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Sensex slides 391 pts, Nifty holds 17k; banks drag

Published on Oct 13, 2022 16:50

The equity benchmarks ended lower on Thursday, tracking negative Asian cues. Weak domestic economic data also spoiled sentiment. The Nifty 50 index managed to settle above the 17,000 level after briefly slipping below that mark in early afternoon trade. Trading was volatile due to expiry of weekly index options on the NSE. Media, pharma and healthcare shares were in demand. On the other hand, banks and financial services shares were under pressure.

The barometer index, the S&P BSE Sensex, declined 390.58 points or 0.68% to 57,235.33. The Nifty 50 index lost 109.25 points or 0.64% to 17,014.35.

SBI (down 2.36%), ICICI Bank (down 1.6%) and HDFC Bank (down 1.11%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 0.73% while the S&P BSE Small-Cap index declined 0.45%.

The market breadth was weak. On the BSE, 1293 shares rose, and 2137 shares fell. A total of 132 shares were unchanged.

Economy:

India`s consumer price inflation rose to a five-month high of 7.41% in September from 7% in August, data from the National Statistical Office showed on Wednesday. In the same period last year, inflation was 4.35%. The inflation rate was well above the Reserve Bank of India`s medium-term target of 4%.

Industrial production in India declined 0.8% year-over-year in August, reversing a 2.2% rise in July, official data showed. This was the first decrease since February 2021.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.422 as compared with 7.435 at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.38, compared with its close of 82.33 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement added 0.33% to Rs 51,075.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.30% to 112.98.

The United States 10-year bond yield rose 0.02% to 3.903.

In the commodities market, Brent crude for December 2022 settlement rose 16 cents or 0.17% at $ 92.61 a barrel.

Global Markets:

The Dow Jones futures rose 142 points, indicating a positive opening in the US stock market today.

Most European shares advanced while Asian stocks tumbled on Thursday as investors await inflation data from the U.S. due later stateside.

Meanwhile, the German consumer price index rose by 10% year-on-year in September and 1.9% month-on-month, the country`s Federal Statistical Office reportedly said Thursday. EU-harmonized CPI inflation was 10.9% annually and 2.2% on the month, the reports added.

US stocks ended a choppy session slightly lower on Wednesday after minutes from the last Federal Reserve meeting showed policymakers agreed they needed to maintain a more restrictive policy stance.

The Federal Reserve`s September meeting minutes, released Wednesday, show that the central bank expects to continue increasing interest rates and hold them higher until inflation shows signs of abating.

Stocks in Spotlight:

Infosys fell 0.64%. The IT major reported 12.3% rise in consolidated net profit to Rs 6,021 crore on a 6% increase in revenue to Rs 36,538 crore in Q2 FY23 over Q1 FY23. As compared with Q2 FY22, the company`s net profit and revenues have grown by 11.1% and 23.4%, respectively.

In dollar terms, the company reported revenues of $4,555 million (up 2.5% QoQ and up 13.9% YoY) for the quarter ended 30 September 2022. In constant currency terms, the company`s revenue has grown by 4% QoQ and by 18.8% YoY.

Large deal TCV for the quarter was at $2.7 billion, highest in last 7 quarters.

The company has revised its FY23 revenue guidance to 15%-16%. The operating margin guidance has also been revised to 21%-22%.

Meanwhile, Infosys board has approved a proposal to buyback equity shares, from the open market route, amounting to Rs 9,300 crore at a price not exceeding Rs 1,850 per share (maximum buyback price), subject to shareholders` approval.

The board has also approved an interim dividend of Rs 16.50 per share.

Wipro dropped 7.03%. The IT major`s consolidated net profit rose 3.72% to Rs 2,659 crore on 4.7% increase in revenue from operations to Rs 22,539.7 crore in Q2 FY23 over Q1 FY23. On a year on year (YoY) basis, the IT firm`s net profit declined 9.27% while revenue jumped 14.6% in Q2 FY23.

For the quarter ending 31 December 2022, Wipro expects revenue from its IT Services business to be in the range of $2,811 million to $2,853 million. This translates to a sequential growth of 0.5% to 2%.

HCL Technologies rose 3.19%. The company reported 6.27% rise in consolidated net profit to Rs 3,489 crore on a 5.2% rise in revenue to Rs 24,686 crore in Q2 FY23 over Q1 FY23. Compared with Q2 last year, net income rose 7.09% while topline jumped 19.5% in the second quarter.

For FY23, the company increased revenue guidance to 13.5%-14.5% YoY in constant currency. Services revenue is expected to grow 16%-17% YoY in constant currency. EBIT margin guidance is revised to 18%-19%.

Adani Ports and Special Economic Zone declined 2.32%. The company said that it has received letter of award (LoA) from West Bengal Industrial Development Corporation, Kolkata, for development of deep-sea port at Tajpur, West Bengal. The deep-sea port would be developed on a design, build, finance, operate and transfer basis.

Tata Teleservices (Maharashtra) hit an upper circuit limit of 5% after the company said that Tata Tele Business Services (TTBS) has partnered with Google Cloud to offer Google Workspace for Small and Medium Businesses (SMBs).

Aditya Birla Money jumped 12.45% after the company reported 51% rise in net profit to Rs 9.70 crore on a 18.5% increase in revenue from operations to Rs 68.19 crore in Q2 FY23 over Q2 FY22. Total expenses during the quarter rose by 16.7% YoY to Rs 57.13 crore, primarily due to sharp jump in finance costs (up 89.1% YoY).

RITES soared 10.57% after the company said that its consortium has secured a new business order for construction of depot cum workshop for Rs 499.41 crore from Bangalore Metro Rail Corporation. "The share of RITES in the order is 51%,� the company said in a statement.

Larsen & Toubro fell 1.85%. The EPC major has announced that its heavy engineering arm has won several `significant` contracts in Q2 of FY23. As per Larsen & Toubro`s (L&T) classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.

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