The market ended with deep losses on Tuesday. Global shares declined ahead of US Federal Reserve Chair Jerome Powell's speech due later in the day. Traders worry that higher interest rates could tip the economy into a recession.
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.
Adani Enterprises (down 5.67%), Bharti Airtel (down 2.98%), Eicher Motors (down 2.84%), Adani Ports and SEZ (down 2.65%) and SBI (down 2.01%) were major Nifty losers.
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.
Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 5.85% to 15.51.
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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, 1,329 shares rose and 2,189 shares fell. A total of 136 shares were unchanged.
Among the sectoral indices, the S&P BSE Telecommunication index (down 1.63%), the S&P BSE Services index (down 1.41%) and the S&P BSE Bankex (down 1.31%) underperformed the benchmark Sensex. The S&P BSE Metal index (up 0.66%), the S&P BSE Healthcare index (up 0.16%) and the S&P BSE Auto index (up 0.13%) outperformed the benchmark Sensex.
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.
Global Markets:
The Dow Jones index futures were down 123 points, indicating a weak opening in the US stocks today.
European shares fell across the board while Asian stocks ended mixed on Tuesday as caution returned to global sentiment ahead of U.S. Federal Reserve Chairman Jerome Powell's speech later in the day.
Investors are also gearing up for more inflation data later this week, with U.S. consumer price data for December due Thursday.
In Europe, data releases on Tuesday include Dutch inflation figures for December and U.K. British Retail Consortium retail sales figures for December.
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.
Numbers to Track:
The yield on India's 10-year benchmark federal paper declined to 7.314 from its close of 7.342 recorded in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.7800, compared with its close of 82.35 during the previous trading session.
MCX Gold futures for 3 February 2023 settlement declined 0.19% to Rs 55,757.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.18% to 103.19.
The United States 10-year bond yield rose 0.84% to 3.547.
In the commodities market, Brent crude for March 2023 settlement added 21 cents or 0.26% to $79.86 a barrel.
Stocks in Spotlight:
TCS fell 1.01% as investors digested its Q3 results. 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 6.07% 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.
Sona BLW Precision Forgings jumped 5.92% after acquiring a 54% stake in Novelic for 40.5 million Euros. The Serbian company manufactures advanced radars used in cars, robotics and Internet of Things (IoT) systems.
Devyani International rose 1.91%. A global brokerage firm sees a +35% upside from current levels.
Safari Industries (up 7.35%) started production at its new plant in Gujarat.
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