Stock Market HIGHLIGHTS: Sensex ends 632 points lower, Nifty50 sinks below 17,950 dragged by IT, financial shares; TCS down 1%
Stock Market HIGHLIGHTS: Indian equity benchmarks Sensex and Nifty50 fell around one per cent each on Tuesday amid selling pressure in financial and IT shares. Heavyweights such as TCS -- which reported its quarterly results the previous day, HDFC Bank, Infosys and Reliance were the top drags on headline indices. Gains in spaces such as auto helped Sensex and Nifty50 avoid deeper losses.
Here are 10 key things to know about the January 10 session:
1) Both headline indices reversed initial gains soon after a positive start and stayed under pressure throughout the session. The Sensex lost 631.8 points to end at 60,115.5 and the Nifty50 settled at 17,914.2, having shed 187.1 points for the day. The main indices fell as much as 1.4 per cent in intraday trade before recovering some of those losses by the closing bell.
2) Adani Enterprises, Bharti Airtel, Eicher Motors, Adani Ports, SBI, HDFC Bank, UltraTech and Bajaj Finance were the top laggards, closing between 1.5 per cent and 5.7 per cent lower. On the other hand, Tata Motors, Apollo Hospitals, Hindalco, PowerGrid, Divi's and IndusInd -- declining between one per cent and 5.9 per cent -- rose the most among blue-chip stocks.
3) Reliance, HDFC Bank and ICICI Bank were the biggest drags on both Sensex and Nifty50, accounting for more than 300 points in the fall in Sensex.
4) Barring the Nifty Auto and the Nifty Healthcare, which finished 0.3 per cent and 0.1 per cent higher respectively, all of NSE's sectoral indices ended in the red. The Nifty PSU Bank was the worst hit, falling 2.7 per cent for the day. The Nifty Bank closed with a cut of 1.4 per cent.
5) The Nifty IT -- whose 10 constituents include TCS, Infosys and Wipro -- finished 0.9 per cent lower. TCS ended lower by Rs 33.5 or one per cent at Rs 3,286.2 apiece on BSE.
6) Overall market breadth turned negative from neutral during the course of the day, with an advance-decline ratio of 2:3 as 1,427 stocks rose and 2,094 fell at the close on BSE.
7) Analysts await a speech by Fed Chairman Jerome Powell scheduled later in the day for clues on the path of rate hikes in the world's largest economy.
8) European shares began the day in the red amid broad-based selling amid nervousness among investors ahead of the Fed Chair's speech, a day after two US central bank officials struck a hawkish tone. The UK's FTSE 100 was down 0.7 per cent at the last count.
9) S&P 500 futures edged 0.1 per cent lower, suggesting minor weakness ahead on Wall Street.
10) Equities in other Asian markets fell following a largely weak handover from Wall Street on Monday. MSCI's broadest index of Asia Pacific shares outside Japan finished 0.3 per cent lower. Japan's Nikkei 225 rose 0.8 per cent as the market returned to trade after a holiday. Hong Kong's Hang Seng fell 0.3 per cent and China's Shanghai Composite 0.2 per cent.
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Stock Market HIGHLIGHTS: Indian equity benchmarks Sensex and Nifty50 fell around one per cent each on Tuesday amid selling pressure in financial and IT shares. Heavyweights such as TCS -- which reported its quarterly results the previous day, HDFC Bank, Infosys and Reliance were the top drags on headline indices. Gains in spaces such as auto helped Sensex and Nifty50 avoid deeper losses.
Here are 10 key things to know about the January 10 session:
1) Both headline indices reversed initial gains soon after a positive start and stayed under pressure throughout the session. The Sensex lost 631.8 points to end at 60,115.5 and the Nifty50 settled at 17,914.2, having shed 187.1 points for the day. The main indices fell as much as 1.4 per cent in intraday trade before recovering some of those losses by the closing bell.
2) Adani Enterprises, Bharti Airtel, Eicher Motors, Adani Ports, SBI, HDFC Bank, UltraTech and Bajaj Finance were the top laggards, closing between 1.5 per cent and 5.7 per cent lower. On the other hand, Tata Motors, Apollo Hospitals, Hindalco, PowerGrid, Divi's and IndusInd -- declining between one per cent and 5.9 per cent -- rose the most among blue-chip stocks.
3) Reliance, HDFC Bank and ICICI Bank were the biggest drags on both Sensex and Nifty50, accounting for more than 300 points in the fall in Sensex.
4) Barring the Nifty Auto and the Nifty Healthcare, which finished 0.3 per cent and 0.1 per cent higher respectively, all of NSE's sectoral indices ended in the red. The Nifty PSU Bank was the worst hit, falling 2.7 per cent for the day. The Nifty Bank closed with a cut of 1.4 per cent.
