Markets settle the day flat ahead of Janet Yellen's testimony

Tata Motors fell over 7%, becoming the biggest laggard on BSE Sensex, post Q3 results

Benchmark indices settled the day flat as investors stayed cautious ahead of Janet Yellen’s semi-annual testimony, which could hint on further rate hikes.
 
January’s WPI inflation in January rising to 5.25% against 3.39% in previous month also affected the sentiment. Yesterday, however, retail inflation declined to 3.17% against 3.41% in Dec due to low demand after demonetisation.
 
The S&P BSE Sensex settled the day at 28,339, down 12 points, while the broader Nifty50 was ended at 8,792, down 13 points.
 

In the broader market, the BSE Midcap and BSE Smallcap fell 0.6% each.

"Neither the fall in CPI nor the rise in WPI had much effect on markets which had already priced in RBI’s shift in stance to neutral. With few domestic triggers, investors were seen less inclined to chase price higher, but with Fed testimony scheduled later in the day, global cues were also subdued. Auto stocks were seen in the red after Tata motors’ Q3 numbers, while the political tussle in TN which houses several automobile companies, also dented sentiments,” said Anand James, Chief Market Strategist, Geojit Financial Services in a note.

Sector and Stocks
 
GAIL, Bharti Airtel, RIL and ONGC were the top gainers on BSE Sensex while Tata Motors, Hero MotoCorp, HUL and Maruti were the top losers.
 
Tata Motors fell over 7%, becoming the biggest laggard on BSE Sensex, after the company’s Q3 net consolidated profit fell 96% year-on-year to Rs 112 crore, impacted by big loss in domestic business and operational weakness in JLR.
 
Shares of Tamil Nadu - based television channels, Sun TV and Raj Television Network (RAJ TV) spiked up to 13%, after the Supreme Court (SC) quashed Karnataka High Court verdict that acquitted AIADMK General Secretary, Sasikala Natarajan, in the disproportionate assets case. Raj Television Network surged as much as 13% to Rs 73, while Sun TV rose 4% to Rs 741 on the Bombay Stock Exchange (BSE). Sun TV ended 2.7% higher while Raj TV settled the day 6% higher.

 
BSE Metal index, which rose over 15% in January was the biggest sectoral loser, down 1% dragged by NMDC, Hind Zinc and JSW Steel.
 
Oil stocks rallied today, with Reliance Industries, ONGC and GAIL rising 1.5-2%. Adani Ports climbed 1.2% ahead of Q3 earnings.
 
HUL lost 1.7% despite Bank of America Merrill Lynch maintained a buy call on the stock, with target price at Rs 1,000.
 
Global Markets
 
Asian shares inched to 19-month highs on Tuesday as the potential for economic stimulus in the United States underpinned the dollar, bond yields and Wall Street stocks. But investors later became cautious ahead of the Federal Reserve testimony.

 
European shares were slightly weaker on Tuesday, poised to snap a five-day streak of gains, as corporate earnings season kicked into high gear across the region. The pan-European STOXX 600 index was down 0.2%
 
Japanese shares also ran into trouble after Toshiba Corp delayed an anxiously-awaited earnings release, including details of a multibillion dollar charge related to cost overruns at its U.S. nuclear arm. The Nikkei slipped 0.7% as Toshiba shed more than 8% under the weight of sell orders.
 
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%, trying for its fifth straight session of gains. Stocks in Shanghai were barely changed on the day.

 
Wall Street indexes had hit historic peaks on Monday, with the benchmark S&P 500's market value topping $20 trillion as investors bet tax cuts promised by President Donald Trump would boost the economy.
 
The Dow rose 0.7%, while the S&P 500 gained 0.52% and the Nasdaq 0.52%. Apple, a component of all three indexes, rose 0.9% to close at a record high for the first time since 2015.

(With inputs from Reuters)