Market drifts lower in early trade, breadth positive

The headline equity indices were trading with modest losses in early trade on a bit of a selling pressure in index pivotals. The Nifty traded below the 18,050 mark. Metal, auto and healthcare stocks were in demand while IT, bank and financial services shares declined .

At 09:28 IST, the barometer index, the S&P BSE Sensex, was down 274.11 points or 0.45% to 60,473.20. The Nifty 50 index declined 71 points or 0.39% to 18,030.20.

In the broader market, the S&P BSE Mid-Cap index shed 0.12% while the S&P BSE Small-Cap index rose 0.01%.

The market breadth was positive. On the BSE, 1,379 shares rose and 1,209 shares fell. A total of 109 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 203.13 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,723.79 crore in the Indian equity market on 9 January, provisional data showed.

Prime Minister Narendra Modi is scheduled to hold a pre-budget meeting with economists and sectoral experts at NITI Aayog on 13 January 2023 to discuss the state of the economy and measures to accelerate growth, as per reports. The meeting will also be attended by several Union ministers. The 2023-24 Budget is set to be presented in Parliament on February 1.

Stocks in Spotlight:

Tata Consultancy Services (TCS) declined 1.95%. The IT major's consolidated net profit rose 3.98% to Rs 10846 crore on 5.28% increase in net sales to Rs 58,229 crore in Q3 December 2022 (Q3 FY23) over Q2 September 2022 (Q2 FY23). On a year-on-year (YoY) basis, the IT major's net profit rose 11.02% and net sales rose 19.11% in Q3 FY23.

The board declared a third interim dividend of Rs 8 and a special dividend of Rs 67 per share of Re 1 each of the company. The record date is 17 January 2023.

Tata Motors rallied 4.49%. The Tata Motors Group global wholesales in Q3FY23, including Jaguar Land Rover, stood at 3,22,556 units, higher by 13%, as compared to Q3FY22.

Lupin added 0.71%. Pharma major and Exeltis Healthcare S.L (Exeltis) announced that the Spanish Ministry of Health (MSCBC) has approved the reimbursement of Lupin's NaMuscla (mexiletine) for the symptomatic treatment of myotonia in adults with non-dystrophic myotonic (NDM) disorders on the National Health and Pharmacy Service.

Welspun Enterprises shed 0.72%. The company said that its chief financial officer, Sanjay Sultania, resigned on Monday, 9 January 2023. Sanjay Sultania, Chief Financial Officer of the Company is taking up other major responsibility within the Welspun Group.

Global Markets:

Most Asian stocks declined after a rally in U.S. stocks evaporated as Federal Reserve officials indicated the central bank will likely need to raise interest rates above 5% before pausing and holding for some time.

U.S. stocks were mixed Monday at the start of a week with a few events that could shake markets, including updates on inflation and the health of corporate profits.

Fed officials on Monday said that policymakers should hike above 5% by early in the second quarter and then go on hold on the rate for a long time. Investors fear that rising rates will push the global economy into recession.

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