Market drifts lower in early trade; breadth strong

The key equity indices traded with minor losses in early trade. The Nifty traded below 22,200 level. Pharma, auto and FMCG stocks advanced while IT, oil & gas and consumer durables shares declined.

At 09:28 IST, the barometer index, the S&P BSE Sensex, was down 148.63 points or 0.20% to 72,994.17. The Nifty 50 index lost 26.70 points or 0.12% to 22,186.

In the broader market, the S&P BSE Mid-Cap index added 0.09% and the S&P BSE Small-Cap index rose 0.33%.

The market breadth was strong. On the BSE, 1,880 shares rose and 1,252 shares fell. A total of 126 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,276.09 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 176.68 crore in the Indian equity market on 23 February, provisional data showed.

Stocks in Spotlight:

Kotak Mahindra Bank shed 0.26%. In respect of the proposed acquisition of the shares of Kotak Mahindra General Insurance Company (Kotak General) by Zurich Insurance Company (Zurich), the parties to the aforesaid transaction, viz., the Bank, Zurich and Kotak General have mutually agreed that Zurich will acquire 70% stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche, for a total consideration of approximately Rs 5,560 crore.

Foseco India declined 3.26% after the company�s consolidated net profit jump 33.14% to Rs 16.31 crore in Q4 FY23 as compared to Rs 12.25 crore in Q4 FY22. Revenue from operations declined 15.72% to Rs 122.32 crore in Q4 FY23 from Rs 105.70 crore recorded in the corresponding quarter previous year.

Rain Industries dropped 6.52% after the company reported consolidated net loss of Rs 1,118.75 crore in Q4 FY23 as against net profit of Rs 89.52 crore in Q4 FY22. Revenue from operations declined 24.85% to Rs 4,100.58 crore in Q4 FY23 from Rs 5,456.81 crore recorded in the corresponding quarter previous year.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.42% to 7.047 as compared with previous close 7.077.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.9050, compared with its close of 82.9175 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement fell 0.20% to Rs 62,220.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.06% to 103.99.

The United States 10-year bond yield declined 0.61% to 4.232.

In the commodities market, Brent crude for March 2024 settlement dropped 39 cents or 0.48% to $81.23 a barrel.

Global Markets:

Asian stocks declined on Monday. Japan�s Nikkei 225 index hit a fresh record high Monday as traders returned from a long weekend. Investors will focus on a slew of economic data expected this week including China�s manufacturing purchasing managers� index and the U.S. personal consumption expenditures price index data, which is the Federal Reserve�s preferred inflation gauge.

In US, the S&P 500 and Dow Jones Industrial Average eked out record closing high on Friday, as artificial intelligence stocks had enough steam to keep the rally chugging along.

Meanwhile, Federal Reserve Bank of New York President John Williams reportedly said in an interview published Friday that the economy is headed in the right direction, and it will likely be appropriate to cut rates later this year.

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