Sensex jumps 813 pts, PSU bank shares rally.

The frontline indices traded marched higher and hit a fresh intraday high in mid-afternoon trade. The Nifty traded above the 17,800 mark after hitting day's low of 17,584.20 in mid-morning trade. Banks, financial services and consumer durables scrips were in demand while healthcare, pharma and realty stocks tumbled.

The barometer index, the S&P BSE Sensex, was up 814.53 points or 1.36% to 60,746.77. The Nifty 50 index added 217.20 points or 1.23% to 17,827.60.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index lost 0.41% while the S&P BSE Small-Cap index fell 0.62%.

The market breadth was weak. On the BSE, 1,137 shares rose and 2,341 shares fell. A total of 140 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.290 from its close of 7.296 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 82.2600, compared with its close of 82.2050 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement rose 0.22% to Rs 57,820.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.17% to 101.05.

The United States 10-year bond yield declined 0.71% to 3.374.

In the commodities market, Brent crude for April 2023 settlement declined 35cents or 0.43% to $81.82 a barrel.

Buzzing Index:

The Nifty PSU Bank index gained 2.14% to 3,853.30. The index slipped 5.84% in the past two trading sessions.

Bank of Baroda (up 5.03%), Canara Bank (up 1.84%), State Bank of India (up 1.78%), Bank of India (up 1.48%) and Indian Bank (up 0.1%) were the top gainers.

On the other hand, Central Bank of India (down 2.85%), UCO Bank (down 1.78%) and Union Bank of India (down 1.77%) edged lower.

Stocks in Spotlight:

Divis Laboratories tumbled 12.71% after the pharmaceutical company's consolidated net profit slumped 66% to Rs 306.80 crore on 31.51% decline in revenue from operations to Rs 1,707.68 crore in Q3 FY23 over Q3 FY22.

Mahanagar Gas (MGL) shed 0.08%. The company reported a consolidated net profit of Rs 172.07 crore in Q3 FY23, which is significantly higher as compared with a net profit of Rs 56.79 crore in Q3 FY22. Net revenue from operations increased by 62.62% YoY to Rs 1671.39 crore during the quarter.

Zydus Lifesciences rose 0.36%. The pharma company's consolidated net profit jumped 24.48% to Rs 622.9 crore on a 19.85% increase in total revenue from operations to Rs 4,362.3 crore in Q3 FY23 over Q3 FY22.

Barometers near the day's high; European markets decline.

The domestic equity barometers traded near the day's high in afternoon trade. The Nifty hovered near the 17,700 mark after hitting day's low of 17,584.20 in mid-morning trade. European markets edged lower while their Asian peers traded mixed today.

The barometer index, the S&P BSE Sensex, was up 473.82 points or 0.79% to 60,406.06. The Nifty 50 index added 80.95 points or 0.46% to 17,691.35.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index lost 0.98% while the S&P BSE Small-Cap index fell 0.85%.

Sellers outnumbered buyers. On the BSE, 984 shares rose and 2462 shares fell. A total of 129 shares were unchanged.

India Services PMI:

The S&P Global India services Purchasing Managers' Index (PMI) fell to 57.2 in January as compared to 58.5 in December. It has been above the key level of 50 that separates growth from contraction for an eighteenth straight month.

Meanwhile, The S&P Global India Composite PMI Output Index fell from December's near 11-year high of 59.4 to 57.5 in January. Manufacturing production increased at a stronger rate than services activity, but growth moderated in both cases.

Stocks in Spotlight:

HDFC Asset Management Company (HDFC AMC) rose 0.15%. The company said that it has received approval from SEBI for change in control of the company due to proposed stake sale by abrdn Investment Management Limited, the co-sponsor of HDFC Mutual Fund. abrdn can reduce their stake in the company to less than 10% and cease to be co-sponsor of HDFC Mutual Fund.

Tata Consumer Products declined 2.06%. The FMCG major reported 26% rise in consolidated net profit to Rs 364 crore on an 8% increase in revenue from operations to Rs 3,475 crore in Q3 FY23 over Q3 FY22.

Berger Paints India added 2.29%. The company posted a consolidated net profit of Rs 201.17 crore in Q3 FY23 from Rs 252.97 crore recorded in Q3 FY22. Revenue from operations rose to Rs 2,693.59 crore in Q3 FY23 from Rs 2,550.77 crore recorded in Q3 FY22.

One 97 Communications (Paytm) skid 2.69%. Paytm informed that its non-executive, non-independent director, Douglas Feagin, tendered his resignation vide letter dated 2 February 2023, with immediate effect.

