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%.

Indices pare some gains; metals shares extend losses for 4th day.

STREET INVESTMENT

The domestic equity barometers pared some of the early gains in morning trade. The Nifty traded below the 18,150 level after hitting the day's high at 18,201.25 in early trade. Metal shares extended their downfall for fourth consecutive session.

The barometer index, the S&P BSE Sensex, was up 126.71 points or 0.21% to 61,068.38. The Nifty 50 index added 27.40 points or 0.15% to 18,145.95.

In the broader market, the S&P BSE Mid-Cap index shed 0.08% while the S&P BSE Small-Cap index was currently trading flat.

The market breadth turned positive. On the BSE, 1,709 shares rose, and 1,466 shares fell. A total of 171 shares were unchanged.

Results Today:

Maruti Suzuki India (up 0.10%), Indus Towers (down 0.32%), TVS Motor Company (down 0.48%), SBI Cards and Payment Services (down 0.93%), Pidilite Industries (down 0.14%), United Spirits (down 0.53%), Macrotech Developers (down 1.62%), Supreme Industries (up 1.50%), CG Power and Industrial Solutions (down 1.30%), Colgate Palmolive (India) (up 0.05%), Sona BLW Precision Forgings (up 1.22%), PNB Housing Finance (up 0.53%), HDFC Asset Management Company (down 1.01%), Motilal Oswal Financial Services (down 0.65%) and UCO Bank (down 1.81%) are some of the companies that will announce their quarterly earnings today.

Buzzing Index:

The Nifty Metal index fell 0.38% to 6,752.05. The index has declined 2.23% in four sessions.

Steel Authority of India (down 1.56%), Jindal Stainless (down 1.44%), Hindustan Copper (down 1.12%), JSW Steel (down 0.97%) and Jindal Steel & Power (down 0.94%) were the top losers.

Among the other losers were Tata Steel (down 0.7%), National Aluminium Company (down 0.59%), Hindalco Industries (down 0.53%), APL Apollo Tubes (down 0.52%) and Ratnamani Metals & Tubes (down 0.5%).

On the other hand, Welspun Corp (up 1.5%), Hindustan Zinc (up 0.51%) and Adani Enterprises (up 0.4%) turned up.

Stocks in Spotlight:

FSN E-Commerce Ventures (Nykaa) rose 1.36%. 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.

Sterlite Technologies fell 2.60%. The company's board at their meeting held on 27 January 2023 will consider proposal of fund raising by way of equity shares or other securities through rights issue.

NBCC (India) advanced 1.86%. The company has secured the total business of Rs 309.10 crore in December 2022.

Nifty trades above 18,150 mark; market breadth strong.

STREET INVESTMENT

The key equity benchmarks traded with decent gains in morning trade. The Nifty traded above the 18,150 level. IT, banks and autos advanced while realty and healthcare stocks lagged behind.

The barometer index, the S&P BSE Sensex, was up 236.24 points or 0.39% to 61,177.91. The Nifty 50 index added 62.45 points or 0.34% to 18,181.

Infosys (up 1%), IndusInd Bank (up 0.83%), Asian Paints (up 0.72%), Bajaj Finserv (up 0.68%) and Wipro (up 0.64%) were the top Nifty gainers.

Bharti Airtel (down 0.61%), Power Grid Corp (down 0.51%), Grasim (down 0.50%), SBI Life (down 0.42%) and JSW Steel (down 0.37%) were the top Nifty losers.

In the broader market, the S&P BSE Mid-Cap index gained 0.13% while the S&P BSE Small-Cap index rose 0.41%.

The market breadth was strong. On the BSE, 1,779 shares rose, and 801 shares fell. A total of 121 shares were unchanged.

Stocks in Spotlight:

Axis Bank shed 0.55%. 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.

Tata Motors rose 1.79%. 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.

Poonawalla Fincorp jumped 5.29%. 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.

Global Markets:

Markets in Asia advanced 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.

Benchmarks end with decent gains after volatile session; IT stocks outperform.

