The equity benchmarks ended lower on Wednesday, snapping their four-day rising streak. After opening at 18,177.90, the Nifty 50 index dropped in the morning trade and edged lower as the session proceeded. It settled near the day's low of 18,048.65. Media, metals and pharma shares were in demand. However, PSU banks and auto shares corrected.
The barometer index, the S&P BSE Sensex, declined 215.26 points or 0.35% to 60,906.09. The Nifty 50 index lost 62.55 points or 0.34% to 18,082.85. In the past four sessions, the Sensex advanced 2.65% while the Nifty rose 2.77%.
Bharti Airtel (down 3.05%), Apollo Hospitals Enterprise (down 2.91%), Maruti Suzuki India (down 2.44%), Eicher Motors (down 1.75%) and Britannia Industries (down 1.45%) were major Nifty losers today.
In the broader market, the S&P BSE Mid-Cap index shed 0.12% while the S&P BSE Small-Cap index rose 0.23%.
The market breadth was positive. On the BSE, 1,735 shares rose and 1,726 shares fell. A total of 148 shares were unchanged.
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The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 3.30% to 16.66.
Traders were cautious ahead of the US Federal Reserve's policy decision later tonight, with many hoping for signs of a slowdown in future rate hikes. A 75 basis point rate hike is widely expected. Fed's commentary and probable guidance will be keenly tracked.
The Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) will hold an additional meeting on Thursday, 3 November 2022. The MPC last met on 28-30 September 2022. It was slated to meet for the last time this calendar year on 5-7 December 2022.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper rose to 7.406 as compared with 7.396 at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.77, compared with its close of 82.59 during the previous trading session.
MCX Gold futures for 5 December 2022 settlement added 0.48% to Rs 50,746.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.22% to 111.23
The United States 10-year bond yield shed 0.19% to 4.044.
In the commodities market, Brent crude for January 2023 settlement declined 12 cents or 0.13% at $94.53 a barrel.
Global Markets:
Most European shares declined while most Asian stocks advanced on Wednesday as investors brace for the US Federal Reserve's policy outcome.
In Europe, the market expects the Bank of England to raise interest rates by 75 basis points on Thursday, its largest hike since 1989, but policymakers will likely strike a dovish tone as the prospect of a recession deepens.
Stocks in Spotlight:
IFCI surged 19.32% after the media reported that the government is planning to infuse about Rs 2,000 crore into state-run IFCI. The plan is to merge IFCI with its unit, Stock Holding Corporation of India, in an attempt to rescue the lender. The capital infusion is aimed at reducing IFCI's debt burden before the merger.
LIC Housing Finance slumped 8.37%. The company reported 23% rise in net profit to Rs 304.97 crore on an 8% increase in total income to Rs 5,092 crore in Q2 FY23 over Q2 FY22. Net interest income (NII) fell by 1% to Rs 1,162.90 crore in Q2 FY23 from Rs 1,172.94 crore in Q2 FY22. Net interest margin (NIM) for the quarter stood at 1.80% as against 2% for Q2 FY22.
Impairment on financial instruments and net loss on de-recognition of financial instruments amounted to Rs 565.80 crore in the second quarter, which is lower by 11% on YoY basis. The company had recorded an impairment charge of Rs 639.15 crore in the same period last year.
Tech Mahindra rose 0.94%. On a consolidated basis, the IT major's net profit rose 13.59% to Rs 1,285.40 crore on 3.32% increase in revenue from operations to Rs 13,129.50 crore in Q2 FY23 over Q1 FY23. On a year on year (YoY) basis, Tech Mahindra's net profit declined 4% while revenue jumped 20.7% in Q2 FY23.
Adani Ports and Special Economic Zone (APSEZ) shed 0.93%. The company reported 65% rise in consolidated net profit to Rs 1738 crore on 33% rise in total revenue to Rs 5211 crore in Q2 FY23 over Q2 FY22.
Eicher Motors declined 1.85%. The auto major's total motorcycles sales jumped by 86% to 82,235 units in October 2022 from 44,133 units sold in October 2021. While sales of motorcycle models with engine capacity up to 350cc doubled to 74,828 units, sales of motorcycle models with engine capacity exceeding 350cc rose 10% to 74,828 units in October 2022 over October 2021.
Karnataka Bank hit an upper circuit limit of 20%. The private lender's net profit surged 227.70% to Rs 411.63 crore on 11.04% increase in total income to Rs 2,031.09 crore in Q2 FY23 over Q2 FY22. For the quarter ending September 2022, the net interest income increased by 26% to Rs 802.73 crore from Rs 637.10 crore. The net interest margin has improved to 3.56% from 3.15% as of 30 September 2021.
TVS Motor Company skid 2.25%. The company said said that it had registered a growth of 2% with sales increasing to 360,288 units in October 2022 from 355,033 units in October 2021. Total two-wheelers registered sales rose by 1% to 344,630 units in October 2022 from 341,513 in October 2021. Domestic two-wheeler sales accounted for 80% of the total two-wheeler sales and recorded a growth of 7% on YoY basis.
Prudent Corporate Advisory Services surged 13.43% after the company's consolidated net profit soared 41.1% to Rs 27.60 crore on 36.7% jump in total income to Rs 148.80 crore in Q2 FY23 over Q2 FY22. The company said that the PAT growth was lower than operating profit growth, led by higher depreciation due to the amortisation of payment for acquiring mutual fund (MF) assets of Karvy in November 2021 & lower other income. Revenues growth was led by strong AUM growth in the mutual fund business & 80% year-on-year growth in the emerging insurance segment.
Dai-Ichi Karkaria hit an upper circuit limit of 20% after the company reported a consolidated net profit of Rs 12.28 crore Q2 September 2022 as against a net loss of Rs 6.51 crore in Q2 September 2021. Net sales surged 110.87% to Rs 54.32 crore Q2 September 2022 over Q2 September 2021.
Chambal Fertilisers & Chemicals slipped 5.59% after the company posted a 45.8% fall in consolidated net profit to Rs 274.27 crore in Q2 FY23 from Rs 505.92 crore posted in Q2 FY22. Revenue from operations jumped 91.7% to Rs 8,586.75 crore in Q2 FY23 as against Rs 4,478.61 crore posted in the same quarter last year. Consolidated profit before tax declined 45% year on year to Rs 404.20 crore in the quarter ended 30 September 2022.
Precision Wires India advanced 5.75% after the company announced that its board will consider a bonus share issue on Thursday, 10 November 2022.
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