Indian equity indices ended with moderate losses on Wednesday, sliding for the second consecutive session. The Nifty closed below the 18,200 level after hitting the day's high of 18,309 in early trade. Media, realty and IT stocks were under pressure. On the other hand, auto and FMCG shares edged higher.
As per provisional closing data, the barometer index, the S&P BSE Sensex slipped 371.83 points or 0.60% to 61,560.64. The Nifty 50 index lost 104.75 points or 0.57% to 18,181.75.
In the broader market, the S&P BSE Mid-Cap index declined 0.16% while the S&P BSE Small-Cap index added 0.25%.
The market breadth was positive. On the BSE, 1,711 shares rose and 1,779 shares fell. A total of 135 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 1.41% to 13.11.
The looming U.S. debt ceiling deadline and the potential for a catastrophic U.S. debt default has created a degree of nervousness throughout global markets.
Talks between U.S. President Joe Biden and Republican Kevin McCarthy, the speaker of the House of Representatives, failed to come up with a deal on Tuesday, hitting investor sentiment.
Monsoon Update:
The India Meteorological Department (IMD) has predicted a slight delay in the onset of the southwest monsoon over Kerala this year. The monsoon is now expected to arrive on June 4th, instead of the usual date of June 1st.
The southwest monsoon's arrival in Kerala signifies the transition from a hot and dry season to a rainy season. The Ministry of Earth Sciences has previously stated that the country can expect normal monsoon rainfall, with approximately 83.5 cm of precipitation between June and September.
Buzzing Index:
The Nifty Media index fell 2.09% to 1,676.85. The index lost 3.44% in two trading sessions.
PVR Inox (down 4.93%), Dish TV India (down 2.86%), TV18 Broadcast (down 2.01%), Navneet Education (down 1.95%), New Delhi Television (down 1.28%), Zee Entertainment Enterprises (down 1.16%), Sun TV Network (down 0.94%), Hathway Cable & Datacom (down 0.37%) and Network 18 Media & Investments (down 0.25%) tumbled.
Stocks in Spotlight:
Bharti Airtel rose 0.68%. The telecom major's consolidated net profit jumped 49.7% to Rs 3,005.6 crore on 14.31% increase in revenue from operations to Rs 36,009 crore in Q4 FY23 over Q4 FY22. The company said that the rise in revenue was backed by strong and consistent performance delivery across the portfolio.
Jubilant FoodWorks rallied 3.62%. The QSR chain operator's standalone net profit tumbled 59.07% to Rs 47.52 crore in Q4 FY23 as against Rs 116.09 crore posted in Q4 FY22. Revenue from operations rose 8.16% to Rs 1252.31 crore in Q4 FY23 as compared with Rs 1157.88 crore in Q4 FY22. Domino's Like- for- Like (LFL) sales fell 0.6% in Q4 FY23 as against 5.8% in Q4 FY22.
During the quarter, the company opened 61 new stores in India. With the addition of 56 new stores and entry in six new cities, Domino's has expanded its network strength to 1,816 stores across 393 cities.
Bharat Petroleum Corporation (BPCL) added 0.75% after the PSU OMC said that its board has approved capital expenditure proposals worth Rs 52,731 crore. The company's board has approved the ethylene cracker project at Bina refinery including downstream petrochemical plants and expansion of refinery at a gross capital expenditure of approximately Rs 49,000 crore.
Devyani International (DIL) tumbled 4.42% after the company's consolidated net profit declined 20.51% to Rs 60.72 crore as against Rs 76.39 crore recorded in Q4 FY22. Revenue from operations jumped 27.8% year on year to Rs 754.98 crore in the quarter ended 31 March 2023. Same-store sales growth (SSSG) of KFC was 1.9%, Pizza Hut stood at negative 3.2% and Costa Coffee was 42.6% in Q4 FY23.
Larsen & Toubro (L&T) shed 0.35%. The EPC major said that the buildings & factories (B&F) business of L&T Construction has secured 'significant' EPC orders in India. As per L&T's classification, the value of the said contract lies between Rs 1,000 crore to Rs 2,500 crore.
Jindal Steel & Power (JSPL) dropped 5.07%. The company's consolidated net profit dropped to Rs 466 crore as against Rs 1527 crore posted in Q4 FY22. Gross revenue fell to Rs 15781 crore in Q4 FY23 from Rs 16089 crore recorded in the same period a year ago.
Amber Enterprises jumped 14.43% after the company reported 81.7% jump in consolidated net profit to Rs 103.98 crore in Q4 FY23 as compared with Rs 57.22 crore in Q4 FY22. Revenue surged 55% to Rs 3,002.62 crore in Q4 FY23 as compared with Rs 1,936.69 crore in corresponding quarter last year.
LIC Housing Finance (LICHFL) slumped 6.10%. The housing finance company reported 5.51% rise in net profit to Rs 1,180.28 crore on a 21.05% increase in revenue from operations to Rs 6,415.11 crore in Q4 FY23 as compared with Q4 FY22.
CreditAccess Grameen surged 7.49% after the company's profit after tax surged 86.4% to Rs 296.6 crore on 32.7% increse in net interest income (NII) to Rs 689.8 crore in Q4 FY23 over Q4 FY22.
Oberoi Realty tumbled 5.89%. The company reported 106% rise in consolidated net profit to Rs 480.16 crore in Q4 FY23 from Rs 232.78 crore for Q4FY22. Revenue for the quarter was Rs 995.11 crore as against Rs. 842.94 in the same period last year, up 18% YoY.
Global Markets:
Markets in Europe and Asia traded mixed on Wednesday as investors keep an eye on debt ceiling negotiations in the U.S.
The final eurozone consumer inflation figures for April will be released today. The figures are expected to show that prices remained elevated.
Japan's economy grew 1.6% in the first quarter of the year on an annualized basis, economic data showed on Tuesday. Quarter-on-quarter, the economy grew 0.4%, also higher than forecasts to see 0.1% growth.
US stocks declined on Tuesday with a disappointing forecast from Home Depot, mixed economic data and worries over the debt ceiling impasse keeping investors nervous.
Treasury Secretary Janet Yellen on Tuesday warned that a US default on government debt would leave millions of Americans without income payments, potentially triggering a recession that destroys many American jobs and businesses.
The Commerce Department said retail sales rose by 0.4% in April after falling by a revised 0.7% in March. A separate report from the Federal Reserve showed industrial production climbed by 0.5% in April, while revised data showed production was unchanged in each of the two previous months.
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