STREET INVESTMENT

The key equity benchmarks ended with decent gains after a volatile session on Monday. The Nifty managed to close above the 18,100 level after hitting the day's low at 18,063.45 in early trade. Shares across sectors advanced with IT, auto and healthcare stocks gaining the most.

As per provisional closing data, the barometer index S&P BSE Sensex advanced 319.90 points or 0.53% to 60,941.67. The Nifty 50 index added 90.90 points or 0.5% to 18,118.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.44% while the S&P BSE Small-Cap index shed 0.30%.

The market breadth turned negative. On the BSE, 1,666 shares rose, and 1,976 shares fell. A total of 189 shares were unchanged.

Buzzing Index:

The Nifty IT index advanced 1.73% to 30,041.50. The index had declined 0.35% to end at 29,529.65 on Friday.

Persistent Systems (up 7.35%), Coforge (up 6.39%), L&T Technology Services (up 2.89%), LTI Mindtree (up 2.36%) and Tech Mahindra (up 1.77%) were the top gainers.

Among the other gainers were Mphasis (up 1.66%), Tata Consultancy Services (up 1.57%), Infosys (up 1.49%), HCL Technologies (up 1.2%) and Wipro (up 0.95%).

Earning Impact:

Reliance Industries (RIL) shed 0.53%. On a consolidated basis, net profit of RIL declined 2.8% to Rs 15,792 crore on 17.4% increase in net sales to Rs 2,17,164 crore in Q3 December 2022 over Q3 December 2021. RIL reported exceptional income of Rs 2,836 crore in Q3 December 2021.

ICICI Bank lost 0.05%. The bank has reported net interest income of Rs 16465 crore in Q3 FY23 from Rs 12236 crore in Q3 FY22. Profit after tax rose to Rs 8312 crore from Rs 6194 crore.

Kotak Mahindra Bank advanced 1.10%. The bank has reported net total income of Rs 7,753 crore in Q3 FY23 from Rs 5698 crore in Q3 FY22. Profit after tax rose to Rs 2,792 crore from Rs 2131 crore.

LTIMindtree gained 2.23%. The L&T Group company has reported 15.82% decline in consolidated net profit to Rs 1,000.5 crore despite of 4.77% increase in revenue to Rs 8,620 crore in Q3 FY23 over Q2 FY23.

SBI Life Insurance Company rose 0.35%. The life insurer has reported 16.5% decline in net profit to Rs 304.13 crore in Q3 FY23 from Rs 364.06 crore posted in Q3 FY22.

UltraTech Cement tumbled 4.43%. The cement maker has reported consolidated profit after tax of Rs 1058 crore in Q3 FY23 from Rs 1173 crore in Q3 FY22. Net sales rose to Rs 15299 crore in Q3 FY23 from Rs 12710 crore in Q3 FY22.

JSW Steel declined 1.30%. The steel maker has reported 90% drop in consolidated net profit to Rs 474 crore in Q3 FY23 from Rs 4,516 crore in Q3 FY22. Revenue from operations rose by 3% YoY to Rs 39,134 crore during the quarter.

RBL Bank fell 2%. The private sector bank has reported 34% rise in net profit to Rs 209 crore on a 14% increase in total income to Rs 2,987 crore in Q3 FY23 over Q3 FY22.

Canara Bank advanced 1.21%. The public sector bank reported a standalone net profit of Rs 2,882 crore in Q3 FY23, which is higher by 91.88% as compared with the same period last year. The bank's net profit in Q3 FY22 was Rs 1,502 crore. Total income rose by 23.01% YoY during the quarter to Rs 26,217 crore.

Meghmani Organics slumped 6.53%. The company's consolidated net profit declined 87.79% to Rs 8.35 crore on 14.19% fall in net sales to Rs 549.43 crore in Q3 December 2022 over Q3 December 2021.

Yes Bank tumbled 8.33% after the private lender's standalone net profit slumped 80.7% to Rs 51.52 crore on 24.6% rise in total income to Rs 7015.18 crore in Q3 FY23 over Q3 FY22. The bank said that net profit was largely impacted due to ageing related provisions.

