Market Commentary - End-Session
Benchmarks slide for 3rd day, Nifty ends below 21,500; VIX drops to 14.07 As on : 18-Jan-24  17:44

The equity market endured a downward trend for the third consecutive day today, influenced by selling pressure on banks and IT stocks. Despite a mid-session rebound, the Nifty50 exhibited notable volatility, closing below the 21,500 level. Trading was volatile due to expiry of weekly index options on the NSE. Sectors such as IT, banking, and metal experienced losses, offsetting the strength shown in pharma and realty.

The barometer index, the S&P BSE Sensex fell 313.90 points or 0.44% to 71,186.86. The Nifty 50 index lost 109.70 points or 0.51% to 21,462.25.

LTIMindtree (down 10.76%), HDFC Bank (down 3.26%) and Titan Company (down 2.45%) were major drags.

In the broader market, the S&P BSE Mid-Cap index shed 0.08% and the S&P BSE Small-Cap index added 0.02%.

The market breadth was negative. On the BSE, 1793 shares rose and 2024 shares fell. A total of 93 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, tumbled 6.69% to 14.07.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.20% to 7.177 as compared with previous close 7.163.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.1650, compared with its close of 83.1450 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement gained 0.17% to Rs 61,611.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.16% to 103.29.

The United States 10-year bond yield shed 0.59% to 4.083.

In the commodities market, Brent crude for March 2024 settlement added 0.27 cent or 0.35% to $78.15 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Thursday, as investors continue to monitor news and comments from the World Economic Forum in Davos, Switzerland.

China?s economy expanded by 5.2% in the fourth quarter of 2023, missing estimates.

Wall Street stocks finished lower on Wednesday after upbeat December US retail sales data eroded expectations the Federal Reserve will kick off its rate-cut campaign as early as March.

Stocks in Spotlight:

Oracle Financial Services Software soared 28.66% after the company reported robust Q3FY24 earnings. On a consolidated basis, revenue for the quarter was Rs 1,824 crore, up 26% year-over-year. Operating income for the quarter was Rs 840 crore, up 45% year-over-year. Net income for the quarter was Rs 741 crore, up 69% year-over-year.

Aarti Industries rallied 5% after the company secured a four-year supply contract worth over Rs 6000 crore with a multinational conglomerate company.Shakti Pumps (India) shed 0.37%. 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).

Sobha surged 11.48% after the realtor informed that its board will meet on Monday, 22 January 2024 to consider the proposal of fund raising by way of equity shares through rights issue.

LTIMindtree tumbled 11%. The company's consolidated net profit rose marginally to Rs 1,169.3 crore in Q3 FY24 as against Rs 1,162.3 crore recorded in Q2 FY24. Revenue from operations increased by 1.2% quarter on quarter (QoQ) to Rs 9,016.6 crore in Q3 FY24.

Happiest Minds Technologies declined 4.51%. The IT company's consolidated net profit rose 2% to Rs 59.62 crore in Q3 FY24 as against Rs 58.46 crore recorded in Q2 FY24. Compared to Q2 FY24, revenue from operations rose marginally to Rs 406.62 crore in Q3 FY24. On a year on year basis, the company's net profit increased 3.5% while revenue jumped by 11.7% in Q3 FY24 over Q3 FY23.

Nazara Technologies declined 2.80%. The company said that its board has approved preferential allotment of equity shares to raise up to Rs 250 crore.

Indiabulls Housing Finance shed 1.21%. The firm announced that its board has approved raising of funds aggregating up to Rs 5,000 crore or its equivalent in USD.

ICICI Prudential Life Insurance Company tumbled 5.57%. The life insurer's net profit jumped 3.10% to Rs 227.47 crore in Q3 FY24 as against Rs 220.63 crore posted in Q3 FY23. Total income jumped 51.97% YoY to Rs 26,647.77 crore in Q3 FY24.

RailTel Corporation of India ended flat. The company has received the work order from South Central Railway for Works amounting to Rs 82.41 crore.

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