End Session Commentary

Market crawls higher amid volatility; Nifty regains 18,300; VIX drops below 13 mark
(17:25, 25 May 2023)

The key equity indices ended with small gains on Thursday, with the Nifty closing above the 18,300 level. Gains were capped due to negative global cues. The market was volatile throughout the day, due to expiry of May 2023 futures and options (F&O) contracts. Shares of real estate, FMCG, and consumer durables were in demand, while shares of public sector banks and healthcare stocks were under pressure.

The barometer index, the S&P BSE Sensex rose 98.84 points or 0.16% to 61,872.62. The Nifty 50 index lost 35.75 points or 0.20% to 18,321.15.

Bharti Airtel (up 2.75%), Adani Enterprises (up 2.39%) and ITC (up 1.76%) pushed the indices higher. Tata Motors (down 1.06%), HDFC (down 0.79%) and HDFC Bank (down 0.37%) were major drags.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.36% while the S&P BSE Small-Cap index gained 0.27%.

The market breadth was positive. On the BSE, 1,896 shares rose and 1,596 shares fell. A total of 119 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 4.51% to 12.52.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper rose to 7.006 as compared with previous close of 6.990.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.76, compared with its close of 82.68 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement fell 0.05% to Rs 59,833.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.21% to 104.10.

The United States 10-year bond yield jumped 1.23% to 3.763

In the commodities market, Brent crude for July 2023 settlement slipped $1.31 cents or 1.67% to $77.05 a barrel.

Global Markets:

The Dow Jones index futures were down 119 points, indicating a weak opening in the US stocks today.

Markets in Europe and Asia declined on Thursday, following a downward revision to gross domestic product (GDP) in Germany and concerns over the U.S. debt ceiling.

The Bank of Korea held its benchmark interest rate steady at 3.5%, in line with expectations.

US stocks fell on Wednesday as investor concerns over the debt ceiling mounted. Fitch Ratings put the U.S.′ AAA long-term foreign-currency issuer default rating on a negative watch, citing ongoing debt ceiling negotiations.

Federal Reserve officials were divided on the need to raise interest rates, with a decision to increase rates at the next meeting ultimately hinging on upcoming data releases.

Stocks in Spotlight:

Life Insurance Corporation of India rose 1.69% after the state-run life insurer reported a standalone net profit of Rs 13,427.81 crore in Q4 FY23, steeply higher than Rs 2,371.55 crore recorded in Q4 FY22. Total premium income declined 8.34% to Rs 1,31,761.11 crore in the quarter ended 31 March 2023 as against Rs 1,43,745.92 crore posted in Q4 FY22.

Mahindra and Mahindra (M&M) added 0.11% and Mahindra CIE Automotive skid 2.14%. Mahindra and Mahindra (M&M) sold its entire stake in Mahindra CIE Automotive. M&M sold 1,21,22,068 equity shares, representing 3.195% of the paid-up share capital of the company. The sale was executed on the stock exchanges on Wednesday, 24 May 2023, at a gross price of Rs. 447.65 per share.

FSN E-Commerce (Nykaa) increased 1.64%. The company reported 71.8% decline in consolidated net profit to Rs 2.41 crore in Q4 FY23 as compared with Rs 8.56 crore in Q4 FY22. Revenue from operations jumped 33.7% to Rs 1,301.72 crore in Q4 FY23 from Rs 973.32 crore in corresponding quarter last year.

Oil India slipped 3.28%. On standalone basis, Oil India reported 9.7% rise in net profit to Rs 1,788.28 crore on 20.5% increase in net sales (excluding excise duty) to Rs 5,397.87 crore in Q4 FY23 over Q4 FY22.

Ingersoll-Rand (India) surged 5.52% after the company's net profit soared 129.59% to Rs 67.11 crore on 37.25% increase in net sales to Rs 304.40 crore in Q4 March 2023 over Q4 March 2022.

J B Chemicals & Pharmaceuticals surged 7.22%. The company's consolidated net profit rose 3.29% to Rs 87.63 crore on 22.05% increase in net sales to Rs 762.32 crore in Q4 March 2023 over Q4 March 2022.

Trident tumbled 6.28% after the company's consolidated net profit slipped 27.9% to Rs 130.66 crore on 15.9% decline in revenue from operations to Rs 1,573.25 crore in Q4 FY23 over Q4 FY22.

PTC Industries jumped 4.42% after the company's subsidiary Aerolloy Technologies received Israel Aerospace Industries (IAI)'s approval to supply cast components for aerospace applications.

Indian Railway Finance Corporation (IRFC) slipped 5.44% after the company's net profit declined 11.04% to Rs 1,327.71 crore in Q4 FY23 as against Rs 1,912.96 crore in Q4 FY22. Total income rose 5.73% YoY to Rs 6,272.74 crore in the quarter ended 31 March 2023.

National Aluminium Company (NALCO) shed 0.16%. The company reported 49.1% fall in standalone net profit to Rs 521.88 crore on a 15.6% fall in net sales to Rs 3,670.86 crore in Q4 FY23 as compared with Q4 FY22.

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