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Nifty tad below 17,300; European shares decline

Published on Aug 03, 2022 13:31

The benchmark indices traded with minor losses in the afternoon trade. The Nifty traded tad below the 17,300 mark. Barring the Nifty IT index, all the sectoral indices on the NSE traded in the red.

At 13:24 IST, the barometer index, the S&P BSE Sensex, was down 75.17 points or 0.13% to 58,061.19. The Nifty 50 index declined 48.85 points or 0.28% to 17,296.60.

In the broader market, the S&P BSE Mid-Cap index lost 1.08% while the S&P BSE Small-Cap index shed 0.58%.

The market breadth was weak. On the BSE, 1,129 shares rose and 2,110 shares fell. A total of 141 shares were unchanged.

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.

Gainers & Losers:

Tata Consultancy Services (up 1.58%), Tech Mahindra (up 1.56%), Infosys (up 1.11%), Cipla (up 0.81%) and Axis Bank (up 0.79%) were major Nifty gainers.

Tata Motors (down 2.80%), Maruti Suzuki (down 2.47%), SBI Life (down 1.90%), Kotak Bank (down 1.89%) and Sun Pharma (down 1.86%) were majority Nifty losers.

Earnings Impact:

Adani Green Energy (AGEL) fell 2.97% after the company`s consolidated net profit declined 2.3% to Rs 214 crore on 64% surge in net sales to Rs 1,591 crore in Q1 FY23 over Q1 FY22. Profit before tax stood at Rs 276 crore in the first quarter, up 5.7% from Rs 261 crore recorded in the same period last year.

Siemens tanked 4.60%. 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.

Indus Towers slumped 7.27% after the company`s net profit tumbled 66% to Rs 477.30 crore on 1.5% increase in net sales to Rs 6,897.30 crore in Q1 FY23 over Q1 FY22. Consolidated profit before tax declined 65.7% to Rs 643.10 crore in Q1 FY23 from Rs 1,877 crore posted in Q1 FY22.Total expenses rose 40% year on year to Rs 4,575 crore in the quarter ended 30 June 2022. EBITDA was at Rs 2,322 crore, down 34% YoY with an operating margin of 33.7%.

Global Markets:

Shares in Europe declined while most of the Asian stocks traded higher on Wednesday. Geopolitical tensions between the U.S. and China intensified over U.S. House Speaker Nancy Pelosi`s visit to Taiwan. Pelosi arrived in Taiwan on Tuesday night local time amid warnings from Beijing.

In economic news, China`s services activity grew at the fastest rate in 15 months in July as easing COVID curbs boosted consumer confidence, a private-sector survey showed on Wednesday. China`s Caixin Services Purchasing Managers` Index for July came in at 55.5, up from 54.5 in June. It`s also the highest since April 2021.

Wall Street ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after US House of Representatives Speaker Nancy Pelosi visited Taiwan.

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