5) The Nifty IT -- whose 10 constituents include TCS, Infosys and Wipro -- finished 0.9 per cent lower. TCS ended lower by Rs 33.5 or one per cent at Rs 3,286.2 apiece on BSE.
6) Overall market breadth turned negative from neutral during the course of the day, with an advance-decline ratio of 2:3 as 1,427 stocks rose and 2,094 fell at the close on BSE.
7) Analysts await a speech by Fed Chairman Jerome Powell scheduled later in the day for clues on the path of rate hikes in the world's largest economy.
8) European shares began the day in the red amid broad-based selling amid nervousness among investors ahead of the Fed Chair's speech, a day after two US central bank officials struck a hawkish tone. The UK's FTSE 100 was down 0.7 per cent at the last count.
9) S&P 500 futures edged 0.1 per cent lower, suggesting minor weakness ahead on Wall Street.
10) Equities in other Asian markets fell following a largely weak handover from Wall Street on Monday. MSCI's broadest index of Asia Pacific shares outside Japan finished 0.3 per cent lower. Japan's Nikkei 225 rose 0.8 per cent as the market returned to trade after a holiday. Hong Kong's Hang Seng fell 0.3 per cent and China's Shanghai Composite 0.2 per cent.
Catch highlights of Zeebiz.com's coverage of the stock, forex and commodity markets, and much more, here:
Latest Updates
Nifty Bank faces stiff resistance at 43,000: LKP Securities' Kunal Shah
Kunal Shah, Senior Technical Analyst at LKP Securities, is of the view that the Nifty Bank faces stiff resistance at the 43,000 level and finds support at 42,000, a level, which if breached, can lead to further selling pressure towards the 41,500-41,400 zone. "This will be the last line of defence for the bulls," he says.
Investors lose Rs 2.2 lakh crore in wealth in a day
Investors lost Rs 2.2 lakh crore in wealth on Tuesday as the market capitalisation of BSE-listed companies came down to Rs 280.8 lakh crore, according to provisional exchange data.
Closing Bell | Sensex ends 632 points lower, Nifty50 gives up 17,950
Both headline indices end with losses of one per cent each. The Sensex loses 631.8 points to end at 60,115.5 and the Nifty50 settles at 17,914.2, shedding 187.1 points for the day.
Infosys likely to report 9% sequential growth in Q3 net profit
Infosys -- India's second largest IT firm -- is all set to report its financial results for the October-December period on January 12, after its rival Tata Consultancy Services (TCS) reported a mixed set of quarterly earnings.
According to Zee Business research, Infosys is expected to report a net profit of Rs 6,580 crore for the three-month period, which translates to an increase of 9.3 per cent compared with the previous quarter. The IT major is estimated to report revenue growth of 3.8 per cent on a sequential basis to Rs 37,920 crore for the quarter ended December 2022.
Revenue in dollars is estimated to increase to $4614 million for the quarter, as against $4555 million for the previous three months -- a sequential rise of 1.3 per cent, according to Zee Business research.
Revenue in constant currency terms is estimated to improve by 1.5 per cent compared with the July-September period.
Infosys is estimated to mainain its growth guidance at 15-16 per cent in constant currency terms as well as the EBIT margin guidance at 21-23 per cent, according to Zee Business research. (What more to expect from Infosys in Q3)
Tata Motors surges on rise in JLR wholesale volumes; brokerages see 30% upside
Tata Motors shares jump by as much as Rs 28.3 or 7.3 per cent to Rs 417.7 apiece on BSE, after the auto major's subsidiary, Jaguar Land Rover (JLR), reports higher wholesale volumes in the October-December period on the back of improvement in chip supplies.
CLSA expects JLR's margin profile to improve with volume growth. For commercial and passenger vehicles, according to the brokerage, that business margins is likely to improve on lower commodity costs and price hikes.
CLSA has upgraded Tata Motors to 'buy' from 'outperform' with a target price of Rs 512 -- implying upside potential of 31.5 per cent from Monday's closing price.
JPMorgan has a 'neutral' call on Tata Motors with a target at Rs 400 per share. (Read more on Tata Motors shares)
ICICI Securities sees improving margin cushioning auto, auto ancillary results sequentially in Q3
The brokerage expects auto earnings for the October-December period to sail through smoothly on a sequential basis for the auto space. It sees the weaker scale impact getting balanced by higher gross margin in coparison to the July-September period, with Q4 being a quarter of better scale and margin combined.
Despite scale being closer to the 2018-19 highs in passenger and commercial vehicles, the EBITDA for most is far lower than the 2018-19 levels due to the lower gross margin, according to ICICI Securities, which it believes should gradually recover from the December quarter.
