SENSEX, NIFTY SNAP 4-DAY STREAK; HDFC TWINS DRAG

Domestic equity benchmarks corrected on Wednesday, due to profit selling after a four-day gaining streak. Global cues were weak as investors worried about the approval of raising the US debt ceiling and the economic outlook for China. After opening near the 18,600 level, the Nifty50 index hit a low of 18,483.85 in the early afternoon trade. However, the index pared some of its losses in late trade. Investors were bullish on realty, healthcare and consumer durables stocks, while oil & gas, metals and financial shares were out of favor.

The barometer index, the S&P BSE Sensex, declined 346.89 points or 0.55% to 62,622.24. The Nifty 50 index lost 99.45 points or 0.53% to 18,534.40. Both the indices rose 1.9% in the past four sessions.

HDFC (down 1.98%), Reliance Industries (down 1.77%) and HDFC Bank (down 1.57%) were major drags today.

The S&P BSE Mid-Cap and Small-Cap indices outperformed the main indices, rising 0.54% and 0.68%, respectively.

The market breadth was negative. On the BSE, 1717 shares rose and 1796 shares fell. A total of 132 shares were unchanged.

The National Statistical Office (NSO) will release the GDP numbers for the fourth quarter of FY23 and the full fiscal year today. The GDP growth rate in Q3 FY23 was 4.4%, while it was 4% in Q4 FY22.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper was down 0.31% to 6.989 from previous close of 7.011.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.76, compared with its close of 82.67 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement declined 0.06% to Rs 59,910.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.35% to 104.53.

The United States 10-year bond yield fell 1.42% to 3.648.

In the commodities market, Brent crude for July 2023 settlement slipped $1.70 or 2.31% to $71.84 a barrel.

Global Markets:

Markets in Europe and Asia declined across the board on Wednesday due to concerns about the China`s economic slowdown and the U.S. debt ceiling.

China`s official measure of factory activity for May slid for a second-straight month in May to 48.8, a steeper contraction than March`s 49.2.

US stocks ended mixed on Tuesday as Wall Street considered the likelihood of Congress passing a tentative deal on raising the U.S. debt ceiling amid growing opposition within the GOP.

The U.S. debt ceiling remained in focus with markets hoping an agreement President Joe Biden struck with the top congressional Republican to suspend the United States` borrowing limit can pass through Congress in coming days.

The plan cleared a House committee overnight and is set for debate and passage on Wednesday, which would send it to the Senate where debate could stretch to the weekend.

Fed Bank of Richmond President Thomas Barkin said he is looking for signs that demand is cooling to be convinced that US inflation will ease.

Stocks in Spotlight:

Adani Ports and Special Economic Zone (APSEZ) rose 0.40%. The company reported 5.1% rise in consolidated net profit to Rs 1,158.88 crore in Q4 FY23 as against Rs 1,102.61 crore posted in Q4 FY22. Revenue from operations surged 40% year on year to Rs 5,796.85 crore in the quarter ended 31 March 2023.

Coal India fell 1.29%. The board of directors of Coal India has approved revision of non-coking coal prices with effect from 31st May 2023. The board has approved price increase of 8% over the existing notified prices for high grade coal of grade G2 to G10. Due to this revision, Coal India will earn approx. incremental revenue of Rs 2,703 crore for the balance period of financial year 2023-24.

HDFC Life Insurance Company added 1.04%. On the BSE, 3.60 crore shares were traded in the counter, compared with average daily volumes of 61,279 shares in the past two weeks. UK-based investment company Abrdn was reportedly likely to sell its entire 1.66% equity in HDFC Life Insurance Company via block deals today.

HDFC Asset Management Company rose 0.59%. Keki Mistry has expressed the desire not to be re-appointed as a non-executive director of the company and will retire after the upcoming AGM on June 26.

Dixon Technologies (India) jumped 5.34%. The company announced partnership with Xiaomi India to carry out manufacturing and export of mobile phones of Xiaomi. The two companies would also explore enhancing component ecosystem in India through the wholly owned subsidiaries of Dixon.

Torrent Pharmaceuticals surged 7.55%. The pharmaceutical company reported a consolidated net profit of Rs 287 crore in Q4 FY23 as against a net loss of Rs 118 crore posted in Q4 FY22. Net revenue from operations grew by 17% year on year to Rs 2,491 crore in the quarter ended 31 March 2023.

Suzlon Energy zoomed 10.03%. The company reported consolidated net profit of Rs 279.89 crore in Q4 FY23 as against net loss of Rs 204.29 crore posted in Q4 FY22. However, revenue from operations declined 30.8% year on year (YoY) to Rs 1,689.91 crore in the quarter ended 31 March 2023.

Patanjali Foods rose 2.56%. The FMCG company`s net profit rose 12.49% to Rs 263.71 crore on 18.15% increase in revenue from operations to Rs 7,872.92 crore in Q4 FY23 over Q4 FY22.

KRBL slumped 9.65%. The company`s net profit rose 8.11% to Rs 117.81 crore on 29.61% increase in net sales to Rs 1279.73 crore in Q4 March 2023 over Q4 March 2022.

Rhi Magnesita India fell 4.53%. The company reported a consolidated net loss of Rs 679.36 crore in Q4 FY23 as against a net profit of Rs 99.84 crore recorded in Q4 FY22. Revenue from operations surged 47.89% to Rs 874.78 crore in Q4 FY23 from Rs 591.51 crore posted in Q4 FY22.

Greenply Industries tumbled 4.40%. The company`s consolidated net profit tumbled 61.79% to Rs 11.07 crore on 4.59% increase in net sales to Rs 469.16 crore in Q4 March 2023 over Q4 March 2022.

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