The headline equity indices ended with minor cuts on Friday, extending gains for the sixth consecutive trading session. The Nifty managed to close above the 17,550 level after hitting the day's low of 17,520.75 in the late trade. Bank, financial services and realty stocks were in demand. On the flip side, media, metal and pharma shares witnessed a bit of a selling pressure.
As per provisional closing data, the barometer index, the S&P BSE Sensex, was up 104.25 points or 0.18% to 59,307.15. The Nifty 50 index gained 12.35 points or 0.07% to 17,576.30. In six consecutive sessions, the Sensex has jumped 3.62% while the Nifty has increased by 3.3%.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.75% while the S&P BSE Small-Cap index shed 0.60%.
The market breadth was negative. On the BSE, 1,454 shares rose and 1,962 shares fell. A total of 142 shares were unchanged.
A strong weekly jobless claims in the US and hawkish comments from the US Fed's Philadelphia President Patrick Harker bolstered concerns about the central bank sticking to aggressively hiking the interest rates further, potentially pushing the American economy to recession.
This year Muhurat trading will take place on Monday, 24 October 2022. The trading hour is scheduled in the evening from 06:15 pm to 07:15 pm.
Buzzing Index:
The Nifty PSU Bank index rose 1.85% to 3,272.70. The index declined 0.68% in the past trading session.
Union Bank of India (up 4.13%), Canara Bank (up 3.73%), Punjab & Sind Bank (up 2.59%), Bank of Baroda (up 2.24%), Indian Bank (up 2.06%), Bank of India (up 1.81%), Bank of Maharashtra (up 1.79%), UCO Bank (up 1.65%), State Bank of India (up 1.15%) and Indian Overseas Bank (up 0.85%) jumped.
Earnings Impact :
Bajaj Finserv fell 2.45%. The company reported 39% rise in consolidated net profit to Rs 1,557 crore on a 16% increase in total income to Rs 20,803 crore in Q2 FY23 over Q2 FY22.
Axis Bank jumped 9.48%. The private lender's net profit surged 70% to Rs 5,329.77 crore on 20% increase in total income to Rs 24,180.08 crore in Q2 FY23 over Q2 FY22. Net interest income (NII) increased by 31% YoY and 10% QoQ to Rs 10,360 crore. Net interest margin (NIM) for Q2 FY23 stood at 3.96%, up 57 basis points YoY and 36 basis points QoQ. The scrip hit an all time high at Rs 879.95 in intraday today.
ITC declined 1.24% after the company's standalone net profit rose 20.8% to Rs 4,466 crore on 27.4% increase in net revenue to Rs 15,976 crore in Q2 September 2022 over Q2 September 2021. Total FMCG segment revenue increased 22% YoY to Rs 11839 crore during the period under review. In the FMCG segment, cigarettes revenue rose by 23% YoY to Rs 6954 crore while the revenue from other FMCG segment improved by 21% YoY to Rs 4885 crore during the quarter.
Hotel business revenue stood at Rs 536 crore (up 82% YoY), agri-business revenue was at Rs 3997 crore (up 44% YoY) and paperboards, paper & packaging revenues were at Rs 2288 crore (up 25% YoY) in the second quarter of FY23.
Ambuja Cements shed 0.88%. The cement major's standalone net profit slipped 68.7% to Rs 137.89 crore on 14% increase in net sales to Rs 3,631 crore in Q3 CY22 over Q3 CY21. The company's sales volume grew by 12.3% YoY to 6.74 million tons and realizations stood at Rs 5,148 per ton in Q3 CY22 as against Rs 5,154 per ton in Q3 CY21.The growth in sales volume was driven by reduction in logistic costs, unleashing network synergy and various other cost efficiency measures.
Tata Consumer Products skid 0.60%. The FMCG major's group consolidated net profit surged 36.26% to Rs 389.43 crore on 10.88% rise in revenue from operations to Rs 3,363.05 crore in Q2 FY23 over Q2 FY22. The increase in the group net profit was mainly aided by the revenue growth in both branded and non-branded business, partly offset by margin decline due to inflation and weakness of GBP for International markets and higher exceptional income on account of sale of land in Tata Coffee.
Happiest Minds Technologies slipped 2.28%. The company reported 5.45% rise in consolidated net profit to Rs 59.41 crore on a 8.08% increase in net sales to Rs 355.51 crore in Q2 FY23 over Q1 FY23.
Shriram Transport Finance Company declined 1.56. The NBFC's standalone net profit rose 38.3% to Rs 1,066.87 crore on 13.8% increase in total income to Rs 5,351.28 crore in Q2 FY23 over Q2 FY22.
Dixon Technologies (India) fell 0.67% after the company reported 23% increase in consolidated net profit to Rs 77.1 crore on a 38% rise in income to Rs 3,866.8 crore in Q2 FY23 over Q2 FY22.
Nazara Technologies slipped 3.06%. The company's consolidated net profit shed 1.9% to Rs 10.20 crore in Q2 FY23 from Rs 10.40 crore recorded in Q2 FY22. Revenue from operations zoomed 103.5% to Rs 263.80 crore in quarter ended 30 September 2022 as against Rs 129.60 crore posted in the same period last year.
Global Markets:
The Dow Jones futures were down 154 points, indicating a negative opening in the US stock market today.
Shares in Europe and Asia declined on Friday as investors await inflation data from several economies.
US stocks ended the session lower on Thursday after investors weighed generally upbeat earnings against the prospect that the Federal Reserve could hold firm on its aggressive policy for longer than they had hoped.
Remarks from Philadelphia Federal Reserve President Patrick Harker suggested the central bank will "keep raising rates for a while".
Meanwhile, British Prime Minister Liz Truss resigned Thursday, bringing to a close a brief 44-day tenure mired by mini-budget chaos, economic turmoil and political infighting. Truss said she will remain in place as caretaker prime minister until a successor is named, with a leadership contest expected to take place over the next week. Rishi Sunak, Penny Mordaunt and even former Prime Minister Boris Johnson are among the likely frontrunners to replace Truss.
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