Sensex slides 206 pts, Nifty below 18,100 level, IT stocks edge lower

The frontline indices continued to trade with modest losses in the early afternoon trade. The Nifty traded below the 18,100 level. Media, pharma and metal stocks advanced while auto, PSU bank and IT stocks declined.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 206.15 points or 0.34% to 60,915.20. The Nifty 50 index gained 60.10 points or 0.33% to 18,085.30.

In the broader market, the S&P BSE Mid-Cap index shed 0.02% while the S&P BSE Small-Cap index rose 0.26%.

The market breadth was positive. On the BSE, 1,790 shares rose and 1,531 shares fell. A total of 172 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.47% to 16.53. The Nifty 24 November 2022 futures were trading at 18,150.40, at a premium of 65.1 points as compared with the spot at 18,085.30.

The Nifty option chain for the 24 November 2022 expiry showed maximum Call OI of 19.3 lakh contracts at the 18,000 strike price. Maximum Put OI of 33.1 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty IT index declined 0.70% to 29,065.75. The index added 3.36% in two trading sessions.

Infosys (down 1.42%), HCL Technologies (down 0.92%), Coforge (down 0.75%), Tata Consultancy Services (down 0.46%), Persistent Systems (down 0.43%), Larsen & Toubro Infotech (down 0.23%) declined.

On the other hand, Wipro (up 0.2%) ,Tech Mahindra (up 0.19%) and Mphasis (up 0.13%) edged higher.

Tech Mahindra rose 0.19%. On a consolidated basis, the IT major's net profit rose 13.59% to Rs 1,285.40 crore on 3.32% increase in revenue from operations to Rs 13,129.50 crore in Q2 FY23 over Q1 FY23. On a year on year (YoY) basis, Tech Mahindra's net profit declined 4% while revenue jumped 20.7% in Q2 FY23.

Stocks in Spotlight:

LIC Housing Finance tumbled 9.22%. The company reported 23% rise in net profit to Rs 304.97 crore on an 8% increase in total income to Rs 5,092 crore in Q2 FY23 over Q2 FY22. Net interest income (NII) fell by 1% to Rs 1,162.90 crore in Q2 FY23 from Rs 1,172.94 crore in Q2 FY22. Net interest margin (NIM) for the quarter stood at 1.80% as against 2% for Q2 FY22.

Kansai Nerolac Paints slipped 3.16%. The company reported 19% rise in standalone net profit to Rs 117.3 crore on a 19.3% increase in net revenue to Rs 1,814.3 crore in Q2 FY23 over Q2 FY22.

Cholamandalam Investment and Finance Company rallied 5.36%. TheNBFC's net profit declined 7.1% to Rs 563.41 in Q2 FY23 as against Rs 606.54 crore recorded in Q2 FY22. Total Income jumped 22.42% to Rs 3,037.78 crore in quarter ended 30 September 2022 from Rs 2481.54 crore posted in the same quarter a year ago.

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