The frontline indices ended with major losses on Tuesday, amid broader selling pressure. Auto and healthcare stocks advanced. On the flip side, banks, financial services and media shares were under pressure. Investors were cautious ahead of US Federal Reserve Chair Jerome Powell's speech, due later in the day for more clues on the rate-hike trajectory.
After opening at 18,121.30, the Nifty 50 index slipped into the negative terrain and declined further as the session progressed to settle below the 17,950 mark.
As per provisional closing data, the barometer index, the S&P BSE Sensex tumbled 631.83 points or 1.04% to 60,115.48. The Nifty 50 index lost 187.05 points or 1.03% to 17,914.15.
In the broader market, the S&P BSE Mid-Cap index declined 0.49% while the S&P BSE Small-Cap index shed 0.46%.
The market breadth was negative. On the BSE, 1,431 shares rose and 2,080 shares fell. A total of 143 shares were unchanged.
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The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 5.85% to 15.51.
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.
Buzzing Index:
The Nifty PSU Bank index slipped 2.67% to 4,206.70. The index added 1.14% in the past trading session.
Bank of Maharashtra (down 4.35%), Indian Overseas Bank (down 3.89%), UCO Bank (down 3.88%), Punjab & Sind Bank (down 3.62%), Punjab National Bank (down 3.5%), Bank of India (down 3.41%), Central Bank of India (down 3.21%), Indian Bank (down 2.81%), Canara Bank (down 2.77%) and Union Bank of India (down 2.35%) tumbled.
Stocks in Spotlight:
Tata Consultancy Services (TCS) declined 1.05%. 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 jumped 5.92% 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.
Housing Development Finance Corporation (HDFC) shed 1.45%. 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 0.89% 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.
Separately, the pharma major announced that it has received approval from the United States Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA), Prasugrel tablets. The approved ANDA is a generic equivalent of Effient tablets of Cosette Pharmaceuticals, Inc. Prasugrel is used to prevent strokes, heart attacks, or other serious problems with your heart or blood vessels.
JSW Ispat Special Products added 0.32%. The company said that crude steel production in Q3 FY23 was 0.10 million tonnes, down by 30% from 0.14 million tones recorded in the same period last year. The steel production is significantly higher as compared with 0.03 million tones tons produced in Q2 FY23.
D B Realty skid 1.24%. The company said that National Company Law Tribunal (NCLT) gave approval to Adani Goodhomes' resolution plan for Radius Estates, a JV partner of MIG (Bandra) Realtors & Builders, a subsidiary of the company. The project was being developed in joint venture with Radius Estates, which underwent corporate insolvency under the insolvency and bankruptcy code (IBC). Adani Goodhomes submitted a resolution plan in the course of the IBC process and MIG had provided its consent to the resolution plan.
PSP Projects slipped 4.21%. The civil construction company said that it has received letter of award (LoA) for a Government project worth Rs 1,344.01 crore for the construction of high rise office building at Surat, Gujarat for Surat Municipal Corporation. "With receipt of above, the total order inflow for the financial year 2022-23 till date amounts to Rs 3,292.59 crore," the company said.
Hi-Tech Pipes shed 0.96%. The company's board has allotted 55.40 lakh fully convertible equity warrants at Rs 692 each, aggregating to Rs 383.36 crore to promoter, promoter group & non-promoter group category. The company said that the warrants will be converted into fully paid up equity shares within 18 months from the date of allotment of warrants.
Jindal Worldwide fell 0.97%. Jindal Mobilitric (JM), subsidiary of Jindal Worldwide, announced setting-up of an electric 2-wheeler manufacturing plant with production capacity of 2.5 lakh vehicles annually at Ahmedabad. The objective of setting-up in-house battery plant is to ensure highest level of battery safety which will bring consumer trust on EV Products resulting in faster adoption of EV in India.
Global Markets:
Shares in Europe declined across the board while Asian stocks traded 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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