Market Commentary - End-Session
Market snaps 6-day streak, Nifty holds 22,000; VIX below 16 mark As on : 21-Feb-24  17:34

The domestic equity indices corrected on Wednesday, snapping a six-day rising streak. The Nifty 50 index revered after hitting the day?s high of 22,249.40 in the morning trade, but managed to settled above the psychological 22,000 mark. Selling in IT and oil & gas stocks dragged the benchmark indices lower. However, realty, PSU banks and metal shares closed on a firm note.

The barometer index, the S&P BSE Sensex, tumbled 434.31 points or 0.59% to 72,623.09. The Nifty 50 index declined 141.90 points or 0.64% to 22,055.05.

Larsen & Toubro (down 1.70%), Infosys (down 1.67%) and HDFC Bank (down 1.07%) were major drags.

The Sensex rose 2.79% and the Nifty 50 rose 2.69% in the past six sessions.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap slipped index 1.27% and the S&P BSE Small-Cap index lost 0.84%.

The market breadth was weak. On the BSE, 1,392 shares rose and 2,450 shares fell. A total of 100 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, shed 0.90% to 15.93.

Market participants are anticipating the release of the US Federal Reserve's meeting minutes tonight for insights into future monetary policy decisions. Investors are closely watching for signals on interest rates and inflation, which are expected to impact the market's direction in the near term.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.25% to 7.044 as compared with the previous close of 7.062.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.9650, compared with 82.9700 its close during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.06% to Rs 62,206.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 104.14.

The United States 10-year bond yield shed 0.30% to 4.263.

In the commodities market, Brent crude for March 2024 settlement shed 28 cents or 0.34% to $82.06 a barrel.

Global Markets:

Markets in Europe and Asia were mixed on Wednesday, as traders weighed big tech prospects ahead of Nvidia Corp.'s hotly anticipated earnings that dragged Wall Street away from its all-time highs.

In January, Japanese exports surpassed expectations, growing by 11.9% year-on-year due to increased overseas demand for automobiles and electronics. This exceeded the anticipated 9.5% rise and marked Japan's fastest export growth since November 2022. Conversely, imports experienced a larger-than-expected decline of 9.6%, compared to the predicted 8.4% drop, reflecting sluggish domestic demand. Consequently, Japan's trade balance unexpectedly shifted to a surplus of 240 billion yen ($1.60 billion) from a deficit of 410 billion yen in December.

The US Dow Jones index futures is currently down by 65 points, signaling a negative opening for US stocks today. Traders awaited more cues on monetary policy from the minutes of the Federal Reserve?s late-January meeting.

In the US, the Nasdaq 100 dropped almost 1% while the S&P 500 fell below 5,000 in the last session. Nvidia's stock also fell more than 4% ahead of its scheduled earnings announcement on Wednesday. Traders are keenly observing its result, seeking confirmation that the chipmaker can meet the high expectations associated with the artificial-intelligence boom.

Stocks in Spotlight:

Hindalco Industries ended almost flat at Rs 511.90. The company?s fully owned subsidiary, Novelis Inc. announced that it has confidentially submitted a filing for initial public offering (IPO) with the US Securities and Exchange Commission (SEC).

Tata Power Company shed 0.94%. The company announced that its wholly-owned subsidiary, Tata Power Trading Company (TPTCL) has collaborated with BluSmart for sourcing green power. This strategic collaboration marks a significant step towards BluSmart's commitment to decarbonize mobility at scale and bolster India?s net-zero ambitions.

Varun Beverages added 1.80% after the company announced the signing of an exclusive deal with PepsiCo to manufacture and package 'Cheetos? in Morocco.

ABB India surged 10.33% after the company?s net profit (from continuing operations) grew by 12.8% to Rs 345.20 crore in Q4 CY23 as compared with Rs 305.91 crore recorded in Q4 CY22. The company?s total revenue from operation increased 13.62% to Rs 2,757 crore for the fourth quarter of CY23 as compared to Rs 2,426.91 recorded in corresponding quarter last year, seamless execution of a strong backlog, revenue mix, services focus and capacity utilization led to increased revenue across almost all businesses and divisions.

Thermax rose 1% after the company has entered into license and technical assistance agreement with Flowtech Co, South Korea (Licensor) to manufacture poly carboxylate ether products.

Zen Technologies declined 1.23%. The Hyderabad-based company announced that it has secured an order worth Rs 93 crore from Ministry of Defence, Government of India for tactical training simulators.

G R Infraprojects rose 0.18%. The company has entered into share purchase agreement (SPA) with Bharat Highways InvIT for sale of its entire investment in equity share of seven wholly owned subsidiary companies.

Union Bank of India rallied 2.80% after the company announced that its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 142.78 per share.

ONGC shed 1.36%. The company's board accorded in-principle approval for the formation of two joint ventures for setting-up of Compressed Bio Gas (CBG) plants.

IPO Update:

The initial public offer (IPO) of Juniper Hotels received bids for 32,43,400 shares as against 2,89,47,367 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (21 February 2024). The issue was subscribed 11%.

The issue opened for bidding on Wednesday (21 February 2024) and it will closed on Friday (23 February 2024). The price band of the IPO is fixed at Rs 342 to Rs 360 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof.

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