Market Commentary - End-Session
Mkt snaps 5-day streak, Nifty ends below 22,050; IT shares correct As on : 16-Jan-24  17:56

Domestic equity benchmarks closed lower today, ending a five-day winning streak with the Nifty50 closing below 22,050. The day witnessed profit booking in IT, pharma, realty, and power stocks, influenced by weak global cues. Traders are closely monitoring FII flows, which are currently mixed due to a lack of fresh triggers. Additionally, oil prices remained firm amid ongoing geopolitical tensions.

The barometer index, the S&P BSE Sensex declined 199.17 points or 0.27% to 73,128.77. The Nifty 50 index lost 65.15 points or 0.29% to 22,032.30.

Reliance Industries (down 1.43%), Infosys (down 1.27%) and TCS (down 1.06%) were major drags.

The Nifty50 jumped 2.72% or 584 points in the previous five sessions.

In the broader market, the S&P BSE Mid-Cap index declined 0.31% and the S&P BSE Small-Cap index shed 0.43%.

The market breadth was weak. On the BSE, 1287 shares rose and 2570 shares fell. A total of 72 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 1.81% to 13.54.

Economy:

India?s overall exports (Merchandise and Services combined) in December 2023 is estimated to be $66.33 billion, exhibiting a negative growth of (-) 4.25% over December 2022. Meanwhile, overall imports in December 2023 is estimated to be $71.50 billion, exhibiting a negative growth of (-) 7.18% over December 2022.

India?s overall exports (Merchandise and Services combined) in April-December 2023 is estimated to be $565.04 billion, exhibiting a negative growth of (-) 1.87% over April-December 2022. Overall imports in April-December 2023 are estimated to be $634.39 billion, exhibiting a negative growth of (-) 7.24% over April-December 2022.

Services exports is projected to grow positively at 3.52% during April-December 2023 over April-December 2022.

India?s trade deficit has shown considerable improvement in April-December 2023. Overall trade deficit for April-December 2023 is estimated at $69.34 billion as compared to the deficit of $108.13 billion during April-December 2022, registering a decline of (-) 35.87%. The merchandise trade deficit during April-December 2023 is $188.02 billion compared to $212.34 billion during April-December 2022, registering a decline of (-) 11.45%.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.01% to 7.147 as compared with previous close 7.148.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9550, compared with its close of 82.8685 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement declined 0.35% to Rs 62,343.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.82% to 103.22.

The United States 10-year bond yield added 0.06% to 4.010.

In the commodities market, Brent crude for March 2024 settlement gained 83 cents or 1.06% to $79.12 a barrel.

Global Markets:

Markets in Europe and Asia declined on Tuesday, as markets continue to focus on news and comments from the World Economic Forum in Davos, Switzerland.

U.S. markets were closed Monday due to the Martin Luther King holiday. Investors are looking ahead to U.S. December retail sales data out Wednesday.

New Listing:

Shares of Jyoti CNC Automation closed at Rs 433.15 on the BSE, representing a premium of 30.86% as compared with the issue price of Rs 331.

The scrip was listed at Rs 372, exhibiting a premium of 12.39% to the issue price.

The stock hit a high of 444.80 and a low of 370.05 in today's session. On the BSE, over 17.31 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Maruti Suzuki India rose 1% on announcing increase in prices across models with effect from 16th January 2024. An estimated weighted average of increase across models stands at around 0.45%. This indicative figure is calculated using ex showroom prices of models in Delhi.

HDFC Bank rose 0.42%. The private lender's net profit jumped 33.55% to Rs 16,372.54 crore on 59.58% jump in total income to Rs 81,719.65 crore in Q3 FY24 over Q3 FY23. The bank's provisions and contingencies jumped 50.25% YoY to Rs 4,216.64 crore during the quarter under review.

Net interest income (interest earned less interest expended) for the quarter ended 31 December 2023 grew by 23.9% to Rs 28,470 crore from Rs 22,990 crore for the quarter ended 31 December 2022. Core net interest margin for the quarter was 3.4% on total assets and 3.6% on interest earning assets. Pre-provision operating profit (PPOP) increased 24.3% YoY to Rs 23,650 crore during the quarter.

Angel One tumbled 14.10% after the company?s consolidated net profit declined 14.52% to Rs 260.3 crore in Q3 FY24 as against Rs 304.5 crore recorded in Q2 FY24. Total income rose marginally to Rs 1060.8 crore in Q3 FY24 from Rs 1,049.3 crore posted in Q2 FY24. On year on year basis, the brokerage firm?s net profit grew 14.17% and total income jumped 39.63% in Q3 FY24.

Jio Financial Services (JFSL) slipped 6.71% after the company reported 56.03% decline in consolidated net profit to Rs 293.82 crore in Q3 FY24, as compared with Rs 668.18 crore in Q2 FY24. Total income fell 31.86% to Rs 414.33 crore from Rs 608.04 crore posted in the previous quarter same fiscal.

PNC Infratech gained 4.84% on announcing divestment of equity stake in 12 of the company?s road assets. The enterprise value of the transaction is Rs 9,005.7 crore.

Newgen Software Technologies hit an upper circuit of 5% at Rs 898.60 after the company?s consolidated net profit jumped 43.02% to Rs 68.35 crore on 10.37% revenue from operation to Rs 323.65 crore in Q3 FY24 over Q2 FY24.

Capri Global Capital surged 18% as the company unveiled plans for an insurance platform to maximize its corporate agency license from IRDAI.

Jindal Saw rose 0.82% after the company?s consolidated net profit stood at Rs 511.7 crore in Q3 FY24, steeply higher than Rs 143.2 crore in Q3 FY23. Total income jumped 9.51% YoY to Rs 5,696.8 crore in Q3 FY24. EBITDA stood at Rs 1029.8 crore in Q3 FY24, registering the growth of 90.92% as compared with Rs 539.4 crore in Q3 FY23.

Shakti Pumps (India) shed 0.04%. The company on Monday announced that its board will meet on Thursday, 18 January 2024 to consider a proposal for fund raising through qualified institutional placements (QIP).

Sarda Energy & Minerals advanced 1.94% after the company has awarded a contract to Gensol Engineering for installation of solar power plant of 50 MW DC in Chhattisgarh for meeting the captive requirements of the company?s production and mining facilities.

Rail Vikas Nigam (RVNL) rose 1.27% after the firm emerged as lowest bidder (L-1) for supply, installations, testing and commissioning of 11 KV Line in Maharashtra for Rs 251.05 crore.

DCX Systems rose 0.76%. The company announced that its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 358.30 per share.

Fedbank Financial Services declined 1.42%. The bank reported 28% rise in net profit to Rs 65.4 crore on a 31% increase in net interest income to Rs 216.6 crore in Q3 FY24 as compared with Q3 FY23.

Bank of Maharashtra declined 0.85%. The bank?s standalone net profit grew 33.61% to Rs 1,035.51 crore on 22.68% increase in total income to Rs 5,851.34 crore in Q3 FY24 over Q3 FY23.

IPO Update:

The initial public offer (IPO) of Medi Assist Healthcare Services received bids for 2,34,69,985 shares as against 1,96,19,719 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (16 January 2024). The issue was subscribed 1.20 times.

The issue opened for bidding on Monday (15 January 2024) and it will close on Wednesday (17 Thursday 2024). The price band of the IPO is fixed at Rs 397-418 per share. An investor can bid for a minimum of 35 equity shares and in multiples thereof.

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