Indices end almost flat, Nifty holds 17,600; NSE VIX below 12 mark

The major stock indices consolidated and closed almost unchanged on Friday, amid lack of any significant triggers, suggesting a sense of contemplation among investors. The Nifty opened on a slightly positive note but gradually lost momentum and drifted lower. However, towards the latter half of the day, the Nifty recovered, thanks to the recovery of select heavyweights. Eventually, the index managed to settle above the 17,600 mark. The FMCG and IT sectors seemed to have a good day as they ended on a positive note. On the other hand, the realty, metal, and auto sectors were under pressure.

TThe barometer index, the S&P BSE Sensex advanced 22.71 points or 0.04% to 59,655.06. The Nifty 50 index lost 0.40 points to 17,624.05.

The Nifty received a boost from ITC, TCS, and HDFC, while ICICI Bank, Adani Enterprise, and HDFC Life Insurance dragged.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 0.36% while the S&P BSE Small-Cap index fell 0.27%.

The market breadth was negative. On the BSE, 1545 shares rose and 1923 shares fell. A total of 131 shares were unchanged.

The India VIX on NSE dropped further by 2.59% and settled at 11.63.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined 0.47% to 7.186 from its previous closing of 7.220 recorded yesterday.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.0950, compared with its close of 82.1750 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement fell 0.69% to Rs 60,088.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.03% to 101.88.

The United States 10-year bond yield shed 0.02% to 3.524.

In the commodities market, Brent crude for June 2023 settlement declined 17 cents or 0.21% to $80.93 a barrel.

Global Markets:

Investors in Europe and Asia had a muted reaction on Friday to a series of corporate earnings announcements and economic data releases, with most shares declining.

Flash purchasing managers` index figures from S&P Global and Hamburg Commercial Bank indicated that France`s private sector experienced the fastest growth since May 2022, but this growth was primarily driven by services, while factory production decreased. Germany`s business upturn was also led by services, with a modest increase in manufacturing output.

In the UK, retail data for March showed a 0.9% decline in sales volumes, which retailers attributed in part to the unusually wet weather.

Meanwhile, in Asia, Japan`s core inflation for March remained unchanged from February at 3.1%, marking the second consecutive month of slowing inflation after reaching a 41-year high of 4.3% in January.

In the US, all three major indexes fell overnight as investors assessed a mixed bag of corporate earnings, including disappointing results from Tesla. Cleveland Federal Reserve President Loretta Mester suggested that interest rates could increase further this year and remain restrictive for some time, with the exact amount of increase depending on economic and financial developments.

Stocks in Spotlight:

Reliance Industries advanced 0.14%. The conglomerate will today announce its fourth quarter and full year earnings for the period ended 31 March 2023.

Vodafone Idea zoomed 6.93%. The company has announced the appointment of Kumar Mangalam Birla as an additional director with immediate effect. This decision was made on the recommendation of the nomination and remuneration committee, and Birla will serve as a non-executive and non-independent director. Notably, Birla is returning to the board after stepping down as a non-executive director nearly two years ago in August 2021.

HCL Technologies rose 1.09%. The IT major reported 2.76% fall in consolidated net profit to Rs 3,983 crore on 0.35% decline in revenue from operations to Rs 26,606 crore in Q4 FY23 over Q3 FY23. Compared with Q4 last year, the company`s net profit and revenue were higher by 10.85% and 17.74%, respectively.

For FY24, the company`s revenue guidance is 6%-8% YoY in constant currency. Services revenue is expected to grow 6.5%-8.5% YoY in constant currency. EBIT margin is expected to be between 18%-19%.

ICICI Prudential Life Insurance Company fell 2.60%. The company reported consolidated net profit of Rs 235.26 crore in Q4 March 2023, higher than net profit of Rs 186.88 crore in Q4 March 2022. Total income rose to Rs 11499.84 crore in Q4 March 2023 from Rs 13845.73 crore in Q4 March 2022.

Cyient jumped 6.23%. The company reported 4.6% rise in net profit to Rs 163.2 crore on an 8.2% increase in revenues to Rs 1,751.4 crore in Q4 FY23 over Q3 FY23.

Dr Reddy`s Laboratories rose 0.42%. The drug major on Friday announced the launch of Treprostinil Injection in the U.S. market, approved by the United States Food and Drug Administration (USFDA). The said drug is a therapeutic equivalent generic version to Remodulin (treprostinil) Injection. Treprostinil injection is used to treat the symptoms of pulmonary arterial hypertension.

Sterling and Wilson Renewable Energy declined 3.23%. The company reported consolidated net loss of Rs 421 crore in Q4 March 2023, higher than net loss of Rs 127 crore in Q4 March 2022. Total income dropped to Rs 88 crore in Q4 March 2023 from Rs 1071 crore in Q4 March 2022.

Siemens shed 0.67% while Rail Vikas Nigam (RVNL) lost 0.38%. The Siemens-RVNL consortium has received two separate orders from Gujarat Metro Rail Corporation (GMRCL) for advanced rail electrification technologies.

Laxmi Organic Industries fell 2.88%. The chemical manufacturer announced that its board has approved borrowing funds up to Rs 2,000 crore. The company intends to raise additional funds through equity and/or debt as deemed fit and necessary by the board of directors.

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