SSPL WEALTH PVT LTD

Mid - Session

Market behaviours during the course of the trading session.

Indices trade with minor cuts, auto stocks advance

31-Jan-23 14:37 Hrs IST

The domestic equity benchmarks traded with minor cuts in mid-afternoon trade. The Nifty traded below the 17,650 mark. PSU bank, auto and media scrips were in demand while IT, oil & gas and pharma stocks declined.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was down 57.93 points or 0.10% to 59,442.48 . The Nifty 50 index shed 18.15 points or 0.10% to 17,630.80.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.22% while the S&P BSE Small-Cap index gained 1.74%.

The market breadth was strong. On the BSE, 2,274 shares rose and 1,163 shares fell. A total of 149 shares were unchanged.

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.

Economic Survey 2023:

Union finance minister Nirmala Sitharaman today tabled the Economic Survey 2023 in the Parliament. The government has projected that India will remain the fastest growing major economy in the world with a GDP growth forecast of 7% in FY23 and 6-6.8% in FY24.

The Survey further highlighted that the challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed. CAD may continue to widen as global commodity prices remain elevated, economic growth momentum stays strong. Rupee may come under pressure if current account defict (CAD) widens.

It further stated that the RBI projection of 6.8% inflation this fiscal outside the upper target limit, not high enough to deter private consumption, also not too low to weaken inducement to invest. Borrowing cost may remain 'higher for longer', entrenched inflation may prolong tightening cycle.

India's services sector witnessed a swift rebound in FY22, growing Year-on-Year (YoY) at 8.4% compared to a contraction of 7.8% in the previous financial year. This swift rebound was driven by growth in the contact intensive services sub-sector which registered sequential growth of 16% driven by the release of pent-up demand, ease of mobility restriction, and near-universal vaccination coverage.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.372 from its close of 7.401 recorded in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.0450, compared with its close of 81.52 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement shed 0.13% to Rs 56,710.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.28% to 102.56.

The United States 10-year bond yield fell 0.72% to 3.525.

In the commodities market, Brent crude for March 2023 settlement declined 60 cents or 0.71% to $84.30 a barrel.

Buzzing Index:

The Nifty Auto index fell 1.85% to 13,319.25. The index shed 0.10% in the past trading session.

Mahindra & Mahindra Ltd (up 3.94%), Samvardhana Motherson International Ltd (up 3.08%), Bosch Ltd (up 2.89%), Ashok Leyland Ltd (up 2.22%), Balkrishna Industries Ltd (up 2.2%), Sona BLW Precision Forgings Ltd (up 2.15%), Eicher Motors Ltd (up 1.86%), MRF Ltd (up 1.57%), Tata Motors Ltd (up 1.56%) and Hero MotoCorp Ltd (up 1.45%) edged higher.

Earnings Impact:

Century Textiles & Industries jumped 5.38%. The company's consolidated net profit (from continuing operations) tumbled 44.33% to Rs 6.77 crore in Q3 FY23 from Rs 12.16 crore reported in Q3 FY22. Net sales was at Rs 1,149.94 crore in Q3 FY23, up 9.5% as against Rs 1,049.95 crore posted in the corresponding quarter last year.

Hester Biosciences surged 5.85% after the company's standalone net profit rose marginally to Rs 10.73 crore on 31.06% jump in net sales to Rs 70.77 crore in Q3 FY23 over Q3 FY22.