Sensex drops 801 pts, Nifty ends below 21,550; NSE VIX above 16 mark

The domestic stock market witnessed notable volatility, leading to a substantial decline in key indices. Reversing from an early high of 21,813.05, the Nifty50 settled below the 21,550 level. This market movement was influenced by cautious investor sentiment ahead of the upcoming FOMC meeting, interim budget, and escalating tensions in the Middle East. Notably, consumer durables and FMCG shares experienced a significant decline, while PSU banks and realty shares demonstrated resilience against the overall market trend. The Nifty50 support is identified at 21,500, presenting the potential for further correction in the market if this level is breached.

The barometer index, the S&P BSE Sensex down 801.67 points or 1.11% to 71,139.90. The Nifty 50 index lost 215.50 points or 0.99% to 21,522.10.

Bajaj Finance (down 5.17%), Titan Company (down 3.37%) and Reliance Industries (down 2.81%) were major drags.

In the broader market, The S&P BSE Mid-Cap index shed 0.53% and the S&P BSE Small-Cap index rose 0.18%.

The market breadth was positive. On the BSE, 1,961 shares rose and 1,853 shares fell. A total of 93 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, advanced 3.65% to 16.25.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.21% to 7.156 as compared with previous close 7.171.

In the foreign exchange market, the rupee edged hgiher against the dollar. The partially convertible rupee was hovering at 83.1100, compared with its close of 83.1600 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement gained 0.50% to Rs 62,500.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, shed 0.13% to 103.48.

The United States 10-year bond yield declined 0.86% to 4.057.

In the commodities market, Brent crude for March 2024 settlement shed 3 cents or 0.04% to $82.37 a barrel.

Global Markets:

European shares advanced while Asian stocks ended mixed on Tuesday as market participants looked forward to the rate decision by the Federal Reserve, scheduled for release on Wednesday.

US stocks advanced on Monday as market participants looked ahead to this week`s slew of megacap earnings, economic data and the Federal Reserve`s monetary policy meeting.

Stocks in Spotlight:

Bajaj Finance dropped 5.17%. The non-banking financial company (NBFC) reported 22.4% increase in consolidated net profit to Rs 3,638.95 crore on a 31.3% jump in total income to Rs 14,165.98 crore in Q3 FY24 as compared with Q3 FY23. Loan losses and provisions during the quartre amounted to Rs 1,248 crore (up 48.39% YoY). The company stated that it holds a management and macro-economic overlay of Rs 590 crore as of 31 December 2023.

ITC declined 2.67%. The company reported consolidated net profit of Rs 5406.52 crore in Q3 FY24 as compared to net profit of Rs 5080.25 crore in Q3 FY23. Total income stood at Rs 20141.33 crore in Q3 FY24 as compared to Rs 19616.08 crore in Q3 FY23. The board declared an interim dividend of Rs 6.25 per share. The record date is 8th February 2024.

NTPC fell 2.83%. The company reported consolidated net profit of Rs 5208.87 crore in Q3 FY24 as compared to net profit of Rs 4854.36 crore in Q3 FY23. Total income stood at Rs 42820.38 crore in Q3 FY24 as compared to Rs 44601.84 crore in Q3 FY23.

Adani Energy Solutions slipped 2.21% after the company`s consolidated net profit declined 31.56% to Rs 324.90 crore in Q3 FY24 as compared with Rs 474.72 crore in Q3 FY23. Revenue from operations rose 16.7% to Rs 3,824.43 crore in Q3 FY24 as compared with Rs 3,277.03 crore in Q3 FY23, on account of the newly commissioned transmission projects and higher energy consumption in the distribution business.

Piramal Enterprises rose 1.18%. The NBFC reported a consolidated net loss of Rs 2,377.59 in Q3 FY24 as against a net profit of Rs 3,545.37 crore recorded in Q3 FY23. Net interest income rose 11% YoY to Rs 835 crore during the quarter.

Larsen & Toubro (L&T) declined 2%. The firm said that the Renewable EPC arm of its power transmission & distribution business has been chosen as the turnkey engineering, procurement and construction contractor to establish a 1800MWac solar photovoltaic plant in Dubai, UAE

Punjab National Bank rose 1.60% after the bank announced a plan to raise equity capital for upto Rs 7500 crore in one or more tranches during FY 2024-25 through qualified institutions placement (QIP) or follow-on public offer.

UTI Asset Management Company advanced 3.46% after the company�s consolidated net profit in Q3 FY24 nearly tripled to Rs 186 crore, compared to Rs 60 crore in the same period last year.

Servotech Power Systems hit an upper circuit of 5% after the company said that it has bagged a major order of 1,800 DC fast EV chargers from Bharat Petroleum Corporation (BPCL).

New listing:

Shares of EPACK Durable were closed at Rs 207.70 on the BSE, representing a discount of 9.70% as compared with the issue price of Rs 230.

The scrip was listed at Rs 225, exhibiting a discount of 8.32% to the issue price.

The stock has hit a high of 225 and a low of 205.70. On the BSE, over 12.76 lakh shares of the company were traded in the counter.

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