Indices end with minor cuts; Nifty settles below 18,050.

STREET INVESTMENT

The domestic equity benchmarks ended near the day's low with modest losses on Friday. The Nifty closed below the 18,050 mark after hitting the day's high of 18,145.45 in mid-morning trade. Banking and financial services stocks advanced while media, consumer durables and FMCG shares were under pressure.

As per provisional closing data, the barometer index, the S&P BSE Sensex shed 236.66 points or 0.39% to 60,621.77. The Nifty 50 index declined 80.20 points or 0.44% to 18,027.65.

In the broader market, the S&P BSE Mid-Cap index fell 0.66% while the S&P BSE Small-Cap index shed 0.50%.

The market breadth was negative. On the BSE, 1,570 shares rose, and 1,916 shares fell. A total of 153 shares were unchanged.

Investor sentiment remained negative after the US reported lower-than-expected weekly unemployment claims, a sign of a robust labour market. This might result in the Fed maintaining its aggressive rate hike policy, increasing the likelihood that the world's largest economy would experience a recession.

Earnings Impact:

Hindustan Unilever fell 3.74%. The FMCG major reported 12% rise in standalone net profit to Rs 2,505 crore on a 16% increase in turnover to Rs 14,986 crore in Q3 FY23 over Q3 FY22.

The company's board approved the proposal to enter a new arrangement wherein it will now be paying royalty and central services fees to Unilever Group at 3.45% of turnover, up from 2.65% in FY22. This increase will be affected in a staggered manner over a period of 3 years, the company said.

Hindustan Zinc tumbled 6.42% after the mining company's consolidated net profit slipped 20.2% to Rs 2,156 crore from Rs 2,701 crore recorded in Q3 FY22. Revenue from operations during the quarter was Rs 7,866 crore, down 1.6% year on year (YoY), on account of lower LME coinciding with lower refined metal and silver volumes partially offset by favourable exchange rates and gains from strategic hedging.

HDFC Life Insurance Company shed 2.41%. The company reported 15.19% increase in standalone net profit to Rs 315.22 crore in Q3 FY23 as against Rs 273.65 crore posted in Q3 FY22. The life insurer's net premium income jumped 18.6% to Rs 14,379.38 crore in quarter ended 31 December 2022 as compared with Rs 12,124.36 crore recorded in Q3 FY22

Coforge jumped 3.37% after the company reported 13.5% rise in consolidated net profit to Rs 228.2 crore on a 4.9% increase in gross revenues to Rs 2,055.8 crore in Q3 FY23 over Q2 FY23.

L&T Technology Services (LTTS) slipped 4.81%. The company reported a 7.51% rise in consolidated net profit to Rs 303.60 crore on 2.68% increase in revenue from operations to Rs 2,048.60 crore in Q3 FY23 over Q2 FY22.

IndiaMART InterMESH rose 1.48% after the company's consolidated net profit jumped 61% to Rs 113 crore on 34% rise in net sales to Rs 251 crore in Q3 December 2022 over Q3 December 2021.

AU Small Finance Bank shed 0.68%. The bank reported 30% jump in net profit to Rs 393 crore on a 41% rise in net interest income to Rs 1,153 crore in Q3 FY23 over Q3 FY22. Net interest margin (NIM) for the quarter was stable at 6.2%. Total income increased by 36% YoY to Rs 2,413 crore in Q3 FY23.

Union Bank of India skid 0.55%. The bank reported a net profit of Rs 2,245 crore in Q3 FY23, which is significantly higher as compared with a net profit of Rs 1,085 crore recorded in the same period last year. Total income during the quarter increased 24% YoY to Rs 24,154 crore.

Mphasis slipped 2.25% after the IT reported 1.5% fall in consolidated net profit to Rs 412.3 crore on a 0.4% declin in revenue from operations to Rs 3,506.2 crore in Q3 FY23 over Q2 FY23.

Global Markets:

Stocks in Europe and Asian advanced on Friday as investors digested Japan's inflation data. The nationwide core consumer price index rose 4% in December on an annualized basis, the fastest pace since 1981. The reading climbed from the inflation print of 3.7% seen in November.

The People's Bank of China left the loan prime rates for 1-year and 5-year unchanged, widely in line with expectations. The 1-year LPR stayed at 3.65% while the 5-year LPR remained at 4.3%, both unchanged since August, 2022.

US stocks fell Thursday as investors grew increasingly concerned the Federal Reserve will keep raising rates despite signs of slowing inflation.

