Benchmarks trade with deep cuts; pharma shares decline.

The domestic equity benchmarks continued to trade with deep cuts in mid-afternoon trade. The Nifty traded above the 17,900 level. Pharma shares edge lower for second consecutive session. Trading could be volatile on account of monthly options expiry.

The barometer index, the S&P BSE Sensex, was down 651.19 points or 1.07% to 60,327.56. The Nifty 50 index lost 193.75 points or 1.07% to 17,924.55.

In the broader market, the S&P BSE Mid-Cap index slipped 1.42% while the S&P BSE Small-Cap index declined 0.82%.

Seller outnumbered buyers. On the BSE, 1037 shares rose, and 2429 shares fell. A total of 128 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.353 from its close of 7.346 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 81.6325, compared with its close of 81.6300 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement lost 0.25% to Rs 56,824.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.14% to 102.06.

The United States 10-year bond yield declined 0.84% to 3.438.

In the commodities market, Brent crude for March 2023 settlement lost 28 cents or 0.33% to $85.85 a barrel.

Buzzing Index:

The Nifty Pharma index slipped 1.22% to 12,439.60. The index had fallen 1.19% in two sessions.

Granules India (down 6.05%), Aurobindo Pharma (down 4.16%), Biocon (down 3.6%), Glenmark Pharmaceuticals (down 2.59%) and Zydus Lifesciences (down 2.05%) were the top losers.

Among the other losers were Cipla (down 1.68%), Torrent Pharmaceuticals (down 1.37%), Ipca Laboratories (down 1.34%), Dr Reddys Laboratories (down 0.99%) and Laurus Labs (down 0.94%).

On the other hand, Gland Pharma (up 1.77%) and Alkem Laboratories (up 0.43%) turned up.

Stocks in Spotlight:

Swaraj Engines fell 2.91%. The company reported 15% rise in net profit to Rs 23.23 crore on a 17% increase in net operating revenue to Rs 278.93 crore in Q3 FY23 over Q3 FY22.

Sonata Software was down 0.01%. The IT company posted 4.39% rise in consolidated net profit to Rs 117.66 crore on a 51.12% jump in revenue from operations to Rs 2,260.78 crore in Q3 FY23 over Q2 FY23.

Sensex slides 695 pts, PSU bank stocks decline, VIX soars 8.03%.

The frontline indices traded with major losses in early afternoon trade. Weak global cues and sluggish growth outlook of companies spooked investors. The Nifty slipped below the 17,950 mark. PSU bank stocks extended their losses for the second straight session.

The barometer index, the S&P BSE Sensex, was down 694.86 points or 1.14% to 60,283.89. The Nifty 50 index lost 207.50 points or 1.16% to 17,910.80.

In the broader market, the S&P BSE Mid-Cap index slipped 1.49% while the S&P BSE Small-Cap index declined 0.96%.

Seller outnumbered buyers. On the BSE, 894shares rose, and 2,480 shares fell. A total of 133 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 8.03% to 14.76. The Nifty 25 January 2022 futures were trading at 17,998.40, at a premium of 87.6 points as compared with the spot at 17,910.80.

The Nifty option chain for the 25 January 2022 expiry showed maximum Call OI of 197.6 lakh contracts at the 18,000 strike price. Maximum Put OI of 120.1 lakh contracts were seen at 17,800 strike price.

Buzzing Index:

The Nifty PSU Bank index slipped 3.84% to 4,029.40. The index tumbled 5.15% in two trading sessions.

Bank of India (down 5.3%), Bank of Baroda (down 5.23%), Canara Bank (down 4.58%), State Bank of India (down 4.26%), Punjab National Bank (down 2.97%), Union Bank of India (down 2.29%), Central Bank of India (down 2.15%), Indian Overseas Bank (down 2.06%), Indian Bank (down 1.65%) and Punjab & Sind Bank (down 1.33%) declined.

