data showed.

Adani Enterprises calls off Rs 20K crore FPO:

Adani Enterprises hit a lower circuit of 10% at Rs 1,915.85. The board of Adani Enterprises on Wednesday (1 February 2023) decided to call off the Rs 20,000 crore follow-on public offer (FPO).

A press release issued by the conglomerate late on Wednesday stated, Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction.

Gautam Adani, chairman, Adani Enterprises said, The subscription for the FPO closed successfully yesterday. However, today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company's board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO. We are working with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue.”

Stocks in Spotlight:

Coal India rose 0.05%. The state-run coal major's total offtake stood at 64.5 million tonnes (MT) in January 2023, registering a growth of 6.1% as compared with 60.8 MT recorded in the same month previous year. The company's coal production jumped 11.5% to 71.9 million tonnes (MT) in January 2023 from 64.5 MT in January 2022.

Britannia Industries gained 1.21%. Britannia's consolidated sales for the quarter ended 31st December 2022 grew 16% to Rs 4,101 crore and net profit grew 151% to Rs. 932 crores. The net profit includes an exceptional gain (net of tax) of Rs. 359 crore, pursuant to a joint venture agreement with Bel SA for the Cheese business and consequent sale of 49% equity stake in its subsidiary & fair valuation of the residual stake of 51%.

Eicher Motors shed 0.65%. Eicher Motors said that its unlisted subsidiary, VE Commercial Vehicles (VECV) sold 7,181 units of commercial vehicles (CV) in January 2023, registering a growth of 32.1% compared with 5,434 units sold in January 2022.

Tata Chemicals slipped 3.75%. Consolidated Profit After Tax from continuing operations (pre-MI) was Rs 432 crore as compared to Rs 340 crore for corresponding quarter of last year. Consolidated revenue from operations stood at Rs 4,148 crore, up 32%, as compared to Rs 3,141 crore for corresponding quarter of last year.

Ashok Leyland added 1.49%. The board of directors of the company approved transfer of Electric Vehicles (EV) business to M/s. Switch Mobility Automotive Limited, India, (SMAL), step-down subsidiary, on a slump sale basis effective 1 October 2021, for a consideration of Rs.240 crores, on such terms and conditions as per the Business Transfer Agreement (BTA) entered into between the Company and SMAL.

Global Markets:

Asian stocks were trading higher on Thursday as investors digested the U.S. Federal Reserve's smaller rate hike of 25 basis points and Fed Chairman Jerome Powell acknowledged inflation is falling.

US stocks rose on Wednesday after Federal Reserve chair Jerome Powell acknowledged that inflation was starting to ease, in remarks he made following a quarter-point rate hike by the U.S. central bank.

The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75%. Inflation has eased somewhat but remains elevated, said the Fed's policy-setting Federal Open Market Committee (FOMC) in a statement. The committee anticipates that ongoing increases in the target range will be appropriate to bring inflation back to policymakers' 2% target over time, the statement said.