Adani Ports and Special Economic Zone lost 3.48%. The company said that it handled approximately 27.6 MMT of total cargo in January 2023, recording a growth of 11% year on year. The handled cargo volumes rose 9.96% as against with 25.1 MMT of total cargo handled in December 2022. During April 2022- January 2023, APSEZ clocked approximately 280.5 MMT, registering a growth of 8% year on year.

Global Markets:

European markets declined at open while their Asian peers traded mixed on Friday despite the Caixin purchasing managers' index showing services activity in China picked up in January.

China's service sector showed a rebound in the first month of 2023, according to the Caixin/S&P Global services purchasing managers' index (PMI). The reading rose to 52.9 in January, from the business activity index of 48 seen in December.

The au Jibun Bank Japan services purchasing managers' index came in at 52.3 for the month of January, ticking higher than the previous reading of 51.1 seen in December.

Meanwhile, travel between mainland China and Hong Kong as well as Macao will fully resume on Feb. 6, China's Hong Kong and Macao Affairs Office of the State Council said in an announcement.

The release said mandatory tests for most travelers will be dropped, and group tours between the regions will also resume.

The latest measures come after China scrapped its quarantine measures for international travelers and reopened its borders on Jan. 8, in an essential end to its zero-Covid policy.

US stocks ended mixed on Thursday, as investors turned their focus to a handful of key earnings reports due from mega-cap tech firms after the closing bell.

In Europe, the Bank of England raised interest rates by half a percentage point Thursday as it sought to tame double-digit inflation that is fueling a cost-of-living crisis, public-sector strikes and fears of recession. The bank's monetary policy committee voted 7-2 to push its key rate to 4%.

Nifty below 17,600 level, Adani Enterprises tumbles over 20%.

The Nifty traded near the flat line with minor losses and the Sensex pared gains in mid-morning trade. The Nifty hovered around 17,600 level. Metal stocks extended losses for the third consecutive trading session.

The barometer index, the S&P BSE Sensex, was up 106.52 points or 18% to 60,038.76. The Nifty 50 index shed 12.75 points or 0.08% to 17,596.10.

Gains in the Nifty 50 index were capped due to steep selling in Adani Enterprises (down 20.22%), Adani Ports & SEZ (down 6.24%) and Ambuja Cements (down 3.66%).

The National Stock Exchange (NSE) has put Adani Enterprises, Adani Ports & SEZ and Ambuja Cements under additional surveillance measure (ASM) framework effective 3 February 2023.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index lost 1.36% while the S&P BSE Small-Cap index fell 1.28%.

Sellers outnumbered buyers. On the BSE, 852 shares rose and 2,476 shares fell. A total of 135 shares were unchanged.

India Services PMI:

The S&P Global India services Purchasing Managers' Index (PMI) fell to 57.2 in January as compared to 58.5 in December. It has been above the key level of 50 that separates growth from contraction for an eighteenth straight month.

Meanwhile, The S&P Global India Composite PMI Output Index fell from December's near 11-year high of 59.4 to 57.5 in January. Manufacturing production increased at a stronger rate than services activity, but growth moderated in both cases.

Buzzing Index:

The Nifty Metal index slipped 4.26% to 5,656.55, extending losses for the third day. The index slumped 12.55% in three trading sessions.

Adani Enterprises (down 20.22%), Welspun Corp (down 9.25%), Hindustan Copper (down 7.68%), Vedanta (down 5.4%), National Aluminium Company (down 3.81%), Steel Authority of India (down 3.48%), Hindalco Industries (down 2.74%), MOIL (down 2.33%), Tata Steel (down 1.88%) and APL Apollo Tubes (down 1.49%) dropped.

Stocks in Spotlight:

Adani Ports and Special Economic Zone dropped 6.24%. The company said that it handled approximately 27.6 MMT of total cargo in January 2023, recording a growth of 11% year on year. The handled cargo volumes rose 9.96% as against with 25.1 MMT of total cargo handled in December 2022. During April 2022- January 2023, APSEZ clocked approximately 280.5 MMT, registering a growth of 8% year on year.

Fino Payments Bank fell 1.41%. The company reported 35.5% rise in net profit to Rs 19.1 crore on a 16.8% increase in net revenue to Rs 100.8 crore in Q3 FY23 over Q3 FY22.

Man Infraconstruction jumped 5.54% after the company's consolidated net profit surged 143.52% to Rs 84.77 crore on 54.07% rise in net sales to Rs 456.86 crore in Q3 December 2022 over Q3 December 2021.

Global Markets:

Asian stocks traded mixed on Friday despite the Caixin purchasing managers' index showing services activity in China picked up in January.

