Nifty tops 18,150; Sensex gains 390 pts; metals shine.

STREET INVESTMENT

The key equity indices ended with strong gains amid positive global cues on Wednesday. The Nifty closed above the 18,150 mark after hitting the day's low of 18,032.45 in early trade. Metal, financial services and healthcare shares were in demand while PSU banks, oil & gas and auto shares tumbled.

As per provisional closing data, the barometer index, the S&P BSE Sensex gained 390.02 points or 0.64% to 61,045.74. The Nifty 50 index added 112.05 points or 0.62% to 18,165.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index gained 0.17%.

The market breadth was positive. On the BSE, 1,953 shares rose, and 1,559 shares fell. A total of 137 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.49% to 14.3725.

Economy:

The index of mineral production of mining and quarrying sector for the month of November, 2022 (Base: 2011-12=100) at 105.8, is 9.7% higher as compared to the level in the month of November, 2021. As per the provisional statistics of Indian Bureau of Mines (IBM), the cumulative growth for the period April-November, 2022-23 over the corresponding period of previous year is 4.7%.

Buzzing Index:

The Nifty Metal index rose 0.91% to 4,228.25. The index has declined 2.73% in two trading sessions.

Welspun Corp (up 4.43%), Steel Authority of India (up 4.19%), APL Apollo Tubes (up 4.18%), Hindustan Zinc (up 3.65%), Hindalco Industries (up 3.14%), Tata Steel (up 2.64%), Jindal Steel & Power (up 2.63%), Vedanta (up 1.93%), Hindustan Copper (up 1.75%) and JSW Steel (up 1.21%) advanced.

Hindalco Industries advanced 3.14% after the company's board approved allotment of 70,000 non-convertible debentures (NCDs) of Rs 1 lakh each aggregating to Rs 700 crore, on private placement basis.

Stocks in Spotlight:

ITC was up 0.89% The FMCG major on Tuesday announced that it will acquire 100% stake in Sproutlife Foods (SFPL), engaged in the manufacture and sale of health food brand 'Yoga Bar' for over a period of three to four years. By 31 March 2025, the company will acquire 47.5% stake in SFPL in tranches, and the balance stake will be acquired, basis pre-defined valuation criteria, subject to other conditions agreed to in the binding documents.

Adani Green Energy slipped 3.54%. The company said that its wholly-owned subsidiary, Adani Renewable Energy Holding Two has entered into a binding term sheet for acquisition of 50% equity interest in Essel Saurya Urja Company of Rajasthan (ESUCRL) for Rs 15 crore. The transaction is expected to be completed by 28 February 2023.

Maruti Suzuki India rose 0.20%. The car major has recalled a total of 17,362 vehicles manufactured between 8 December 2022 and 12 January 2023 to inspect and replace airbag controller (affected part), free of cost, if required in these vehicles. The affected models are Alto K10, S-Presso, Eeco, Brezza, Baleno and Grand Vitara.

ICICI Prudential Life advanced 0.72%. The life insurer's consolidated net profit declined 29% to Rs 221.56 crore on 78% rise in total income to Rs 17778.51 crore in Q3 FY23 over Q3 FY22. The net premium income for the quarter rose 4.3% on-year to Rs 9,465 crore. The first year gross premium income for the insurer declined 11% on-year to Rs 1,378 crore, while single premium income increased 12.6% to Rs 2,649 crore.

ICICI Lombard General Insurance Company tumbled 4.10%. The general insurer reported 11% rise in net profit to Rs 352.53 crore on 13.7% increase in total income to Rs 4,570.11 crore in Q3 FY23 over Q3 FY22.

Delta Corp slipped 3.74%. The gaming and casino firm's consolidated net profit rose 20.5% to Rs 84.82 crore on 10.58% increase in net sales to Rs 273.37 crore in Q3 FY23 over Q3 FY22.

