Barometers turn rangebound, broader mkt outperforms.

The domestic equity barometers traded in a narrow range with minor cuts in mid-morning trade. The Nifty hovered below the 17,650 mark. PSU bank stocks gained for the second consecutive trading session.

The barometer index, the S&P BSE Sensex, was down 131.9 points or 0.22% to 59,368.51. The Nifty 50 index lost 32.20 points or 0.18% to 17,616.75.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.13% while the S&P BSE Small-Cap index gained 1.52%.

The market breadth was strong. On the BSE, 2,160 shares rose and 1,120 shares fell. A total of 140 shares were unchanged.

The Central government is set to table the Economic Survey 2022-23 today, 31 January 2023. The Economic Survey is the government's review of how the economy fared in the past year. Union Finance Minister Nirmala Sitharaman is set to table the Union Budget 2023 on 1 February 2023.

Investors were cautious ahead of upcoming interest rate decision by the US Federal Reserve, Bank of England and European Central Bank later this week in an effort to tame the inflation.

Economy:

The International Monetary Fund (IMF) has retained its GDP growth forecasts for India for 2022-23 and 2023-24 at 6.8% and 6.1%, respectively. Growth in India is set to decline from 6.8% in 2022-23 to 6.1% in 2023-24 before picking up to 6.8% in 2024-25, with resilient domestic demand despite external headwinds, the IMF said in an update to its World Economic Outlook report.

Buzzing Index:

The Nifty PSU Bank index gained 3.11% to 3,961.55. The index rallied 3.68% in two trading sessions.

Bank of Baroda (up 3.93%), Punjab National Bank (up 3.75%), UCO Bank (up 3.17%), Punjab & Sind Bank (up 2.98%), Bank of Maharashtra (up 2.95%), State Bank of India (up 2.34%), Bank of India (up 2.3%), Indian Overseas Bank (up 2.03%), Canara Bank (up 1.97%) and Central Bank of India (up 1.74%) advanced.

Earnings Impact:

INOX Leisure declined 0.79% after the company reported a consolidated net loss of Rs 40.41 crore in Q3 FY23 as against a net loss of Rs 1.32 crore in Q3 FY22. The multiplex chain operator recorded 73.9% jump in revenue from operations to Rs 515.57 crore in Q3 FY23 as against Rs 296.47 crore posted in the corresponding period last year.

Bajaj Holdings & Investment's (BHIL) fell 1.99%. The company's consolidated net profit increased 23.6% to Rs 1,285.65 crore on a 3% rise in total revenue from operations to Rs 98.41 crore in Q3 FY23 over Q3 FY22.

IFB Industries fell 0.98% after the company reported a consolidated net loss of Rs 1.14 crore in Q3 FY23 as against a net loss of Rs 3.21 crore in Q3 FY22. Revenue from operations rose by 5% YoY to Rs 999.16 crore during the quarter.

Sensex down 209 pts, Tech Mahindra slips over 3%.

The frontline indices traded with modest losses in morning trade. The Nifty hovered near the 17,600 level. PSU bank, metal and auto scrips advanced while IT, FMCG and oil & gas shares witnessed a bit of a selling pressure.

The barometer index, the S&P BSE Sensex, was down 208.53 points or 0.35% to 59,291.88. The Nifty 50 index lost 55.30 points or 0.31% to 17,593.65.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.65% while the S&P BSE Small-Cap index gained 1.09%.

The market breadth was strong. On the BSE, 1,954 shares rose and 1,187 shares fell. A total of 144 shares were unchanged.

The Central government is set to table the Economic Survey 2022-23 today, 31 January 2023. The Economic Survey is the government's review of how the economy fared in the past year. Union Finance Minister Nirmala Sitharaman is set to table the Union Budget 2023 on 1 February 2023.

Investors were cautious ahead of upcoming interest rate decision by the US Federal Reserve, Bank of England and European Central Bank later this week in an effort to tame the inflation.

