Domestic equity barometers ended with minor cuts on Tuesday, snapping a two day gaining streak. The Nifty closed below the 19,600 level after hitting the day's high of 19,634.40 in early trade. PSU bank, media and pharma shares advanced while metal, auto and FMCG stocks declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex slipped 106.98 points or 0.16% to 65,846.50. The Nifty 50 index shed 26.45 points or 0.13% to 19,570.85.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.15% while the S&P BSE Small-Cap index gained 0.25%.

The market breadth was positive. On the BSE, 1,852 shares rose and 1,752 shares fell. A total of 151 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 2% to 11.33.

IPO Update:

The initial public offer (IPO) of Concord Biotech received bids for 32.01 crore shares as against 1.46 crore shares on offer, according to stock exchange data at 15:30 IST on Tuesday (8 August 2023). The issue was subscribed 21.85 times.

The issue opened for bidding on Friday (04 August 2023) and it will close on Tuesday (08 August 2023). The price band of the IPO is fixed at Rs 705-741 per share. An investor can bid for a minimum of 20 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index rallied 3.37% to 4,540.80. The index witnessed bargain hunting after declining 4.93% in the past five trading sessions.

Indian Bank (up 14.33%), Bank of Maharashtra (up 7.53%), Union Bank of India (up 4.75%), Canara Bank (up 3.19%), Bank of India (up 3.06%), Punjab National Bank (up 3.06%), Central Bank of India (up 3.01%), Punjab & Sind Bank (up 2.91%), Bank of Baroda (up 2.77%) and Indian Overseas Bank (up 2.51%) advanced.

Earnings Impact:

Hindalco Industries fell 2.09% after the mining company's consolidated net profit tumbled 40.42% to Rs 2,454 crore on 8.66% decline in revenue from operations to Rs 52,991 crore in Q1 FY24 over Q1 FY23. On quarter on quarter basis, the company's net profit added 1.78% while revenue fell 5.13% in Q1 FY24. The dip in the revenue was mainly driven by unfavorable macros and subdued volumes.

Godrej Consumer Products declined 1.76%. The company reported a consolidated net profit of Rs 318.82 crore in Q1 FY24 as against a net profit of Rs 345.12 crore in Q1 FY23. Total income rose to Rs 3,518.02 crore in the June quarter from Rs 3,152.49 crore recorded in Q1 FY23.

Torrent Pharmaceuticals shed 0.37%. The company reported consolidated net profit of Rs 378 crore in Q1 FY24 as against a net profit of Rs 354 crore in Q1 FY23. Total income rose to Rs 2591 crore in the June quarter from Rs 2347 crore recorded in Q1 FY23.

PB Fintech slipped 4.32%. The company reported a net loss of Rs 11.42 crore in Q1 FY24, significantly lower as compared with a net loss of Rs 204.33 crore recorded in Q1 FY23. Revenue from operations jumped 31.8% year on year (YoY) to Rs 665.59 crore in the quarter ended 30 June 2023.

Tata Chemicals skid 2.82% after the consolidated net profit (from continuing operations) fell 9.83% to Rs 578 crore in Q1 FY24 as against Rs 641 crore in Q1 FY23. However, revenue from operations grew 5.58% year on year to Rs 4,218 crore in the quarter ended 30 June 2023.

Gland Pharma locked in 20% upper circuit after the company reported 147% jump in net profit to Rs 194.1 crore in Q1 FY24 from Rs 78.7 crore in Q4 FY23. The company's PAT is, however, lower by 15% as compared with Rs 229.2 crore recorded in Q1 FY23.

During the first quarter of financial year 2024, revenue from operation grew by 41% to Rs 1,208.7 crore as compared to corresponding quarter of the previous year, of which 37% contributed from the acquisition of Cenexi and 4% from the base business.

Max Healthcare Institute dropped 4.25%. The company's profit after tax (PAT) for Q1 FY24 rose by 27% to Rs 291 crore from Rs 229 crore in Q1 FY23. Network gross revenue was Rs 1,719 crore, reflecting a growth of 17% YoY. Increase in ARPOB (up 13% YoY) and occupied beds (up 3% YoY) majorly contributed to the revenue growth.

HLE Glascoat slumped 6.49%. The company's consolidated net profit declined 39.60% to Rs 9.29 crore on 3.54% fall in net sales to Rs 197.19 crore in Q1 June 2023 over Q1 June 2022.

Monte Carlo Fashions tumbled 10.22%. The company reported net loss of Rs 11.60 crore from net loss of Rs 3.92 crore posted in Q1 FY23. Revenue from operations jumped 22.95% to Rs 138.77 crore during the quarter as compared with Rs 138.77 crore recorded in Q1 FY23.

Global Markets:

The Dow Jones futures were down 164 points, indicating a negative opening in the US stock market today.

European markets tumbled while Asian stocks traded mixed on Tuesday as investors reacted to a whole host of global market developments.

Moody's cut the credit rating for 10 small to mid-sized US banks and said it may downgrade major lenders while the Italian government announced a 40% tax on banks' extra profits this year.

At the same time, weaker-than-expected trade data for China raised further concerns about the recovery in the world's second largest economy.

Exports from China slumped 14.5% yoy to a five-month low of USD 281.76 billion in July 2023, the steepest decline since February 2020, after a 12.4% drop in June, and worse than forecasts of a 12.5% fall, amid slowing global demand.

Overnight in the U.S., all three major indexes gained as investors continue to digest better-than-expected earnings results.

On the economic data front, traders are looking ahead to July's consumer price index report, out Thursday.

New York Federal Reserve President John Williams said rate cuts could happen as soon as next year if the data complies. Williams also hinted that the Fed could be done hiking rates as policy is ?pretty close to what a peak rate would be.?

Federal Reserve Governor Michelle Bowman said Monday she expects more interest rate increases will be needed to bring down inflation. The central bank official said ?additional increases will likely be needed to lower inflation to the? 2% inflation goal.

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