Earnings Impact:

Sonata Software rose 0.32%. The IT company posted 4.39% rise in consolidated net profit to Rs 117.66 crore on a 51.12% jump in revenue from operations to Rs 2,260.78 crore in Q3 FY23 over Q2 FY23. As compared to Q3 FY22, the IT firm's net profit increased by 20.47% while revenue from operations advanced 21.68%.

Further, the company's board has approved the appointment of Samir Dhir, the current whole-time director & CEO, as managing director & CEO of the company effective from 14 February 2023. The board has also appointed Srikar Reddy, the current managing director and a member of the board of directors, as executive vice chairman effective from the same date as well until 3 April 2026.

Nazara Technologies advanced 2.89% after the company's consolidated net profit jumped 75.73% to Rs 18.1 crore in Q3 FY23 from Rs 10.3 crore recorded in Q3 FY22. Revenue from operations soared 69.43% year on year (YoY) to Rs 314.80 crore in the quarter ended 31 December 2022.

Sona BLW Precision Forgings (Sona Comstar) rallied 4.43% after the company reported a 23.9% jump in consolidated net profit to Rs 107.10 crore on 38.95% surge in revenue from operation to Rs 675.26 crore in Q3 FY23 over Q3 FY22.

Nifty slides below 17,900 level; oil & gas stocks tumble.

The domestic equity barometers declined further and hit fresh intraday low in mid-morning trade. Weak global cues and sluggish growth outlook of companies spooked investors. The Nifty slipped below the 17,900 level. Oil & gas stocks extended their decline for second day in a row.

The barometer index, the S&P BSE Sensex, was down 816.68 points or 1.34% to 60,162.07. The Nifty 50 index lost 247.45 points or 1.37% to 17,870.85.

In the broader market, the S&P BSE Mid-Cap index slipped 1.53% while the S&P BSE Small-Cap index declined 1.11%.

The market breadth was weak. On the BSE, 845 shares rose, and 2445 shares fell. A total of 133 shares were unchanged.

Buzzing Index:

The Nifty Oil & Gas index fell 1.35% to 8,483.50. The index has declined 1.73% in two sessions.

Adani Total Gas (down 3.33%), Gujarat State Petronet (down 2.2%), Indraprastha Gas (down 1.8%), Oil India (down 1.46%) and Reliance Industries (down 0.96%) were the top losers.

Among the other losers were GAIL (India) (down 0.93%), Petronet LNG (down 0.85%), Mahanagar Gas (down 0.85%), Castrol India (down 0.8%) and Hindustan Petroleum Corporation (down 0.46%).

Meanwhile, Aegis Logistics (up 0.67%) and Gujarat Gas (up 0.17%) turned up.

Stocks in Spotlight:

Laxmi Organic Industries fell 2.87%. The company's consolidated net profit slumped 61.4% to Rs 27.23 crore in Q3 FY23 as against Rs 70.54 crore reported in Q3 FY22.

Macrotech Developers shed 0.53%. On a consolidated basis, the real estate developer's net profit jumped 41.41% to Rs 404.98 crore despite of 13.87% surge in net sales to Rs 1,773.80 crore in Q3 FY23 over Q3 FY22.

United Spirits tumbled 4.01%. The spirits maker's standalone net profit tumbled 64.45% to Rs 110.5 crore in Q3 FY23 as against Rs 310.8 crore posted in Q3 FY22.

CarTrade Tech added 3.77%. The company's consolidated adjusted net profit rose 15% to Rs 24.05 crore on 9% increase in net revenue from operations to Rs 93.71 crore in Q3 December 2022 over Q3 December 2021.

Global Markets:

Asian stocks traded in a mixed manner on Wednesday, taking the lead from Wall Street's struggle for direction as China and Hong Kong markets remain closed for the Lunar New Year holidays.

US stocks ended nominally lower on Tuesday at the close of a rocky session marked by a raft of mixed earnings and a technical malfunction at the opening bell.

The downturn in the US business activity eased slightly in January even as it contracted for the seventh straight month, survey showed on Tuesday. S&P Global said its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, shot off to 46.6 this month from a final reading of 45 in December.

Indices at the day's low; bank stocks decline.