Earnings Today:

Coal India (up 0.44%), Power Grid Corporation of India (up 1.98%), Sun Pharmaceutical Industries (down 0.37%), UPL (up 2.10%), ACC (up 1.96%), BASF India (up 0.27%), Blue Star (up 0.25%), Edelweiss Financial Services (up 0.77%), Great Eastern Shipping (up 2.01%), Godrej Consumer Products (up 0.24%), Indian Hotels (up 2.42%), Indian Oil Corporation (up 1.71%), Jindal Steel & Power (up 1.89%), KEC International (up 0.89%), KPIT Technologies (up 1.75%), Max Financial Services (up 0.61%), MOIL (up 1.59%), RailTel Corporation of India (up 1.33%), Spandana Sphoorty Financial (up 3.42%), Star Health (up 2.42%), and TTK Prestige (up 3.55%) will announce their quarterly earnings later in the day.

Economy:

The International Monetary Fund (IMF) has retained its GDP growth forecasts for India for 2022-23 and 2023-24 at 6.8% and 6.1%, respectively. Growth in India is set to decline from 6.8% in 2022-23 to 6.1% in 2023-24 before picking up to 6.8% in 2024-25, with resilient domestic demand despite external headwinds, the IMF said in an update to its World Economic Outlook report.

Buzzing Index:

The Nifty IT index declined 1.44% to 29,660.20. The index added 1.10% in the past trading session.

Tech Mahindra (down 3.45%), Coforge (down 3.07%), Mphasis (down 1.75%), HCL Technologies (down 1.68%), LTI Mindtree (down 1.66%), Infosys (down 1.54%), Persistent Systems (down 1.5%), L&T Technology Services (down 1.27%), Tata Consultancy Services (down 1.15%) and Wipro (down 0.58%) edged lower.

Tech Mahindra slipped 3.45%. The IT major's consolidated net profit rose marginally to Rs 1,296.6 crore in Q3 FY23 as against Rs 1,285.4 crore posted in Q2 FY23. Revenue from operations grew 4.61% quarter on quarter (QoQ) to Rs 13,734.6 crore in quarter ended 31 December 2022. On a year on year (YoY) basis, Tech Mahindra's net profit declined 5.25% while revenue jumped 19.94% in Q3 FY23. The IT firm secured net new deals worth $795 million in Q3 FY23 as against $716 million in Q2 FY23 and $704 million in Q3 FY22.

Results Impact:

Mangalore Refinery & Petrochemicals (MRPL) added 0.78%. The company reported a standalone net loss of Rs 187.96 crore in Q3 FY23 as compared to a net profit of Rs 586.37 crore in Q3 FY22. Gross revenue from operations rose 23.7% to Rs 30,966 crore in Q3 FY23 over Q3 FY22. Revenue from operations (excluding excise duty) jumped 30% to Rs 26,557.44‬ crore in Q3 FY23 from Rs 20,419.45 crore recorded in corresponding quarter previous year.

Astec Lifesciences tumbled 13.30% after the company's consolidated net profit slumped 96.61% to Rs 0.84 crore on 32.40% decline in net sales to Rs 117.18 crore in Q3 FY23 over Q3 FY22.

Indices edge lower, breadth positive.

The headline equity indices were trading with minor cuts in early trade. The Nifty traded below the 17,650 mark. Metal, PSU bank and auto stocks were in demand while IT, oil & gas and healthcare shares slipped.

The barometer index, the S&P BSE Sensex, was down 149.52 points or 0.25% to 59,350.89. The Nifty 50 index lost 43.50 points or 0.25% to 17,605.45.

In the broader market, the S&P BSE Mid-Cap index shed 0.15% while the S&P BSE Small-Cap index rose 0.16%.

The market breadth was positive. On the BSE, 1,575 shares rose and 1,070 shares fell. A total of 124 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,792.80 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 5,512.63 crore in the Indian equity market on 30 January, provisional data showed.

