Domestic shares faced selling pressure on Wednesday, with most sectors experiencing losses. Sluggish global market trends, Middle East conflict and spike in Brent crude oil prices spoiled sentiment. The Nifty settled below the 19,700 level. Pharma and auto shares performed well, while banking and energy shares performed poorly. The midcap and smallcap indices also declined, mirroring weakness in the broader market.
The barometer index, the S&P BSE Sensex tumbled 551.07 points or 0.83% to 65,877.02. The Nifty 50 index lost 140.40 points or 0.71% to 19,671.10.
Bajaj Finance (down 2.72%), HDFC Bank (down 1.40%) and Reliance Industries (down 1.36%) were major drags.
In the broader market, the S&P BSE Mid-Cap index slipped 0.85% while the S&P BSE Small-Cap index declined 0.32%.
The market breadth was weak. On the BSE, 1386 shares rose and 2322 shares fell. A total of 135 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, increased 2.82% to 11.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper rose 0.35% to 7.354 from its previous close of 7.328.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.2700, compared with its close of 83.25 during the previous trading session.
MCX Gold futures for 5 October 2023 settlement gained 1.06% to Rs 59,845.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 106.33.
The United States 10-year bond yield declined 0.54% to 4.821.
In the commodities market, Brent crude for December 2023 settlement added $2.39 or 2.66% to $92.29 a barrel.
Global Markets:
Markets in Europe declined across the board while Asian stocks ended mixed on Wednesday as a blast at a Gaza hospital dealt a blow to hopes for containing the crisis.
Economic data from China showed stronger-than-expected growth. China posted 4.9% growth in the July to September quarter from a year earlier, according to a release from China's National Bureau of Statistics on Wednesday. However, this figure was lower than the 6.3% year-on-year expansion seen in the second quarter.
US stocks closed near the flat line on Tuesday as investors analyzed the latest bond yield moves and the corporate earnings season gained steam.
Stocks in Spotlight:
Wipro fell 0.94%. The IT major's consolidated net profit declined 7.8% to Rs 2,646.3 crore on 1.38% decrease in revenue form operations to Rs 22,515.9 crore in Q2 FY24 over Q1 FY24. As compared to Q2 FY23, the company's net profit and revenue decreased by 0.48% and 0.11%, respectively.
In dollar terms, Wipro's gross revenue stood at $2.7 billion in Q2 FY24. IT Services segment revenue reduced to $2,713.3 million, registering a decline of 2.3% QoQ and 3.69% YoY.
For the quarter ending 31 December 2023, Wipro expects revenue from its IT Services business segment to be in the range of $2,617 million to $2,672 million. This translates to sequential guidance of -3.5% to -1.5% in constant currency terms.
Housing & Urban Development Corporation (HUDCO) slumped 10.65% after the offer for sale (OFS) by the company's promoters opened for non-retail investors today, 17 October 2023.
Through the OFS, the Government of India (the 'promoter') proposes to sell up to 7,00,66,500 equity shares (representing 3.50% stake), with an option to sell an additional 3.50% stake or 7,00,66,500 equity shares in case of oversubscription.
The floor price for the sale has been set at Rs 79, a 12.14% discount to the stock's closing price of Rs 89.92 on Tuesday, 17 October 2023. The Government of India held 81.81% stake in HUDCO as of 30 September 2023.
Bajaj Finance slipped 2.72%. The non-banking financial company reported 27.7% jump in consolidated net profit to Rs 3,550.80 crore on a 34.16% increase in total income to Rs 13,381.75 crore in Q2 FY24 as compared with Q2 FY23.
Meanwhile, the company has entered into a binding term sheet with Pennant Technologies, a technology product company, for acquisition of up to 26% equity stake on a fully diluted basis for an aggregate amount of approximately Rs 267.50 crore. The transaction is expected to be completed on or before 30 December 2023, subject to satisfaction of the conditions to be set out in the definitive agreements to be entered.
Syngene International dropped 6.63% after the company said that it now expects the revenue to grow at mid-teens on constant currency basis as against its earlier guidance of high teens constant currency growth.
The company has reported 14% increase in PAT after exceptional items to Rs 116.7 crore in Q2 FY24 from Rs 102 crore in Q2 FY23. Revenue from operations rose by 18.5% YoY to Rs 910.1 crore during the quarter, around 15% at constant currency.
L&T Technology Service dropped 5.67%. The company's consolidated net profit rose marginally to Rs 315.4 crore in Q2 FY24 as against Rs 311.1 crore recorded in Q1 FY24. Revenue from operations grew by 3.7% quarter on quarter (QoQ) to Rs 2,386.5 crore in Q2 FY24.
Titan Company shed 0.80%. The Tata Group company on Tuesday announced that its board has approved a proposal to raise upto Rs 2,500 crore via unsecured non-convertible debentures (NCDs).
ICICI Prudential Life Insurance Company declined 2.34%. The life insurer's net profit jumped 22.4% to Rs 244.25 crore in Q2 FY24 as against Rs 199.48 crore posted in Q2 FY23. Total income dropped 22.3% year on year to Rs 17,952.98 in the quarter ended 30 September 2023.
IRCTC shed 1.53% while Zomato fell 0.61%. IRCTC has tied up with Zomato for supply and delivery of preordered meals through IRCTC's E-catering portal as a Proof of Concept (PoC) in the first phase at five Railway stations i.e. New Delhi, Prayagraj, Kanpur, Lucknow & Varanasi.
Orient Cement spurted 7.90% amid media reports that the company's promoter, CK Birla, has approached Gautam Adani to sell his stake. According to the media reports, CK Birla has approached Gautam Adani to sell his promoter stake in Orient Cement. Executives from both sides have reportedly met to discuss the potential deal. If this transition occurs, it could trigger an open offer for an additional 26% stake, as per takeover laws.
However, Orient Cement clarified to the bourses that it is not aware of the discussions mentioned in the news article and cannot provide any comment on it.
CIE Automotive India declined 2.11%. The company reported 119.08% increase in consolidated net profit to Rs 375.41 crore in Q2 FY24 from Rs 171.36 crore in Q2 FY23. Net sales during the quarter rose 2.24% YoY to Rs 2,279.41 crore.
VST Industries declined 1.85%. The cigarette maker's net profit slipped 17.6% to Rs 75.95 crore in Q2 FY24 as against Rs 92.16 crore recorded in Q2 FY23. Net sales (excluding excise duty) rose marginally to Rs 348.10 crore from Rs 343.39 crore posted in the same period last year.
Primary Market:
The initial public offer (IPO) of IRM Energy received bids for 1,30,38,661 shares as against 76,24,800 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (18 October 2023). The issue was subscribed 1.71 times.
The issue opened for bidding on Wednesday (18 October 2023) and it will close on Friday (20 October 2023). The price band of the IPO is fixed at Rs 480-505 per share. An investor can bid for a minimum of 29 equity shares and in multiples thereof.
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