The benchmark indices ended a volatile session with moderate losses on Monday. The Nifty 50 index hit a high of 18,049.65 in early trade, but declined as the session progressed and closed below the 17,900 level. PSU banks and IT edged higher, while metals and autos tumbled. Investors are taking a cautious stance as FIIs continue to be sellers in domestic equities in the current month.
The barometer index, the S&P BSE Sensex declined 168.21 points or 0.28% to 60,092.97. The Nifty 50 index shed 61.75 points or 0.34% to 17,894.85.
Tech Mahindra (up 3.08%), HCL Technologies (up 1.48%), Infosys (up 1.35%), Wipro (up 1.28%) and TCS (up 1.07%) were top Nifty gainers.
Adani Enterprises (down 2.69%), Axis Bank (down 2.28%) and Hindalco Industries (down 1.13%) were major Nifty losers.
In the broader market, the S&P BSE Mid-Cap index fell 0.34% while the S&P BSE Small-Cap index lost 0.10%.
The market breadth was negative. On the BSE,1,619 shares rose while 1,993 shares fell. A total of 166 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, climbed 3.89% to 15.0225.
Economy:
India's annual wholesale price index (WPI) inflation for the month of December 2022 eased to 4.95%, at a 22-month low, mainly due to fall in prices of food articles and crude petroleum. The Wholesale Price Index (WPI)-based inflation was 5.85% in November 2022 and 14.27% in December 2021.
"Decline in the rate of inflation in December 2022 is primarily contributed by fall in prices of food articles, mineral oils, crude petroleum & natural gas, food products, textiles and chemicals & chemical products", the Ministry of Commerce & Industry said in a statement today.
Separately, India's merchandise exports declined by 12.2% to $34.48 billion in December 2022, as against $39.27 billion recorded in the same month of the preceding year, as per the government data shared on 16 January 2023.
The country's imports in December declined to $58.24 billion as against $60.33 billion recorded in the year-ago period.
The merchandise trade deficitfellfurther to $23.76 billion in December, after declining to a seven-month low of$23.89 billion in November.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper advanced to 7.329 from its close of 7.299 recorded in the previous trading session.
In the foreign exchange market, the rupee weakened against the dollar. The partially convertible rupee was hovering at 81.59, compared with its close of 81.38 during the previous trading session.
MCX Gold futures for 3 February 2023 settlement rose 0.28% to Rs 56,483.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.11% to 102.31.
The United States 10-year bond yield advanced 0.37% to 3.498.
In the commodities market, Brent crude for March 2023 settlement declined 40 cents or 0.47% to $84.88 a barrel.
Global Markets:
Most shares in Europe and Asia advanced on Monday, buoyed by cooling inflation data in the U.S. last week which has lifted investor sentiment. Investors waited nervously to see if the Bank of Japan (BOJ) will defend its super-sized stimulus policy at a pivotal meeting this week, while a holiday in US markets made for thin trading.
Over the weekend, China reported a surge of nearly 60,000 Covid deaths since dropping restrictions last month. On Sunday, the high-speed rail connecting mainland China and Hong Kong reopened for the first time in three years.
US stock market will be closed on Monday, 16 January 2023, in observance of Martin Luther King, Jr. Day. US stocks ended higher on Friday, with shares of JPMorgan Chase and other banks rising following their quarterly results, which kicked off the earnings season.
The University of Michigan consumer sentiment survey released on Friday showed the one-year inflation outlook fell to 4%, the lowest level since April 2021. December's CPI report showed prices declined 0.1% compared with a month ago, raising hopes that the Federal Reserve may soon slow its rate hikes.
Stocks in Spotlight:
Just Dial hit an upper circuit of 10% at Rs 643.65 after the company reported a consolidated net profit of Rs 75.32 crore in Q3 FY23, steeply higher than Rs 19.39 crore posted in Q3 FY22. Net revenue from operations stood at Rs 221.37 crore in Q3 FY23, registering a growth of 39.3% from Rs 158.89 crore recorded in the corresponding quarter previous year. Sequentially, the net sales rose 7.85% in Q3 FY23 from Rs 205.26 crore in Q2 FY23. The company said that FY22 was impacted due to covid.
Avenue Supermarts (DMart) dropped 4.75% after the company reported 6.72% rise in consolidated net profit to Rs 589.68 crore on 25.51% increase in revenue from operations to Rs 11,569.05 crore in Q3 FY23 over Q3 FY22.
On a consolidated basis, PAT margin stood at 5.1% in Q3FY23 lower than 6% in Q3FY22. Earnings before interest, tax, depreciation and amortization (EBITDA) in Q3 FY23 grew 11.43% to Rs 965 crore compared with Rs 866 crore in Q3 FY22. EBITDA margin declined to 8.3% in Q3 FY23 as against 9.4% in Q3 FY22.
L&T Finance Holdings rallied 2.92% after the company's consolidated net profit jumps 39.2% to Rs 453.64 crore in in Q3 FY23 as against Rs 325.99 crore posted in Q3 FY22. Total income soared 80% to Rs 5,671.60 crore in quarter ended 31 December 2022 from Rs 3,150.50 crore recorded in Q3 FY22.
Sula Vineyards surged 14.5% after the company said that it has recorded its highest ever quarterly gross billings overall, both for its own brands as well as the wine tourism business. The company's own brands sales stood at Rs 187.2 crore in Q3 FY23, recording a growth of 13% from Rs 165.7 crore posted in the same quarter a year ago. The growth in firm's own brands revenues was mainly driven by strong growth in volumes as well as realisations. Wine tourism business jumped 13% to Rs 23 crore in quarter ended 31 December 2022 as against Rs 20.3 crore reported in Q3 FY22.
Maruti Suzuki India fell 0.81%. The car major on Monday announced increase in prices across models from 16 January 2023. An estimated weighted average of increase across models stood at around 1.1%. This indicative figure is calculated using ex showroom prices of models in Delhi and will come into effect from 16 January 2023, the company stated.
Federal Bank advanced 1.30% after the private bank posted a 54.03% surge in standalone net profit to Rs 803.61 crore on a 26.5% increase in total income to Rs 4,967.25 in Q3 FY23 over Q3 FY22. Operating profit before provisions and contingencies increased 39.37% year on year to Rs 1,274.21 crore in the quarter ended 31 December 2022. Net interest income stood at Rs 1,957 crore in Q3 FY23, up 27.1% over Rs 1,539 crore in the same quarter last year. Net interest margin improved to 3.49% in Q3 FY23 from 3.27% in Q3 FY22.
Bank of Maharashtra jumped 4.26% after the state-run lender's standalone net profit zoomed 138.74% to Rs 775.03 crore in Q3 FY23 as against Rs 324.63 crore reported in Q3 FY22. Total income surged 22.51% to Rs 4,769.78 crore in quarter ended 31 December 2022 from Rs 3,893.23 crore recorded in Q3 FY22.
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