Market snaps 7-day streak; Nifty ends below 17,700; FMCG shares drop

The equity barometers ended with modest losses on Tuesday, snapping their seven-day rising streak. Mixed global cues spoiled the sentiment. After opening above 17,800 mark, the Nifty 50 index dropped in the morning trade and finally settled at 17,656.35 mark. PSU banks, auto and IT shares were in demand. However, FMCG, private banks and financial shares corrected.

The barometer index, the S&P BSE Sensex, declined 287.70 points or 0.48% to 59,543.96. The Nifty 50 index lost 74.40 points or 0.42% to 17,656.35. In the past seven sessions, the Sensex rose 4.54% while the Nifty advanced 4.21%.

Britannia Industries (down 2.81%), Kotak Mahindra Bank (down 2.71%), Hindustan Unilever (down 2.69%), Nestle India (down 2.64%) and Bajaj Finserv (down 2.63%) were major Nifty losers today.

In the broader market, the S&P BSE Mid-Cap index rose 0.45% while the S&P BSE Small-Cap index declined 0.35%.

The market breadth was negative. On the BSE, 1,437 shares rose and 1,986 shares fell. A total of 106 shares were unchanged.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper declined to 7.442 as compared with 7.511 at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.8100, compared with its close of 82.8800 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement was down 0.32% to Rs 50,417.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, advanced 0.01% to 112.

The United States 10-year bond yield fell 1.29% to 4.177.

In the commodities market, Brent crude for December 2022 settlement declined $1.34 cents or 1.44% at $91.92 a barrel.

Global Markets:

The Dow Jones futures declined 127 points, indicating a negative opening in the US stock market today.

Most shares in Europe and Asia declined on Tuesday as global investors assessed the outlook for monetary policy from the U.S. Federal Reserve and digested a swathe of corporate earnings.

The German business sentiment remained bleak in October, according to the Ifo Institute`s business climate index reportedly published Tuesday. The index slipped to 84.3 points in October from 84.4 points in September.

US stocks advanced on Monday, extending last week`s gains as signs of economic softness suggested the effects of the Fed`s aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root.

Meanwhile, Indian Origin former UK Chancellor Rishi Sunak became UK`s prime minister on Monday (October 24). Replacing former PM Liz Truss, Sunak became the first Indian-origin prime minister of the UK. Rishi Sunak will take oath as PM on October 28 and the cabinet is likely to be formed on October 29.

Buzzing Index:

The Nifty PSU Bank index advanced 3.50% to 3,427. The index has added 8.66% in four sessions.

Bank of India (up 9.27%), Indian Overseas Bank (up 6.09%), Union Bank of India (up 5.02%), Punjab National Bank (up 4.99%), Canara Bank (up 4.62%), Central Bank of India (up 4.25%), UCO Bank (up 3.6%), Bank of Maharashtra (up 3.46%), Punjab and Sind Bank (up 3.1%), Bank of Baroda (up 2.25%) and SBI (up 1.14%) surged.

Stocks in Spotlight:

Reliance Industries (RIL) declined 1.53%. Reliance Jio Infocomm (Jio) announced that it is introducing JioTrue5G-powered Wi-Fi services in high footfall areas such as educational institutes, religious places, railway stations, bus stands, commercial hubs and more.

On a consolidated basis, the diversified conglomerate`s net profit fell 0.2% to Rs 13,656 crore on 37.3% increase in net revenue to Rs 230055 crore in Q2 September 2022 over Q2 September 2021.

Meanwhile, the RIL board, at its meeting held on Friday, 21 October 2022, approved to demerge the company`s financial services undertaking into Reliance Strategic Investments (RSIL). The financial services undertaking will be renamed Jio Financial Services Limited (JFSL). Shareholders will get one equity share of Jio Financial Services (JFS) for each RIL share held.

Hindustan Unilever (HUL) fell 2.69%. The FMCG major reported 20% increase in standalone net profit to Rs 2,616 crore on a 16% rise in net sales to Rs 14,514 crore in Q2 FY23 over Q2 FY22. HUL delivered underlying volume growth of 4%. Growth was significantly ahead of the market with more than 75% of the business winning value and volume market shares.

Multi Commodity Exchange of India (MCX) jumped 9.10%. The commodity exchange`s consolidated net profit rose 93.72% to Rs 63.27 crore on 53.14% increase in net sales to Rs 127.40 crore in Q2 September 2022 over Q2 September 2021.

Indraprastha Gas (IGL) jumped 6.31%. The company reported 4% rise in consolidated net profit to Rs 416.15 crore on a 94% jump in net revenue from operations to Rs 3,554.01 crore in Q2 FY23 over Q2 FY22.

United Spirits advanced 3.26%. The spirits maker`s standalone net profit climbed 105.93% to Rs 563 crore in Q2 FY23 as against Rs 273.4 crore posted in Q2 FY22. Net sales jumped 17.69% to Rs 2,879.7 crore in the quarter ended 30 September 2022 from Rs 2,446.8 crore recorded in the same period a year ago. The rise in the net sales was driven by resilient consumer demand in off-trade, rebounding in on-trade and continued mix improvement.

Tech Mahindra added 3.29%. The company has entered into share subscription agreement to acquire 26% equity shares in Upendra Singh Multi Transmission Private Limited. The acquisition would enable the company to procure 1.5 MW of Solar Energy for its captive consumption at its facilities located in Noida, UP.

Biocon rose 0.67%. Biocon Biologics` integrated insulins manufacturing facility in Malaysia is approved by the European Medicines Agency following a site inspection in July 2022. The company has received the Certificate of GMP Compliance from the representative European inspection authority, Health Products Regulatory Authority (HPRA), Ireland.

DLF rose 0.65%. The realty major`s consolidated net profit jumped 25.9% to Rs 477.04 crore in Q2 FY23 as against Rs 378.95 crore recorded in Q2 FY22. Net sales declined 12.1% to Rs 1,302.34 crore in the quarter ended 30 September 2022 from Rs 1,480.90 crore posted in the same period last year.

RBL Bank slipped 2.56%. The private lender reported a net profit of Rs 201.55 crore in Q2 FY23, steeply higher than Rs 30.80 crore posted in Q2 FY22. Total Income rose 7.5% to Rs 2,758.98 crore in Q2 FY23 as against Rs 2,567.65 crore recorded in the corresponding quarter previous year.

V I P Industries fell 2.06%. The company reported 2.3x jump in consolidated net profit to Rs 43 crore in Q2 FY23 from Rs 19 crore in Q2 FY22. Revenue from operations increased by 56% YoY to Rs 515 crore during the quarter.

Birlasoft slipped 2.75%. The company`s consolidated net profit declined 4.7% to Rs 115.05 crore despite of 3.26% rise in revenue from operations to Rs 1,192.08 crore in Q2 FY23 over Q1 FY23.

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