Market extends losses; Sensex drops 661 pts; Tata Motors rallies over 6%

The key equity indices continued extend losses and traded with major cuts in afternoon trade. The Nifty traded near the 17,900 mark after hitting day's high of 18,127.60 in early trade. Auto and healthcare shares advanced while banking and financial services stocks declined.

At 13:26 IST, the barometer index, the S&P BSE Sensex, was down 660.85 points or 1.09% to 60,086.46. The Nifty 50 index lost 197.55 points or 1.09% to 17,903.65.

Adani Enterprises (down 4.99%), Eicher Motors (down 2.99%), Adani Ports and Special Economic Zone (down 2.83%), Bharti Airtel (down 2.67%) and State Bank of India (down 2.39%) were the top Nifty losers.

 

Tata Motors (up 6.28%), Apollo Hospitals Enterprise (up 1.59%), Hindalco Industries (up 0.79%), Oil & Natural Gas Corporation (ONGC) (up 0.67%) and Divi's Laboratories (up 0.67%) outperformed.

In the broader market, the S&P BSE Mid-Cap index declined 0.87% while the S&P BSE Small-Cap index shed 0.64%.

The market breadth was weak. On the BSE, 1,218 shares rose and 2,174 shares fell. A total of 169 shares were unchanged.

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:

TCS fell 2.36%. 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 FY23 over 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. TCS' workforce was at 613,974 as on 31 December 2022, a net reduction of 2,197 during the quarter. IT services attrition on an LTM basis trended down to 21.3% and is expected to fall further in the coming quarters.

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 surged 6.28% after the auto major said that Jaguar Land Rover (JLR) recorded a 15% growth in wholesales to 79,591 units in Q3 FY23 over Q3 FY22. Wholesale volumes rose 5.7% sequentially, with a significant increase in New Range Rover and New Range Rover Sport production, reflecting gradual improvement in chip supplies. Retail sales for the third quarter were 84,827 units, up 5.9% YoY but down 3.7% QoQ, reflecting timing between retails and wholesales, the company stated.

Meanwhile, The Tata Motors Group global wholesales in Q3 FY23, including Jaguar Land Rover, were at 3,22,556 units, higher by 13%, as compared to Q3 FY22.

HDFC declined 1.83%. The housing finance major on Monday announced that its wholly owned subsidiary, HDFC Holdings (HHL) will sell its entire stake of 17.5% in Kaizen Management Advisors for Rs 1.10 crore.

Lupin rose 0.85% after the company said that the Spanish Ministry of Health (MSCBC) has approved the reimbursement of its NaMuscla for the symptomatic treatment of myotonia in adults with non-dystrophic myotonic (NDM) disorders.

Global Markets:

Asian stocks were trading mixed 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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