Market Commentary - End-Session
Sensex tanks over 1000 pts, Nifty ends below 21,250; VIX jumps 7.6% As on : 23-Jan-24  18:04

The domestic equity benchmarks encountered notable downward pressure today as key sectors, including banks, FMCG, and metal, contributed to the market decline. The Nifty50 closed below the 21,250 mark, dropping from the day's early high of 21,750.25. Steep selling in index heavyweights HDFC Bank, Reliance Industries, and Hindustan Unilever had a significant impact on the benchmarks. The market breadth favored laggards, and the broader market, particularly small and midcap indices, struggled.

Traders, however, interpreted this decline as part of an anticipated consolidation phase following recent market upswings. As the week is holiday-shortened, market participants anticipate higher volatility due to the ongoing earnings season and the approaching monthly expiry of January month derivatives contracts.

Looking ahead, the key support level for Nifty50 is at 21080, while for Bank Nifty, it stands at 44575. These levels will be critical in guiding index movements tomorrow.

The barometer index, the S&P BSE Sensex slumped 1,053.10 points or 1.47% to 70,370.55. The Nifty 50 index tumbled 333 points or 1.54% to 21,238.80.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index slipped 2.95% and the S&P BSE Small-Cap index shed 2.79%.

Sellers outnumbered buyers. On the BSE, 886 shares rose and 3,049 shares fell. A total of 132 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 7.60% to 14.85.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.13% to 7.175 as compared with previous close 7.184.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.16, compared with its close of 83.07 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement added 0.16% to Rs 61,965.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 103.31.

The United States 10-year bond yield advanced 0.86% to 4.132.

In the commodities market, Brent crude for March 2024 settlement lost 48 cents or 0.60% to $79.58 a barrel.

Global Markets:

Most shares in Europe declined today. On the other hand, most Asian stocks advanced, driven by reports of a potential financial package from Beijing to support Chinese stocks.

Investors are eagerly awaiting the Bank of Japan's (BoJ) interest rate decision and monitoring the European Central Bank (ECB) for market influence, in addition to the release of US GDP data.

US stock market indices ended higher on Monday with the S&P 500 posting a second straight record high close led by a rally in tech stocks.

Stocks in Spotlight:

Zee Entertainment Enterprises Ltd (ZEEL) witnessed a sharp 33% decline in its shares following Sony's decision to cancel the proposed $10-billion merger with its India unit on Monday.

Culver Max Entertainment (formerly Sony Pictures Networks India) terminated the merger agreements, leading to the collapse of plans to create a $10-billion media enterprise. Sony is seeking $90 million in break-up fees, alleging a breach of the merger pact by ZEEL, a claim that ZEEL intends to contest legally. ZEEL incurred Rs 366.59 crore in compliance expenses until September 2023 for the failed merger, having spent Rs 176.20 crore in the previous fiscal year and Rs 190.39 crore in the first half of the current fiscal year.

Bharti Airtel rallied 3.22% after the company informed that Bharti Airtel's subsidiary Bharti Hexacom has filed a draft red herring prospectus (DHRP) with the Securities and Exchange Board of India (SEBI) for a Initial Public Offering (IPO).

ICICI Bank advanced 2.10% after the bank reported 23.58% jump in net profit to Rs 10,271.54 crore on a 24.28% increase in total income to Rs 59,479.76 crore in Q3 FY24 as compared with Q3 FY23.

Cipla surged 7.35% after the company reported 31.83% jump in consolidated net profit to Rs 1,055.90 crore on 3.54% increase in revenue from operations to Rs 6,505.66 core in Q3 FY24 over Q3 FY23.

Persistent Systems rose 4.19%. The IT company?s consolidated net profit rose 8.68% to Rs 286.13 crore on 3.59% increase in revenue from operations to Rs 2,498.22 crore in Q3 FY24 over Q2 FY24. As compared with Q3 FY23, the company's net profit and revenue were higher by 20.25% and 15.16%, respectively.

In US dollar terms, the IT firm's revenue was at $300.55 million in Q3 FY24, up 3% QoQ and up 13.7% YoY. The order booking for the quarter ended on 31 December 2023, was at $521.4 million in total contract value (TCV) and at $392.1 million in annual contract value (ACV) terms.

Indoco Remedies dropped 8.32% after the company?s standalone net profit declined 28.2% to Rs 20.01 crore in Q3 FY24 as against Rs 27.87 crore recorded in Q3 FY23. However, revenue from operations grew by 9.2% year on year to Rs 448.38 crore in the quarter ended 31 December 2023.

Mangalore Refinery & Petrochemicals dropped 2.37% after the company reported standalone net profit of Rs 387.06 crore in Q3 FY24 as compared with a net loss of Rs 187.96 crore in Q3 FY23. However, net revenue from operations declined 7.1% year over year (YoY) to Rs 24,676.91 crore during the period under review.

Chennai Petroleum Corporation tumbled 9.48% to after the company recorded 70% drop in standalone net profit to Rs 359.99 crore in Q3 FY24 from Rs 1,190.56 crore in Q2 FY24. Net revenue from operations rose by 5% quarter-over-quarter to Rs 17,375.90 crore during the period under review.

Allsec Technologies surged 5.40% after the company's consolidated net profit rose 55.96% to Rs 11.26 crore on 19.68% increase in net sales to Rs 119.79 crore in Q3 December 2023 over Q3 December 2022.

New Listing:

Shares of Medi Assist Healthcare Services were closed at Rs 464.25 on the BSE, representing a premium of 11.06% as compared with the issue price of Rs 418.

The scrip was listed at Rs 465, exhibiting a premium of 11.24% to the issue price.

The stock has hit a high of 509.60 and a low of 446. On the BSE, over 8.52 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Nova Agritech received bids for 24,68,85,635 shares as against 2,54,14,746 shares on offer. The issue was subscribed 9.71 times.

The issue opened for bidding on Tuesday (23 January 2024) and it will close on Thursday (25 Thursday 2024). The price band of the IPO is fixed at Rs 39-41 per share. An investor can bid for a minimum of 365 equity shares and in multiples thereof.

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