The Central government is set to table the Economic Survey 2022-23 today, 31 January 2023. The Economic Survey is the government's review of how the economy fared in the past year. Union Finance Minister Nirmala Sitharaman is set to table the Union Budget 2023 on 1 February 2023.

Investors were cautious ahead of upcoming interest rate decision by the US Federal Reserve, Bank of England and European Central Bank later this week in an effort to tame the inflation.

Economy:

The International Monetary Fund (IMF) has retained its GDP growth forecasts for India for 2022-23 and 2023-24 at 6.8% and 6.1%, respectively. Growth in India is set to decline from 6.8% in 2022-23 to 6.1% in 2023-24 before picking up to 6.8% in 2024-25, with resilient domestic demand despite external headwinds, the IMF said in an update to its World Economic Outlook report.

Stocks in Spotlight:

Larsen & Toubro (L&T) declined 1.46%. The EPC major posted a consolidated net profit of Rs 2,553 crore in Q3 FY23, registering a growth of 24% from Rs 2,055 crore recorded in Q3 FY22. The conglomerate recorded revenues of Rs 46,390 crore for the quarter ended 31 December 2022, recording a YoY growth of 17%, aided by improved execution in the Infrastructure Projects segment and continued growth momentum in the IT&TS portfolio. International revenues during the quarter at Rs 17,317 crore constituted 37% of the total revenue.

Ambuja Cements gained 2.30%. With reference to the news item dated 30 January 2023 captioned Adani Group said to plan Rs 3000 cr Ambuja, APSEZ buybacks, the cement major clarified to the stock exchanges that there was no such plan and hence, it was not in a position to comment on the veracity of said media report.

Ultratech Cement rose 0.65%. The cement major said that UltraTech Cement Middle East Investments has entered into a share sale and purchase agreement with Seven Seas Company LLC, Oman, for acquisition of 70% equity shares in Duqm Cement Project International. UltraTech Cement Middle East Investments is Ultratech's wholly owned subsidiary in UAE.

Tech Mahindra fell 2.26%. On a consolidated basis, the IT major's net profit rose marginally to Rs 1,296.6 crore in Q3 FY23 as against Rs 1,285.4 crore posted in Q2 FY23. Revenue from operations grew 4.61% quarter on quarter (QoQ) to Rs 13,734.6 crore in quarter ended 31 December 2022.

BPCL rallied 3.78%. BPCL posted a consolidated net profit of Rs 1959.58 crore in Q3 FY23 from Rs 2828.45 crore recorded in Q3 FY22. Total income rose to Rs 133783.39 crore in Q3 FY23 from Rs 118166.92 crore recorded in Q3 FY22.

Life Insurance Corporation of India (LIC) added 0.23%. LIC's total holding under equity and debt is Rs. 35,917.31 crores as on 31 December 2022 under Adani group of companies. The total Assets Under Management by LIC are over Rs. 41.66 lakh crore as at 30 September 2022. LIC's exposure in the Adani group, as on date, is 0.975% of LIC's total AUM at book value.

Global Markets:

Asian stocks were trading lower on Tuesday as investors look ahead to a range of economic data and a potential interest rate hike from the Federal Reserve.

US stocks traded lower Monday, pausing a January rally as investors braced for the busiest week of earnings season and a possible interest rate hike from the Federal Reserve.

The Federal Open Market Committee meets on Tuesday and Wednesday, when the Fed is expected to hike rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation.

Sensex, Nifty hit fresh intraday low; Bajaj twins edge higher.

 

The domestic equity benchmarks extended losses and hit fresh intraday low in afternoon trade. The Nifty traded some points above the 17,500 level, after hitting the day's high of 17,709.15 in morning trade. European markets edged lower while those in Asian traded in a mixed manner.

The barometer index, the S&P BSE Sensex, was down 281.76 points or 0.47% to 59,049.14. The Nifty 50 index lost 87.65 points or 0.5% to 17,516.70.