STREET INVESTMENT

The key equity indices tumbled and hit fresh intraday low in morning trade as weak global cues and sluggish growth outlook of companies spooked investors. The Nifty slipped below the 17,950 level. Bank stocks declined for second day in a row.

The barometer index, the S&P BSE Sensex, was down 545.65 points or 0.89% to 60,433.10. The Nifty 50 index lost 173.30 points or 0.96% to 17,945.

In the broader market, the S&P BSE Mid-Cap index slipped 1.33% while the S&P BSE Small-Cap index declined 0.98%.

The market breadth was weak. On the BSE, 915 shares rose, and 2250 shares fell. A total of 125 shares were unchanged.

Results Today:

Bajaj Auto (up 0.50%), Tata Motors (down 0.65%), Cipla (down 0.86%), DLF (down 2.33%), Dr Reddy's Laboratories (down 1.55%), Amara Raja Batteries (down 1.07%), Bikaji Foods International (down 0.75%), Blue Dart (down 1.33%), Dixon Technologies (down 1.80%), Indraprashtha Gas (down 1.79%), Indian Bank (down 1.16%), Patanjali Foods (down 1.78%), Solar Industries India (down 3.20%), Tata Elxsi (down 0.21%), Torrent Pharmaceuticals (down 0.52%), Asahi India Glass (up 0.51%), Sundaram-Clayton (down 0.88%), VIP Industries (up 0.19%) are some of the companies that will announce their quarterly earnings today.

Buzzing Index:

The Nifty Bank index fell 1.54% to 42,076.80. The index has lost 1.74% in two sessions.

Sona BLW Precision Forgings (up 4.36%), TVS Motor Company (up 2.66%), Maruti Suzuki India (up 0.85%) and Mahindra & Mahindra (up 0.08%) were the top gainers.

On the other hand, Samvardhana Motherson International (down 1.96%), Bharat Forge (down 1.83%) and MRF (down 1.65%) moved lower.

Stocks in Spotlight:

Rail Vikas Nigam (RNVL) rose 0.60%. The company has received letter of award for provision of automatic block signalling with dual MSDAC, EI/OC interface and block optimization in Arakkonam Junction-Nagari section of Chennai division in Southern Railway. The cost of the project is Rs 38.40 crore.

Triveni Engineering & Industries shed 0.98%. The company reported consolidated net profit of Rs 147.28 crore in Q3 FY23 from Rs 130.12 crore in Q3 FY22. Total income rose to Rs 1658.71 crore in Q3 FY23 from Rs 1235.44 crore in Q3 FY22.

PDS fell 2.27%. The company's board appointed Rahul Ahuja as group chief financial officer (CFO) with effect from 25 January 2023.

Sensex, Nifty end flat after volatile session; broader markets underperform.

 

The domestic equity benchmarks ended flat after a volatile session on Tuesday. The Nifty ended above the 18,100 level after hitting the day's high at 18,201.25 in early trade. Auto, IT and consumer durable stocks advanced while PSU banks, metals and pharma shares lagged behind.

As per provisional closing data, the barometer index, the S&P BSE Sensex, added 37.08 points or 0.06% to 60,978.75. The Nifty 50 index ended flat at 18,118.30.

In the broader market, the S&P BSE Mid-Cap index fell 0.30% while the S&P BSE Small-Cap index lost 0.43%.

The market breadth was negative. On the BSE, 1,536 shares rose, and 1,971 shares fell. A total of 143 shares were unchanged.

Buzzing Index:

The Nifty Auto index rose 1.23% to 12,954.20. The index has gained 2.07% in two sessions.

Sona BLW Precision Forgings (up 3.55%), Tube Investments of India (up 1.97%) and Bajaj Auto (up 1.74%) were the top gainers.

Among the other gainers were Bosch (up 0.73%), Eicher Motors (up 0.72%), Samvardhana Motherson International (up 0.68%), TVS Motor Company (up 0.22%) and MRF (up 0.15%).

