Market Commentary - Quick Review
The key equity benchmarks ended with heavy losses on Wednesday, declining for second day in a row. The market witnessed major selloff as heavy selling in banking stocks weighed on overall market with HDFC Bank share price cracking more than 8% after reporting December quarter earnings. The Nifty settled below the 21,600 level. Barring the Nifty IT index, all the other sectorial indices on the NSE ended in red.
As per provisional closing data, the barometer index, the S&P BSE Sensex tumbled 1,628.01 points or 2.23% to 71,500.76. The Nifty 50 index lost 460.35 points or 2.09% to 21,571.95.
In the broader market, the S&P BSE Mid-Cap index declined 1.09% and the S&P BSE Small-Cap index fell 0.90%.
The market breadth was weak. On the BSE, 1318 shares rose and 2487 shares fell. A total of 95 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 11.10% to 15.08.
IPO Update:
The initial public offer (IPO) of Medi Assist Healthcare Services received bids for 29,66,76,555 shares as against 1,96,19,719 shares on offer, according to stock exchange data at 15:24 IST on Wednesday (17 January 2024). The issue was subscribed 15.12 times.
The issue opened for bidding on Monday (15 January 2024) and it will close on Wednesday (17 Thursday 2024). The price band of the IPO is fixed at Rs 397-418 per share. An investor can bid for a minimum of 35 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Bank index tumbled 4.28% to 46,064.45. The index fell 4.35% in two trading sessions.
HDFC Bank (down 8.46%), Kotak Mahindra Bank (down 3.69%), IDFC First Bank (down 3.57%), Axis Bank (down 3.4%) and ICICI Bank (down 2.65%) were the top losers.
Among the other losers were Bank of Baroda (down 2.64%), Federal Bank (down 2.44%), AU Small Finance Bank (down 2.31%), State Bank of India (down 1.76%) and IndusInd Bank (down 1.45%).
HDFC Bank dropped 8.46% and the US-listed ADRs tumbled 6.7% overnight after the private lender reported December quarter earnings post Indian markets closing on Tuesday.
India's largest private bank?s net profit increased 33.55% to Rs 16,372.54 crore on 59.58% jump in total income to Rs 81,719.65 crore in Q3 FY24 over Q3 FY23. Sequentially, the lender?s net profit rose 2.48% and total income grew by 4.23%.
Stocks in Spotlight:
L&T Technology Services advanced 3.67% after the company's consolidated net income rose 6.6% to Rs 336.2 crore in Q3 FY24 as compared with net profit of Rs 315.4 crore posted in Q2 FY24. Total revenue rose 1.5% to Rs 2421.8 crore in Q3 FY24 from Rs 2386.5 crore recorded in Q2 FY24.
Karnataka Bank shed 0.70%. Karnataka Bank and Clix Capital have entered into a strategic digital co-lending partnership through Yubi Co.lend Platform. This partnership is focused on providing loans to the Indian MSME sector.
Network18 Media & Investments locked in an upper circuit of 10%. The company said that its consolidated net loss widened to Rs 58 crore in Q3 FY24 as against a net loss of Rs 7.68 crore reported in Q3 FY23. Revenue from operations declined 4.11% to Rs 1,774 crore in the quarter ended 31 December 2023 from Rs 1,850 crore recorded in the quarter ended 31 December 2022.
PTC Industries rallied 2.99% after the company announced that its subsidiary Aerolloy Technologies has signed a multi-year agreement with Dassault Aviation for the supply of Titanium casting parts made in India.
Rail Vikas Nigam rallied 7.49% after the firm informed that it has formed a joint venture (JV) with Jakson Green named JGPL-RVNL EPC for green clean energy projects.
ICICI Lombard General Insurance Company jumped 5.99% after the company?s net profit jumped 22.38% to Rs 431.46 crore in Q3 FY24 as compared with Rs 352.53 crore posted in Q3 FY23. Total income increased by 14.69% to Rs 5,003.15 crore in Q3 FY24 as against Rs 4,362.00 crore recorded in corresponding quarter last year. C.E. Info Systems declined 2.18%. The company reported 5% growth in consolidated net profit to Rs 31.1 crore on a 36% increase in revenue from operations to Rs 92 crore in Q3 FY24 as compared with Q3 FY23.
Global Markets:
The Dow Jones index futures were down 150 points, indicating a negative opening in the US stocks today.
Markets in Europe and Asia tumbled on Wednesday, as focus remains on the World Economic Forum taking place this week in Davos, Switzerland.
China?s economy grew by 5.2% in the October to December period last year, China?s National Bureau of Statistics said Wednesday. GDP climbed 5.2% for the whole of 2023.
U.S. markets dropped on Tuesday as bond yields ticked higher and Wall Street pored through the latest batch of fourth-quarter earnings. Federal Reserve Governor Christopher Waller indicated in a speech that the central bank could ease monetary policy slower than anticipated.
Powered by Capital Market - Live News