Nifty below 17,300 level, IT stocks in demand

The domestic equity barometers traded with modest losses in the morning trade. The Nifty traded below the 17,300 level. Barring the Nifty IT index, all the sectoral indices on the NSE were in the red.

At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 227.14 points or 0.39% to 57,909.22. The Nifty 50 index declined 83.80 points or 0.48% to 17,261.65.

In the broader market, the S&P BSE Mid-Cap index fell 0.86% while the S&P BSE Small-Cap index shed 0.47%.

The market breadth was negative. On the BSE, 1,157 shares rose and 1,862 shares fell. A total of 130 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 825.18 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 117.79 crore in the Indian equity market on 2 August, provisional data showed.

The market selloff came amidst geopolitical tensions between the U.S. and China. Investors kept a close eye on U.S. House Speaker Nancy Pelosi`s movement as she visited Taiwan the much anticipated stop on the trip that has angered China.

India Services PMI:

The seasonally adjusted S&P Global India Services PMI Business Activity Index stood at 55.5 in July, from from 59.2 in June, which was the highest figure in over 11 years. The latest reading indicated the slowest rate of growth in four months.

Meanwhile, the S&P Global India Composite PMI Output Index fell to 56.6 from 58.2 in June, highlighting the slowest increase since March. Manufacturing led the upturn with the quickest rise in production since last November, while growth of services activity eased to the weakest in four months.

Buzzing Index:

The Nifty IT index rose 0.86% to 29,273.95. The index shed 0.67% in the past trading session.

Mindtree (up 1.62%), Larsen & Toubro Infotech (up 1.33%), Coforge (up 1.23%), Tech Mahindra (up 0.98%), Mphasis (up 0.75%), HCL Technologies (up 0.74%), Infosys (up 0.67%), Tata Consultancy Services (up 0.22%), Wipro (up 0.14%) and L&T Technology Services (up 0.1%) advanced.

Stocks in Spotlight:

Siemens slipped 3.39%. The industrial manufacturing company`s standalone net profit jumped 85% to Rs 296 crore in the quarter ended 30 June 2022 from Rs 160 crore recorded in the quarter ended 30 June 2021. For the third quarter of Financial Year 2022 ended 30 June 2022, revenue from continuing operations of Rs 3,865 crore, a 51% increase over the same quarter in the preceding year.

Bosch declined 1.41%. The technology supplier reported 9.4% rise in consolidated net profit to Rs 334 crore on a 45.1% increase in total revenue from operations to Rs 3,544 crore in Q1 FY 2022-23 over Q1 FY 2021-22. The company said that the revenue was at al all-time high is due to the low base last year and the easing of supply-chain bottlenecks, especially toward the end of the quarter, in conjunction with a positive production in the tractor segment.

Voltas fell 2.91% after the company`s consolidated net profit declined 10.6% to Rs 108.88 crore despite of 55.2% rise in net sales to Rs 2741.22 crore in Q1 FY23 over Q1 FY22.

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