Nifty below 17,300 level, bank shares decline

The domestic equity benchmarks continued to trade with modest losses in the mid-afternoon trade. The Nifty traded a tad below the 17,300 mark. Bank shares extended their losing run for the second consecutive trading session. Trading was volatile due to the expiry of weekly index options on the NSE today.

At 14:29 IST, the barometer index, the S&P BSE Sensex, was down 350.4 points or 0.60% to 58,000.13. The Nifty 50 index declined 94.95 points or 0.55% to 17,293.20.

In the broader market, the S&P BSE Mid-Cap index fell 0.22% while the S&P BSE Small-Cap index shed 0.04%.

The market breadth was negative. On the BSE, 1,356 shares rose and 1,931 shares fell. A total of 145 shares were unchanged.

Economy:

The Reserve Bank of India`s rate-setting panel on Wednesday began its three-day deliberations on the next bi-monthly monetary policy. The Monetary Policy Committee is scheduled to announce its decision on August 5. While a 25 bps hike is ruled out, market opinions are reportedly split between a 35 bps hike and a 50 bps hike.

Meanwhile, automobile retail sales in India fell 8 per cent on an annual basis in July on account of fall in registrations of passenger vehicles, two-wheelers and tractors. According to the data released by the automobile dealers` body FADA, the overall automobile retail sales last month stood at 14,36,927 units, as compared with 15,59,106 units in July 2021.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper declined to 7.231 as compared with 7.242 at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 79.79, compared with its close of 79.15 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement rose 0.27% to Rs 51,450.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.13 % to 106.37.

In the commodities market, Brent crude for October 2022 settlement declined 7 cents or 0.07% at $96.71 a barrel.

Buzzing Index:

The Nifty Bank index fell 1.20% to 37,534.95. The index shed 1.29% in two trading sessions.

Bank of Baroda (down 2.02%), Bandhan Bank Ltd (down 2.02%), Punjab National Bank (down 1.76%), State Bank of India (down 1.59%), Federal Bank (down 1.42%), Axis Bank (down 1.2%), Kotak Mahindra Bank (down 1.11%), ICICI Bank (down 0.84%), IDFC First Bank Ltd (down 0.58%) and IndusInd Bank (down 0.47%) edged lower.

Earnings Impact:

Kalyan Jewellers India rallied 5.87% after the company recorded a consolidated PAT at Rs 108 crore in Q1 June 2022, as against a loss of Rs 51 crore for the same period of the previous year. On a consolidated basis, the company recorded revenue of Rs 3,333 crore for Q1FY23, a growth of 104% as compared to Rs 1,637 crore in the corresponding quarter of the previous year.

PI Industries rose 2.58% after the company`s consolidated net profit surged 40.2% to Rs 262.40 crore on 29.3% jump in net sales to Rs 1,543.20 crore in Q1 FY23 over Q1 FY22.

Gujarat Gas slipped 4.56% after the company`s standalone net profit declined 20% to Rs 381.10 crore on a 72.5% rise in net sales to Rs 5,303.23 crore in Q1 FY23 over Q1 FY22.

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