The headline equity indices traded with minor cuts in the early afternoon trade. The Nifty traded below the 18,050 level. Bank, media and FMCG stocks were in demand while, IT, consumer durables and auto shares witnessed a bit of a selling pressure. Trading was volatile due to the expiry of weekly index options on the NSE today.
At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 159.4points or 0. 26% to 60,746.69. The Nifty 50 index lost 54 points or 0.30% to 18,028.85.
In the broader market, the S&P BSE Mid-Cap index rose 0.18% while the S&P BSE Small-Cap index shed 0.01%.
The market breadth was positive. On the BSE, 1,710 shares rose and 1,630 shares fell. A total of 152 shares were unchanged.
The Reserve Bank of India (RBI) scheduled today, 3 November 2022. An additional meeting of the Reserve Bank of India's Monetary Policy Committee (MPC) has been scheduled for 3 November 2022. The meeting with its rate-setting panel could be held to discuss RBI's reply to the government, explaining the reasons of its failure to contain inflation up to 6%, as per reports.
The RBI's rate-setting panel last met on 28 - 30 September, 2022 and was slated to meet for the last time this calendar year on 5 - 7 December. The MPC had on 30 September, 2022, increased the policy repo rate by 50 basis points (bps) to 5.9%.
The Fed on Wednesday announced a 75 basis points hike in interest rates as widely expected. Federal Reserve Chair Jerome Powell said We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.
Economy:
India Services PMI rose from September's six-month low of 54.3 to 55.1 in October, the seasonally adjusted S&P Global India Services PMI Business Activity Index pointed to a quicker and marked rate of growth. The figure was above the neutral 50.0 threshold for the fifteenth month running and outpaced its long-run average. Favorable demand for services continued to underpin increases in new business and output at the start of the third fiscal quarter. Moreover, rates of expansion quickened from September's six-month lows. Buoyed by the ongoing recovery in new work, service providers again took on extra staff, with an improvement in business confidence also supporting hiring activity.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.75% to 16.37. The Nifty 24 November 2022 futures were trading at 18,092.55, at a premium of 63.7 points as compared with the spot at 18,028.85.
The Nifty option chain for the 24 November 2022 expiry showed maximum Call OI of 20.2 lakh contracts at the 19,000 strike price. Maximum Put OI of 32.7 lakh contracts were seen at 17,000 strike price.
Buzzing Index:
The Nifty Consumer Durables index shed 0.79% to 26,855.15.The index declined 0.17% in the past trading session.
Relaxo Footwears (down 4.61%), Voltas (down 4.47%), Kajaria Ceramics (down 2.61%), TTK Prestige (down 2.07%), Blue Star (down 1.56%), V-Guard Industries (down 1.38%), Bata India (down 1.36%), Havells India (down 1.23%), Amber Enterprises India (down 1.22%) and Orient Electric (down 0.86%) edged lower.
Relaxo Footwears slipped 4.61% after the company reported 67.4% drop in net profit to Rs 22 crore in Q2 FY23 from Rs 69 crore in Q2 FY22. Revenue from operations declined by 6.3% YoY to Rs 670 crore in the second quarter. This was primarily due to decline in volumes of the categories serving the mass segment who were under inflationary pressures with reduced affordability.
Earnigns Impact:
SIS slipped 2.84% after the company's consolidated net profit fell 1.4% to Rs 67.43 crore despite of 13.96% jump in revenue from operations to Rs 2,767.66 crore in Q2 FY23 over Q2 FY22.
MAS Financial Services zoomed 11.98% after the company's net profit jumped 28.04% to Rs 49.1 crore in Q2 FY23 from Rs 38.3 crore in Q2 FY22. Net interest income (NII) improved by 47.46% to Rs 119.2 crore in Q2 FY23 from Rs 80.8 crore in Q2 FY22. Total income rose by 46.73% in the second quarter to Rs 230 crore from Rs 156.8 crore recorded in the same period last year.
Manali Petrochemical (MPL) dropped 10.05% after the company's consolidated net profit tumbled to Rs 90 crore in Q2 FY23 from Rs 117.28 crore in Q2 FY22. Revenues during the quarter decreased 34.5% year on year to Rs 268.08 crore. Profit before tax in Q2 FY23 stood at Rs 16.69 crore, steeply lower than Rs 157.53 crore posted in Q1 FY22.
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