SENSEX DROPS 354 PTS, NIFTY ENDS BELOW 21,800; NSE VIX JUMPS TO 15.62

The domestic equity benchmarks closed lower today following last-hour selling, as investors maintain caution ahead of the Reserve Bank of India`s rate-setting meeting this week. The focus remains on potential rate cut cues from the RBI and the impact of corporate earnings on sector-specific movements. In January, foreign institutional investors engaged in net selling due to factors such as a stronger dollar and increasing global bond yields. Additionally, geopolitical uncertainties and the potential effect of US job data on Federal Reserve rate cuts have led to investors securing profits post the interim Budget rally. Pharma, oil & gas, and auto stocks witnessed a surge in demand. On the other hand, consumer durables and FMCG stocks experienced downward pressure.

The barometer index, the S&P BSE Sensex tumbled 354.21 points or 0.49% to 71,731.42. The Nifty 50 index declined 82.10 points or 0.38% to 21,771.70.

Bajaj Finance (down 3.53%), Bharti Airtel (down 3.20%) and Reliance Industries (down 1.29%) were major drags.

In the broader market, the S&P BSE Mid-Cap index rose 0.02% and the S&P BSE Small-Cap index shed 0.23%.

The market breadth was negative. On the BSE, 1765 shares rose and 2195 shares fell. A total of 137 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 6.25% to 15.62.

The Reserve Bank of India (RBI) Governor-headed six-member Monetary Policy Committee (MPC) meeting is scheduled from 6 February to 8 February 2024.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 0.48% to 7.084 as compared with previous close 7.050.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.0600, compared with its close of 82.9800 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement shed 0.40% to Rs 62,310.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.35% to 104.29.

The United States 10-year bond yield rise 1.47% to 4.092.

In the commodities market, Brent crude for March 2024 settlement rose 47 cents or 0.61% to $77.80 a barrel.

Global Markets:

European shares advanced while most of the Asian stocks ended lower on Monday after a robust US jobs report dashed any expectations of a near-term interest rate cut from the Federal Reserve.

US stocks ended sharply higher on Friday with the S&P 500 registering an all-time closing high as strong earnings and a blowout January employment report boosted confidence in the economy.

Stocks in Spotlight:

Bharti Airtel dropped 3.20%. The telecom major`s consolidated net profit surged 53.77% to Rs 2,442.2 crore in Q3 FY24 as against Rs 1,588.2 crore reported in Q3 FY23. Revenue from operations grew 5.85% YoY to Rs 37,899.5 crore in the quarter ended 31 December 2023. Consolidated revenue growth was partially impacted by devaluation of African currencies during the period. Mobile ARPU increased to Rs 208 in Q3FY24 as against Rs 193 in Q3FY23.

UPL tumbled 11.12% after the pesticides maker reported a consolidated net loss of Rs 1,217 crore in Q3 FY24 as against a net profit of Rs 1,087 crore recorded in Q3 FY23. Revenue from operations declined 27.72% YoY to Rs 9,887 crore in the quarter ended 31 December 2023.

State Bank of India (SBI) shed 1.12%. The PSU bank�s standalone net profit slipped 35.49% to Rs 9,163.96 crore in Q3 FY24 as against Rs 14,205.34 crore posted in Q3 FY23. Profit after tax for the December 2023 quarter includes provisions of Rs 7,100 crore on account of one-time increase in pension liabilities at uniform rate of 50% and dearness relief neutralization. Total income increased 20.5% year on year (YoY) to Rs 1,18,192.68 crore in the quarter ended 31 December 2023.

Tata Motors advanced 5.46% after the company reported a consolidated net profit of Rs 7,145.43 crore in Q3 FY24, steeply higher from Rs 3,043.15 crore posted in Q3 FY23. Total revenue from operations jumped 24.96% YoY to Rs 11,05,77.14 crore in the quarter ended 31 December 2023.

Varun Beverages added 1.28% after the beverage maker`s consolidated net profit jumped 76.34% to Rs 143.76 crore on 20.99% increase in revenue from operations to Rs 2,731 crore in Q4 CY23 over Q4 CY22. The growth in revenue was driven by driven by volume growth in both India & International markets. In Q4 CY23, EBITDA stood at Rs 418.3 crore, recording a growth of 36% on YoY.

InterGlobe Aviation (Indigo) rose 1.43% after the company reported 110.75% surge in consolidated net profit to Rs 2,998.12 crore in Q3 FY24 from Rs 1,422.60 crore posted in Q3 FY23. Revenue from operations jumped 30.26% year on year to Rs 19,452.15 crore in the quarter ended 31 December 2023.

Mahindra Lifespace Developers soared 6.43% after the real estate developer�s consolidated net profit jumped 50.6% to Rs 50 crore in Q3 FY24 as against Rs 33.2 crore recorded in Q3 FY23. Revenue from operations tumbled 56.13% to Rs 81.99 crore in Q3 FY24 from Rs 186.90 crore posted in the corresponding quarter previous year.

SMC Global Securities jumped 15.25% after the company reported 63% rise in consolidated net profit to Rs 52.02 crore on a 35% increase in total revenue from operations to Rs 427.86 crore in Q3 FY24 over Q3 FY23.

Unichem Laboratories hit an upper circuit of 20% after the company reported consolidated net profit of Rs 83.99 crore in Q3 FY24 as against net loss of Rs 63.93 crore in Q3 FY23. Revenue from operations jumped 43.6% year on year (YoY) to Rs 434.38 crore in the quarter ended 31 March 2023.

IPO Update:

The initial public offer (IPO) of Apeejay Surrendra Park Hotels received bids for 8,75,33,280 shares as against 3,47,61,903 shares on offer, according to stock exchange data at 17:00 IST on Monday (5 February 2024). The issue was subscribed 2.52 times.

The issue opened for bidding on Monday (5 February 2024) and it will close on Wednesday (7 February 2024). The price band of the IPO is fixed at Rs 147-155 per share. An investor can bid for a minimum of 96 equity shares and in multiples thereof.

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