Benchmarks extend losses; metal shares decline

The key equity barometers extended losses and hit fresh intraday low in morning trade. The Nifty traded tad above the 16,500 mark. Metal shares witnessed some bit of profit booking after rallying in the past six sessions.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 2.06% to 18.05.

In the broader market, the S&P BSE Mid-Cap index fell 0.66% while the S&P BSE Small-Cap index declined 0.61%.

The market breadth was negative. On the BSE, 1,199 shares rose and 1,773 shares fell. A total of 150 shares were unchanged.

Results Today:

Larsen & Toubro (down 1.18%), Bajaj Auto (down 1.14%), Asian Paints (down 1.17%), Tata Power (down 0.65%), Relaxo Footwears (down 0.59%), United Spirits (down 1.24%), Union Bank of India (up 0.40%), Sanofi (down 0.65%), KEI Industries (down 1.17%), Aditya Birla Sun Life AMC (down 0.21%) and UTI Asset Management (down 1.11%) are some of the companies that will announce their quarterly earnings today.

Buzzing Index:

The Nifty Metal index slipped 0.36% to 5,149.75. The index had advanced 7% in the past six sessions.

Vedanta (down 6.28%), Jindal Stainless (down 3.57%), Hindustan Zinc (down 1.7%), APL Apollo Tubes (down 1.54%) and National Aluminium Company (down 1.06%) were the top index losers.

Among the other losers were Welspun Corp (down 0.91%), Steel Authority of India (down 0.86%), Jindal Steel & Power (down 0.77%), Hindalco Industries (down 0.66%) and NMDC (down 0.62%).

Tata Steel shed 0.48%. The company`s consolidated net profit dropped 21% to Rs 7,714 crore in Q1 FY23 as against Rs 9,768.34 crore recorded in Q1 FY22. The company`s turnover surged 18.64% YoY to Rs 63,430 crore in the quarter ended 30 June 2022.

Production fell 1.78% to 7.74 million tonnes and YoY deliveries declined 6.89% to 6.62 million tonnes in Q1 FY23. The steel maker`s net debt stood at Rs 54,504 crore in Q1 FY23.

T V Narendran, chief executive officer & managing director, said, �We are geared towards commissioning the 6 MTPA pellet plant at Kalinganagar in Q3 FY23 which will drive cost savings followed by the CRM complex and the 5 MTPA expansion project.

Our subsidiary, Tata Steel Long Products, has completed the strategic acquisition of Neelachal Ispat Nigam Limited and will drive growth of our long products business.�

Koushik Chatterjee, executive director and chief financial officer, said, �We expect that volatility in terms of steel price and input cost movement to continue in the next quarter but expect the spreads to stabilise in the second half of the year.�

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