Indices traded with modest losses; negative market breadth

The domestic equity barometers edged lower in early trade amid significant selling in index pivotals. The Nifty traded tad above the 16,650 mark. Pharma, FMCG, autos and private bank stocks led the losses while metals and media shares managed to trade in the green.

Among the Nifty 50 stocks, Dr Reddy`s Lab (down 2.43%), Hero MotoCorp (down 1.65%), Cipla (down 1.53%), Nestle India (down 1.51%) and HCL Tech (down 1.43%) were the top Nifty losers.

Meanwhile, ONGC (up 0.81%), UPL (up 0.35%), Hindalco (up 0.34%), SBI (up 0.27%) and JSW Steel (up 0.25%) edged higher.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 2.06% to 18.05.

In the broader market, the S&P BSE Mid-Cap index fell 0.26% while the S&P BSE Small-Cap index declined 0.27%.

The market breadth was negative. On the BSE, 1,056 shares rose and 1,176 shares fell. A total of 115 shares were unchanged.

Stocks in Spotlight:

Tata Steel rose 0.86%. The company reported consolidated net profit of Rs 7,714 crore in Q1 FY23 from Rs 9,768 crore in Q1 FY22. Total revenue from operations stood at Rs 63,430 crore in Q1 FY23 from Rs 53,465 crore in Q1 FY22.

Axis Bank lost 0.99%. The private lender`s net profit surged 91% to Rs 4,125.26 crore on 12.2% increase in total income to Rs 21,727.61 crore in Q1 FY23 over Q1 FY22. Net interest margin (NIM) for Q1 FY23 stood at 3.60%, up 14 basis points YoY and 11 basis points QoQ.

Tech Mahindra shed 0.05%. On a consolidated basis, the IT major`s net profit fell 24.8% to Rs 1,131.60 crore on 4.9% increase in revenue from operations to Rs 12,707.90 crore in Q1 FY23 over Q4 FY22. EBITDA margin decreased to 14.8% in Q1 FY23 from 17.2% in Q4 FY22 and 18.4% in Q1 FY23.

Bajaj Finserv advanced 3.02%. The company will consider proposals for bonus issue and sub-division of shares on July 28.

Indian Energy Exchange added 0.50%. The company reported consolidated net profit of Rs 69.1 crore in Q1 FY23 from Rs 62.1 crore in Q1 FY22. Total revenue from operations stood at Rs 113.4 crore in Q1 FY23 from Rs 102.9 crore in Q1 FY22.

Global Markets:

Asian stocks are mostly trading higher on Tuesday as South Korea`s gross domestic product beat estimates. South Korea`s economy grew 0.7% in the second quarter compared with the first quarter of 2022, according to estimates released by the Bank of Korea. The country`s GDP grew 0.6% in the January to March quarter.

The Bank of Japan released the minutes for it June meeting on Tuesday, after keeping its interest rates at ultra-low levels last week.

Members of the BOJ policy board said the economy was on its way to recovery from the effects of Covid, but still needs strong support on the financial side due to pressure from the rise in commodity prices.

They also agreed that it was necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan`s economic activity and prices, the minutes said.

Wall Street stock markets delivered a mixed performance on Monday as cautious investors looked ahead to a week of Big Tech earnings and a crucial interest rate decision from the US Federal Reserve.

At the end of its two-day monetary policy meeting on Wednesday, the Fed is widely expected to raise its main interest rate by 0.75 percentage points.

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