Indices end with marginal cuts; Nifty holds 18K; VIX rises over 4%

3 Nov 2022 , 03:52 PM

The key equity benchmarks ended a volatile session with minor cuts on Thursday. The Nifty settled a tad above the 18,050 level. PSU Bank, realty and bank stocks saw buying demand while IT, consumer durables and auto shares saw a bit of selling pressure. Trading was volatile due to the expiry of weekly index options on the NSE today. As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 69.68 points or 0.11% to 60,836.41. The Nifty 50 index lost 30.15 points or 0.17% to 18,052.70. In the broader market, the S&P BSE Mid-Cap index rose 0.22% while the S&P BSE Small-Cap index shed 0.11%. The market breadth was positive. On the BSE, 1,785 shares rose, and 1,668 shares fell. A total of 131 shares were unchanged. The NSEs India VIX, a gauge of the markets expectation of volatility over the near term, rose 4.32% to 15.9425. An additional meeting of the Reserve Bank of Indias Monetary Policy Committee (MPC) has been scheduled for 3 November 2022. The meeting with its rate-setting panel could be held to discuss RBIs reply to the government, explaining the reasons of its failure to contain inflation up to 6%, as per reports. The RBIs rate-setting panel last met on 28 – 30 September 2022 and was slated to meet for the last time this calendar year on 5 – 7 December. The MPC had on 30 September 2022, increased the policy repo rate by 50 basis points (bps) to 5.9%. The US Fed on Wednesday announced a 75 basis points hike in interest rates as widely expected. Federal Reserve Chair Jerome Powell said, ?We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.? Economy: India Services PMI rose from Septembers six-month low of 54.3 to 55.1 in October, the seasonally adjusted S&P Global India Services PMI Business Activity Index pointed to a quicker and marked rate of growth. The figure was above the neutral 50.0 threshold for the fifteenth month running and outpaced its long-run average. Favorable demand for services continued to underpin increases in new business and output at the start of the third fiscal quarter. Moreover, rates of expansion quickened from Septembers six-month lows. Buoyed by the ongoing recovery in new work, service providers again took on extra staff, with an improvement in business confidence also supporting hiring activity. IPO Update: The initial public offer (IPO) of Fusion Micro Finance received bids for 48,61,160 shares as against 2,13,75,525 shares on offer, according to stock exchange data 15:36 IST on, Thursday (3 November 2022). The issue was subscribed 23%. The issue opened for bidding on Wednesday (02 November 2022) and it will close on Friday (04 November 2022). The price band of the IPO is fixed at Rs 350-368 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof. Earnings Impact: Housing Development Finance Corporation declined 0.41%. The housing finance majors net profit jumped 17.82% to Rs 4,454.24 crore on 22.98% surge in total income to Rs 15,035.99 crore in Q2 FY23 over Q2 FY22. The net interest income (NII) for the quarter ended 30 September 2022 stood at Rs 4,639 crore compared to Rs 4,110 crore in the previous year, registering a growth of 13%. The monetary policy and interest rate actions have had a short-term impact on the NII and to a lesser extent on the net interest margin (NIM). Hindustan Petroleum Corporation (HPCL) fell 1.70% after the company reported a standalone net loss of Rs 2,172.14 crore in Q2 FY23 as against a net profit of Rs 1,923.51 crore in Q2 FY22. Net sales (excluding Excise Duty) jumped by 30.5% to Rs 1,08,056.24 crore in the second quarter from Rs 82,774.69 crore posted in the corresponding quarter previous year. Relaxo Footwears slumped 4.55%. The company reported 67.4% drop in net profit to Rs 22 crore in Q2 FY23 from Rs 69 crore in Q2 FY22. Revenue from operations declined 6.3% YoY to Rs 670 crore in the second quarter. Mahindra & Mahindra Financial Services jumped 13.51%. The companys net profit tumbled 56.32% to Rs 448.33 crore in Q2 FY23 as against Rs 1,022.90 posted in Q2 FY22. Total income stood at Rs 2,609.32 crore in quarter ended 30 September 2022, up 3.4% from Rs 2,522.39 crore recorded in the same period last year. MAS Financial Services zoomed 13.06%. The companys net profit jumped 28.04% to Rs 49.1 crore in Q2 FY23 from Rs 38.3 crore in Q2 FY22. Net interest income (NII) improved by 47.46% to Rs 119.2 crore in Q2 FY23 from Rs 80.8 crore in Q2 FY22. Total income rose by 46.73% in the second quarter to Rs 230 crore from Rs 156.8 crore recorded in the same period last year. Devyani International (DIL) declined 1.81%. On consolidated basis, DILs net profit surged 28.6% to Rs 58.76 crore on 44.8% jump in revenue from operations to Rs 747.43 crore in Q2 FY23 over Q2 FY22. The companys store network continues to expand across metro and non-metro cities. DIL opened 88 net new stores in Q2 FY23, which is the highest store openings recorded in a quarter, taking the total count to 1,096 as of 30 September 2022. Dalmia Bharat rose 3.79%. The companys consolidated net profit from continuing operations tumbled 76.7% to Rs 50 crore despite 15.11% rise in revenue from operations to Rs 2,971 crore in Q2 FY23 over Q2 FY22. Profit before exceptional items and tax dropped 90.7% to Rs 29 crore in Q2 FY23 as against Rs 313 crore posted in Q2 FY22. The company reported net exceptional loss of Rs 6 crore in Q2 FY22. Manali Petrochemical (MPL) dropped 9.57% after the companys consolidated net profit tumbled to Rs 90 crore in Q2 FY23 from Rs 117.28 crore in Q2 FY22. Revenues during the quarter decreased 34.5% year on year to Rs 268.08 crore. Profit before tax in Q2 FY23 stood at Rs 16.69 crore, steeply lower than Rs 157.53 crore posted in Q1 FY22. Global markets: Shares in Europe as well as Asia declined across the board on Thursday after Federal Reserve Chairman Jerome Powell said the Federal Reserve would raise interest rates more than previously anticipated. Japanese market is closed for a holiday Thursday. The Bank of England is also expected to implement a similar rate hike when it publishes its latest monetary policy decision on Thursday. Meanwhile, Chinas Caixin Services Purchasing Managers Index came in at 48.4 for October, the the lowest reading since May and the second consecutive contraction for the sector. In September, the print was 49.3, also below the 50-point mark, indicating a contraction. US stocks closed lower in a volatile trading session on Wednesday as the Federal Reserve delivered another 75-basis point rate hike and hinted at its intentions to continue hiking. The Federal Reserve pumped up its benchmark interest rate Wednesday by three-quarters of a point. The Feds move raised its key short-term rate to a range of 3.75% to 4%. In a briefing with reporters on Wednesday following a fourth consecutive rate hike, Federal Reserve Chairman Jerome Powell reportedly said the central banks ultimate target for increases in interest rates has gone up. Powered by Capital Market – Live News