China's service sector showed a rebound in the first month of 2023, according to the Caixin/S&P Global services purchasing managers' index (PMI). The reading rose to 52.9 in January, from the business activity index of 48 seen in December.

The au Jibun Bank Japan services purchasing managers' index came in at 52.3 for the month of January, ticking higher than the previous reading of 51.1 seen in December.

US stocks ended mixed on Thursday, as investors turned their focus to a handful of key earnings reports due from mega-cap tech firms after the closing bell.

In Europe, the Bank of England raised interest rates by half a percentage point Thursday as it sought to tame double-digit inflation that is fueling a cost-of-living crisis, public-sector strikes and fears of recession. The bank's monetary policy committee voted 7-2 to push its key rate to 4%.

Market drifts higher in early trade, Sensex above 60K.

The domestic equity barometers were trading with modest gains in early trade on buying demand in index pivotals. The Sensex climbed above the key 60,000 level. Bank, financial services and consumer durables stocks advanced while metal, oil & gas and healthcare shares witnessed a bit of a selling pressure.

The barometer index, the S&P BSE Sensex, was up 293 points or 0.49% to 60,225.24. The Nifty 50 index gained 74.50 points or 0.45% to 17,684.90.

In the broader market, the S&P BSE Mid-Cap index shed 0.09% while the S&P BSE Small-Cap index added 0.21%.

The market breadth was strong. On the BSE, 1,614 shares rose and 1,010 shares fell. A total of 126 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,065.35 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,371.36 crore in the Indian equity market on 2 February, provisional data showed.

Stocks in Spotlight:

HDFC Asset Management Company (HDFC AMC) rose 0.74%. The company said that it has received approval from SEBI for change in control of the company due to proposed stake sale by abrdn Investment Management Limited, the co-sponsor of HDFC Mutual Fund. abrdn can reduce their stake in the company to less than 10% and cease to be co-sponsor of HDFC Mutual Fund.

Tata Consumer Products declined 1%. The FMCG major reported 26% rise in consolidated net profit to Rs 364 crore on an 8% increase in revenue from operations to Rs 3,475 crore in Q3 FY23 over Q3 FY22.

Adani Enterprises hit a lower circuit of 10% and Ambuja Cements fell 2.43% after the National Stock Exchange (NSE) has put Adani Enterprises and Ambuja Cements under additional surveillance measure (ASM) framework effective 3 February 2023.

Berger Paints India shed 0.04%. The company posted a consolidated net profit of Rs 201.17 crore in Q3 FY23 from Rs 252.97 crore recorded in Q3 FY22. Revenue from operations rose to Rs 2,693.59 crore in Q3 FY23 from Rs 2,550.77 crore recorded in Q3 FY22.

One 97 Communications (Paytm) skid 1.26%. Paytm informed that its non-executive, non-independent director, Douglas Feagin, tendered his resignation vide letter dated 2 February 2023, with immediate effect.

Global Markets:

Asian stocks were trading mixed on Friday despite the Caixin purchasing managers' index showing services activity in China picked up in January.

China's service sector showed a rebound in the first month of 2023, according to the Caixin/S&P Global services purchasing managers' index (PMI). The reading rose to 52.9 in January, from the business activity index of 48 seen in December.

The au Jibun Bank Japan services purchasing managers' index came in at 52.3 for the month of January, ticking higher than the previous reading of 51.1 seen in December.

US stocks ended mixed on Thursday, as investors turned their focus to a handful of key earnings reports due from mega-cap tech firms after the closing bell.

In Europe, the Bank of England raised interest rates by half a percentage point Thursday as it sought to tame double-digit inflation that is fueling a cost-of-living crisis, public-sector strikes and fears of recession. The bank's monetary policy committee voted 7-2 to push its key rate to 4%.

Barometers trade sideways, IT stocks advance.

The headline equity indices traded sideways in mid-afternoon trade. The Nifty traded below the 17,550 mark. FMCG, IT and consumer durables scrips edged higher. On the flip side, metal, oil & gas and PSU bank stocks slumped.

The barometer index, the S&P BSE Sensex, was up 146.01 points or 0.24% to 59,854.09. The Nifty 50 index lost 42.70 points or 0.24% to 17,573.60.

In the broader market, the S&P BSE Mid-Cap index shed 0.26% while the S&P BSE Small-Cap index gained 0.23%.

The market breadth was negative. On the BSE, 1,480 shares rose and 1,952 shares fell. A total of 138 shares were unchanged.

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

Domestic equity trade in the red, in stark contrast with their global peers, with losses largely centered around firms under the Adani Group along with industrials and bank stocks exposed to the conglomerate, after it abruptly withdrew a $2.5 billion share offering by its flagship firm, Adani Enterprises.

