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Mid - Session

Market behaviours during the course of the trading session.

Indices edge lower, breadth positive

31-Jan-23 09:33 Hrs IST

The headline equity indices were trading with minor cuts in early trade. The Nifty traded below the 17,650 mark. Metal, PSU bank and auto stocks were in demand while IT, oil & gas and healthcare shares slipped.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 149.52 points or 0.25% to 59,350.89. The Nifty 50 index lost 43.50 points or 0.25% to 17,605.45.

In the broader market, the S&P BSE Mid-Cap index shed 0.15% while the S&P BSE Small-Cap index rose 0.16%.

The market breadth was positive. On the BSE, 1,575 shares rose and 1,070 shares fell. A total of 124 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,792.80 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 5,512.63 crore in the Indian equity market on 30 January, provisional data showed.

The Central government is set to table the Economic Survey 2022-23 today, 31 January 2023. The Economic Survey is the government's review of how the economy fared in the past year. Union Finance Minister Nirmala Sitharaman is set to table the Union Budget 2023 on 1 February 2023.

Investors were cautious ahead of upcoming interest rate decision by the US Federal Reserve, Bank of England and European Central Bank later this week in an effort to tame the inflation.

Economy:

The International Monetary Fund (IMF) has retained its GDP growth forecasts for India for 2022-23 and 2023-24 at 6.8% and 6.1%, respectively. Growth in India is set to decline from 6.8% in 2022-23 to 6.1% in 2023-24 before picking up to 6.8% in 2024-25, with resilient domestic demand despite external headwinds, the IMF said in an update to its World Economic Outlook report.

Stocks in Spotlight:

Larsen & Toubro (L&T) declined 1.46%. The EPC major posted a consolidated net profit of Rs 2,553 crore in Q3 FY23, registering a growth of 24% from Rs 2,055 crore recorded in Q3 FY22. The conglomerate recorded revenues of Rs 46,390 crore for the quarter ended 31 December 2022, recording a YoY growth of 17%, aided by improved execution in the Infrastructure Projects segment and continued growth momentum in the IT&TS portfolio. International revenues during the quarter at Rs 17,317 crore constituted 37% of the total revenue.

Ambuja Cements gained 2.30%. With reference to the news item dated 30 January 2023 captioned Adani Group said to plan Rs 3000 cr Ambuja, APSEZ buybacks, the cement major clarified to the stock exchanges that there was no such plan and hence, it was not in a position to comment on the veracity of said media report.

Ultratech Cement rose 0.65%. The cement major said that UltraTech Cement Middle East Investments has entered into a share sale and purchase agreement with Seven Seas Company LLC, Oman, for acquisition of 70% equity shares in Duqm Cement Project International. UltraTech Cement Middle East Investments is Ultratech's wholly owned subsidiary in UAE.

Tech Mahindra fell 2.26%. On a consolidated basis, the IT major's net profit rose marginally to Rs 1,296.6 crore in Q3 FY23 as against Rs 1,285.4 crore posted in Q2 FY23. Revenue from operations grew 4.61% quarter on quarter (QoQ) to Rs 13,734.6 crore in quarter ended 31 December 2022.

BPCL rallied 3.78%. BPCL posted a consolidated net profit of Rs 1959.58 crore in Q3 FY23 from Rs 2828.45 crore recorded in Q3 FY22. Total income rose to Rs 133783.39 crore in Q3 FY23 from Rs 118166.92 crore recorded in Q3 FY22.

Life Insurance Corporation of India (LIC) added 0.23%. LIC's total holding under equity and debt is Rs. 35,917.31 crores as on 31 December 2022 under Adani group of companies. The total Assets Under Management by LIC are over Rs. 41.66 lakh crore as at 30 September 2022. LIC's exposure in the Adani group, as on date, is 0.975% of LIC's total AUM at book value.

Global Markets:

Asian stocks were trading lower on Tuesday as investors look ahead to a range of economic data and a potential interest rate hike from the Federal Reserve.

US stocks traded lower Monday, pausing a January rally as investors braced for the busiest week of earnings season and a possible interest rate hike from the Federal Reserve.

The Federal Open Market Committee meets on Tuesday and Wednesday, when the Fed is expected to hike rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation.