Benchmarks extend losses; IT shares fall for 2nd day.

The key equity benchmarks extended losses and hit fresh intraday low in morning trade. The Nifty traded tad below the 17,750 mark after hitting the day's high at 17,880.70 in early trade. IT shares witnessed some bit of selling pressure for second day in a row.

The barometer index, the S&P BSE Sensex, was down 363.62 points or 0.60% to 60,319.08. The Nifty 50 index lost 106.60 points or 0.6% to 17,749.90.

In the broader market, the S&P BSE Mid-Cap index fell 0.79% while the S&P BSE Small-Cap index declined 0.60%

City Union Bank (down 10.97%), Dhani Services (down 7.01%), Coforge (down 6.39%), Lupin (down 5.92%) and Indiabulls Real Estate (down 4.71%) were the top broader market losers.

Oil India (up 7.81%), Tata Teleservices (Maharashtra) (up 6.78%), Galaxy Surfactants (up 5.68%), Vaibhav Global (up 5.30%) and Natco Pharma (up 4.39%) outperformed in the broader market segment.

The market breadth was positive. On the BSE, 1319 shares rose and 1927 shares fell. A total of 171 shares were unchanged.

Investors awaited the release of India's retail inflation data, which will be announced later today.

Meanwhile, Fed Fear weighed on investor sentiment as the market focus shifted to the US CPI Report and US Retail sales figures that could force the Fed into more aggressive policy moves, thereby raising the possibility of interest rates rising above 5%.

Results Today:

New India Assurance Company (down 1.56%), Steel Authority Of India (down 0.77%), Allcargo Logistics (down 1.17%), Gujarat Gas (down 0.59%), Zee Entertainment Enterprises (down 2.03%), IRB Infrastructure Developers (down 0.26%), FSN E-Commerce Ventures (down 1.39%), Castrol India (up 0.17%), Grindwell Norton (down 1.84%), Campus Activewear (down 2.12%), Gujarat State Petronet (down 0.90%), Godrej Industries (down 0.02%), GR Infraprojects (up 2.75%), Housing & Urban Development Corporation (down 0.43%), Indian Railway Finance Corporation (up 0.33%), ITI (down 0.55%), Linde India (up 1.68%), Global Health (up 0.84%), NLC India (up 0.38%), Power Finance Corporation (down 2.54%), Ratnamani Metals & Tubes (down 0.29%), Shree Renuka Sugars (up 0.84%) and Rhi Magnesita India (down 0.69%) are some of the companies that will announce their quarterly earnings today.

Buzzing Index:

The Nifty IT index slipped 1.82% to 30,307.15. The index has declined 2.21% in two sessions.

Coforge (down 5.91%), Persistent Systems (down 3.5%), Infosys (down 2.05%), LTI Mindtree (down 1.94%) and Tata Consultancy Services (down 1.49%) were the top losers.

Among the other losers were Mphasis (down 1.33%), L&T Technology Services (down 1.14%), Wipro (down 0.97%), Tech Mahindra (down 0.97%) and HCL Technologies (down 0.43%).

Stocks in Spotlight:

Balkrishna Industries was locked in 10% lower circuit. The tyre maker's standalone net profit tumbled 69.7% to Rs 99.62 crore in Q3 FY23 as against Rs 328.58 crore posted in Q3 FY22. Revenue from operations rose 5.5% YoY to Rs 2142.32 crore in the quarter ended 31 December 2022.

BEML rose 0.49%. The company has received an order for supply of 118 units of Track Width Mine Plough (TWMP) for Arjun MBT MK-1A from HVF, Avadi. The consolidated value of the order is Rs 377.98 crore approximately, the supplies are expected to be completed by January 2026.

Thermax advanced 0.71%. The energy and environment solutions provider has received an order for Rs 251.7 crore from an Indian public sector power company. The contract is for the renovation and modernisation of the electrostatic precipitator (ESP) package of its 3x210 MW thermal power station in Bankura, West Bengal.

ABB India fell 1.67%. The company's net profit (from continuing operations) jumped 58.03% to Rs 305.91 crore on 15.48% rise in total revenue from operations to Rs 2,426.91 crore in Q4 CY2022 over Q4 CY2021.

Dilip Buildcon gained 0.23%. The civil construction company reported a standalone net profit of Rs 79.52 crore in Q3 FY23 as against a net loss of Rs 96.66 crore posted in Q3 FY22. Revenue from operations rose 8.2% year on year to Rs 2,378.78 crore in the quarter ended 31 December 2022.

Indices edge lower; market breadth remains in favour of buyers.

The domestic equity barometers edged lower in early trade, dragged down by the selling witnessed in index pivotals. The Nifty traded above the 17,850 mark. Barring metal and pharma, shares across sectors decline with IT, banks and financials leading the losses.

The barometer index, the S&P BSE Sensex, was up 10.91 points or 0.02% to 60,693.61. The Nifty 50 index gained 6.90 points or 0.04% to 17,863.40.

Infosys (down 2.11%), TCS (down 1.33%), Tech Mahindra (down 1.29%), Bajaj Finance (down 1.21%) and Wipro (down 0.90%) were the top Nifty losers.

However, Eicher Motors (up 1.65%), Tata Steel (up 1.38%), Titan (up 1.32%), Hindalco (up 1.14%) and JSW Steel (up 0.97%) managed to outperform.

In the broader market, the S&P BSE Mid-Cap index was trading flat while the S&P BSE Small-Cap index added 0.03%

The market breadth was positive. On the BSE, 1,456 shares rose and 1,245 shares fell. A total of 165 shares were unchanged.

Investors awaited the release of India's retail inflation data, which will be announced later today. Fed Fear weighed on investor sentiment as the market focus shifted to the US CPI Report and US Retail sales figures that could force the Fed into more aggressive policy moves, which could push interest rates above 5%.

Stocks in Spotlight:

Kotak Mahindra Bank rose 0.31%. The bank said that it has entered into share purchase agreements for acquiring 2,64,53,256 equity shares, representing 100% stake, with the current shareholders of Sonata Finance for a total consideration of approximately Rs. 537 crore.

Biocon added 0.76%. The U.S. Food and Drug Administration (FDA) has issued a Complete Response Letter (CRL) for the Biologics License Application (BLA) for Bevacizumab filed by partner Viatris (Mylan).

National Aluminium Company (Nalco) advanced 2.93%. Nalco reported 67% drop in standalone net profit to Rs 273.85 crore in Q3 FY23 from Rs 830.86 crore in Q3 FY22. Revenue from operations fell by 13% YoY to Rs 3,289.98 crore during the quarter.

Glenmark Pharmaceuticals jumped 4.75%. The company's consolidated net profit rose 21.13% to Rs 290.76 crore on 8% increase in net sales to Rs 3,392.24 crore in Q3 FY23 over Q3 FY22.

Numbers to track:

The yield on India's 10-year benchmark federal paper rose 0.16% to 7.375 from 7.363 previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.7400, compared with its close of 82.5800 during the previous trading session

MCX Gold futures for 5 April 2023 settlement advanced 0.02% to Rs 56,750.

The United States 10-year bond yield declined 0.14% to 3.738.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.14% to 103.78.

In the commodities market, Brent crude for April 2023 settlement lost 73 cents or 0.85% to $85.66 a barrel.

Global markets:

Asian stocks traded mostly lower on Monday as investors look ahead to a week of crucial economic data releases, including the U.S. consumer price index that will determine the Federal Reserve's path forward.

Singapore reported 3.6% GDP growth for 2022, less than the 8.9% growth in 2021. In the fourth quarter, the city-state's economy grew 2.1% on an annualized basis, compared with 4% in the previous quarter.

US stocks fell on Friday after a slew of corporate earnings and Federal Reserve speakers reiterated their hawkish messages that there is more work to be done to tame inflation.

US consumer sentiment improved to a 13-month high in February, a survey showed on Friday. The sentiment index has rebounded from a low of 50 last June. The survey's measure of current economic conditions increased to a reading of 72.6 this month from 68.4 in January.

Indices trade with minor cuts; PSU bank shares decline.

The key equity benchmarks traded with minor cuts in early afternoon trade. The Nifty traded below the 17,850 level after hitting day's low of 17,779.80 in the morning trade. Media and IT shares advanced while metal, bank and consumer durable stocks witnessed a bit of a selling pressure.

The barometer index, the S&P BSE Sensex, was down 34.27 points or 0.06% to 60,629.52. The Nifty 50 index declined 33.90 points or 0.19% to 17,837.80.