Indian equity markets were also factoring in the Union Government's 2023 budget, which was released on Wednesday. The budget outlined more income tax breaks, and also flagged increased government spending this year.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.290 from its close of 7.277 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 82.03, compared with its close of 81.80 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement advanced 1.29% to Rs 58,700.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.17% to 101.05.

The United States 10-year bond yield rose 0.38% to 3.411.

In the commodities market, Brent crude for April 2023 settlement added 45 cents or 0.54% to $83.29 a barrel.

Buzzing Index:

The Nifty IT index rose 1.57% to 30,490. The index added 2.52% in two trading sessions.

LTI Mindtree (up 4.24%), Persistent Systems (up 2.4%), L&T Technology Services (up 2.12%), Infosys (up 1.7%), HCL Technologies (up 1.39%), Tata Consultancy Services (up 1.34%), Wipro (up 1.17%), Coforge (up 1.15%), Mphasis (up 0.95%) advanced.

Benchmarks trade with limited losses; Europe markets advance at open.

The domestic equity benchmarks traded with small losses in afternoon trade as buying in FMCG and IT stocks helped to make up for most losses incurred due to a sell-off in metals, oil & gas and financials. The Nifty traded below the 17,550 mark. Markets in Europe and Asia, however, edge higher today.

The barometer index, the S&P BSE Sensex, was down 32.88 points or 0.06% to 59,675.20. The Nifty 50 index lost 70.25 points or 0.4% to 17,546.05.

UPL (down 5.87%), Adani Ports (down 5.74%), HDFC Life (down 5.38%), Tata Steel (down 2.46%) and NTPC (down 2.26%) were the top Nifty losers.

ITC (up 5.33%), Hindustan Unilever (up 1.87%), IndusInd Bank (up 1.72%), Infosys (up 1.49%) and TCS (up 1.26%) were the top Nifty gainers.

In the broader market, the S&P BSE Mid-Cap index shed 0.23% while the S&P BSE Small-Cap index gained 0.39%.

The market breadth was positive. On the BSE, 1,646 shares rose and 1,747 shares fell. A total of 135 shares were unchanged.

raised interest rates as expected on Wednesday, and signaled that it will keep hiking rates to curb inflation. But this spurred expectations that the ensuing economic fallout will push the bank into potentially cutting interest rates by as soon as late-2023.

Domestic equity trade in the red, in stark contrast with their global peers, with losses largely centered around firms under the Adani Group along with industrials and bank stocks exposed to the conglomerate, after it abruptly withdrew a $2.5 billion share offering by its flagship firm, Adani Enterprises.

Indian equity markets were also factoring in the Union Government's 2023 budget, which was released on Wednesday. The budget outlined more income tax breaks, and also flagged increased government spending this year.

Stocks in Spotlight:

Adani Enterprises slumped 18.15%. The board of Adani Enterprises on Wednesday (1 February 2023) decided to call off the Rs 20,000 crore follow-on public offer (FPO).

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

Coal India shed 0.66%. The state-run coal major's total offtake stood at 64.5 million tonnes (MT) in January 2023, registering a growth of 6.1% as compared with 60.8 MT recorded in the same month previous year. The company's coal production jumped 11.5% to 71.9 million tonnes (MT) in January 2023 from 64.5 MT in January 2022.

Britannia Industries jumped 5.10%. The FMCG major's consolidated sales for the quarter ended 31st December 2022 grew 16% to Rs 4,101 crore and net profit grew 151% to Rs. 932 crores. The net profit includes an exceptional gain (net of tax) of Rs. 359 crore, pursuant to a joint venture agreement with Bel SA for the Cheese business and consequent sale of 49% equity stake in its subsidiary & fair valuation of the residual stake of 51%.

Eicher Motors fell 3.31%. The company said that its unlisted subsidiary, VE Commercial Vehicles (VECV) sold 7,181 units of commercial vehicles (CV) in January 2023, registering a growth of 32.1% compared with 5,434 units sold in January 2022.

Hero MotoCorp declined 2.67%. The two-wheeler major's total sales slipped 6.25% to 356,690 units in January 2023 as against 380,476 units sold in January 2022.

Global Markets:

European markets opened in the green while most of the Asian stocks edged higher on Thursday as investors digested the U.S. Federal Reserve's smaller rate hike of 25 basis points and Fed Chairman Jerome Powell acknowledged inflation is falling.

On Thursday, investors in Europe will be focused on the latest monetary policy decisions from the European Central Bank and Bank of England.

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

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

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

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

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

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

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

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

Earnings Today:

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

Buzzing Index:

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

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

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

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

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

Stocks in Spotlight:

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

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

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

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