Indices slide for third day, Nifty slides below 18,150
Published on May 18, 2023 17:25
Domestic barometers extended their decline for the third consecutive session on Thursday. This decline was influenced by a prevailing bearish sentiment, primarily driven by caution regarding the US debt-ceiling deal and signs of a slowdown in China`s demand. The Nifty index closed below the 18,150 level, retreating from an early high of 18,297.20. Market trading exhibited volatility due to the expiry of weekly index options on the NSE. Private banks and financial shares experienced demand. Conversely, realty, pharma, and PSU banks saw declines.
The barometer index, the S&P BSE Sensex declined 128.90 points or 0.21% to 61,431.74. The Nifty 50 index lost 51.80 points or 0.28% to 18,129.95. Both the indices dropped 1.5% in three trading sessions.
In the broader market, the S&P BSE Mid-Cap index fell 0.67% while the S&P BSE Small-Cap index shed 0.26%.
The market breadth was negative. On the BSE, 1,517 shares rose and 1,971 shares fell. A total of 118 shares were unchanged.
The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 2.36% to 12.80.
Numbers to track:
The yield on India`s 10-year benchmark federal paper rose to 6.979 as compared with previous close of 6.972.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.58, compared with its close of 82.37 during the previous trading session.
MCX Gold futures for 5 June 2023 settlement declined 0.12% to Rs 60,070.
The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.26% to 103.15.
The United States 10-year bond yield advanced 0.50% to 3.6.
In the commodities market, Brent crude for July 2023 settlement declined 24 cents or 0.31% to $76.72 a barrel.
Shares in Europe and Asia surged as investor optimism grew over a potential agreement to raise the U.S. debt ceiling, averting a default.
In Asia, Japan`s trade deficit for April marked a significant decrease of nearly half compared to the previous year.
Meanwhile, Wall Street stocks also experienced gains overnight as confidence mounted regarding a potential agreement between the White House and Congress, ensuring the avoidance of a government default.
President Joe Biden expressed confidence in the prospects of reaching a budget agreement with Congress, thereby preventing a default on U.S. debt. He further demonstrated a willingness to consider incorporating work requirements into social safety net programs, as demanded by Republicans.
Stocks in Spotlight:
State Bank of India (SBI) fell 2.11%. The largest PSU bank reported 83.18% surge in standalone net profit to Rs 16,695 crore on a 29.41% increase in total income to Rs 1,06,912.46 crore in Q3 FY23 over Q3 FY22. Net Interest Income (NII) increased by 29.47% YoY to Rs 40,393 crore during the quarter. Net Interest Margin (domestic) was at 3.84% in Q4 FY23 as against 3.40% in Q4 FY22.
ITC slipped 1.87%. The company`s standalone net profit rose 21.38% to Rs 5,086.86 crore on 5.12% increase in net sales to Rs 16,115.9 crore in Q4 FY23 over Q4 FY22. In the FMCG segment, cigarettes revenue rose by 14.16% YoY to Rs 7,355.83 crore and the revenue from other FMCG segment improved by 19.39% YoY to Rs 4,944.95 crore during the quarter. Hotel business revenue stood at Rs 781.71 crore (up 100.62% YoY). The board recommended final dividend of Rs 6.75 and special dividend of Rs 2.75 per ordinary share FY23, subject to declaration by the members.
InterGlobe Aviation (Indigo) fell 1.53%. The airliner reported a consolidated net profit of Rs 919.20 crore in Q4 FY23 as against a net loss of Rs 1,681.79 in Q4 FY22. Revenue from operations surged 76.55% to Rs 14,160.60 crore in the quarter ended 31 March 2023 from Rs 8,020.74 crore recorded in Q4 FY22.
GAIL (India) fell 3.41%. On a standalone basis, the company reported a 77.5% drop in its profit to Rs 603.52 crore, while net revenue from operations jumped 21.8% YoY to Rs 32,843.20 crore in Q4 March 2023 over Q4 March 2022.
Zydus Lifesciences slipped 2.28% after the company`s consolidated net profit (from continuing operations) tumbled 27.55% to Rs 298.8 crore despite of 31.66% jump in total revenue from operations to Rs 5,010.6 crore in Q4 FY23 over Q4 FY22.
Thermax dropped 7.43% after the company reported 52.1% jump in consolidated net profit to Rs 155.99 crore on 16% increase in revenue from operations to Rs 2310.82 crore in Q4 FY23 over Q4 FY22.
Jindal Stainless jumped 5.62%. The company reported 16.1% decline in standalone net profit to Rs 659.15 crore in Q4 FY23 from Rs 785.55 crore in Q4 FY22. Total revenue fell marginally on YoY basis to Rs 9444.31 crore during the period under review.
Honeywell Automation India surged 7.07% after the company`s net profit jumped 54.2% to Rs 112.03 crore in Q4 FY23 as compared with Rs 72.67 crore in Q4 FY22. Revenue from operations increased 27.2% year on year to Rs 849.68 crore in Q4 FY23.
Mtar Technologies tumbled 5.04%. The company reported 56.9% jump in consolidated net profit to Rs 31.07 crore in Q4 FY23 as compared with Rs 19.80 crore in Q4 FY22. Revenue from operations surged 99.2% to Rs 196.40 crore in Q4 FY23 as compared with Rs 98.58 crore posted in corresponding quarter last year. As 31 March 2023, the order book stood at Rs 1,172.9 crore.
Siyaram Silk Mills jumped 8.78% after the company`s standalone net profit grew 12.7% to Rs 88 crore on 10.6% increase in revenue from operations to Rs 695 crore in Q4 March 2023 over Q4 March 2022.
JK Tyre & Industries slumped 9.13%. The tyre maker reported 169.6% jump in consolidated net profit to Rs 108.38 crore in Q4 FY23 as compared with Rs 40.20 crore in Q4 FY22. Revenue from operations rose 9.7% year on year to Rs 3,632.47 crore in Q4 FY23.
RailTel Corporation of India fell 1.03%. The public sector enterprise reported 40% jump in consolidated net profit to Rs 76.04 crore on 51.1% rise in revenue from operations to Rs 703.63 crore in Q4 FY23 over Q4 FY22.
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