On the other hand, Bharat Forge (down 1%), Mahindra & Mahindra (down 0.34%) and Ashok Leyland (down 0.2%) moved lower.

Maruti Suzuki India gained 3.35%. The auto major's standalone net profit zoomed 132.5% to Rs 2,351.3 crore on 25.52% jump in net sales to Rs 27,849.2 crore in Q3 FY23 over Q3 FY22.

Operating EBIT soared 131% to Rs 2,123 crore in Q3 FY23 from Rs 919 crore reported in Q3 FY22. Operating EBIT margin improved to 7.6% as on 31 December 2022 as against 4.1% as of 31 December 2021.

Pending customer orders stood at about 363,000 vehicles at the end of this quarter out of which about 119,000 orders were for newly launched models, the company said.

Tata Motors gained 3.34%. The company has confirmed that the voluntary delisting of its American Depositary Shares (ADS), representing ordinary shares of the company, from the New York Stock Exchange (NYSE) will become effective close of trading on the NYSE on 23 January 2023. This follows the filing by the company of Form 25 with the Securities and Exchange Commission on 13 January 2023.

Stocks in Spotlight:

SBI Cards and Payment Services fell 2.73%. The company reported a 32.06% jump in net profit to Rs 509.46 crore on 16.45% rise in total income to Rs 3,656.15 crore in Q3 FY23 over Q3 FY22.

HDFC AMC slipped 1.85%. The AMC reported 2.68% rise in net profit to Rs 369.40 crore on 4.25% in total income to Rs 662.93 crore in Q3 FY23 over Q3 FY22.

Axis Bank declined 2.50%. The private lender's net profit surged 61.94% to Rs 5,853.07 crore on 27.44% increase in total income to Rs 26,891.87 crore in Q3 FY23 over Q3 FY22.

Colgate-Palmolive (India) fell 2.06%. The company reported a 3.6% decrease in net profit to Rs 243.24 crore in Q3 FY23 from Rs 252.33 crore posted in Q3 FY22.

Gland Pharma declined 1.48%. The pharmaceutical company's consolidated net profit dropped 15% to Rs 231.95 crore on 11.8% decline in net sales to Rs 938.29 crore in Q3 FY23 over Q3 FY22.

Poonawalla Fincorp jumped 4.18%. On a consolidated basis, the NBFC reported 44.2% rise in net interest income to Rs 482 crore on 89.1% rise in profit after tax to Rs 182 crore in Q3 FY23 over Q3 FY22.

FSN E-Commerce Ventures (Nykaa) zoomed 7.70%. Nykaa on Monday (23 January 2023) announced the appointment of P Ganesh as their chief financial officer to further strengthen and boost Nykaa's financial operations and key long-term business strategies.

Syngene International tumbled 4.50%. The company reported a 5.5% rise in consolidated net profit to Rs 109.70 crore in Q3 FY23 as against Rs 104 crore posted in Q3 FY22. Revenue from operations jumped 22.5% to Rs 785.90 crore in the quarter ended 31 December 2022 as compared to Rs 641.40 crore recorded in Q3 FY22.

Container Corporation of India (CONCOR) slipped 2.95%. CONCOR's consolidated net profit rose 3.4% to Rs 294.20 crore on 3.4% increase in revenue from operations to Rs 2,004.46 crore in Q3 FY23 over Q3 FY22.

Route Mobile jumped 7.62%. The company's consolidated net profit surged 85.18% to Rs 82.44 crore on 75.16% increase in revenue from operations to Rs 985.72 crore in Q3 December 2022 over Q3 December 2021.

Tata Communications tumbled 4.26%. The company's consolidated net profit declined marginally to Rs 393.88 crore in Q3 FY23 from Rs 395.21 crore posted in Q3 FY22.

Zensar Technologies rose 2.98%. The IT company reported a 34.68% rise in consolidated net profit to Rs 76.5 crore in Q3 FY23 from Rs 56.8 crore posted in Q2 FY23. However, the company's revenue from operations fell 3% QoQ to Rs 1,197.6 in the quarter ended 31 December 2022. As compared with Q3 FY22, the company's net profit declined 15.9% while revenue was higher by 8.6%.

