Indian equity indices ended with minor cuts on Friday. The Nifty settled near the 19,750 mark after hitting the day's high of at 19,805.40 in mid-afternoon trade. Auto, realty and healthcare stocks advanced while banking, media and metal shares witnessed a bit of a selling pressure.

As per provisional closing data, the barometer index, the S&P BSE Sensex declined 125.65 points or 0.19% to 66,282.74. The Nifty 50 index shed 42.95 points or 0.22% to 19,751.05.

In the broader market, the S&P BSE Mid-Cap index lost 0.05% while the S&P BSE Small-Cap index fell 0.04%.

The market breadth was negative. On the BSE, 1,798 shares rose and 1,867 shares fell. A total of 155 shares were unchanged.

Economy:

India's overall exports (Merchandise and Services combined) in September 2023 are estimated to be USD 63.84 Billion, exhibiting a negative growth of (-) 1.20 per cent over September 2022. Overall imports in September 2023 are estimated to be USD 68.75 Billion, exhibiting a negative growth of (-) 13.67 per cent over September 2022.

Merchandise exports in September 2023 were USD 34.47 Billion, as compared to USD 35.39 Billion in September 2022. Merchandise imports in September 2023 were USD 53.84 Billion, as compared to USD 63.37 Billion in September 2022.

Meanwhile, India's retail inflation, as measured by the Consumer Price Index (CPI), declined to a three-month low of 5.02% in September due to easing food prices, according to data released by the National Statistics Office (NSO) on Thursday. In July 2023, India's CPI stood at 7.44%, while in August 2023, it was at 6.83%.

Separately, Industrial output as measured by the Index of Industrial Production (IIP) was 10.3% in August 2023. Factory output measured in terms of the IIP had contracted by 0.7% in August 2022.

Buzzing Index:

The Nifty PSU Bank index declined 1.39% to 5,048.95. The index fell 2.2% in three trading sessions.

Indian Overseas Bank (down 2.37%), Indian Bank (down 2.02%), Bank of Baroda (down 2%), State Bank of India (down 1.74%), Punjab & Sind Bank (down 1.7%), Bank of India (down 1.39%), UCO Bank (down 1.33%), Central Bank of India (down 0.92%), Canara Bank (down 0.85%) and Union Bank of India (down 0.77%) edged lower.

Stocks in Spotlight:

Infosys declined 2.24% after the IT major trimmed its FY24 revenue guidance again to 1% - 2.5%. The company has lowered its FY24 revenue guidance from the previous quarter's projection of 1% - 3.5% to 1% - 2.5% in constant currency, while maintaining the operating margin guidance at 20% - 22% for the same fiscal year.

The IT giant's consolidated net profit rose 4.5% to Rs 6,215 crore on 2.8% increase in revenues to Rs 38,994 crore in Q2 FY24 over Q1 FY24. On a year on year basis, the company's net profit and revenues grew by 3.1% and 6.7%, respectively as compared with Q2 FY23. The total contract value (TCV) of large deal wins was $7.7 billion in Q2 FY24, with net new of 48%.

HCL Technologies advanced 2.54% after the IT major reported 8.43% rise in consolidated net profit to Rs 3,832 crore on 1.43% increase in revenue from operations to Rs 26,672 crore in Q2 FY24 over Q1 FY24. Compared with Q2 last year, the company's net profit and revenue were higher by 9.83% and 8.05%, respectively.

For FY24, the company slashed its revenue growth guidance to 5%-6% YoY in CC from 6%-8% estimated in the previous quarter, while maintaining the EBIT margin guidance at 18% - 19%. Services revenue guidance is revised to be in between 4.5%-5.5% from 6.5%-8.5% YoY in CC and company's organic revenue growth is expected to be between 4%-5% YoY in CC for the same fiscal year. In Q2 FY24, the company bagged 16 large deals - 10 in the Services segment & 6 in the Software segment. Total contract value (TCV) of new deal wins was $3,969 million.

HDFC Life Insurance Company shed 0.03%. The life insurer reported 15.49% increase in standalone net profit to Rs 376.77 crore on 12.55% rise in net premium income to Rs 14,755.96 crore in Q2 FY24 over Q2 FY23. Net income from investments declined 17.16% year on year (YoY) to Rs 8,104.41 crore in Q2 FY24. Assets under management (AuM) grew 18% to Rs 2,64,870 crore in H1 FY24 as compared to Rs 2,24,901 crore reported the same period last year.

Angel One lost 0.66%. The company posted 42.5% rise in consolidated net profit to Rs 304.5 crore on 40.7% rise in total income to Rs 1049.3 crore in Q2 FY24 over Q2 FY23.

Maruti Suzuki India rose 1.62%. The meeting of the board of directors of the company is scheduled on 17 October 2023 to consider and approve the issue of equity shares of the company to Suzuki Motor Corporation (SMC) on a preferential basis. The board will also consider to discharge the consideration payable by the company for acquisition of 100% equity stake of SMC in Suzuki Motor Gujarat Private Limited.

Dr Reddy's Laboratories fell 1.44%. The drug major said that United States Food and Drug Administration (USFDA) conducted an pre-approval inspection (PAI) inspection at its biologics manufacturing facility in Bachupally, Hyderabad. The said inspection was conducted from 4 October 2023 to 12 October 2023. The USFDA has issued form 483 with nine observations, the company said it will address within stipulated timeline.

Panacea Biotec shed 1.86%.the drug maker said that the United States Food and Drug Administration (USFDA) conducted an inspection at its material wholly-owned subsidiary, Panacea Biotec Pharma at Baddi facility, Himachal Pradesh. The inspection was conducted from 3 October 2023 to 12 October 2023 at Baddi, Himachal Pradesh, India facility.

At the end of inspection, USFDA issued a FDA Form 483 with nine observations which are related to improvements in existing procedures and are addressable.

Global Markets:

Markets in Europe and Asia slipped across the board on Friday.

In Europe, data released today showed that French CPI rose 4.9% annually in September, while the Spanish equivalent climbed 3.5% on the year.

These figures were in line with expectations and suggest the European Central Bank will keep interest rates at an elevated level for some time given consumer prices remain considerably above the ECB's medium-term target.

Another economic data released announced on Friday showed further drop in China's exports and imports in September, although they shrank at a slower pace, pointing to a gradual stabilisation in the world's second-biggest economy.

Exports fell by 6.2% in U.S. dollar terms last month from a year ago, less than the expected 7.6% drop, while imports also fell by 6.2% compared to a year ago.

China's Consumer Price Index (CPI) stagnated at 0% YoY in September after accelerating by 0.1% in August. China's Producer Price Index (PPI) dropped 2.5% YoY in September, compared with a 3% decline registered previously.

Singapore's central bank kept its monetary policy unchanged for a second straight meeting, maintaining the rate of appreciation of its Singapore dollar nominal effective exchange rate policy band.

Singapore's GDP grew faster than expected and expanded 0.7% year-on-year in the third quarter, advanced estimates from the government showed.

US stocks indices fell on Thursday after a treasury auction sent bond yields higher.

Consumer prices rose 3.7% over last year in September, matching August's increase. On a month-over-month basis, consumer prices rose 0.4%.

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