Tanla Platforms slipped 3.66% after the company's consolidated net profit dropped 26.3% to Rs 116.51 crore on 1.7% decline in revenue from operations to Rs 869.63 crore in Q3 FY23 over Q3 FY22.

Global Markets:

European markets started the new trading week on a high note on Monday as investors reassessed the global economic outlook.

Global markets have been weighing the possibility that the Federal Reserve is getting ready to slow the pace of its inflation-fighting rate hikes after economic data last week showed a decline in wholesale prices and retail sales.

Kristalina Georgieva, managing director of the IMF, has reportedly said on Friday at the World Economic Forum that the global economic outlook is not as bad as feared a couple of months ago — “but less bad doesn't quite yet mean good.”

Meanwhile, shares traded higher in Asia on Monday, but most markets were closed for the Lunar New Year holiday, with markets in Shanghai shut for the whole week.

US stocks rallied to close higher on Friday as quarterly earnings helped lift Netflix, while Google parent Alphabet climbed after announcing job cuts.

On Friday, Fed Gov. Christopher Waller said he favors just a quarter-point hike on Feb. 1, when the central bank gives its next interest rate policy update. Waller also said that rates are already high enough to be slowing the economy. The remarks could have helped calm rising-rate worries in the market.

Nifty hovers above 18,100; Ultratech Cement slips 3.87%.

The key equity indices traded in a narrow range with decent gains in the afternoon trade. The Nifty hovered above the 18,100 level. IT, auto and healthcare stocks were in demand while realty and metal stocks declined.

The barometer index, the S&P BSE Sensex, was up 274.51 points or 0.45% to 60,896.28. The Nifty 50 index added 75.50 points or 0.42% to 18,103.15.

In the broader market, the S&P BSE Mid-Cap index rose 0.25% while the S&P BSE Small-Cap index shed 0.23%.

The market breadth turned negative. On the BSE, 1,695 shares rose, and 1,852 shares fell. A total of 200 shares were unchanged.

Gainers & Losers:

Eicher Motors (up 1.89%), UPL (up 1.72%), Divi's Laboratories (up 1.67%), Sun Pharmaceutical Industries (up 1.65%) and Hindustan Unilever (up 1.45%) were top Nifty gainers.

Ultratech Cement (down 3.87%), Grasim Industries (down 2.23%), NTPC (down 1.33%), Adani Ports and Special Economic Zone (down 1.32%) and JSW Steel (down 1.22%) were major Nifty losers.

UltraTech Cement slipped 3.87%. The cement maker has reported consolidated profit after tax of Rs 1058 crore in Q3 FY23 from Rs 1173 crore in Q3 FY22. Net sales rose to Rs 15299 crore in Q3 FY23 from Rs 12710 crore in Q3 FY22.

JSW Steel fell 1.22%. The steel maker has reported 90% drop in consolidated net profit to Rs 474 crore in Q3 FY23 from Rs 4,516 crore in Q3 FY22. Revenue from operations rose by 3% YoY to Rs 39,134 crore during the quarter.

Earning Impact:

Reliance Industries (RIL) was down 0.46%. On a consolidated basis, net profit of RIL declined 2.8% to Rs 15,792 crore on 17.4% increase in net sales to Rs 2,17,164 crore in Q3 December 2022 over Q3 December 2021. RIL reported exceptional income of Rs 2,836 crore in Q3 December 2021.

ICICI Bank shed 0.04%. The bank has reported net interest income of Rs 16465 crore in Q3 FY23 from Rs 12236 crore in Q3 FY22. Profit after tax rose to Rs 8312 crore from Rs 6194 crore.

Kotak Mahindra Bank advanced 1.45%. The bank has reported net total income of Rs 7,753 crore in Q3 FY23 from Rs 5698 crore in Q3 FY22. Profit after tax rose to Rs 2,792 crore from Rs 2131 crore.

LTIMindtree gained 0.75%. The L&T Group company has reported 15.82% decline in consolidated net profit to Rs 1,000.5 crore despite of 4.77% increase in revenue to Rs 8,620 crore in Q3 FY23 over Q2 FY23.

