Indices trade with significant cuts; European shares decline

The key equity benchmarks continued to trade with modest losses in afternoon trade. The Nifty traded near the 18,500 level. Pharma, healthcare and IT stocks were in demand while banking and financial services shares corrected.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was down 476.24 points or 0.76% to 62,492.89. The Nifty 50 index lost 129 points or 0.69% to 18,504.85.

In the broader market, the S&P BSE Mid-Cap index shed 0.13% while the S&P BSE Small-Cap index gained 0.22%.

The market breadth was negative. On the BSE, 1,562 shares rose and 1,869 shares fell. A total of 124 shares were unchanged.

Investor sentiment took a hit after disappointing economic data from China brewed more concerns over sluggish demand and weak recovery in the world`s second largest economy.

Gainers & Losers:

Bharti Airtel (up 1.70%), Sun Pharmaceutical Industries (up 1.51%), SBI Life Insurance Company (up 1.35%), Tech Mahindra (up 1.26%) and Tata Motors (up 1.15%) were major Nifty gainers.

Axis Bank (down 2.50%), NTPC (down 2.23%), HDFC (down 1.92%), ONGC (down 1.76%) and HDFC Bank (down 1.65%) were top Nifty losers.

Stocks in Spotlight:

Adani Ports and Special Economic Zone (APSEZ) shed 0.59%. The company reported 5.1% rise in consolidated net profit to Rs 1,158.88 crore in Q4 FY23 as against Rs 1,102.61 crore posted in Q4 FY22. Revenue from operations surged 40% year on year to Rs 5,796.85 crore in the quarter ended 31 March 2023.

Coal India skid 1.31%. The board of directors of Coal India has approved revision of non-coking coal prices with effect from 31st May 2023. The board has approved price increase of 8% over the existing notified prices for high grade coal of grade G2 to G10. Due to this revision, Coal India will earn approx. incremental revenue of Rs 2,703 crore for the balance period of financial year 2023-24.

HDFC Life Insurance Company added 0.81%. On the BSE, 359.47 lakh shares were traded in the counter so far compared with average daily volumes of 61,279 shares in the past two weeks. UK-based investment company Abrdn is reportedly likely to sell its entire 1.66% equity in HDFC Life Insurance Company via block deals.

Torrent Pharmaceuticals jumped 4.09% after the pharmaceutical company reported a consolidated net profit of Rs 287 crore in Q4 FY23 as against a net loss of Rs 118 crore posted in Q4 FY22. Net revenue from operations grew by 17% year on year to Rs 2,491 crore in the quarter ended 31 March 2023.

Mankind Pharma shed 0.83%. The company`s consolidated net profit rose 52% to Rs 294 crore in Q4 FY23 as against a net profit of Rs 193 crore in Q4 FY22. Revenue from operations rose 19% to Rs 2053 crore in the quarter ended 31 March 2023 from Rs 1726 crore recorded in Q4 FY22.

HDFC Asset Management Company rose 0.17%. Keki Mistry has expressed the desire not to be re-appointed as a non-executive director of the company and will retire after the upcoming AGM on June 26.

Global markets:

The US Dow Jones Futures were currently trading 83 points lower, indicating a negative start to equities on Wall Street today.

Markets in Europe and Asia slipped across the board on Wednesday, as weakening factory activity in China dented sentiment that was already damped by the risk of a US debt default.

China`s official measure of factory activity for May slid for a second-straight month in May to 48.8, a steeper contraction than March`s 49.2.

US stocks ended mixed on Tuesday as Wall Street considered the likelihood of Congress passing a tentative deal on raising the U.S. debt ceiling amid growing opposition within the GOP.

The U.S. debt ceiling remained in focus with markets hoping an agreement President Joe Biden struck with the top congressional Republican to suspend the United States` borrowing limit can pass through Congress in coming days.

The plan cleared a House committee overnight and is set for debate and passage on Wednesday, which would send it to the Senate where debate could stretch to the weekend.

Fed Bank of Richmond President Thomas Barkin said he is looking for signs that demand is cooling to be convinced that US inflation will ease.

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