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Indices slide for 6th day, Nifty holds 17,450 mark, metal stocks tumble

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Capital Market
Last Updated : Feb 24 2023 | 4:50 PM IST

The domestic equity barometers ended with modest losses on Friday, sliding for the sixth consecutive session. The Nifty closed below the 17,500 level after hitting the day's high of 17,599.75 in early trade. Oil & gas, consumer durables and realty stocks were in demand while metal, PSU bank and auto stocks witnessed a bit of a selling pressure.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 141.87 points or 0.24% to 59,463.93. The Nifty 50 index declined 45.45 points or 0.26% to 17,465.80. In sixth consecutive session, the Sensex slipped 3.03% while the Nifty fell 3.16%.

In the broader market, the S&P BSE Mid-Cap index fell 0.17% while the S&P BSE Small-Cap index shed 0.15%.

The market breadth was negative. On the BSE, 1,504 shares rose and 1,941 shares fell. A total of 168 shares were unchanged.

Meanwhile, The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 5.90% to 14.19.

Economy:

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The Finance Ministry released the monthly economic review for January 2023 which reported that the geopolitical tensions in Europe, spiralling energy, food and fertiliser prices, monetary tightening and inflationary trends have elevated the downside risks to the global economic outlook. Despite these headwinds, the Indian economy is estimated to grow by 7% YoY in FY23.

During the fourth quarter of 2022-23, various high-frequency indicators (HFIs) pointed towards a slowdown in general, as monetary tightening appeared to have started weakening global demand. This may continue in 2023 as various agencies have forecasted a decline in global growth. Apart from the lagged impact of monetary tightening, the uncertainties emanating from the lingering pandemic and relentless conflict in Europe may further dampen global growth.

Buzzing Index:

The Nifty Metal index slipped 3% to 5,443.60. The index added 0.35% in the past trading session.

Adani Enterprises (down 5.04%), Hindalco Industries (down 4.87%), National Aluminium Company (down 4.57%), Jindal Steel & Power (down 3.5%), APL Apollo Tubes (down 3.12%), Vedanta (down 2.72%), Steel Authority of India (down 2.36%), JSW Steel (down 2.31%), Tata Steel (down 2.05%) and MOIL (down 1.99%) tumbled.

Stocks in Spotlight:

Zee Entertainment Enterprises (ZEEL) declined 1.69%. As per latest media reports, the company has moved the National Company Law Appellate Tribunal (NCLAT) seeking relief in the bankruptcy court's order that permitted initiating of insolvency proceedings against the media firm. This is an attempt to save the earlier proposed merger with Culver Max Entertainment (CME) as insolvency laws prohibit any transaction till bankruptcy cases are settled, the reports added.

Oil and Natural Gas Corporation (ONGC) gained 2.75%. As per media reports, ONGC will invest more than $2 billion in drilling a record 103 wells on its main gas-bearing asset in the Arabia Sea as it pivots a turnaround plan that will add 100 million tonnes to production.

Spicejet surged 12.31% after the company reported standalone net profit of Rs 106.82 crore in Q3 FY23, steeply higher than Rs 23.28 crore posted in Q3 FY21. Total revenue from operations rose 2.7% YoY to Rs 2,261.13 crore during the quarter ended 31 December 2022.

DLF rose 0.95%. The realty major said that it has exercised the option to prepay the non-convertible debentures (NCDs) one year ahead of the schedule on annual interest reset date of 25 March 2023.

Adani Transmission hit lower circuit of 5%. Fitch Ratings has affirmed the 'BBB-' ratings on the $400 million senior secured notes issued by the restricted group of India-based Adani Transmission.

Alkem Laboratories added 0.40% after the company received Establishment Inspection Report (EIR) from the US drug regulator for its Indore facility, indicating closure of the inspection.

Bharat Forge rose 0.31%. The company said that the 'investment committee - Defence Business' of the company has approved the transfer of the company's stake in Aeron Systems (Aeron) to Kalyani Strategic Systems, a wholly-owned subsidiary of the company (KSSL).

Rail Vikas Nigam declined 2.62% after the company said that it has received a letter of award (LoA) from M. P. Madhya Kshetra Vidyut Vitaran Co. (MPMKVVCL) worth Rs 196.76 crore.

Sanofi India rallied 3.91% after the company's net profit surged 44.8% to Rs 130.9 crore in Q4 CY22 from Rs 90.40 crore in Q4 CY21. Revenue from operations fell 2.3% year on year (YoY) to Rs 671.90 crore in the quarter ended 31 December 2022.

Mahindra Lifespace Developers slipped 2.17% after the company announced the resignation of its managing director (MD) and chief executive officer (CEO), Arvind Subramanian, with effect from 22 May 2023.

Olectra Greentech hit an upper circuit of 20% after the company announced that it has developed a Hydrogen bus with its technology partner, Reliance.

Strides Pharma Science shed 0.17%. The pharmaceutical company said that it has received establishment inspection report (EIR) from US Food and Drug Administration (USFDA) for its Bangalore facility, indicating closure of the inspection.

Global Markets:

Markets in Europe advanced while Asian stocks traded mixed on Friday as investors digest a number of data releases and more company earnings.

Data released today showed that U.K. consumer confidence rebounded in February, with the GfK's consumer confidence index climbing seven points to minus 38. While this is still close to the historic lows triggered by the cost-of-living crisis, it still represented a 10-month high.

The forward looking German GfK consumer climate index also improved to (-30.5) in March, from (-33.8) the previous month.

Meanwhile, the Bank of Japan governor nominee Kazuo Ueda has expressed support for the current monetary policy, as per reports. He added more time is needed to achieve the central bank's inflation target and it aims to achieve price stability in a sustainable and stable manner.

Japan's nationwide consumer price index rose 4.2% compared to a year ago in January, government data showed. The economy's core CPI excluding fresh food and energy prices rose 3.2%, data showed, as overall CPI rose 4.3% year on year.

Wall Street ended higher on Thursday as investors grappled with how interest rate policy might affect the US economy.

US economic growth in the fourth quarter was weaker than previously estimated. Inflation-adjusted gross domestic product, or the total value of all goods and services produced in the US, increased at a 2.7% annualized rate during the period, Commerce Department data showed Thursday. The figure compares with a previously reported 2.9% advance.

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First Published: Feb 24 2023 | 3:47 PM IST

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