SBI Life Insurance Company lost 0.36%. The life insurer has reported 16.5% decline in net profit to Rs 304.13 crore in Q3 FY23 from Rs 364.06 crore posted in Q3 FY22.

Yes Bank tumbled 7.32% after the private lender's standalone net profit slumped 80.7% to Rs 51.52 crore on 24.6% rise in total income to Rs 7015.18 crore in Q3 FY23 over Q3 FY22. The bank said that net profit was largely impacted due to ageing related provisions. NIM for Q3FY23 at 2.5% up nearly 10 bps Y-o-Y and down 10 bps Q-o-Q. Gross slippages were at Rs 1,607 crore. Recoveries & upgrades from fresh slippages have been about Rs 500 crore during Q3, leading to net slippage of about Rs 1,100 crore.

Sensex gains 285 pts, pharma stocks advance.

STREET INVESTMENT

The benchmark indices traded with modest gains in early afternoon trade. The Nifty traded above the 18,100 level. Auto, healthcare and pharma stocks were in demand while metal and realty stocks declined.

The barometer index, the S&P BSE Sensex, was up 285.42 points or 0.47% to 60,907.19. The Nifty 50 index added 77.70 points or 0.43% to 18,105.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.29% while the S&P BSE Small-Cap index shed 0.19%.

The market breadth was positive. On the BSE, 1,777 shares rose, and 1,734 shares fell. A total of 191 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.06% to 13.64. The Nifty 25 January 2022 futures were trading at 18,144, at a premium of 38.65 points as compared with the spot at 18,105.35.

The Nifty option chain for the 25 January 2022 expiry showed maximum Call OI of 127.8 lakh contracts at the 18,100 strike price. Maximum Put OI of 143.1 lakh contracts were seen at 18,100 strike price.

Buzzing Index:

The Nifty Pharma index rose 0.82% to 12,710.45. The index declined 1.01% in the past two trading sessions.

Sun Pharmaceuticals Industries (up 1.88%), Divis Laboratories (up 1.46%), Ipca Laboratories Ltd (up 1.44%), Biocon (up 1.39%), Lupin (up 1.32%) , Laurus Labs (up 1.08%), Cipla (up 0.79%), Torrent Pharmaceuticals (up 0.7%), Zydus Lifesciences (up 0.59%) and Glenmark Pharmaceuticals (up 0.47%) edged higher.

On the other hand, Glaxosmithkline Pharmaceuticals (down 0.78%), Sanofi India (down 0.74%) and Gland Pharma (down 0.7%) slipped.

Glenmark Pharmaceuticals rose 0.47%. The drug maker has launched I.V. injection formulation, AKYNZEO I.V., under an exclusive licensing agreement with Helsinn, a Swiss biopharma group company. AKYNZEO I.V is used for the prevention of chemotherapy-induced nausea and vomiting (CINV).

Earnings Impact:

Yes Bank tumbled 7.07% after the private lender's standalone net profit slumped 80.7% to Rs 51.52 crore on 24.6% rise in total income to Rs 7015.18 crore in Q3 FY23 over Q3 FY22. The bank said that net profit was largely impacted due to ageing related provisions. NIM for Q3FY23 at 2.5% up nearly 10 bps Y-o-Y and down 10 bps Q-o-Q. Gross slippages were at Rs 1,607 crore. Recoveries & upgrades from fresh slippages have been about Rs 500 crore during Q3, leading to net slippage of about Rs 1,100 crore.

Tanla Platforms slipped 3.51% after the company's consolidated net profit dropped 26.3% to Rs 116.51 crore on 1.7% decline in revenue from operations to Rs 869.63 crore in Q3 FY23 over Q3 FY22.

Punjab & Sind Bank shed 1.72%. The bank reported 24.07% jump in net profit to Rs 373.24 crore on 9.94% increase in total income to Rs 2,245.07 crore in Q3 FY23 over Q3 FY22. Net Interest Income grew 6.2% YoY to Rs 805 crore during the period under review. Net Interest Margin improved by 28 basis points to 3.04%.