ICICI Securities has TVS Motors, Ashok Leyland, Apollo Tyres Balkrishna Industries and Mahindra CIE as its top picks for the auto sector.
Avoid largecap IT stocks, focus on smaller segments instead: Centrum Broking's Nilesh Jain
Nilesh Jain, Assistant Vice President-Lead Derivative and Technical Research at Centrum Broking, warns of profit booking in TCS shares. The company's quarterly results, in his view, did not meet market expectations.
He suggests avoiding the largecap IT space at the current juncture. Investors must focus on mid-cap and small-cap stocks in the sector, he says.
He likes stocks such as Firstsource Solutions, KPIT Tech and L&T Tech Services.
One can expect some pullback in the IT sector as the Nifty IT is seeing a lower top-lower bottom formation on the technical charts, but no major upside is on the cards over the near term, he adds.
All 10 Nifty IT constituents in the red; TCS worst hit
| Stock/index | Change (%) |
| NIFTY IT | -1.2 |
| S&P BSE IT | -1.2 |
| Nifty50 | -1.2 |
| WIPRO | -0.2 |
| HCLTECH | -0.2 |
| MPHASIS | -0.5 |
| PERSISTENT | -0.8 |
| LTTS | -1.1 |
| COFORGE | -1.1 |
| TECHM | -1.4 |
| INFY | -1.5 |
| LTIM | -1.6 |
| TCS | -1.6 |
TCS shares remain under pressure after mixed earnings
Tata Consultancy Services (TCS) shares continue to reel under pressure, a day after the IT major reported a mixed set of earnings. The TCS stock is quoting weaker by Rs 55.7 or 1.7 per cent at Rs 3,264 on BSE after falling by as much as Rs 88.7 or 2.7 per cent to Rs 3,231 apiece.
TCS reported a net profit of Rs 10,846 crore for the October-December period and revenue of Rs 58,229 crore. According to Zee Business research, TCS was estimated to report a quarterly net profit of Rs 11,270 crore and revenue of Rs 57,280 crore. (Read more on TCS shares)
Sona BLW Precision, Tata Motors, Tanla top gainers in BSE 500 universe
More than 350 stocks in the index are struggling in the negative zone. UCO Bank, IDBI, Maharashtra Bank, Indian Overseas Bank and Adani Enterprises are the top laggards in the 500-scrip index.
Fear index VIX surges
The India VIX -- known in market parlance as the volatility or fear index -- is up 4.2 per cent at 15.3, having surged as much as six per cent earlier in the day.
Nifty PSU Bank, Nifty IT worst hit among NSE's sectoral indices
The Nifty Bank is also among the top laggards among the bourse's sectoral gauges, trading 1.2 per cent lower. On the other hand, the Nifty Auto is among the few gainers, holding up 0.6 per cent.
| Index | Change (%) |
| NIFTY PSU BANK | -2.6 |
| NIFTY IT | -1.5 |
| NIFTY BANK | -1.2 |
| NIFTY FINANCIAL SERVICES | -1.2 |
| NIFTY PRIVATE BANK | -1 |
| NIFTY REALTY | -0.6 |
| NIFTY OIL & GAS | -0.5 |
| NIFTY METAL | -0.5 |
| NIFTY FMCG | -0.4 |
| NIFTY MEDIA | -0.2 |
| NIFTY CONSUMER DURABLES | -0.2 |
| NIFTY PHARMA | 0.3 |
| NIFTY HEALTHCARE INDEX | 0.4 |
| NIFTY AUTO | 0.6 |
Hitman Himanshu | Buy Nifty50 18,000 at-the-money call, says Globe Capital Markets' Himanshu Gupta
Globe Capital Markets' Himanshu Gupta suggests buying the Nifty50 18,000 call at Rs 70-80 for a target of Rs 160-200 with a stop loss at Rs 50.
Exclusive | Goldilocks Premium's Gautam Shah says 2023 can be a challenging year for D-Street
In an exclusive interaction with Zee Business Managing Editor Anil Singhvi, Gautam Shah of Goldilocks Premium Research says 2023 can be a challenging year for the market.
Sharing his outlook for the year, Shah says the Nifty50 has a big hurdle at 18,300 and support at 17,800, which, if broken, will lead to the next base at 17,300-17,400 and then 16,900 though this is "not our worst-case scenario view for the year".
CG Power is Simi Bhaumik's positional midcap pick for targets up to Rs 380
In an interaction with Zee Business Managing Editor Anil Singhvi, technical analyst Simi Bhaumik suggests buying CG Power for the next 3-6 months as a positional pick for target prices of Rs 340, Rs 355 and Rs 380.
CG Power shares have rewarded investors with a return of almost 43 per cent in the past six months, a period in which the Nifty50 benchmark has risen 10.8 per cent.
