Indian equity indices ended near the flat line with small gains on Monday, snapping a two-day losing streak. The Nifty managed to close above the 19,400 level after hitting the day's low of 19,257.90 in morning trade. Media, IT and FMCG stocks advanced while metal, PSU bank and realty shares witnessed a bit of a selling pressure.

As per provisional closing data, the barometer index, the S&P BSE Sensex gained 79.27 points or 0.12% to 65,401.92. The Nifty 50 index added 6.25 points or 0.03% to 19,434.55.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 0.44% while the S&P BSE Small-Cap index slipped 0.50%.

The market breadth was negative. On the BSE, 1,554 shares rose and 2,172 shares fell. A total of 169 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 4.10% to 12.

The recent jump in the dollar index to 103 and the US 10-year bond yield rising to 4.18 are negative for capital flows to emerging markets, thereby making the market construct a bit negative. On Friday, FPIs sold shares worth Rs 3,073.28 crore, in line with these negative trends. For the month of August 2023, till date, the selling by FPIs added up to Rs 7,546.53 crore.

The recent decision by the Reserve Bank of India to raise the CRR of banks to neutralise the excess liquidity created by the withdrawal of Rs 2000 notes has further added to the negative sentiments prevailing among the investor community.

The domestic stock market will remain shut on Tuesday, 15 August 2023 on account of Independence Day.

Economy:

India's annual rate of wholesale inflation based on all India Wholesale Price Index (WPI) contracted -1.36% for the month of July 2023. It is in the negative territory for the fourth-straight month. WPI inflation stood at -4.12% in June, which was the lowest in more than seven-and-a-half years.

Decline in the rate of inflation is primarily contributed by fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products, the Commerce Ministry reported. India's WPI reading has remained in the negative territory for four straight months.

Separately, the Quick Estimates of Index of Industrial Production (IIP) for the month of June 2023 with base 2011-12 stood at 143.4 compared to 138.3 in June 2022, thereby recording a rise of 3.68%. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of June 2023 stand at 122.3, 141.0 and 205.2 respectively.

Gross direct tax collections grew 15.7% to Rs 6.5 lakh crore till August 10 in the current fiscal. Net direct tax collections after adjusting refunds stood at Rs 5.8 lakh crore, higher by 17.3% YoY.

India's foreign exchange reserves declined by $2.4 billion to $601 billion in the week ended August 4, marking the third consecutive week of decline, data from RBI showed.

IPO Update:

The initial public offer (IPO) of TVS Supply Chain Solutions received bids for 6.63 crore shares as against 2.51crore shares on offer, according to stock exchange data at 15:30 IST on Monday (14 August 2023). The issue was subscribed 2.64 times.

The issue opened for bidding on Thursday (10 August 2023) and it will close on Monday (14 August 2023). The price band of the IPO is fixed at Rs 187-197 per share. An investor can bid for a minimum of 76 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Metal index slipped 2.14% to 6,545.95. The index dropped 2.64% in two trading sessions.

Jindal Steel & Power (down 5.27%), Steel Authority of India (down 4.56%), Hindustan Copper (down 4.22%), National Aluminium Company (down 4.03%), Adani Enterprises (down 3.13%), JSW Steel (down 2.69%), Hindalco Industries (down 2.57%), Jindal Stainless (down 1.97%), Tata Steel (down 1.91%) and Vedanta (down 1.76%) tumbled.+

On the other hand, NMDC (up 4.53%) ,Ratnamani Metals & Tubes (up 1.72%) and APL Apollo Tubes (up 1.51%) edged higher.

Earnings Impact:

Adani Ports and Special Economic Zone (APSEZ) fell 2.31%. Deloitte Haskins and Sells resigned as the statutory auditor of the company, citing differences of opinion.

Oil and Natural Gas Corporation (ONGC) rose 0.71%. ONGC reported 18.4% rise in consolidated net profit to Rs 14,134 crore in Q1 FY24 from Rs 11,937 crore in Q1 FY23. Net sales declined by 10.4% to Rs 1,63,823.59 crore in the first quarter as compared with the same period last year.

Divis Laboratories gained 1.87% after the pharmaceutical company's consolidated net profit slumped 49.29% to Rs 356 crore on 21.15% decline in revenue from operations to Rs 1,778 crore in Q1 FY24 over Q1 FY23.

Aurobindo Pharma rose 1.12% after the drug maker's consolidated net profit grew 9.7% to Rs 570.8 crore on 9.9% increase in total revenue from operations to Rs 6,850.5 crore in Q1 FY24 over Q1 FY23.

FSN E-Commerce Ventures (Nykaa) slumped 8.31%. The online beauty and fashion retailer reported 8.28% rise in consolidated net profit to Rs 5.42 crore in Q1 FY24 as against Rs 5.01 crore recorded in Q1 FY23. Revenue from operations grew by 23.8% year on year to Rs 1,421.82 crore in the quarter ended 30 June 2023.

Pfizer slipped 3.29%. The pharmaceutical company reported 187% jump in net profit to Rs 93.53 crore in Q1 FY24 from Rs 32.55 crore in Q1 FY23. Revenue from operations fell by 10% to Rs 531.36 crore during the quarter as compared with the same period last year.

PTC Industries locked in an upper circuit of 10% after the company's consolidated net profit surged 291.67% to Rs 11.28 crore on 55.29% increase in net sales to Rs 71.51 crore in Q1 June 2023 over Q1 June 2022.

Muthoot Finance tumbled 5.34%. The company reported 21.6% jump in standalone net profit to Rs 975.12 crore on 20.6% jump in total income to Rs 3,026.32 crore in Q1 FY24 over Q1 FY23.

Timken India slipped 5.49%. The company reported 23.6% drop in net profit to Rs 90.14 crore in Q1 FY24 from Rs 118.05 crore in Q1 FY23. Net sales increased by 2.6% YoY to Rs 717.58 crore during the quarter. Meanwhile, Timken India informed that the Jamshedpur Plant of the company shall remain closed from 25 August 2023 to 3 September 2023 on account of low demand and better demand planning for production efficiency.

Spicejet jumped 6.50% after the company reported standalone net profit of Rs 204.56 crore in Q1 FY24 as against net loss of Rs 788.83 crore in Q1 FY23. However, total revenue from operations declined 18.52% YoY to Rs 2,001.74 crore during the quarter ended 30 June 2023.

JK Cement slipped 3.08% after the cement maker's consolidated net profit tumbled 29.5% to Rs 114.66 crore in Q1 FY24 as compared to Rs 162.69 crore recorded in Q1 FY23. Revenue from operations grew by 21.6% year on year to Rs 2,762.63 crore in the quarter ended 30 June 2023.

Global Markets:

Markets in Europe traded mixed while Asian stocks declined on Monday.

Japan's gross domestic product for the second quarter will be out on Tuesday, as well as its inflation print for Friday. China will release industrial production and retail sales for July, as well as house prices on Tuesday.

US stocks slipped on Friday after producer price inflation data came in above market expectations, heightening investors' concerns that the world's largest economy could keep rates higher for longer.

Data in the US showed that annual producer inflation accelerated to 0.8% in July from 0.2% in the previous month.

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