In the broader market, the S&P BSE Mid-Cap index shed 0.01% while the S&P BSE Small-Cap index fell 0.09%.

The market breadth was negative. On the BSE, 1,586 shares rose and 1,734 shares fell. A total of 162 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 0.38% to 13.5425. The Nifty 23 February 2023 futures were trading at 17,886.80, at a premium of 49 points as compared with the spot at 17,837.80.

The Nifty option chain for the 23 February 2023 expiry showed maximum Call OI of 33.3 lakh contracts at the 18,000 strike price. Maximum Put OI of 37.3 lakh contracts were seen at 17,500 strike price.

Buzzing Index:

The Nifty PSU Bank index declined 0.60% to 3,883.40. The index rose 0.43% in the past trading session.

Punjab National Bank (down 1.84%), UCO Bank (down 1.77%), Canara Bank (down 1.35%), Central Bank of India (down 1.09%) and Bank of Maharashtra (down 0.71%) and State Bank of India (down 0.43%) declined.

On the other hand, Punjab & Sind Bank (up 1.26%), Indian Overseas Bank (up 0.93%) and Bank of India (up 0.62%) advanced.

Stocks in Spotlight:

Honeywell Automation India declined 2.34%. The company reported an 18.2% rise in net profit to Rs 106.07 crore in Q3 FY23 as against Rs 89.73 crore posted in Q3 FY22. Net sales stood at Rs 1,017.49 crore in the quarter ended 31 December 2022, up 18.3% from Rs 859.95 crore recorded in the corresponding quarter last fiscal.

Equitas Small Finance Bank (Equitas SFB) rose 1.61% after the bank's net profit surged 57.4% to Rs 170.13 crore on 17.5% rise in total income to Rs 1,216.03 crore in Q3 FY23 over Q3 FY22.

Lupin rose 0.07%. The company received US Food and Drug Administration (USFDA) approval for its abbreviated new drug application (ANDA) for Glycopyrrolate Injection, USP.

Nifty at 17,850; Sensex adds 348 pts; IT shares advance.

The frontline equity benchmarks continued to trade with significant gains in mid-morning trade. The Nifty marched near the 17,850 level. Metal, IT and healthcare shares advanced while realty, auto and consumer durable stocks declined.

The barometer index, the S&P BSE Sensex, was up 348.27 points or 0.58% to 60,634.31. The Nifty 50 index added 128.95 points or 0.73% to 17,850.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.43% while the S&P BSE Small-Cap index gained 0.31%.

The market breadth was positive. On the BSE, 1,772 shares rose, and 1,495 shares fell. A total of 168 shares were unchanged.

The Reserve Bank of India on Wednesday hiked the repo rate by 25 basis points to 6.5%, Governor Shaktikanta Das announced. This was the first Monetary Policy Statement of the year. In December 2022, the repo rate was raised by 0.35 percentage points to 6.25%.

Buzzing Index:

The Nifty IT index jumped 1.91% to 30,888.95. The index slipped 0.94% in past two trading sessions.

Coforge (up 3.89%), Mphasis (up 2.38%), Infosys (up 2.24%), LTI Mindtree (up 2.17%), L&T Technology Services (up 2.05%), Tata Consultancy Services (up 1.73%), Tech Mahindra (up 1.44%), Persistent Systems (up 1.4%), HCL Technologies (up 1.36%) and Wipro (up 1.36%) edged higher.

Stocks in Spotlight:

NHPC fell 0.62%. The power generation company's consolidated net profit declined 17.4% to Rs 671.67 crore in Q3 FY23 from Rs 813.21 crore recorded in Q3 FY22. Revenue from operations was at Rs 2,582.76 crore in the quarter ended 31 December 2022 as against Rs 2,156.72 crore posted in Q3 FY22, registering a growth of 19.8%.

Aurobindo Pharma rose 0.85%. The drug maker said that its step-down subsidiary company, Aurolife Pharma, has received US Food & Drug Administration (USFDA) approval to manufacture and market Diclofenac Sodium Topical Solution USP.

Rail Vikas Nigam (RVNL) declined 1.04%. The company said that it emerged as lowest bidder for provision of automatic block signalling on Madar-Sakhun section (51.13 Kms) of Jaipur Division over North Western Railway. The cost of the project is Rs 69,48,11,094.74. It will be executed within 9 months. Letter of Award (LoA) is still awaited.