Boston Federal Reserve President Susan Collins said Thursday that she thinks the central bank can enact smaller interest rate hikes after a series of aggressive moves last year. Collins said she is “reasonably optimistic that there is a pathway to reducing inflation without a significant economic downturn.”

Market at day's low; Sensex down 168 pts; Nifty below 18,050.

The key equity indices traded near the day's low with significant cuts in mid-afternoon trade. The Nifty traded below the 18,050 mark after hitting the day's high of 18,145.45 in mid-morning trade. Bank, financial services and oil & gas stocks edged higher, while media, FMCG and consumer durables shares were under pressure.

The barometer index, the S&P BSE Sensex, was down 168.15 points or 0.28% to 60,690.28. The Nifty 50 index declined 64 points or 0.35% to 18,043.85.

In the broader market, the S&P BSE Mid-Cap index fell 0.55% while the S&P BSE Small-Cap index shed 0.42%.

The market breadth turned negative. On the BSE, 1,565 shares rose, and 1,891 shares fell. A total of 157 shares were unchanged.

Investor sentiment remained negative after the US reported lower-than-expected weekly unemployment claims, a sign of a robust labour market. This might result in the Fed maintaining its aggressive rate hike policy, increasing the likelihood that the world's largest economy would experience a recession.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined to 7.348 from its close of 7.313 recorded in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.13, compared with its close of 81.36 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement added 0.39% to Rs 56,764.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 102.09.

The United States 10-year bond yield gained 0.46% to 3.415.

In the commodities market, Brent crude for March 2023 settlement rose 67 cents or 0.78% to $86.83 a barrel.

Buzzing Index:

The Nifty Media index fell 1.40% to 1,887.60. The index declined 2.40% in two trading sessions.

Among the components of the Nifty Media index, Inox Leisure (down 3.55%), PVR (down 3.36%), Network 18 Media & Investments (down 1.37%), Sun TV Network (down 0.72%), Navneet Education (down 0.47%) and Zee Entertainment Enterprises (down 0.13%) declined.

Stocks in Spotlight:

Jubilant FoodWorks (JFL) rose 0.33%. The QSR chain operator on Thursday announced that it has planned Rs 900 crore Capex which will be funded entirely through internal accruals over a period of 12-18 months.

Aether Industries advacned 2.90% after the specialty chemicals maker reported 37.94% surge in consolidated net profit to Rs 35.04 crore on 10.48% increase in revenue from operations to Rs 167.13 crore in Q3 FY23 over Q3 FY22.

GPT Infraprojects zoomed 5.48% after the company announced that it has bagged an order valued at Rs 270 crore from Bridge & Roof Company (India), a Kolkata-based Government of India enterprise.

Benchmarks trade flat; realty shares fall for 2nd day.

STREET INVESTMENT

The domestic equity barometers traded flat in early afternoon trade. The Nifty traded tad above the 18,100 level. Realty stocks declined for second day in a row.

The barometer index, the S&P BSE Sensex, was down 2.03 points to 60,856.40. The Nifty 50 index added 1 point or 0.01% to 18,108.85.

In the broader market, the S&P BSE Mid-Cap index fell 0.17% while the S&P BSE Small-Cap index shed 0.03%.

The market breadth was positive. On the BSE, 1781 shares rose, and 1590 shares fell. A total of 163 shares were unchanged.

Investor sentiment remained negative after the US reported lower-than-expected weekly unemployment claims, a sign of a robust labour market. This might result in the Fed maintaining its aggressive rate hike policy, increasing the likelihood that the world's largest economy would experience a recession.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.70% to 13.58. The Nifty 25 January 2022 futures were trading at 18,127.15, at a premium of 18.3 points as compared with the spot at 18,108.85.

The Nifty option chain for the 25 January 2022 expiry showed maximum Call OI of 133.3 lakh contracts at the 18,100 strike price. Maximum Put OI of 126.8 lakh contracts were seen at 18,100 strike price.

Buzzing Index:

The Nifty Realty index lost 0.48% to 428.50. The index has declined 0.57% in two sessions.

Godrej Properties (down 0.9%), DLF (down 0.77%), Oberoi Realty (down 0.64%), Prestige Estates Projects (down 0.64%) and Indiabulls Real Estate (down 0.59%) were the top losers.

Among the other losers were Phoenix Mills (down 0.49%), Sunteck Realty (down 0.2%) and Brigade Enterprises (down 0.18%).

Stocks in Spotlight:

Bata India shed 0.82%. The footwear major on Thursday announced that its board of directors has appointed Anil Somani as the chief financial officer (CFO) and key managerial personnel (KMP) of the company.

