The key equity barometers ended with decent gains on Tuesday, rising for the fourth consecutive session. The Nifty 50 index ended near 18,150 mark. Metals, pharma and healthcare stocks were in demand. However, banks and auto shares lagged. Positive global cues and encouraging domestic economic data supported buying. Strong buying by the FIIs also boosted sentiment.
The barometer index, the S&P BSE Sensex, advanced 374.76 points or 0.62% to 61,121.35. The Nifty 50 index gained 133.20 points or 0.74% to 18,145.40. The Nifty has risen 2.77% in four straight sessions.
Adani Enterprises (up 6.94%), Divi's Laboratories (up 6.10%), NTPC (up 5.14%), Power Grid Corporation of India (up 2.91%) and Grasim Industries (up 2.51%) were top Nifty gainers.
In the broader market, the S&P BSE Mid-Cap index rose 1.04% while the S&P BSE Small-Cap index gained 0.26%.
The market breadth was positive. On the BSE, 1,827 shares rose and 1,616 shares fell. A total of 139 shares were unchanged.
The US Federal Reserve, which begins its two-day meeting Tuesday, is reportedly expected to deliver a fourth straight 75-basis-point rate hike on Wednesday in its attempt to tame inflation. Investors will also focus on the communication of the outlook.
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Back home, the Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) will hold an additional meeting on Thursday, 3 November 2022.
The MPC last met on 28-30 September 2022. It was slated to meet for the last time this calendar year on 5-7 December 2022.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.3957 compared with 7.445 at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.71, compared with its close of 82.81 during the previous trading session.
MCX Gold futures for 5 December 2022 settlement added 0.56% to Rs 50,605.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.66% to 110.80.
The United States 10-year bond yield slumped 3.24% to 3.945.
In the commodities market, Brent crude for January 2023 settlement gained $1.67 or 1.8% at $94.48 a barrel.
Economy:
India's gross GST revenue collected in the month of October 2022 is Rs 1,51,718 crore of which CGST is Rs 26,039 crore, SGST is Rs 33,396 crore, IGST is Rs 81,778 crore (including Rs 37,297 crore collected on import of goods) and Cess is Rs 10,505 crore (including Rs 825 crore collected on import of goods), which is second highest till date. The revenue for October 2022 is second highest monthly collection, next only to the collection in April 2022 and it is for the second time the gross GST collection has crossed Rs. 1.50 lakh crore mark.
Meanwhile, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 55.3 in October, up from 55.1 in September. The latest figure was above its long-run average (53.7), indicating a stronger improvement in the health of the sector. The upward movement in the headline figure largely reflected stronger increases in employment and stocks of purchases.
Global markets:
The Dow Jones index futures were up 214 points, indicating a positive opening in the US stocks today.
Shares in Europe and Asia advanced on Tuesday despite mild losses from Wall Street overnight as investors turned their focus to the Federal Reserve's policy meeting this week for hints on what comes next.
The Caixin manufacturing Purchasing Managers' Index for October showed that factory activity contracted for the third month in a row. The reading came in at 49.2. In September, the manufacturing PMI was at 48.1.
Hong Kong's gross domestic product fell by 4.5% in the third quarter of the year compared with the same period a year ago, advance estimates from the Census and Statistics Department showed Monday. That's the worst contraction since the second quarter of 2020. Fixed capital formation, or investment, decreased by 14.3%, while exports and imports also fell.
South Korea's trade deficit widened to $6.7 billion for the month of October from a revised figure of $3.78 billion in September, data from the customs agency showed. Imports rose 9.9% to $59.18 billion from the same period a year ago, while exports dropped 5.7% to $52.48 billion.
Stocks In Spotlight:
Sun Pharmaceutical Industries gained 1.69% after the pharma major's consolidated net profit rose 10.51% to Rs 2,262.22 crore on 13.11% increase in revenue from operations to Rs 10,809.19 crore in Q2 FY23 over Q2 FY22.