Global markets:

Asian stocks traded mixed on Wednesday, as Federal Reserve Chairman Jerome Powell overnight acknowledged that inflation is declining, a sign the central bank may soon pause its rate hikes.

US stocks advanced on Tuesday, but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank might need to tame inflation.

US inflation is starting to cool but the road ahead will likely be long and bumpy, Federal Reserve Chair Jerome Powell warned Tuesday, adding that stronger-than-expected economic data could bring more rate hikes.

Barometers hit fresh intraday low; realty shares rise for 2nd day.

The key equity benchmarks declined further as they hit fresh intraday low in early afternoon trade. The Nifty traded tad above the 17,700 merk after hitting day's high of 17,811.15 in early trade. Realty shares rose for second consecutive session.

The barometer index, the S&P BSE Sensex, was down 254.87 points or 0.42% to 60,252.03. The Nifty 50 index lost 56.45 points or 0.32% to 17,708.15.

In the broader market, the S&P BSE Mid-Cap index slipped 0.10% while the S&P BSE Small-Cap index shed 0.24%.

The market breadth was negative. On the BSE, 1,477 shares rose, and 1,874 shares fell. A total of 165 shares were unchanged.

The RBI policy review meeting began on 6 February and concludes on 8 February 2023. The central bank is projected to raise the repo rate but at a slower pace. In its December monetary policy committee meeting, the RBI raised the policy repo rate by 35 basis points (bps) to 6.25%.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.99% to 14.40. The Nifty 23 February 2023 futures were trading at 17,757, at a premium of 48.85 points as compared with the spot at 17,708.15.

The Nifty option chain for the 23 February 2023 expiry showed maximum Call OI of 34.8 lakh contracts at the 18,000 strike price. Maximum Put OI of 37.5 lakh contracts were seen at 17,500 strike price.

Buzzing Index:

The Nifty Realty index rose 0.43% to 409.75. The index has risen 0.95% in two sessions.

Godrej Properties (up 1.55%), DLF (up 0.97%), Phoenix Mills (up 0.87%), Sobha (up 0.59%), Prestige Estates Projects (up 0.49%) and Oberoi Realty (up 0.22%) advanced.

On the other hand, Sunteck Realty (down 1.5%), Indiabulls Real Estate (down 1.29%) and Brigade Enterprises (down 0.87%) moved lower.

Stocks in Spotlight:

Mold-Tek Packaging slumped 9.59%. The company reported 16% fall in net profit to Rs 16.31 crore on a 15% decline in revenue to Rs 154.83 crore in Q3 FY23 over Q2 FY23. As compared with Q3 FY22, the company's net profit and revenue are lower by 2.10% and 3%, respectively.

JK Paper fell 1.12%. The company's consolidated net profit zoomed 119.2% to Rs 329.32 crore in Q3 FY23 from Rs 150.21 crore posted in Q3 FY22. Net revenue from operations was at Rs 1,643.06 crore in the quarter ended 31 December 2022, registering a growth of 60.5% as against Rs 1,023.62 crore reported in the same period last year.

Benchmarks trade with minor cuts; Sensex down 80 pts.

The key equity barometers slipped into the negative terrain and traded with small losses in morning trade. The Nifty traded near the 17,750 level. FMCG stocks snapped its five-day gaining streak.

The barometer index, the S&P BSE Sensex, was down 79.9 points or 0.13% to 60,427. The Nifty 50 index lost 5.60 points or 0.03% to 17,759.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index shed 0.10%.

The market breadth was almost even. On the BSE, 1,594 shares rose, and 1,567 shares fell. A total of 148 shares were unchanged.

The RBI policy review meeting began on 6 February and concludes on 8 February 2023. The central bank is projected to raise the repo rate but at a slower pace. In its December monetary policy committee meeting, the RBI raised the policy repo rate by 35 basis points (bps) to 6.25%.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,218.14 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,203.09 crore in the Indian equity market on 6 February, provisional data showed.

