Sensex, Nifty at the high point of the day ahead of the Union Budget.

The domestic equity barometers were currently at the day's high in morning trade. The Nifty traded tad above the 17,800 mark. Oil & gas, however, extended their downfall for sixth consecutive session.

The barometer index, the S&P BSE Sensex, was up 504.87 points or 0.85% to 60,054.77. The Nifty 50 index added 139.10 points or 0.79% to 17,801.25.

In the broader market, the S&P BSE Mid-Cap index gained 1.05% while the S&P BSE Small-Cap index advanced 1.04%.

The market breadth was strong. On the BSE, 2318 shares rose and 854 shares fell. A total of 149 shares were unchanged.

Finance Minister Nirmala Sitharaman will today present Budget 2023—the final full-fledged budget of the Narendra Modi government before the general election next year. She will begin her speech in Lok Sabha at 11:00 am.

FM Sitharaman will reportedly try to play the balancing act by accommodating both the common taxpayer's demand to some extent and laying the ground for more pressing issues like job creation, GDP growth, fiscal deficit and capital expenditure push for infrastructure, manufacturing and other sectors.

Stocks in Spotlight:

The Nifty Oil & Gas index fell 1.01% to 7,510. The index has declined 13% in six sessions.

Adani Total Gas (down 10%), Aegis Logistics (down 3.48%), Bharat Petroleum Corporation (down 1.12%), Hindustan Petroleum Corporation (down 0.88%), Gujarat State Petronet (down 0.8%) , Indian Oil Corporation (down 0.61%) and Oil India (down 0.39%) declined.

On the other hand, Gujarat Gas (up 5.44%), Indraprastha Gas (up 1.72%) and GAIL (India) (up 1.26%) turned up.

Stocks in Spotlight:

Lemon Tree Hotels: The company has signed a License Agreement for a 75 room property in Jabalpur, Madhya Pradesh. Carnation Hotels Private Limited, a wholly owned subsidiary and the hotel management arm of the company will be operating this hotel.

Jubilant Pharmova: Jubilant Pharmova's wholly owned subsidiary Jubilant Draximage Inc announced that it received approval from the US drug regulator (USFDA) with regards to the company's new drug application (NDA) submitted pursuant to section 505(b)(2) of the Federal Food, Drug, and Cosmetic Act (FDCA) for Kit for the Preparation of Technetium (Tc 99m) Mertiatide injection.

Sterlite Technologies (STL): STL has signed an agreement and will sell its telecom product software business via business transfer agreement by way of slump sale as a going concern to Skyvera through its Indian subsidiary.

Indices trade with minor cuts, auto stocks advance.

The domestic equity benchmarks traded with minor cuts in mid-afternoon trade. The Nifty traded below the 17,650 mark. PSU bank, auto and media scrips were in demand while IT, oil & gas and pharma stocks declined.

The barometer index, the S&P BSE Sensex, was down 57.93 points or 0.10% to 59,442.48 . The Nifty 50 index shed 18.15 points or 0.10% to 17,630.80.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.22% while the S&P BSE Small-Cap index gained 1.74%.

The market breadth was strong. On the BSE, 2,274 shares rose and 1,163 shares fell. A total of 149 shares were unchanged.

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.

Economic Survey 2023:

Union finance minister Nirmala Sitharaman today tabled the Economic Survey 2023 in the Parliament. The government has projected that India will remain the fastest growing major economy in the world with a GDP growth forecast of 7% in FY23 and 6-6.8% in FY24.

The Survey further highlighted that the challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed. CAD may continue to widen as global commodity prices remain elevated, economic growth momentum stays strong. Rupee may come under pressure if current account defict (CAD) widens.

It further stated that the RBI projection of 6.8% inflation this fiscal outside the upper target limit, not high enough to deter private consumption, also not too low to weaken inducement to invest. Borrowing cost may remain 'higher for longer', entrenched inflation may prolong tightening cycle.

India's services sector witnessed a swift rebound in FY22, growing Year-on-Year (YoY) at 8.4% compared to a contraction of 7.8% in the previous financial year. This swift rebound was driven by growth in the contact intensive services sub-sector which registered sequential growth of 16% driven by the release of pent-up demand, ease of mobility restriction, and near-universal vaccination coverage.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.372 from its close of 7.401 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 82.0450, compared with its close of 81.52 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement shed 0.13% to Rs 56,710.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.28% to 102.56.

The United States 10-year bond yield fell 0.72% to 3.525.

In the commodities market, Brent crude for March 2023 settlement declined 60 cents or 0.71% to $84.30 a barrel.

Buzzing Index:

The Nifty Auto index fell 1.85% to 13,319.25. The index shed 0.10% in the past trading session.

Mahindra & Mahindra Ltd (up 3.94%), Samvardhana Motherson International Ltd (up 3.08%), Bosch Ltd (up 2.89%), Ashok Leyland Ltd (up 2.22%), Balkrishna Industries Ltd (up 2.2%), Sona BLW Precision Forgings Ltd (up 2.15%), Eicher Motors Ltd (up 1.86%), MRF Ltd (up 1.57%), Tata Motors Ltd (up 1.56%) and Hero MotoCorp Ltd (up 1.45%) edged higher.

Earnings Impact:

Century Textiles & Industries jumped 5.38%. The company's consolidated net profit (from continuing operations) tumbled 44.33% to Rs 6.77 crore in Q3 FY23 from Rs 12.16 crore reported in Q3 FY22. Net sales was at Rs 1,149.94 crore in Q3 FY23, up 9.5% as against Rs 1,049.95 crore posted in the corresponding quarter last year.

Hester Biosciences surged 5.85% after the company's standalone net profit rose marginally to Rs 10.73 crore on 31.06% jump in net sales to Rs 70.77 crore in Q3 FY23 over Q3 FY22.

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.