BENCHMARKS SLIDE FOR 2ND DAY; NIFTY ENDS BELOW 17,700

The domestic equity barometers experienced modest losses on Tuesday, with the Nifty 50 index closing below the 17,700 level despite reaching a high of 17,766.60 in early trading. While pharma and healthcare stocks bucked the trend, consumer durables, financial services, and FMCG stocks declined.

The benchmark indices recorded losses for the second consecutive session, with the S&P BSE Sensex falling 183.74 points or 0.31% to 59,727.01, and the Nifty 50 index losing 46.70 points or 0.26% to 17,660.15.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.52% while the S&P BSE Small-Cap index advanced 0.22%.

In terms of market breadth, Tuesday`s trading session showed a positive trend, with 1904 stocks advancing, 1631 shares declining, and 118 stocks remaining flat.

Investors are keeping a close watch on corporate results this week, as well as any comments from Fed Reserve officials that might provide clues regarding interest rate hikes. Stronger-than-expected Chinese economic data failed to boost investor sentiment, and Bank of International Settlements head Agust�n Carstens reportedly cautioned that interest rates may need to remain high for longer due to high inflation and the growing risk of instability in the global economy. As a result, the markets are likely to remain uncertain in the days ahead.

COVID-19 Update:

According to the Union Health Ministry, the country recorded 7,633 fresh cases of COVID-19 within the past 24 hours. Presently, there are 61,233 active cases in the nation while 6,702 individuals recuperated from the disease yesterday. The Ministry revealed a recovery rate of 98.68%. Moreover, over 220 crore 66 lakh vaccine doses have been administered throughout the country up until now.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.223 from 7.247 in previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.0475, compared with its close of 82.0125 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement rose 0.36% to Rs 60,399.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.40% to 101.70.

The United States 10-year bond yield declined 0.27% to 3.581.

In the commodities market, Brent crude for June 2023 settlement declined 8 cent or 0.09% to $ 84.68 a barrel.

Global Markets:

The Dow Jones futures were up 60 points, indicating a positive opening in the US stocks today.

European shares advanced while Asian stocks ended mixed on Tuesday as fears of rising U.S. interest rates largely offset optimism over stronger-than-expected Chinese economic growth.

China`s economy grew more than expected in the first quarter of 2023. China`s gross domestic product rose by 4.5% in the first quarter of 2023, the National Bureau of Statistics said Tuesday. The economy expanded 2.9% in the fourth quarter of 2022.

The Reserve Bank of Australia warned of further tightening in monetary policy could come if needed, minutes released from its April meeting showed on Tuesday. The RBA kept its policy rate unchanged earlier this month.

US stocks rose on Monday as traders combed through the latest batch of corporate earnings results, searching for clues on the health of corporate America.

Stocks in Spotlight:

United Spirits rose 1.18%, following reports that Pernod Ricard`s application for a liquor sale license was rejected by New Delhi. Pernod Ricard considers India a key market where it competes with Diageo, and currently holds a 17% share of the market.

Tata Chemicals tumbled 6.06%. The company slashed the prices of light, dense and GRANPLUS soda ash by 1%-4% for all the dispatches across India effective from 17 April 2023. The company said that all the ex-depot prices are also revised accordingly.

Jubilant FoodWorks added 1.99% after the company`s stake in Hashtag Loyalty diluted after Coca-Cola bought a 15% stake in Hashtag Loyalty for Rs 105 crore. In October 2021, Jubilant Foodworks purchased a 35% stake in Hashtag Loyalty for approximately Rs 24.75 crore.

Angel One rose 1.89%. The company`s consolidated net profit rose 30.4% to Rs 267 crore on 26.9% rise in net revenue to Rs 644.2 crore in Q4 March 2023 over Q4 March 2022.

Samvardhana Motherson International shed 0.23%. The company said that its USA-based indirect subsidiary SMP Automotive Systems Alabama Inc. has completed the acquisition of all the assets of Bolta US for $16 million.Goa Carbon jumped 5.14%. The company`s Bilaspur Unit, Sector B, Sirgitti Industrial Area, Bilaspur Chhattisgarh) has resumed. After preliminary heat up and commencement of feeding of raw material, normal production is likely to resume from 17 April 2023.

Quick Heal Technologies declined 3.18% crore after the company reported a consolidated net loss of Rs 6.64 crore in Q4 FY23 as against a net profit of Rs 28.09 crore posted in Q4 FY22. Revenue from opearation slumped 52.5% to Rs 49.28 crore in Q4 FY23 from Rs 103.71 crore recorded in the same period a year ago.

Just Dial added 2.48%. The company reported a standalone net profit of Rs 83.8 crore in Q4 FY23, steeply higher than Rs 22.14 crore posted in Q4 FY22. Net revenue from operations stood at Rs 232.53 crore in Q4 FY23, registering a growth of 39.52% from Rs 166.67 crore recorded in the corresponding quarter previous year.

TV18 Broadcast slipped 3.43% after the company`s consolidated net profit slumped 75.5% to Rs 35.19 crore in Q4 FY23 as against Rs 143.61 crore recorded in Q4 FY22. Revenue from operations stood at Rs 1,405.90 crore in the quarter ended 31 March 2023 from Rs 1,496.22 crore posted in the Q4 FY22, registering a decline of 6%.

Network18 Media & Investments fell 3.40%. The media company reported a consolidated net loss of Rs 36.78 crore in Q4 FY23 as against a net profit of Rs 61.85 crore posted in Q4 FY22. Revenue from operations declined 8.5% to Rs 1,483.72 crore in quarter ended 31 March 2023 from Rs 1,621.09 crore recorded in the corresponding quarter previous year.

Hathway Cable and Datacom slipped 2.64%. The company reported a net loss of Rs 14.62 crore in Q4 FY23 as against net profit of Rs 28.35 crore in Q4 FY22. Net sales rose 2.4% to Rs 459.59 crore in Q4 FY23 as against Rs 448.79 crore in Q4 FY22.

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