Indices drift higher in early trade; Nifty above 18,050

STREET INVESTMENT

The key equity indices were trading with small gains in early trade. The Nifty traded above the 18,050 level. Metal, IT and health care shares were in demand while PSU bank, realty and media shares corrected.

The barometer index, the S&P BSE Sensex, was up 21.83 points or 0.04% to 60,677.55. The Nifty 50 index added 14.80 points or 0.09% to 18,069.30.

In the broader market, the S&P BSE Mid-Cap index rose 0.21% while the S&P BSE Small-Cap index gained 0.18%.

The market breadth was strong. On the BSE, 1,533 shares rose, and 901 shares fell. A total of 119 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 211.06 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 90.81 crore in the Indian equity market on 17 January, provisional data showed.

Stocks in Spotlight:

E.I.D. - Parry (India) rose 0.32%. The new 120 KLPD distillery of the company at its sugar unit at Sankili, Andhra Pradesh, has commenced commercial operations with effect from 17th January 2023.

Tata Metaliks gained 1.58%. The company reported net profit of Rs 9.48 crore in Q3 FY23 as compated to net profit of Rs 35.88 crore in Q3 FY22. Total income rose to Rs 792.43 crore in Q3 FY23 from Rs 693.12 crore in Q3 FY22.

Shalby declined 3.68%. The company reported consolidated net profit of Rs 15.27 crore in Q3 FY23 as compated to net profit of Rs 18.40 crore in Q3 FY22. Total income rose to Rs 206.5 crore in Q3 FY23 from Rs 207.1 crore in Q3 FY22.

Global markets:

Asian stocks are trading mostly higher even as 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.

Barometers trade with modest gains; Sensex adds 351 pts.

 

The key equity indices continued to trade with modest gains in mid-afternoon trade. The Nifty hovered above the 17,950 mark. While large caps were trading higher, broader market witnessed selling. FMCG, IT and auto shares advanced while PSU bank, metal and media shares corrected.

The barometer index, the S&P BSE Sensex, was up 351.03 points or 0.58% to 60,444. The Nifty 50 index added 95.10 points or 0.53% to 17,989.95.

The broader market declined. The S&P BSE Mid-Cap index slipped 0.39% while the S&P BSE Small-Cap index shed 0.22%.

The market breadth was negative. On the BSE, 1532 shares rose, and 1931 shares fell. A total of 140 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.336 from its close of 7.327 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 81.81, compared with its close of 81.5825 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement lost 0.11% to Rs 56,421.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 102.29.

The United States 10-year bond yield rose 1.30% to 3.557.

In the commodities market, Brent crude for March 2023 settlement lost 49 cents or 0.57% to $84.79 a barrel.

Buzzing Index:

The Nifty Auto index rose 0.36% to 12,794.75. The index has declined 0.65% in the past trading session.

Tube Investments of India (up 1.15%), Eicher Motors (up 1.15%), Maruti Suzuki India (up 0.93%), Balkrishna Industries (up 0.86%), Tata Motors (up 0.81%), MRF (up 0.64%), Bajaj Auto (up 0.5%) and Bharat Forge (up 0.27%) advanced.

Stocks in Spotlight:

Mastek slipped 3.49% after the IT company's consolidated net profit tumbled 18.86% to Rs 64.18 crore as against Rs 79.10 crore recorded in Q2 FY23. In dollar terms, the firm's revenue was $80.1 million (CC growth of 3.1% QoQ and 20% YoY). The board of directors has recommended an interim dividend Rs 7 per equity share, which will be paid to the eligible shareholders within 30 days. The record date for the same is fixed on Wednesday, 1 February 2023.

Bank of India slumped 5.47%. The state-run bank's net profit increased 12% to Rs 1,151 crore on 26.3% rise in total income to Rs 14,159.60 in Q3 FY23 over Q3 FY22. Net interest income (NII) increased by 64% YoY to Rs 5,596 crore for Q3 FY23 as against Rs 3,408 crore for Q3 FY22. Net interest margin (NIM) (domestic) improved to 3.72% in Q3 FY23 as compared to 2.51% in Q3 FY22.

