Market drifts lower in early trade; Tech Mahindra drops 5.74%

The domestic equity benchmarks were trading moderate losses in early trade. The Nifty traded below the 21,400 level. Realty, PSU bank and oil & gas stocks advanced while IT, healthcare and pharma shares declined. Trading could be volatile due to January F&O series expiry today.

At 09:26 IST, the barometer index, the S&P BSE Sensex, was down 267.05 points or 0.38% to 70,793.26. The Nifty 50 index shed 61.25 points or 0.29% to 21,392.70.

In the broader market, the S&P BSE Mid-Cap index rose 0.02% and the S&P BSE Small-Cap index added 0.65%.

The market breadth was strong. On the BSE, 1,975 shares rose and 832 shares fell. A total of 66 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,934.93 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 6,012.67 crore in the Indian equity market on 24 January, provisional data showed.

Stocks in Spotlight:

Bajaj Auto advanced 1.23% after the auto maker`s standalone net profit climbed 36.91% to Rs 2,041.88 crore on 30.04% increase in revenue from operations to Rs 12,113.51 crore in Q3 FY24 over Q3 FY23. On consolidated basis, the company`s net profit increased 38.02% to Rs 2,032.62 crore on 30.55% rise in revenue from operations to Rs 12,165.33 crore in Q3 FY24 over Q3 FY23.

Tata Steel shed 0.18%. The company reported consolidated net profit of Rs 522 crore in Q3 FY24 as compared with net loss of Rs 2502 crore posted in Q3 FY23. Total revenue from operations fell to Rs 55,312 crore in Q3 FY24 from Rs 57,084 crore recorded in Q3 FY23.

Tech Mahindra tumbled 5.74%. The IT company`s consolidated net profit rose 3.34% to Rs 510.4 crore on 1.85% increase in revenue from operations to Rs 13,101.3 crore in Q3 FY24 over Q2 FY24. On a year on year (YoY) basis, Tech Mahindra`s net profit dropped 60.64% while revenue fell 4.61% in Q3 FY24.

TVS Motor Company slipped 2.48% after the company reported 68% increase in standalone net profit to Rs 593 crore in Q3 FY24 as compared with Rs 353 crore posted in Q3 FY23. Revenue from operations jumped 26% YoY to Rs 8,245 crore in Q3 FY24.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.10% to 7.188 as compared with previous close 7.181.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.1300, compared with its close of 83.1225 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement shed 0.09% to Rs 61,927.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.08% to 103.32.

The United States 10-year bond yield shed 0.34% to 4.168.

In the commodities market, Brent crude for March 2024 settlement added 26 cents or 0.32% to $80.30 a barrel.

Global Markets:

Asian stocks were trading lower as markets respond to China�s central bank cutting reserve requirements for the country�s lenders.

The People�s Bank of China announced that it would reduce the amount of funds its banks are required to hold as reserves early next month in a bid to boost its struggling economy. Reserve ratio requirements for banks will be cut by 50 basis points from February 5, which will provide 1 trillion yuan ($139.8 billion) in long-term capital.

Shares of electric vehicle makers and suppliers of Tesla in Asia-Pacific fell after the U.S. EV leader warned of bleak volume growth. Tesla warned that vehicle volume growth in 2024 may be notably lower than last year.

Overnight in the U.S., the S&P 500 rose Wednesday as Netflix led a broader rally among technology names, pushing the broader market to new heights. Netflix shares surged more than 10% after the streamer said its total subscriber count hit an all-time high of 260.8 million. The broad-based index eked out a gain of 0.08% to clinch a new all-time closing high. The Nasdaq Composite rose 0.36% helped by the tech rally. In contrast, the Dow Jones Industrial Average fell 0.26%, to 37,806.39, dragged by Verizon and 3M a day after they reported earnings.

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