Tata Investment Corporation dropped 4.20% after the company's consolidated net profit declined 13.2% to Rs 34.53 crore as against Rs 39.80 crore posted in Q3 FY22.

Eris Lifesciences declined 3.45% after the pharma company's consolidated net profit rose marginally to Rs 101.86 crore in Q3 FY23 as against Rs 100.77 crore recorded in Q3 FY22. Revenue from operations jumped 27.4% to Rs 417.84 crore in quarter ended 31 December 2022 as compared to Rs 328.07 crore in Q3 FY22.

Global markets:

Markets in Europe and Asia traded mostly higher on Wednesday.

The annual rate of inflation in the U.K. fell in December to 10.5%. It marked the second month of falls, after the rate slipped from a 41-year high to 10.7% in November.

Meanwhile, the Bank of Japan announced no change to its yield curve control policy.

US stocks saw mixed trend on Tuesday as weak earnings from Goldman Sachs dragged the Dow Jones Industrial Average index lower, but a jump in Tesla shares helped the Nasdaq Composite stay postive as the corporate earnings season took center stage.

Sensex below 60,000 level, bank stocks under pressure. 10 January 2023

 

The benchmark indices traded in a narrow range with deep cuts in mid-afternoon trade. The Nifty hovered below the 17,900 level. The Sensex traded below the key 60,000 level. Auto and healthcare shares edged higher while banks, financial services and metal stocks were under pressure.

The barometer index, the S&P BSE Sensex, was down 753.64 points or 1.24% to 59,993.67. The Nifty 50 index lost 218.50 points or 1.21% to 17,882.70.

In the broader market, the S&P BSE Mid-Cap index declined 0.83% while the S&P BSE Small-Cap index shed 0.66%.

The market breadth was weak. On the BSE, 1,244 shares rose and 2,212 shares fell. A total of 148 shares were unchanged.

Prime Minister Narendra Modi is scheduled to hold a pre-budget meeting with economists and sectoral experts at NITI Aayog on 13 January 2023 to discuss the state of the economy and measures to accelerate growth, as per reports. The meeting will also be attended by several Union ministers. The 2023-24 Budget is set to be presented in Parliament on February 1.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined to 7.319 from its close of 7.342 recorded in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.8450, compared with its close of 82.35 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement shed 0.17% to Rs 55,770.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.13% to 103.14.

The United States 10-year bond yield added 0.69% to 3.541.

In the commodities market, Brent crude for March 2023 settlement declined 33 cents or 0.41% to $79.32 a barrel.

Buzzing Index:

The Nifty Bank index fell 1.44% to 41,968.70. The index added 0.93% in the past trading session.

Punjab National Bank (down 3.5%), Bank of Baroda (down 2.67%), State Bank of India (down 2.07%), AU Small Finance Bank (down 2.05%), HDFC Bank (down 1.67%), IDFC First Bank (down 1.42%), ICICI Bank (down 1.27%), Axis Bank (down 1.22%), Bandhan Bank (down 0.81%) and Kotak Mahindra Bank (down 0.65%) slipped.

Stocks in Spotlight:

PSP Projects slipped 3.58%. The civil construction company said that it has received letter of award (LoA) for a Government project worth Rs 1,344.01 crore for the construction of high rise office building at Surat, Gujarat for Surat Municipal Corporation. With receipt of above, the total order inflow for the financial year 2022-23 till date amounts to Rs 3,292.59 crore, the company said.

Hi-Tech Pipes shed 0.27%. The company's board has allotted 55.40 lakh fully convertible equity warrants at Rs 692 each, aggregating to Rs 383.36 crore to promoter, promoter group & non-promoter group category. The company said that the warrants will be converted into fully paid up equity shares within 18 months from the date of allotment of warrants.

Hindware Home Innovation rallied 3.01%. The company said that its chief executive officer (CEO) and whole-time director (WTD) has tendered his resignation to pursue opportunities outside the organization. The resignation will be effective from the close of business hours on 5 April 2023.