Benchmarks indices edge lower; broader markets trade in the green

The key equity barometers edged lower in early trade as the bourses witnessed significant selling in key index pivotals. The Nifty traded below the 17,650 level. IT, FMCG and oil & gas shares declined while metals, autos and PSU banks managed to trade in the green.

At 09:25 IST, the barometer index, the S&P BSE Sensex, was down 143.08 points or 0.24% to 59,583.93. The Nifty 50 index lost 39.95 points or 0.23% to 17,620.20.

Apollo Hospitals (down 1.88%), Infosys (down 1.23%), Tata Consumer (down 0.86%), Asian Paints (down 0.84%) and HCL Tech (down 0.77%) were the top Nifty laggards.

In the broader market, the S&P BSE Mid-Cap index added 0.15% while the S&P BSE Small-Cap index gained 0.39%.

The market breadth was strong. On the BSE, 1,666 shares rose and 803 shares fell. A total of 123 shares were unchanged.

Investors turned cautious as uncertainty over the path of U.S. monetary policy largely outweighed optimism over an economic recovery in China. Focus is now on the Fed`s Beige Book report, due later on Wednesday, for the central bank`s take on the state of the U.S. economy.

Market concerns about rising interest rates returned in recent sessions as hawkish comments from Fed officials and indications of some economic resilience in the US stoked apprehension about when the Fed Fed will pause its rate hike cycle.

Stocks in Spotlight:

State Bank of India (SBI) shed 0.09%. The executive committee of the central Board has approved long term fund raising in single / multiple tranches up to US$ 2 billion through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2023-24.

ICICI Lombard General Insurance Company fell 3.23%. The company reported net profit of Rs 436.96 crore in Q4 March 2023 as compared to net profit of Rs 312.51 crore in Q4 March 2022. Total income rose to Rs 5255.58 crore in Q4 March 2023 from Rs 4636.34 crore in Q4 March 2022.

Bank of India rose 1.41%. The bank`s board of directors approved the raising of capital for the FY 2023-24 aggregating up to Rs 6,500 crore, through the issue of fresh equity capital in the form of FPO/QIP/Rights issue/preferential issue and/or Basel III compliant additional Tier-1 (AT-1) upto an amount of Rs.4,500 crores, and issue of Basel III compliant Tier-2 bonds upto an amount of Rs.2,000 crore.

Numbers to track:

The yield on India`s 10-year benchmark federal paper was currently flat at 7.223.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.0775, compared with its close of 82.0475 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement fell 0.08% to Rs 60,438.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.03% to 101.77.

The United States 10-year bond yield advanced 0.37% to 3.585.

Global Markets:

Asian stocks are trading mixed on Wednesday as Wall Street`s earnings season continued and U.S. Federal Reserve officials delivered mixed signals on future rate hikes.

Overnight in the US, all three major indexes closed near the flatline as investors digested earnings reports, including from Goldman Sachs and Bank of America.

Atlanta Federal Reserve President Raphael Bostic reportedly said that he sees one more rate hike of 25 basis points, before pausing to see its impact on the economy. This would take the U.S. Federal Funds rate to 5% to 5.25%. Bostic`s words come as St. Louis Federal Reserve President James Bullard reportedly told that he favors a higher terminal rate of between 5.50% and 5.75%.

Meanwhile, U.S. Treasury Secretary Janet Yellen will deliver in a speech the economic priorities for the U.S. on China, as per reports. Yellen will deliver a speech at Johns Hopkins University`s School of Advanced International Studies on Thursday.

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