The key equity benchmarks ended a volatile session with small losses on Tuesday, sliding for the third straight session. Negative global cues dampened sentiment. Traders were also cautious ahead of the Reserve Bank of India's policy outcome due on Wednesday, 7 December 2022. PSU banks, FMCG and oil & gas shares advanced. On the other hand, IT, media and metal shares werre under pressure. The Nifty 50 index came off the day's low of 18,577.90 in early trade and ended near the 18,650 mark.
The barometer index, the S&P BSE Sensex, fell 208.24 points or 0.33% to 62,626.36. The Nifty 50 index lost 58.30 points or 0.31% to 18,642.75. Both the indices have fallen 1% in three days.
Infosys (down 1.69%), ICICI Bank (down 1.26%), TCS (down 1.19%), SBI (down 1.32%) and Bharti Airtel (down 1.27%) were major drags.
In the broader market, the S&P BSE Mid-Cap index slipped 0.53% while the S&P BSE Small-Cap index declined 0.32%.
The market breadth was negative. On the BSE, 1,596 shares rose and 1,899 shares fell. A total of 137 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.25% to 14.04.
The Reserve Bank of India (RBI) started its bi-monthly policy review with the Monetary Policy Committee (MPC) meeting on Monday (5 December). The policy outcome will be disclosed on Wednesday (7 December). More than the quantum of rate hikes, domestic investors would watch out for RBI's commentary as it ramps up its efforts to curb inflation and push growth.
On the political front, various exit polls on Monday predicted a big majority for the BJP in Gujarat and a dead heat in Himachal Pradesh where most pollsters gave an edge to the ruling party over the Congress. The counting of votes in both states will take place on 8 December. Elections for the Himachal Pradesh assembly took place on 12 November, while polling in Gujarat happened in two phases on 1 and 5 December.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.249 as compared with 7.226 at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.61, compared with its close of 81.85 during the previous trading session.
MCX Gold futures for 3 February 2023 settlement added 0.61% to Rs 53,832.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.05% to 105.24.
The United States 10-year bond yield fell 0.66% to 3.575.
In the commodities market, Brent crude for February 2023 settlement rose 51 cents or 0.62% to $82.17 a barrel.
Global Markets:
European shares declined while Asian stocks ended mixed on Tuesday after Wall Street sold off overnight on fears that the Fed will keep increasing interest rates.
European Central Bank Chief Economist Philip Lane has reportedly said that interest rates will need to rise several more times to rein in inflation, but that price increases in the euro zone are nearing a peak. As per media reports, Lane reportedly said that it remains uncertain whether this peak has already arrived or is due in early 2023.
German industrial orders rose by 0.8% month-on-month in October on a seasonally and calendar-adjusted basis, the country's federal statistics office said Tuesday.
Meanwhile, China's Beijing city announced negative Covid tests will no longer be required to enter most public areas, malls or residential areas, while bars and so-called KTV lounges, or karaoke bars. Several cities in China relaxed Covid testing rules in recent days.
US stocks fell Monday on fears that the Federal Reserve may continue tightening until it tips the economy into a recession. Shares of Tesla slid on reports of a production cut in China.
US services industry activity unexpectedly picked up in November. The ISM said its non-manufacturing PMI increased to 56.5 last month from 54.4 in October, which was the lowest reading since May 2020.
Stocks in Spotlight:
Bharat Forge declined 0.67%. Class 8 truck orders amounted to 33,000 units in November, falling for a second consecutive month after record bookings in September. Class 8 truck orders amounted to 42,500 units in October and 53,700 units in September.
Bajaj Consumer Care rose 1.97%. The meeting of the board of directors of the company is scheduled on 09 December 2022 to consider and approve a proposal for buyback of fully paid-up equity shares of the company.
Kalpataru Power Transmission declined 1.48%. The civil construction company on Monday announced that its board will meet on Thursday, 8 December 2022 to consider the proposal of fund raising by way of issuance of non-convertible debentures on private placement basis.
Ratnamani Metals & Tubes lost 0.84%. The iorn & steel producer said that it has recently received new orders aggregating to Rs 262.52 crore. The company has bagged domestic orders aggregating to Rs 233.26 crore. It has also secured export orders aggregating to Rs 29.26 crore.
Sterlite Technologies added 0.85%. The company announced that its board has approved the appointment of Tushar Shroff, as the chief financial officer (CFO) and key managerial personnel of the company with effect from 6 December 2022.
DreamFolks Services rose 0.63%. The company has announced a strategic partnership with one of the foremost & leading golf privileges providers Vidsur Golf. This association will enable DreamFolks to expand its already diverse service offering by enabling customers access to Golf courses across India & Asia Pacific.
Ahluwalia Contracts (India) gained 3.33%. The company has secured an order for construction of 5000 Seating Capacity Public Auditorium at Guwahati from Executive Engineer, PWD, Dispur, Guwahati (Assam) worth of approximately Rs 174.88 crore.
Dhunseri Tea & Industries hit an upper circuit of 20%. The company has entered into memorandum of understanding with Apeejay Tea for acquisition of the two tea estates located in Tinsukia District in the State of Assam for a total consideration of Rs 109 crore.
Astra Microwave Products jumped 4.85%. The company said its board will meet on Friday, 9 December 2022, to consider raising funds worth upto Rs 400 crore. The company is planning to raise funds by issuing any instrument or securities, including equity shares, fully/partly convertible debentures, global depository receipts, American depository receipts, foreign currency convertible bonds, warrants, or any combination thereof, in one or more tranches. The proposed fund raising will be through a public issue, preferential allotment, private placement (including one or more qualified institutional placements), or through any other permissible mode and/or combination thereof.
IRB Infrastructure Developers advanced 2.17%. The company's gross toll collection jumped 39.25% to Rs 365.95 crore in November 2022 compared with Rs 262.81 crore reported in November 2021.
Viviana Power Tech zoomed 13.32% to Rs 97. The company said that it has bagged an order for execution of 33KV DPDC transmission line (20 kms) in Naranpur, Gujarat, from Adani Green Energy Six.
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