Mphasis slipped 1.41%. The IT reported 1.5% fall in consolidated net profit to Rs 412.3 crore on a 0.4% declin in revenue from operations to Rs 3,506.2 crore in Q3 FY23 over Q2 FY23.

Sterling and Wilson Renewable Energy rose 3.83%. The company reported a consolidated net loss of Rs 101.24 crore in Q3 FY23 as against a net loss of Rs 422.41 crore posted in Q3 FY22. Revenue from operations slumped 72.8% to Rs 406.96 crore in the quarter ended 31 December 2022 from Rs 1,494.86 crore recorded in Q3 FY22.

Nifty hovers above 18,100; Sensex adds 79 pts.

STREET INVESTMENT

The key equity benchmarks traded near the flat line with tiny gains in mid-morning trade. Positive Asian cues and strong FII buying boosted the investors sentiment. The Nifty hovered above the 18,100 level. Consumer durable shares declined for the second day in a row.

The barometer index, the S&P BSE Sensex, was up 48.05 points or 0.08% to 60,906.48. The Nifty 50 index added 7.20 points or 0.04% to 18,115.05.

In the broader market, the S&P BSE Mid-Cap index fell 0.05% while the S&P BSE Small-Cap index gained 0.12%.

The market breadth was positive. On the BSE, 1,860 shares rose, and 1,459 shares fell. A total of 149 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 399.98 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 128.96 crore in the Indian equity market on 19 January, provisional data showed.

Buzzing Index:

The Nifty Consumer Durables index fell 0.78% to 24,423. The index declined 1.40% in the two trading sessions.

Havells India (down 3.53%), Relaxo Footwears (down 2.09%), Voltas (down 0.71%), Bata India (down 0.65%), Rajesh Exports (down 0.64%), Dixon Technologies (India) (down 0.63%), Whirlpool of India (down 0.3%), Kajaria Ceramics (down 0.26%), Orient Electric (down 0.19%) and Titan Company (down 0.12%) slipped.

Stocks in Spotlight:

Hindustan Zinc tumbled 6.93% after the mining company's consolidated net profit slipped 20.2% to Rs 2,156 crore from Rs 2,701 crore recorded in Q3 FY22. Sequentially, the net profit declined 19.6% on account of lower EBITDA partly offset by lower tax expense.

Coforge jumped 6.05% after the company reported 13.5% rise in consolidated net profit to Rs 228.2 crore on a 4.9% increase in gross revenues to Rs 2,055.8 crore in Q3 FY23 over Q2 FY23.

L&T Technology Services (LTTS) declined 2.69%. The company reported a 7.51% rise in consolidated net profit to Rs 303.60 crore on 2.68% increase in revenue from operations to Rs 2,048.60 crore in Q3 FY23 over Q2 FY22.

Global markets:

Asian stocks advanced on Friday as investors digested Japan's inflation data. The nationwide core consumer price index rose 4% in December on an annualized basis, the fastest pace since 1981. The reading climbed from the inflation print of 3.7% seen in November.

The People's Bank of China left the loan prime rates for 1-year and 5-year unchanged, widely in line with expectations. The 1-year LPR stayed at 3.65% while the 5-year LPR remained at 4.3%, both unchanged since August, 2022.

US stocks fell Thursday as investors grew increasingly concerned the Federal Reserve will keep raising rates despite signs of slowing inflation.

Boston Federal Reserve President Susan Collins said Thursday that she thinks the central bank can enact smaller interest rate hikes after a series of aggressive moves last year. Collins said she is “reasonably optimistic that there is a pathway to reducing inflation without a significant economic downturn.”

Barometers trade with tiny cuts; breadth positive.

STREET INVESTMENT

The key equity indices were trading with small losses in early trade. The Nifty traded below the 18,100 level. Banking and financial services shares advanced while consumer durables, pharma and health care stocks declined.

The barometer index, the S&P BSE Sensex, was down 38.91 points or 0.06% to 60,819.52 The Nifty 50 index lost 16.10 points or 0.09% to 18,091.75.

In the broader market, the S&P BSE Mid-Cap index fell 0.16% while the S&P BSE Small-Cap index gained 0.06%.

The market breadth was positive. On the BSE, 1,544 shares rose, and 1,065 shares fell. A total of 146 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 399.98 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 128.96 crore in the Indian equity market on 19 January, provisional data showed.

Stocks in Spotlight:

Hindustan Unilever (HUL) shed 1.90%. The FMCG major reported 12% rise in standalone net profit to Rs 2,505 crore on a 16% increase in turnover to Rs 14,986 crore in Q3 FY23 over Q3 FY22.