IndusInd Bank (down 4.31%), JSW Steel (down 3.33%), Power Grid Corp (down 3.31%), Hindustan Unilever (down 2.81%) and Hindalco (down 2.61%) were the top Nifty losers.

Ultratech Cement (up 1.42%), Adani Enterprises (up 1.30%), Coal India (up 1.17%), Infosys (up 1.04%) and Wipro (up 0.73%) were the top Nifty gainers.

In the broader market, the S&P BSE Mid-Cap index fell 0.44% while the S&P BSE Small-Cap index declined 0.18%.

The market breadth was negative. On the BSE, 1,404 shares rose and 2,104 shares fell. A total of 182 shares were unchanged.

Investors turned cautious ahead of the U.S. Federal Reserve meeting that begins Tuesday, post which the US FOMC will announce its latest interest rate decision. Further, the Union Budget 2023, to be presented on February 1, will keep the markets buzzing throughout this week.

Earnings Impact:

Bajaj Finserv advanced 2.11%. The company reported 41.9% jump in consolidated net profit to Rs 1,782.02 crore on a 23.47% increase in total income to Rs 21,755.35 crore in Q3 FY23 over Q3 FY22.

Bajaj Finance rose 3.93%. The NFBC's consolidated net profit surged 39.89% to Rs 2,973 crore on 26.31% jump in total income to Rs 10,785.95 crore in Q3 FY23 over Q3 FY22.

NTPC gained 1.95%. The state-run power major's consolidated net profit rose 6.18% to Rs 4,776.61 crore on 33.97% jump in revenue from operations to Rs 44,601.84 crore in Q3 FY23 over Q3 FY22.

Vedanta shed 0.11%. On consolidated basis, the mining company's net profit declined 42.25% to Rs 3,092 crore in Q3 FY23 from Rs 5,354 crore posted in Q3 FY22. Revenue from operations fell marginally to Rs 33,691 crore in Q3 FY23 as against Rs 33,697 crore reported in the corresponding quarter last year.

Bharat Electronics (BEL) slumped 6.63%. BEL reported 2.64% rise in standalone net profit to Rs 598.77 crore in Q3 FY23 as against Rs 583.37 crore in Q3 FY22. The PSU company's net sales increased 10.6% to Rs 4,046.11 crore for the quarter ended 31 December 2022 compared with Rs 3,656.22 crore in the same quarter a year ago.

Global Markets:

Markets in Europe declined across the board while their Asian peers traded in a mixed manner on Monday as investors focus on the next U.S. Federal Reserve meeting that begins Tuesday.

The two-day meeting will conclude with the central bank's Federal Open Market Committee announcing its latest interest rate decision.

The Fed is expected to hike rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation.

US stocks ended higher on Friday, fueled by gains in Tesla shares and a better-than-expected GDP report on Thursday.

Sensex down 121 pts; IT shares advance; VIX jumps over 4%.

The key equity indices continued to trade with small losses in early afternoon trade. The Nifty traded below the 17,600 level, after hitting the day's high of 17,709.15 in morning trade. IT, consumer durables and pharma stocks advanced while oil & gas, bank and realty shares declined.

The barometer index, the S&P BSE Sensex, was down 121.42 points or 0.20% to 59,209.48. The Nifty 50 index shed 37.55 points or 0.21% to 17,573.50.

In the broader market, the S&P BSE Mid-Cap index fell 0.29% while the S&P BSE Small-Cap index rose 0.15%.

The market breadth was negative. On the BSE, 1,588 shares rose and 1,846 shares fell. A total of 196 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 4.05% to 18.0225. The Nifty 23 February 2023 futures were trading at 17,683.20, at a premium of 109.7 points as compared with the spot at 17,573.50.

The Nifty option chain for the 23 February 2023 expiry showed maximum Call OI of 25.4 lakh contracts at the 18,000 strike price. Maximum Put OI of 28 lakh contracts were seen at 17,500 strike price.

Buzzing Index:

The Nifty IT index rose 0.88% to 30,029. The index declined 1.82% in previous two sessions.