Results Today:

Bharti Airtel (up 0.22%), Hero MotoCorp (down 2.02%), Ambuja Cements (up 3.57%), Adani Ports and Special Economic Zone (up 6.99%), Adani Green Energy (up 2.30%), NDTV (up 5%), Aditya Birla Fashion and Retail (down 1.90%), Astral (down 1.11%), Barbeque-Nation Hospitality (up 0.17%), Bharat Dynamics (up 0.26%), Computer Age Management Services (down 0.37%), Deepak Nitrite (down 3.33%), Gujarat Fluorochemicals (up 0.15%), GSK Pharma (up 0.93%), Kalyan Jewellers India (down 0.42%), Motherson Sumi Wiring India (down 0.38%), Navin Fluorine International (up 1.22), NHPC (up 0.24%), Phoenix Mills (down 0.81%), Ramco Cements (down 0.51%), Rashtriya Chemicals & Fertilizers (down 0.64%), Sobha (up 0.93%) and Thermax (down 0.47%) will announce their quarterly earnings later today.

Buzzing Index:

The Nifty FMCG index declined 0.92% to 45,865.15. The index advanced 4.69% in past five trading sessions.

ITC (down 2.46%), Dabur India (down 1.85%), Emami (down 1.8%), Marico (down 1.4%), Hindustan Unilever (down 1.02%), Tata Consumer Products (down 0.83%), Nestle India (down 0.58%), Radico Khaitan (down 0.53%), United Spirits (down 0.51%) and Godrej Consumer Products (down 0.48%) declined.

Stocks in Spotlight:

Markolines Pavement Technologies jumped 9.56% after the company said its associate firm, UniqueUHPC Markolines, has received a Letter of Award ('LoA') for a construction project worth Rs 225.17 crore in Jammu & Kashmir.

Tata Steel tumbled 3.57% after the company reported a consolidated net loss of Rs 2,502 crore in Q3 FY23 as against a net profit of Rs 9,598 crore in Q3 FY22. Total revenue from operations during the quarter amounted to Rs 57,084 crore, down 6% YoY. The fall in revenues was primarily driven by drop in realisations across geographies.

Tejas Networks rallied 2.61% after the company reported a consolidated net loss of Rs 10.88 crore in Q3 FY23 as against a net loss of Rs 24.30 crore posted in Q3 FY22. Revenue from operations zoomed 156.4% to Rs 274.55 crore in the quarter ended 31 December 2022 from Rs 107.06 crore recorded in the same period a year ago.

Benchmarks drift lower in early trade; Nifty below 17,750.

The key equity indices were trading with minor losses in early trade. The Nifty traded below the 17,750 level. Banking and media shares advanced while metal, IT and oil & gas stocks declined.

The barometer index, the S&P BSE Sensex, was down 262.15 points or 0.43% to 60,579.73. The Nifty 50 index lost 105 points or 0.59% to 17,749.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.24% while the S&P BSE Small-Cap index gained 0.49%.

The market breadth was positive. On the BSE, 1,468 shares rose, and 933 shares fell. A total of 176 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 932.44 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,264.74 crore in the Indian equity market on 3 February, provisional data showed.

Stocks in Spotlight:

SBI rose 1.05%. The banking giant reported 68.47% jump in standalone net profit to Rs 14,205.34 crore on a 25.18% rise in total income to Rs 98,083.77 crore in Q3 FY23 over Q3 FY22.

ITC was up 1.20%. The company's standalone net profit rose 21.05% to Rs 5,031.01 crore on 2.51% increase in net sales to Rs 16,082.40 crore in Q3 December 2022 over Q3 December 2021. EBITDA improved 22% to Rs 6,223 crore in Q3 FY23 from Rs 5,102 crore in Q3 FY22.

InterGlobe Aviation (Indigo) advanced 1.16%. Indigo reported a consolidated net profit of Rs 1,422.6 crore in Q3 FY23, steeply higher than Rs 129.79 crore posted in Q3 FY22. Revenue from operations surged 60.66% to Rs 14,932.97 crore in the quarter ended 31 December 2022 from Rs 9,294.77 crore recorded in Q3 FY22.

Global markets:

Asian stocks are trading lower on Monday as a stronger-than-expected jobs report from the U.S. worrying investors the Federal Reserve has room for more interest rate hikes, as it continued its efforts to control inflation.

US stocks dropped on Friday after a shockingly strong US jobs report renewed concerns the Federal Reserve may remain aggressive in its path of interest rate hikes as it tries to tame inflation.

US job growth accelerated sharply in January while the unemployment rate hit more than a 53-1/2-year low of 3.4%. The survey of establishments showed nonfarm payrolls surged by 517,000 jobs last month. Data for December was revised higher to show 260,000 jobs added instead of the previously reported 223,000.