Sensex, Nifty end with minor cuts; PSU Bank index outperforms

3 Nov 2022 , 04:56 PM

The domestic equity barometers ended with minor cuts after a volatile session Thursday. After hitting the days low at 17,959.20, the Nifty managed to pare most losses as it settled a tad above the 18,050 mark. Trading was volatile due to the expiry of weekly index options on the NSE today. The barometer index, the S&P BSE Sensex, declined 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 gained 0.22% while the S&P BSE Small-Cap index rose 0.11%. The market breadth was positive. The NSEs India VIX, a gauge of the markets expectation of volatility over the near term, dropped 4.32% to 15.94. Among the sectoral indices on the NSE, the Nifty PSU Bank index (up 2.52%), the Nifty Realty index (up 0.58%) and the Nifty Bank index (up 0.37%) outperformed the Nifty50 index. Meanwhile, the Nifty IT index (down 1.18%), the Nifty Consumer Durables index (down 0.53%) and the Nifty Auto index (down 0.42%) underperformed the Nifty50 index. 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. Numbers to Watch: The yield on Indias 10-year benchmark federal paper jumped to 7.483 as compared with 7.404 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 82.9025, compared with its close of 82.80 during the previous trading session. MCX Gold futures for 5 December 2022 settlement declined 1.12% to Rs 50,039. The US Dollar index (DXY), which tracks the greenbacks value against a basket of currencies, was up 1.52% to 113.04 The United States 10-year bond yield climbed 3.41% to 4.199. In the commodities market, Brent crude for January 2023 settlement declined $1.10 or 1.14% at $95.06 a barrel. Global Markets: Shares in Europe and Asia slumped 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. Stocks in Spotlight: Housing Development Finance Corporation shed 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%. The PSU OMC 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. Wipro declined 1.33%. The company announced the launch of a new financial services advisory capability in India. Capco, a Wipro company, will supplement Wipros presence in the Indian financial services sector through its business in Mumbai to jointly offer end-to-end transformation services for this sector. Godrej Properties rose 0.78%. The Mumbai-based real estate developer Godrej Properties said that it has entered into an agreement for outright purchase of a land parcel in the fast-developing micro market of Manor, Palghar. The proposed project, which is spread across approximately 50 acres, is estimated to have a developable potential of approximately 1.2 million square feet of saleable area comprising primarily of residential plotted development. The project will offer a booking value potential of approximately Rs 500 crore. 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. Procter & Gamble Hygiene & Health Care lost 0.89%. The company reported 29% drop in net profit to Rs 154 crore on a 1% fall in sales to Rs 1,045 crore in Q1 September 2022 over Q1 September 2021. The company cited post-COVID normalization of demand as the reason for the decline in sales. 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. Manali Petrochemical (MPL) dropped 9.94%. 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. Alembic Pharmaceuticals jumped 7.62%. The company said that it has received final approval from the US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Ketorolac Tromethamine Injection USP. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Toradol Injection of Roche Palo Alto, LLC (Roche). It is indicated for the short-term (&8804;5 days) management of moderately severe acute pain in adult patients. Refer to our label for full indication. Ketorolac Tromethamine Injection USP has an estimated market size of US$ 59 million for twelve months ending June 2022 according to IQVIA. Powered by Capital Market – Live News