The key equity benchmarks hit fresh intraday low in afternoon trade. The Nifty continued to trade below the 18,050 level. Markets in Europe and Asia traded in the red zone. Trading remained volatile due to the expiry of weekly index options on the NSE today.
At 13:27 IST, the barometer index, the S&P BSE Sensex, was down 129.7 points or 0.21% to 60,776.39. The Nifty 50 index lost 49.25 points or 0.27% to 18,033.60.
Tech Mahindra (down 2.63%), Hindalco (down 2.58%), Power Grid (down 2.21%), Eicher Motors (down 1.78%) and NTPC (down 1.77%) were the top Nifty losers.
SBI (up 1.52%), Bajaj Auto (up 1.39%), Bharti Airtel (up 1.01%), Axis Bank (up 0.94%) and Bajaj Finserv (up 0.86%) outperformed. In the broader market, the S&P BSE Mid-Cap index rose 0.16% while the S&P BSE Small-Cap index shed 0.04%.
The market breadth was positive. On the BSE, 1,667 shares rose, and 1,716 shares fell. A total of 143 shares were unchanged.
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 US 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.
Stocks in Spotlight:
Relaxo Footwears slumped 4.54%. 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 6.3% YoY to Rs 670 crore in the second quarter.
Mahindra & Mahindra Financial Services jumped 11.98%. The company's net profit tumbled 56.32% to Rs 448.33 crore in Q2 FY23 as against Rs 1,022.90 posted in Q2 FY22. Total income stood at Rs 2,609.32 crore in quarter ended 30 September 2022, up 3.4% from Rs 2,522.39 crore recorded in the same period last year.
MAS Financial Services zoomed 12.37%. 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 9.78%. 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.
Global markets:
Markets in Europe declined across the board while Asian stocks mostly traded lower on Thursday after Federal Reserve Chairman Jerome Powell said the Federal Reserve would raise interest rates more than previously anticipated. Japanese market is closed for a holiday Thursday.
The Bank of England is also expected to implement a similar rate hike when it publishes its latest monetary policy decision on Thursday.
Meanwhile, China's Caixin Services Purchasing Managers' Index came in at 48.4 for October, the the lowest reading since May and the second consecutive contraction for the sector. In September, the print was 49.3, also below the 50-point mark, indicating a contraction.
US stocks closed lower in a volatile trading session on Wednesday as the Federal Reserve delivered another 75-basis point rate hike and hinted at its intentions to continue hiking.
The Federal Reserve pumped up its benchmark interest rate Wednesday by three-quarters of a point. The Fed's move raised its key short-term rate to a range of 3.75% to 4%.
In a briefing with reporters on Wednesday following a fourth consecutive rate hike, Federal Reserve Chairman Jerome Powell reportedly said the central bank's ultimate target for increases in interest rates has gone up.
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