Indices trade with major cuts; Infosys tumbles over 10%
Published on Apr 17, 2023 13:33
The domestic equity benchmarks continued to trade with significant losses in afternoon trade. The Nifty hovered below the 17,700 level after hitting the day`s high of 17,863 in early trade. PSU bank, FMCG and realty shares saw buying demand while IT, healthcare and pharma shares witnessed selling pressure.
At 13:26 IST, the barometer index, the S&P BSE Sensex, was down 661.5 points or 1.09% to 59,769.50. The Nifty 50 index lost 163.35 points or 0.92% to 17,664.65.
In the broader market, the S&P BSE Mid-Cap index rose 0.12% while the S&P BSE Small-Cap index added 0.01%.
The market breadth was negative. On the BSE, 1,655 shares rose and 1,848 shares fell. A total of 174 shares were unchanged.
Disappointing performance by domestic IT giant Infosys (down 10.70%) coupled with the prospect of more rate hikes by major central banks and a global economic slowdown dented the domestic investor sentiment.
India`s annual wholesale price index (WPI) based inflation eased to 29-month low of 1.34% in March 2023 as compared to 3.85% recorded in February 2023 and 14.63% in March 2022.
�Decline in the rate of inflation in March, 2023 is primarily contributed by fall in prices of basic metals, food products, textiles, non-food articles, minerals, rubber & plastic products, crude petroleum & natural gas and paper and paper products,� the Ministry of Commerce & Industry said in a statement today.
Separately, India`s March goods exports declined 13.9% to $38.38 billion and imports declined 7.9% to $58.11 billion. In March 2022, goods exports were $44.57 billion and imports were $63 billion. March`s trade deficit is at $19.73 billion. The total trade deficit for 2022-23 is at $122 billion, according to the government.
Gainers & Losers:
Nestle India (up 3.92%), Power Grid Corporation of India (up 2.27%), Britannia Industries (up 1.66%), Grasim Industries (up 1.57%) and ITC (up 1.54%) were the top Nifty gainers.
Infosys (down 10.70%), Tech Mahindra (down 5.25%), HCL Technologies (down 3.43%), Wipro (down 2.59%) and Larsen & Toubro (down 2.16%) were the top Nifty losers.
Infosys slumped 10.70%. The IT major reported 7% decline in consolidated net profit to Rs 6,128 crore on a 2.3% fall in revenues to Rs 37,441 crore in Q4 FY23 over Q3 FY23. On a year-on-year basis, the company`s net profit and revenues are higher by 7.8% and 16%, respectively as compared with Q4 FY22.
The IT giant issued a revenue growth guidance of 4% - 7% in constant currency and operating margin guidance of 20% - 22% for FY24.
HCL Technologies fell 3.43%. Anand Birje, head of Digital Business Services, resigned from the company to pursue another opportunity.
Stocks in Spotlight:
HDFC Bank fell 1.59%. The bank`s net revenue grew by 21% to Rs 32,083 crore in Q4 March 2023 from Rs 26,509.8 crore in Q4 March 2022. The bank`s net profit rose 19.8% to Rs 12,047.5 crore in Q4 March 2023 over in Q4 March 2022.
The board of directors of HDFC Bank approved the issuance of Perpetual Debt Instruments, Tier II Capital Bonds and Long-Term Bonds up to total amount of Rs. 50,000 crore over the period of next twelve months through private placement mode.
Adani Green Energy (AGEL) added 1.60%. AGEL said its sale of energy for solar portfolio increased by 6% YoY at 2,872 million units in Q4 FY23 as against 2,717 million units in Q4 FY22.
TV18 Broadcast rose 2.42% and Reliance Industries added 0.50%. Viacom18, a subsidiary of the company, closed the merger of Reliance Storage with itself and integrated JioCinema as well. Viacom18 allotted shares to RIL group entities and Bodhi Tree Systems as consideration for the scheme of merger.
Brightcom Group was locked in 5% lower circuit. SEBI found that the company overstated profit after tax for fiscals 2019 and 2020 by more than Rs 1,280 crore. The regulator has ordered the company to publish the correct shareholding pattern and its managing director and directors not to sell their shares.
Shares in Europe and Asia advanced on Monday, as U.S. earnings season gets into full swing, while a raft of Chinese data will offer insight into how the world`s second-largest economy is recovering.
Chinese data on retail sales, industrial output and gross domestic product are due on Tuesday.
Wall Street ended lower on Friday as a barrage of mixed economic data appeared to affirm another Federal Reserve interest rate hike, dampening investor enthusiasm after a series of big US bank earnings launched first-quarter reporting season.
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