Market slides for 3rd day, Nifty slides below 16,000; IndusInd Bank drops 3%

The key equity indices ended near the day`s low with modest losses on Wednesday. The Nifty slipped below the crucial 16,000 level after hitting the day`s high of 16,140 in morning trade. Pharma, healthcare and FMCG stocks advanced. On the other hand, oil & gas, private banks and financial services stocks declined.

Investors were cautious ahead of the US inflation data schedule to release on Wednesday. High inflation reading could prompt the US Federal Reserve to further hike interest rates during this month`s meeting.

The barometer index, the S&P BSE Sensex, down 372.46 points or 0.69% to 53,514.15. The Nifty 50 index fell 91.65 points or 0.57% to 15,966.65.

The Sensex declined 1.78% while the Nifty fell 1.57% in three consecutive sessions.

In the broader market, the S&P BSE Mid-Cap index rose 0.32% while the S&P BSE Small-Cap index added 0.04%.

The market breadth was positive. On the BSE, 1,673 shares rose and 1,647 shares fell. A total of 143 shares were unchanged.

Economy:

India`s factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 19.6% in May 2022. IIP grew 7.1% in April 2022. The manufacturing sector recorded a growth of 20.6% in May. The mining sector rose by 10.9% and the electricity sector climbed 23.5%.

India`s headline retail inflation rate, as measured by the Consumer Price Index (CPI), stood at 7.01% in June 2022 from 7.04% in May 2022, data released on 12 July 2022 by the Ministry of Statistics and Programme Implementation showed.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell to 7.339 as compared with 7.391 at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 79.62, compared with its close of 79.59 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement rose 0.23% to Rs 50,575.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.08% to 107.99.

In the commodities market, Brent crude for September 2022 settlement rose 48 cents or 0.48% at $99.97 a barrel.

In a monthly report, the OPEC said it expects world oil demand to rise by 2.7 million barrels per day (bpd) in 2023. This year`s growth forecast was left unchanged at 3.36 million bpd.

Global Markets:

European shares fell across the board while most Asian stocks advanced on Wednesday, as investors prepare for the latest inflation data from the United States.

Meanwhile, the Bank of Korea raised rates by 50 basis points for the first time, bringing the rate to 2.25%. That`s in line with analyst expectations.

The Reserve Bank of New Zealand also increased rates by 50 basis points to 2.5%.

Other data out earlier on Wednesday showed the U.K.`s economy expanded unexpectedly in May with output growing by 0.5%, according to the Office for National Statistics.

U.S. stocks dropped on Tuesday as worries over global economic growth dented investor appetite for risk assets. PepsiCo kicked off the corporate earnings season on Tuesday, reporting a better-than-expected quarterly profit and revenue and raising its revenue outlook for the year.

Buzzing Segment:

The Nifty Bank index fell 0.87% to 34,827.80. The index has fallen 1.81% in two sessions.

HDFC Bank (down 2.32%), Bandhan Bank (down 1.89%), AU Small Finance Bank (down 1.16%), Bank Of Baroda (down 0.92%), ICICI Bank (down 0.88%), IDFC First Bank (down 0.44%) and Federal Bank (down 0.36%) declined.

Kotak Mahindra Bank (up 1.13%), SBI (up 0.26%) and Axis Bank (up 0.14%) advanced.

Indusind Bank fell 3.13%. The private sector lender on July 13 said that the Enforcement Directorate has lodged an investigation against certain entities and some bank employees in connection with financial irregularities.

A First Information Report (FIR) was filed on July 9, 2022, with Chennai Police against some of those entities and a few employees of the bank, the lender said in an exchange note.

There is no credit exposure of the bank to these entities, the lender said. The alleged remittance transaction fraud took place between 2011-2014.

Stocks in Spotlight:

HCL Technologies fell 1.11% after the company reported 8.6% fall in consolidated net profit to Rs 3,283 crore despite a 3.8% rise in revenue to Rs 23,464 crore in Q1 FY23 over Q4 FY22. Compared with Q1 last year, net income rose 2.4% while topline jumped 16.9% in the first quarter. In dollar terms, the company`s revenue stood at $3,025 million, up 1.1% QoQ and up 11.2% YoY. In constant currency terms, revenue growth in Q1 FY23 was 2.7% QoQ and 15.6% YoY. For Q1 FY23, total contract value (TCV) of new deal wins was at $2,054 million, registering 23.4% YoY. The counter hit 52 week low of Rs 905.20, extending its losing run to fouth consecutive trading session.

Bajaj Healthcare rallied 4.62%. The drug maker has been awarded two tenders for manufacture of concentrated poppy straw (CPS) and alkaloids/active pharmaceutical ingredients (APIs) from unlanced poppy capsules along with straw through CPS-reg and opium gum from the Government of India (GOI), Department of Revenue, Office of Chief Controller, Govt. Opium & Alkaloid Factories.

Shilpa Medicare advanced 5% after the company said that its newly commissioned facility for manufacture and testing of Orodispersible films and Transdermal systems situated at Dabaspet, Bengaluru in Karnataka, has been issued GMP Certificate by UK Medicines and Healthcare products Regulatory Agency (MHRA). The facility was inspected by MHRA from 18 April 2022 to 20 April 2022.

Sterling and Wilson Renewable Energy tumbled 6.66% after the company reported a consolidated net loss of Rs 353.91 crore in Q1 FY23 as against a net loss of Rs 76.12 crore in Q1 FY22. Revenue from operations rose 1% YoY to Rs 1,206.93 crore during the quarter.

Adani Ports and Special Economic Zone (APSEZ) shed 0.68%. APSEZ said that it had clocked a cargo throughput of 100 MMT in the first 99 days of FY23. The integrated transport utility had hit this record volume on 8 July 2022. The company had reached the 100 MMT cargo throughput in 109 days last year. The milestone is significant as it demonstrates the rapidly improving efficiency of APSEZ, which needed a year to achieve 100 MMT cargo volume FY2014.

Delta Corp rose 0.33%. The gaming and casino firm reported consolidated net profit of Rs 57.13 crore in Q1 June 2022 as against net loss of Rs 28.93 crore in Q1 June 2021. On a consolidated basis, net sales rose 229.87% to Rs 250.27 crore in Q1 June 2022 over Q1 June 2021. The company`s income from casino gaming division rose 19.02% to Rs 250.72 crore in Q1 FY23 as against Rs 210.66 crore in Q4 FY22.

Deepak Nitrite gained 0.28% after the specialty chemicals maker on Tuesday (12 July) said that its entire plant situated at Nandesari in Gujarat has restarted operations. Deepak Nitrite has received directions from Gujarat Pollution Control Board (GPCB) revoking the closure order for three months and permitted the company to start manufacturing activities at the entire plant except affected parts of Nitrite section.

Anand Rathi Wealth declined 0.45% after the company reported 33.6% growth in consolidated net profit to Rs 39.70 crore on 35.7% rise in total income to Rs 133.50 crore in Q1 FY23 over Q1 FY22.

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