Coforge (up 3.03%), Mphasis (up 1.86%), Infosys (up 1.3%), Persistent Systems (up 1.05%), Wipro (up 0.69%), HCL Technologies (up 0.69%), Tech Mahindra (up 0.57%), L&T Technology Services (up 0.52%), Tata Consultancy Services (up 0.31%) and LTI Mindtree (up 0.24%) advanced.

Earnings Impact:

Zen Technologies gained 3.30% after the aerospace company reported a consolidated net profit of Rs 9.44 crore in Q3 FY23 as against net loss of Rs 0.18 crore in Q3 FY22. Revenue from operations zoomed 222.8% to Rs 52.49 crore in the quarter ended December 2022 as against Rs 16.26 crore posted in same quarter last year.

Solara Active Pharma Sciences advanced 2.08% after the company announced that its new multipurpose API manufacturing facility at Visakhapatnam (Vizag), Andhra Pradesh completed successfully the inspection carried out by the US Food and Drug Administration (USFDA or Agency) from 23rd to 26th January 2023. The agency, with its designated investigator, inspected the facility from 23rd to 26th January 2023.

Five-Star Business Finance rose 0.27%. The NBFC reported 28% rise in net profit to Rs 151 crore on a 22% increase in total income to Rs 388.7 crore in Q3 FY23 over Q3 FY22. During the quarter, the company has been assigned a rating of AA- by India Ratings.

Indices trade with minor cuts, bank stocks decline.

The benchmark indices traded with minor cuts in mid-morning trade. The Nifty traded below the 17,600 level, after hitting the day's high of 17,709.15 in morning trade. Bank stocks extended their losses for the fourth straight session.

The barometer index, the S&P BSE Sensex, was down 105.02 points or 0.18% to 59,225.88. The Nifty 50 index shed 47.50 points or 0.27% to 17,556.85.

In the broader market, the S&P BSE Mid-Cap index fell 0.49% while the S&P BSE Small-Cap index rose 0.04%.

The market breadth was negative. On the BSE, 1,512 shares rose and 1,860 shares fell. A total of 189 shares were unchanged.

Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 5.81% to 18.33.

Buzzing Index:

The Nifty Bank index fell 0.97% to 39,954.45, extending its losing run for the the fourth day. The index slipped 6.69% in two four trading sessions.

IndusInd Bank (down 2.49%), ICICI Bank (down 1.26%), State Bank of India (down 0.8%), HDFC Bank (down 0.56%) and Axis Bank (down 0.5%) edged lower.

On the other hand, Bandhan Bank (up 1.5%), Punjab National Bank (up 1.28%) and AU Small Finance Bank Ltd (up 1.08%) advanced.

Earnings Impact:

Five-Star Business Finance rose 0.10%. The NBFC reported 28% rise in net profit to Rs 151 crore on a 22% increase in total income to Rs 388.7 crore in Q3 FY23 over Q3 FY22. Net Interest Income (NII) for the period under review was Rs 325.6 crore, up 33% YoY. Net Interest Margin was 13.79% in Q3 FY23 as compared with 13.46% in Q3 FY22.

DCB Bank added 0.04%. The bank's net profit jumped 51.1% to Rs 113.85 crore on 17.1% rise in total income to Rs 1,167.15 crore in Q3 FY23 over Q3 FY22. Advances grew 21% year on year to Rs 32,966 crore in Q3 FY23. Deposits jumped 23% year on year to Rs 39,506 crore in Q3 FY23.

Poly Medicure shed 0.30%. On a consolidated basis, the company's net profit jumped 44.9% to Rs 50.01 crore on 23.7% increase in revenue from operations to Rs 284.83 crore in Q3 FY23 over Q3 FY22.

Global Markets:

Most Asian stocks declined on Monday as mainland Chinese markets jumped on resuming trade after a week-long New Year break.

US stocks ended higher on Friday, fueled by gains in Tesla shares and a better-than-expected GDP report on Thursday.