Indoco Remedies tumbled 10.53%. The company's net profit declined 15% to Rs 27.9 crore despite an 18% rise in net revenues to Rs 410.6 crore in Q3 FY23 over Q3 FY22.Chalet Hotels jumped 4.71%. The company reported consolidated net profit of Rs 102.40 crore in Q3 December 2022 as against net loss of Rs 14.40 crore in Q3 December 2021.

Global Markets:

European markets were mixed on Tuesday with investors digesting the latest flash purchasing managers' index data from the euro zone in January.

PMIs track business activity in the services and manufacturing sectors, and Tuesday's figures showed the euro zone returning to modest growth in December, boosting hopes that the 20-member currency bloc may avoid recession.

The S&P Global euro zone composite PMI, which encompasses manufacturing and services activity, came in at 50.2 in January, up from 49.3 in December and ahead of a consensus forecast of 49.8.

Markets in Asia advanced across the board on Tuesday as investor confidence surged into the Lunar New Year with China lifting its stringent Covid curbs and on rising hopes that the end to interest rate hikes may finally be in sight.

US stocks closed sharply higher on Monday, fuelled by surging technology stocks as investors began an earnings-heavy week with a renewed enthusiasm for market-leading momentum stocks that were battered last year.

Sensex, Nifty turn red; auto shares rise for 2nd day.

The domestic equity benchmarks pared all gains and turned red in mid-afternoon trade. The Nifty traded tad above the 18,100 level after hitting the day's high at 18,201.25 in early trade. Auto shares advanced for second day in a row.

The barometer index, the S&P BSE Sensex, was down 11.26 points or 0.02% to 60,930.41. The Nifty 50 index lost 16.20 points or 0.09% to 18,102.35.

In the broader market, the S&P BSE Mid-Cap index fell 0.32% while the S&P BSE Small-Cap index declined 0.36%.

The market breadth was negative. On the BSE, 1,457 shares rose, and 1,992 shares fell. A total of 157 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.348 from its close of 7.352 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 81.5775, compared with its close of 81.4200 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement added 0.42% to Rs 57,055.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.22% to 101.92.

The United States 10-year bond yield declined 0.69% to 3.499.

In the commodities market, Brent crude for March 2023 settlement gained 6 cents or 0.07% to $88.25 a barrel.

Buzzing Index:

The Nifty Auto index advanced 1.14% to 12,943.50. The index had added 1.98% in two sessions.

Tata Motors (up 3.38%), Sona BLW Precision Forgings (up 1.76%), Bosch (up 1.31%) and Samvardhana Motherson International (up 1.3%) were the top gainers.

Among the other gainers were Bajaj Auto (up 0.9%), Tube Investments of India (up 0.62%), Eicher Motors (up 0.43%), MRF (up 0.28%) and Ashok Leyland (up 0.2%).

On the other hand, Bharat Forge (down 0.68%), Mahindra & Mahindra (down 0.14%) and Hero MotoCorp (down 0.05%) moved lower.

Maruti Suzuki India gained 3.05%. The auto major's standalone net profit zoomed 132.5% to Rs 2,351.3 crore on 25.52% jump in net sales to Rs 27,849.2 crore in Q3 FY23 over Q3 FY22.

Operating EBIT soared 131% to Rs 2,123 crore in Q3 FY23 from Rs 919 crore reported in Q3 FY22. Operating EBIT margin improved to 7.6% as on 31 December 2022 as against 4.1% as of 31 December 2021.

Pending customer orders stood at about 363,000 vehicles at the end of this quarter out of which about 119,000 orders were for newly launched models, the company said.

Stocks in Spotlight:

Supreme Petrochem rose 0.54%. The petrochemical company's net profit tumbled 45.6% to Rs 89.59 in Q3 FY23 as against Rs 164.54 crore recorded in Q3 FY22. Revenue from operations was at Rs 1,177.39 crore in the quarter ended 31 December 2022, declining 9% from Rs 1,294.08 crore reported in the same period a year ago.

