The key domestic equity benchmarks, Sensex and Nifty, opened Thursday’s session on a muted note but largely maintained their ground amid a positive bias in the broader market. At the opening bell, the 30-share Sensex was down 13.78 points or 0.02% at 60,678.25, and the broader Nifty declined by just 0.75 point to 18,087.05.
However, advancing stocks outnumbered declining ones as more than half of the constituents on the two indices traded with gains in the initial hours. On the sectoral front, auto, infra, healthcare and power stocks weighed the most on the benchmarks, whereas banking and financial counters provided some support.
Among early gainers, Bajaj Auto rose over 3% after reporting a 22% YoY rise in standalone net profit for the October-December period, which was higher than analyst estimates. Coal India, NTPC, ITC and Titan Company were some other prominent stocks trading in positive territory.
On the other hand, drag on the indices came mainly from Tech Mahindra which plunged more than 6% as its Q3 net profit missed street expectations. Axis Bank, Kotak Mahindra Bank, Maruti Suzuki and ICICI Bank were some other losing bluechip stocks, declining in the range of 0.5-1%.
Asian markets were mixed in early trade as focus shifted to China’s policy meetings next week and hopes that Beijing may provide more economic stimulus. Treasury yields held near mid-December highs ahead of major economic data from the United States. Oil prices inched lower while the dollar stayed strong.
Moving on to other news updates, brokerage firms have come out with their outlook on the results and prospects of select companies that announced their numbers recently. While most remained positive on Bajaj Auto post solid Q3 earnings beat, views were mixed on Tech Mahindra after profit miss.
In other earnings development, Tech Mahindra board has approved an interim dividend of Rs 12 per share. Glenmark Pharma inked an exclusive licensing pact with Jiangsu Alphamab Biopharmaceuticals for a novel monoclonal antibody KN035. Paytm reported disbursals of 1.22 crore loans in Q3FY23.
After the subdued start, market participants will be eyeing further news on corporate earnings and global macroeconomic developments for cues. With several immediate resistance levels in place, the benchmarks may continue facing headwinds, though sector rotation could provide intermittent relief in select pockets. The broader parameters too may take a break after the recent run-up and consolidation cannot be ruled out in the near term.