Nifty below 17,600 level, Oil & gas stocks tumble.

STREET INVESTMENT

The domestic equity barometers pared early gains and traded with minor cuts in morning trade. The Nifty traded below the 17,600 level, after hitting the day's high of 17,709.15 in morning trade. Oil & gas stocks slipped for the fourth consecutive trading session.

The barometer index, the S&P BSE Sensex, was down 26.92 points or 0.05% to 59,303.98. The Nifty 50 index shed 19.60 points or 0.11% to 17,584.75.

In the broader market, the S&P BSE Mid-Cap index fell 0.25% while the S&P BSE Small-Cap index rose 0.12%.

The market breadth turned negative. On the BSE, 1,587 shares rose and 1,662 shares fell. A total of 188 shares were unchanged.

Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.01% to 18.36.

Results Today:

Larsen & Toubro (L&T) (down 1.23%), Tech Mahindra (up 0.92%), Bharat Petroleum Corporation (BPCL) (up 0.12%), Bajaj Finserv (up 2.79%), Bajaj Holdings & Investment (up 1.40%), CSB Bank (down 1.47%), Emkay Global Financial Services (up 4.84%), Exide Industries (down 0.96%), GAIL (India) (down 1.16%), Inox Leisure (down 3.20%), Laurus Labs (up 0.20%), Mazagon Dock Shipbuilders (up 1.75%), Nippon Life India Asset Management (up 0.27%), Punjab National Bank (up 1.67%), REC (up 0.91%), SRF (down 0.78%), Trident was flat, and Welspun India (down 0.51%) will announce their quarterly results later today.

Buzzing Index:

The Nifty Oil & Gas index slipped 3.59% to 7,670.40, extending losses for the fourth session. The index tumbled 11.15% in four trading sessions.

Adani Total Gas (down 20%), Petronet LNG (down 2.39%), Oil & Natural Gas Corpn (down 1.42%), Oil India (down 1.19%), GAIL (India) (down 1.06%), Indraprastha Gas (down 0.89%), Hindustan Petroleum Corporation (down 0.81%), Gujarat Gas (down 0.66%), Castrol India (down 0.17%) and Bharat Petroleum Corporation (down 0.07%) declined.

On the other hand, Aegis Logistics (up 8.3%) ,Gujarat State Petronet (up 2.84%) and Mahanagar Gas (up 1.8%) edged higher.

Earnings Impact:

CARE Ratings declined 2.37%. The company reported 44% rise in standalone net profit to Rs 21.40 crore on an 18% rise in total income to Rs 65.68 crore in Q3 FY23 over Q3 FY22. Operating profit rose by 49% to Rs. 22.25 crore in the third quarter from Rs. 14.93 crore in the same period last year. The board of directors have declared an interim dividend of Rs 10 per share for the third quarter of FY23.

Aarti Drugs slipped 3.99% after the pharmaceutical company's consolidated net profit tumbled 37.1% to Rs 36.69 crore in Q3 FY23 as against Rs 58.29 crore posted in Q3 FY22. Net sales stood at Rs 663.96 crore in the quarter ended 31 December 2022, up 4.6% from Rs 634.80 crore reported in the corresponding quarter previous year.

Hi-Tech Pipes rallied 3.75% after the company's consolidated net profit zoomed 199.65% to Rs 13.02 crore in Q3 FY23 as against Rs 4.34 crore posted in Q3 FY22. Revenue from operations declined 4.89% YoY to Rs 569.28 crore in the quarter ended 31 December 2022.

AGI Greenpac surged 8.45% after the packaging company's net profit soared 80.7% to Rs 53.23 crore in Q3 FY23 as against Rs 29.45 crore posted in Q3 FY22. Revenue from operations stood at Rs 567 crore, registering a growth of 43% on a YoY basis in the quarter ended 31 December 2022. The sales and profitability improved on a YoY basis on account of an improved product mix, and an increase in demand from the non-alcoholic beverages, packed food, and beer segment for the glass containers products.