JSW Steel shed 0.87%. The company said that its wholly-owned subsidiary, JSW Steel Coated Products (JSWSCPL), has entered into a shareholders' agreement and a share subscription agreement to acquire 31% stake in Ayena Innovation for total consideration of Rs 5.99 crore.

Ayena is a start-up registered by the Department for Promotion of Industry and Internal Trade and will be in the business of development, manufacturing, and sales of quick-to-install modular solutions including modular kitchens. This proposed investment is in line with endeavours of JSWSCPL to explore new avenues to increase consumption of coated steel products. It will enable JSWSCPL to further diversify its customer portfolio mix and enhancing its presence in the retail business.

Indoco Remedies tumbled 9.04%. The company's net profit declined 15% to Rs 27.9 crore despite an 18% rise in net revenues to Rs 410.6 crore in Q3 FY23 over Q3 FY22.

Barometers trim gains, Nifty below 18,150 mark.

 

The headline equity indices traded with tiny gains in early afternoon trade. The Nifty traded below the 18,150 level after hitting the day's high at 18,201.25 in early trade. IT, auto and consumer durables stocks advanced while realty, PSU bank and pharma shares corrected.

The barometer index, the S&P BSE Sensex, was up 39.4 points or 0.06% to 60,981.07. The Nifty 50 index added 2.40 points or 0.01% to 18,120.95.

In the broader market, the S&P BSE Mid-Cap index declined 0.31% while the S&P BSE Small-Cap index shed 0.21.

The market breadth was negative. On the BSE, 1,557 shares rose, and 1,798 shares fell. A total of 181 shares were unchanged.

Domestic investors keep an eye out for the Q3 earnings of the market heavyweight and auto giant Maruti Suzuki (up 0.45%), along with the other majors like TVS Motor Company (down 0.84%) and SBI Cards and Payment Services (down 1.60%) slated for release on Tuesday.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 0.23% to 13.59. The Nifty 25 January 2022 futures were trading at 18,160.05, at a premium of 39.1points as compared with the spot at 18,120.95.

The Nifty option chain for the 25 January 2022 expiry showed maximum Call OI of 153.9 lakh contracts at the 18,200 strike price. Maximum Put OI of 144.3 lakh contracts were seen at 18,100 strike price.

Buzzing Index:

The Nifty Consumer Durables index rose 0.54% to 24,562.20. The index added 0.83% in two trading sessions.

Crompton Greaves Consumer Electricals (up 3.07%), Amber Enterprises India (up 2.29%), Relaxo Footwears (up 1.06%), Orient Electric (up 0.98%), Titan Company (up 0.73%), TTK Prestige (up 0.66%), Blue Star (up 0.52%), Voltas (up 0.44%), Kajaria Ceramics (up 0.39%) and Dixon Technologies (India) (up 0.07%) edged higher.

On the other hand, Havells India (down 0.93%), Rajesh Exports (down 0.68%) and Whirlpool of India (down 0.22%) declined.

Stocks in Spotlight:

Shoppers Stop declined 2.83% after the company's consolidated net profit tumbled 18.9% to Rs 62.74 crore in Q3 FY23 from Rs 77.32 crore recorded in Q3 FY22. Revenue from operations stood at Rs 1,137.07 crore in the quarter ended 31 December 2022 as against Rs 958.11 crore posted in Q3 FY22, registering a growth of 18.7%.

The company opened 6 department and 5 beauty stores in Q3, taking the total store count to 271, spread across 50 cities across India. The firm intends to add 5 department and 4 beauty stores by the end of fiscal 2022-23, said the company.

Zensar Technologies rallied 5.26% after the IT company reported a 34.68% rise in consolidated net profit to Rs 76.5 crore in Q3 FY23 from Rs 56.8 crore posted in Q2 FY23. However, the company's revenue from operations fell 3% QoQ to Rs 1,197.6 in the quarter ended 31 December 2022. As compared with Q3 FY22, the company's net profit declined 15.9% while revenue was higher by 8.6%.