Market drifts lower in early trade; breadth weak

The key equity benchmarks traded with moderate losses in early trade. The Nifty traded below the 22,000 level. All the sectoral indices were traded in the red with PSU bank, IT and media stocks decline the most.

At 09:28 IST, the barometer index, the S&P BSE Sensex, was down 460.55 points or 0.64% to 72,028.44. The Nifty 50 index dropped 145.30 points or 0.66% to 21,850.55.

In the broader market, the S&P BSE Mid-Cap index dropped 1.09% while the S&P BSE Small-Cap index fell 0.99%.

The market breadth was weak. On the BSE, 671 shares rose and 2,114 shares fell. A total of 90 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,260.33 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,285.52 crore in the Indian equity market on 18 April, provisional data showed.

Politics:

India is gearing up for its election in 2024. The BJP is looking to consolidate its grip on power as it aims for a historic third term while a band of opposition parties, including the Congress, has formed a united front called INDIA to deny PM Modi another victory. The elections will occur in 7 phases, starting on 19 April and ending on 1 June. The Lok Sabha elections 2024 results will declared on 4 June.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.54% to 7.219 from previous close of 7.180.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5250, compared with its close of 83.5100 during the previous trading session.

MCX Gold futures for 3 May 2024 rose 0.35% to Rs 73,271.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 106.20.

The United States 10-year bond yield declined 2.07% to 4.553.

In the commodities market, Brent crude for June 2024 settlement rose $ 1.73 or 1.99% to $88.84 a barrel.

Stocks in Spotlight:

Infosys declined 2.22%. The IT major's consolidated net profit jumped 30.51% to Rs 7,969 crore in Q4 FY24 from Rs 6,106 crore in Q3 FY24. Revenue from operations declined 2.31% to Rs 37,923 crore in Q4 FY24 as compared with Rs 38,821 crore in Q3 FY24. In terms of guidance, the company has revised its FY25 revenue guidance to 1%-3% in constant currency and operating margin guidance at 20%-22%.

Bajaj Auto slipped 2.14%. The auto majors standalone net profit jumped 35.11% to Rs 1,936 crore on 28.97% rise in revenue from operations to Rs 11,484.68 crore in Q4 FY24 over Q4 FY23.

Indus Towers fell 0.86%. NTPC Green Energy Limited (NGEL) and Indus Towers signed a Memorandum of Understanding (MoU), to address the need for pacing green energy objectives and the GoIs efforts towards carbon neutral economy. The MoU is to explore a joint development of grid connected Renewable Energy based Power Projects including Solar, Wind, Energy storage etc. and/or solutions thereof.

Global Market:

Asian stocks are trading lower on Friday as reports of Israeli strikes on Iran further ramped up concerns over worsening geopolitical conditions in the Middle East. Israel, early Friday morning local time, launched missiles in a retaliatory strike against Iran, as per reports. The missile launches follow Iran's attack last Saturday.

U.S. stocks closed mixed on Thursday in another jittery day of trade, as investors focused on rising bond yields and uncertain oil prices.

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