Glenmark Pharmaceuticals declined 0.75%. The drug maker launched the sacubitril + valsartan tablets in India, for the treatment of heart failure marketed under the brand name 'Sacu V'.

Nifty climbs above 18,000; Sensex adds 387 pts; FMCG shares gain.

 

STREET INVESTMENT

The domestic equity benchmarks traded with moderate gains in morning trade. The Nifty marched above the key 18,000 level. FMCG shares advanced for the second straight day.

The barometer index, the S&P BSE Sensex, was up 386.63 points or 0.64% to 60, 479.60. The Nifty 50 index added 107.65 points or 0.60% to 18,002.50.

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

The market breadth was strong. On the BSE, 1,670 shares rose, and 1,456 shares fell. A total of 185 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,422.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,953.40 crore in the Indian equity market on 13 January, provisional data showed.

Earnings Today:

Bank of India (up 1.23%), ICICI Lombard General Insurance Company (up 0.06%), ICICI Prudential Life Insurance Company (down 0.92%), Delta Corp (down 1.56%), Eris Lifesciences (down 0.05%), Hathway Cable & Datacom (up 0.90%), Mastek (down 1.68%), Metro Brands (up 0.93%), Network18 Media & Investments (up 0.53%), TV18 Broadcast (down 0.13%) and Tata Investment Corporation (up 1.42%) will announce their quarterly results later today.

Buzzing Index:

The Nifty FMCG index gained 1.22% to 44,544.50, extending gains for the second day. The index advanced 1.34% in two trading sessions.

Hindustan Unilever (up 2.79%), Radico Khaitan (up 2.25%), ITC (up 0.86%), Godrej Consumer Products (up 0.84%), Dabur India (up 0.71%), Marico (up 0.62%), Britannia Industries (up 0.59%), Nestle India (up 0.39%), Colgate-Palmolive (India) (up 0.36%) and Tata Consumer Products (up 0.28%) advanced.

Stocks in Spotlight:

Siemens rose 0.67% after it received an order for 1,200 locomotives of 9000 horsepower (HP) from Indian Railways, marking the single largest locomotive order in the history of Siemens Mobility and single largest order in the history of Siemens in India. The contract has a total value of Rs 26,000 crore (approximately), excluding taxes and price variation.

Tinplate Company of India slipped 1.08% after the company announced that its net profit declined 61.7% to Rs 36.38 crore on 18.7% decrease in net sales to Rs 867.06 crore in Q3 FY23 over Q3 FY22.

V-Mart Retail fell 0.93% after a fire accident took place at one of the company's store at Kanpur in Uttar Pradesh on Monday, 16 January 2023. V-Mart Retail clarified that there was no loss or injury to human life.

SGX Nifty indicates firm opening. 12 January 2023

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 47 points at the opening bell.

On the macro front, the Industrial Production and Manufacturing Production data for November will be released today. Inflation rate for December will also be declared today.

Global markets:

Overseas, Asian stocks as investors look ahead to the U.S. consumer price index report Thursday.

Inflation in China accelerated 1.8% in December compared with a year ago as food prices rose, data from the National Bureau of Statistics showed. The CPI figure was in line with expectations and higher than the previous month's reading of 1.6%.

US stocks ended up sharply on Wednesday as investors were optimistic ahead of an inflation report that could give the Federal Reserve room to dial back on its aggressive interest rate hikes.

Domestic markets:

Back home, the domestic equity barometers ended a choppy session near the flat line on Wednesday. The barometer index, the S&P BSE Sensex declined 9.98 points or 0.02% to 60,105.50. The Nifty 50 index shed 18.45 points or 0.10% to 17,895.70.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,208.15 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,430.62 crore in the Indian equity market on 11 January, provisional data showed.