The board of directors of HUL approved the proposal to enter a new arrangement with Unilever group entities for the provision of technology, trademark licenses and services to HUL. In the new agreement, the royalty and central services fees will increase from 2.65% (FY22) to 3.45% of turnover. This increase will be effected in a staggered manner over a period of 3 years.

L&T Technology Services (LTTS) slipped 3.15%. The company reported 7.5% rise in consolidated net income to Rs 303.6 crore on a 2.7% increase in revenue to Rs 2048.6 crore in Q3 FY23 over Q2 FY23.

Bharat Heavy Electricals (Bhel) rose 1.19%. Bhel said that it has won an order for the renovation & modernisation (R&M) of steam turbines at Ukai Thermal Power Station (TPS) in Gujarat. Valued at about Rs 300 crore, the order for R&M of the 200 MW Unit-3 and the 210 MW Unit-5, has been placed on Bhel by Gujarat State Electricity Corporation.

Global markets:

Asian stocks are trading mostly higher on Friday as investors digested Japan's inflation data. The nationwide core consumer price index rose 4% in December on an annualized basis, the fastest pace since 1981. The reading climbed from the inflation print of 3.7% seen in November.

The People's Bank of China left the loan prime rates for 1-year and 5-year unchanged, widely in line with expectations. The 1-year LPR stayed at 3.65% while the 5-year LPR remained at 4.3%, both unchanged since August, 2022.

US stocks fell Thursday as investors grew increasingly concerned the Federal Reserve will keep raising rates despite signs of slowing inflation.

Boston Federal Reserve President Susan Collins said Thursday that she thinks the central bank can enact smaller interest rate hikes after a series of aggressive moves last year. Collins said she is “reasonably optimistic that there is a pathway to reducing inflation without a significant economic downturn.”

Market ends with minor cuts; Nifty holds 18,100; VIX down 2.87%.

STREET INVESTMENT

The domestic equity benchmarks ended with limited losses on Thursday. The Nifty closed tad above the 18,100 level. PSU bank, oil & gas and IT stocks edged higher while media, FCMG and consumer durables shares witnessed a bit of a selling pressure. Trading is expected to be volatile due to expiry of weekly index options on the NSE.

As per provisional closing data, the barometer index, the S&P BSE Sensex declined 187.31 points or 0.31% to 60,858.43. The Nifty 50 index lost 57.50 points or 0.32% to 18,107.85.

In the broader market, the S&P BSE Mid-Cap index fell 0.06% while the S&P BSE Small-Cap index shed 0.24%.

The market breadth was negative. On the BSE, 1,591 shares rose, and 1,914 shares fell. A total of 121 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.87% to 13.96.

New Listing:

Shares of Ducol Organics and Colours settled at Rs 117.50 on the NSE, a premium of 50.64% compared with the issue price of Rs 78.

The scrip was listed at Rs 111.95, representing a premium of 43.53% compared with the initial public offer (IPO) price.

So far, the scrip hit a high of Rs 117.50 and a low of Rs 106.35. Over 26.81 lakh shares of the company have changed hands in the counter till now.

Stocks in Spotlight:

Adani Enterprises tumbled 3.88%. The company said it will offer Rs 20,000 crore worth of shares in a price band of Rs 3,112 to Rs 3,276 each through a follow-on public offer (FPO). The FPO is slated to open on 27 January 2023 and close on 31 January 2023. The floor price is at a discount of 13.44% to Wednesday's Rs 3,595.35 closing price of the stock on BSE.

The FPO committee of the board of directors of the company, at its meeting held on 18 January 2023, approved a discount of Rs 64 per FPO equity share for retail individual investors bidding in the retail portion of the offer.

Vedanta advanced 3.05%. The mineral and metal miner said that it will acquire the debt- laden power company, Meenakshi Energy for a total cash consideration of Rs 1,140 crore. Out of the total consideration Rs 312 crore shall be paid upfront and balance Rs 1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy to the financial creditors. The consideration will mature in five equal instalments over a period of five years, the mining company stated in the press release.

Asian Paints slipped 3.09%. The paint major's consolidated net profit rose 5.61% to Rs 1,072.67 crore on 1.72% increase in revenue from operations to Rs 8,607.50 crore in Q3 FY23 over Q3 FY22.

IndusInd Bank slipped 1.76%. The private lender's standalone net profit surged 68.71% to Rs 1,959.20 crore on 19.96% rise in total income to Rs 11,533.74 crore in Q3 FY23 over Q3 FY22. IndusInd Bank's consolidated net profit stood at Rs 1,963.64 crore in quarter ended 31 December 2022 as compared to Rs 1,241.55 core posted in Q3 FY22, registering a growth of 58.16%. Consolidated total income rose by 19.96% year on year to Rs 11,533.89 crore during the period under review.