FSN E-Commerce Ventures (Nykaa) rallied 2.44% to Rs 1185.75 after the company reported a consolidated net profit of Rs 4.11 crore in Q2 FY23, steeply higher than Rs 1.17 crore posted in Q2 FY22. Revenue from operations jumped 39.04% to Rs 1230.83 crore in quarter ended 30 September 2022 from Rs 885.26 crore recorded in the corresponding quarter previous year.
Axis Bank fell 3.76% on high volumes after the counter reported multiple block deals in initial trade today, 1 November 2022. The media reported that American private equity (PE) major Bain Capital is likely to offload 1.24% stake in private sector lender Axis Bank through a block deal on Tuesday (1 November 2022). The PE firm held 4.24% stake in Axis Bank as of 30 September 2022 through three entities - BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV.
Balrampur Chini Mills rose 4.51% after the company said its board will consider a share buyback on Wednesday, 9 November 2022.
Saregama India surged 5.73% after the company reported a 36.42% increase in its consolidated net profit to Rs 46.11 crore for the second quarter of the financial year 2022-23. It posted a net profit of Rs 33.80 crore in the July-September quarter of last fiscal.
"The company posted the highest ever operating revenue for the quarter to reach Rs 189.2 crore in Q2FY23, up 30% YoY," Saregama said in its earning statement.
The company's Operating Income before Content Charge, Interest and Depreciation (OIBCID) rose 31% to Rs 69.90 crore in Q2 FY23 from Rs 53.50 crore in corresponding quarter last year. OIBCID margin (%) stood at 37% in Q2 FY23 as against 38% in Q1 FY23 and 37% in Q2 FY22.
Solara Active Pharma Sciences rose 5.23% after the company announced that its new multipurpose API manufacturing facility at Vishakhapatnam, Andhra Pradesh, received 'Certificate of Suitability' (CEP) approval for the manufacture of Ibuprofen API, from European Directorate for the Quality of Medicines (EDQM), the first international regulatory approval for this new facility.
RMC Switchgears hit an upper circuit limit of 5% at Rs 284.10 after the electrical equipment company has received a letter of award (LoA) of Rs 230.2 crore from the Maharashtra State Electricity Distribution Company under its EPC division. The project will be completed within the next 12-18 months.
October 2022 Auto sales:
Maruti Suzuki India declined 0.94%. The car major sold a total of 167,520 units in October 2022, up 21% as against 138,335 units sold in October 2021. Sequentially, total sales fell 5% last month from 1,76,306 units sold in September 2022.
Eicher Motors slipped 1.15%. The company's unlisted subsidiary, VE Commercial Vehicles (VECV) sold 6,038 units of commercial vehicles (CV) in October 2022, rising 4% year on year from 5,805 units sold in October 2021. Sequentially, the company's CV sales dropped 8.94% last month from 6,631 units sold in September 2022.
Ashok Leyland fell 2.32%. The company recorded 34% rise in total vehicle sales to 14,863 units in October 2022 from 11,079 units sold in October 2021.
Bajaj Auto rose 1.85%. The two-wheeler maker's total sales declined 10% to 3,95,238 units in October 2022 compared with 4,39,615 units sold in October 2021.
Mahindra & Mahindra (M&M) added 0.52%. M&M said that its overall auto sales for the month of October 2022 stood at 61,114 vehicles, up 46% from 41,908 vehicles sold in October 2021.
M&M's Farm Equipment Sector (FES) sold 51,994 tractors in October 2022 as against 47,017 tractors for the same period last year, registering a growth of 11% on YoY basis.
Tata Motors rose 2.16%. The company's sales in the domestic & international market for October 2022 stood at 78,335 vehicles, up by 15% as compared to 67,829 units sold during October 2021.
Escorts Kubota lost 1.61%. The company's total tractor sales rose 7.2% YoY to 14,492 units sold in October 2022 from 13,514 units sold in October 2021. The Construction Equipment Segment in October 2022 sold 384 machines as against 462 machines sold in October 2021, recording de-growth of 16.9% on a year-on-year basis.
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