Persistent Systems jumped 6.98% after the company reported 8.2% rise in net profit to Rs 237.95 crore on a 5.9% increase in revenue to Rs 2,169.37 crore in Q3 FY23 over Q2 FY23.

ICICI Securities shed 0.08% after the company reported 26.1% fall in consolidated net profit to Rs 380.35 crore on a 6.7% fall in total revenue from operations to Rs 941.64 crore in Q3 FY23 over Q3 FY22.

Oracle Financial Services Software declined 0.64%. The company reported a consolidated net profit of Rs 437.33 crore in Q3 FY23, which is higher by 10% as compared with PAT of Rs 397.75 crore recorded in Q2 FY23. Revenue rose by 5% QoQ to Rs 1,449.30 crore during the period under review.

Aurobindo Pharma rose 0.18%. The drug maker on Wednesday announced that the United States Food and Drug Administration (US FDA) inspected its wholly owned subsidiary, APL Health Care's Unit I & III, at Jadcherla in Telangana, during 9 January to 18 January 2023.

Rallis India dropped 8.80% after the company reported 43% decline in net profit to Rs 22.55 crore in Q3 FY23 as against Rs 39.55 crore posted in Q3 FY22. Revenue from operations rose marginally to Rs 630.39 crore in quarter ended 31 December 2022 from Rs 628.08 crore recorded in Q3 FY22.

Global Markets:

Markets in Europe tumbled while Asian stocks ended mixed on Thursday after tracking losses on Wall Street overnight.

US stocks dropped sharply on Wednesday, their biggest daily drops in more than a month, after weak economic data fueled recession worries while hawkish comments from Federal Reserve officials soured investor moods further.

Cleveland Federal Reserve President Loretta Mester said Wednesday that interest rates have to keep moving higher even with recent inflation readings softening. As per reports, the policymaker said the Fed likely will have to take its benchmark interest rate above 5% in order to get inflation moving consistently down to the central bank's 2% goal. She noted that markets and the economy absorbed the half-point December rate hike without a problem.

US retail sales fell by the most in a year in December. Retail sales plummeted 1.1% last month, the biggest drop since December 2021. Data for November was revised to show sales decreasing 1% instead of 0.6% as previously reported. Retail sales rose 6% year-on-year in December.

Nifty trades below 18,100; Sensex down 222 pts; IT shares advance.

STREET INVESTMENT

The equity benchmark indices continued to trade with significant cuts in mid-afternoon trade. The Nifty traded below the 18,100 level. IT shares gained for the seventh straight day. Trading is expected to be volatile due to expiry of weekly index options on the NSE.

The barometer index, the S&P BSE Sensex, was down 222.33 points or 0.36% to 60,823.41. The Nifty 50 index lost 69.20 points or 0.38% to 18,096.15.

In the broader market, the S&P BSE Mid-Cap index fell 0.25% while the S&P BSE Small-Cap index shed 0.27%.

The market breadth was negative. On the BSE, 1,495 shares rose, and 1,941 shares fell. A total of 138 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined to 7.295 from its close of 7.325 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 81.375, compared with its close of 81.30 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement added 0.27% to Rs 56,437.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.20% to 102.16.

The United States 10-year bond yield fell 0.75% to 3.350.

In the commodities market, Brent crude for March 2023 settlement declined 82 cents or 0.96% to $84.16 a barrel.

Buzzing Index:

The Nifty IT index rose 0.22% to 29,682.80. The index jumped 4.14% in seven trading sessions.

Persistent Systems (up 7.44%), Coforge (up 1.13%), Mphasis (up 0.63%), Tech Mahindra (up 0.41%) advanced.

On the other hand, LTI Mindtree (down 0.73%), L&T Technology Services (down 0.61%) and HCL Technologies (down 0.32%) declined.

Stocks in Spotlight:

Cosmo First jumped 5.36% after the company's board approved buyback worth upto Rs 108 crore at a price not exceeding Rs 1,070 each. The indicative maximum number of equity shares to be bought back under the buyback would be 10,09,345 equity shares, representing approximately 3.70% of the existing paid-up equity share capital of the company.

KIOCL rose 0.70% after the company executed mining lease deed document with Government of Karnataka for amount of Rs 329.17 crore.

PTC India Financial Services (PFS) was locked in upper circuit of 5% after the company's board approved the selection of S Gopal as a director (finance) and chief financial officer (CFO) of the company.