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Sensex gains 235 pts, Nifty settles above 18,200, PSU bank shares rallies

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Capital Market
Last Updated : Nov 07 2022 | 4:04 PM IST

The headline equity indices ended with decent gains after a volatile session on Monday. The Nifty managed to close above the 18,200 level after hitting the day's low of 18,064.75 in the mid-afternoon trade. PSU bank, metal and auto stocks were in demand. On the flip side, pharma, healthcare and consumer durables shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex, gained 234.79 or 0.39% points to 61,185.15. The Nifty 50 index rose 85.65 points or 0.47% to 18,202.80.

The broader market outperforms the headline indices. The S&P BSE Mid-Cap index rose 0.69% while the S&P BSE Small-Cap index gained 0.64%.

The market breadth was positive. On the BSE, 2,056 shares rose and 1,501 shares fell. A total of 194 shares were unchanged.

The domestic stock market will remain shut on Tuesday, 8 November 2022, on account of Gurunanak Jayanti.

Auto sales up 48% YoY in Oct: FADA:

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On YoY basis, total vehicle retail for the month of October 2022 saw a growth of 48%, the Federation of Automobile Dealers Associations (FADA) said its release today, 7 November 2022. All the categories closed in green. 2W, 3W, PV, Trac and CV were up by 51%, 66%, 41%, 17% and 25% respectively.

When compared with October 2019, a pre-covid month, total vehicle retails for the first time closed in green with an increase of 8%. Except 3W which saw a marginal dip of - 0.6%, all the other categories were in green with 2W, PV, Trac and CV growing by 6%, 18%, 47% and 13%.

During the 42 days festive period, total vehicle retails were up 28% YoY. All categories were in green with 2W, 3W, PC, Trac and CV growing by 26%, 66%, 28%, 33% & 28% respectively.

Primary Market:

The initial public offer (IPO) of Bikaji Foods International received bids for 34,87,99,70 shares as against 2,06,36,790 shares on offer, according to stock exchange data at 15:18 IST on Monday (7 November 2022). The issue was subscribed 16.90 times.

The issue opened for bidding on Thursday (3 November 2022) and it will close on Monday (7 November 2022). The price band of the IPO is fixed at Rs 285-300 per share. An investor can bid for a minimum of 50 equity shares and in multiples thereof.

The initial public offer (IPO) of Global Health (Medanta) received bids for 24,85,64,888 shares as against 4,67,42,397 shares on offer, according to stock exchange data 15:18 IST on Monday (7 November 2022). The issue was subscribed 5.32 times.

The issue opened for bidding on Thursday (3 November 2022) and it will close on Monday (7 November 2022). The price band of the IPO is fixed at Rs 319 to 336 per share. An investor can bid for a minimum of 44 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index advanced 4.46% to 3,690.15, extending gains for the third straight day. The index jumped 8.21% in three trading sessions.

Bank of Baroda (up 9.79%), Union Bank of India (up 6.52%), Bank of India (up 5.68%), Canara Bank (up 4.24%), Indian Bank (up 4.14%), State Bank of India (up 3.35%), Bank of Maharashtra (up 2.42%), UCO Bank (up 1%) jumped.

On the other hand, Indian Overseas Bank (down 3%), Punjab & Sind Bank (down 1.34%), edged lower.

State Bank of India (SBI) rallied 3.35% after the PSU bank major reported 73.93% jump in standalone net profit to Rs 13,264.52 crore on a 14.22% rise in total income to Rs 88,733.86 crore in Q2 FY23 over Q2 FY22. Net Interest Income (NII) increased by 12.83% YoY to Rs 35,183 crore during the quarter. Net Interest Margin (domestic) was at 3.55% in Q2 FY23 as against 3.50% in Q2 FY22. The scrip hit an all time high at Rs 622.90 in intraday today.

Bank of Baroda soared 9.79% after the bank's net profit surged 58.7% to Rs 3,313.42 crore on 13.86% rise in total income to Rs 23080.03 crore in Q2 FY23 over Q2 FY22. Net Interest Income (NII) jumped 34.5% to Rs 10,174 crore in Q2 FY23 as against Rs 7,566 crore posted in Q2 FY22. Global NIM improved to 3.33% as on 30 September 2022 from 2.85% as of 30 September 2021. The counter hit a 52-week high of Rs 161.75 in intraday today.

Stocks in Spotlight:

Britannia Industries jumped 8.75% after the FMCG major's consolidated net profit rose 28.48% to Rs 490.58 crore on 21.41% increase in net sales to Rs 4,379.61 crore in Q2 September 2022 over Q2 September 2021. Profit from operations stood at Rs 660 crore, growing at 30% for the quarter. Britannia's market share reached a new 15-year high. Britannia Industries hit an record high of Rs 4,189.95 in intraday today.

Titan Company declined 1.02% The Tata Group company's consolidated net profit surged 33.7% to Rs 857 crore on 17.53% rise in revenue from operations to Rs 8,134 crore in Q2 FY23 over Q2 FY22. Total income for the quarter was Rs 8,308 crore, registering a growth of 18.21% as compared to Rs 7,028 crore of Q2 FY22 (excluding bullion sale).

Power Grid Corporation of India rose 0.97%. On consolidated basis, Power Grid Corporation of India's net profit rose 8.1% to Rs 3,650.16 crore on 8.6% increase in revenue from operations to Rs 11,150.57 crore in Q2 FY23 over Q2 FY22.

TVS Motor Company added 0.08%. The two-wheeler major reported 47% rise in net profit to Rs 407 crore on a 28% increase in revenue to Rs 7,219 crore in Q2 FY23 over Q2 FY22.

Divis Laboratories tumbled 8.68% after the pharma company reported 18.61% fall in consolidated net profit to Rs 493.60 crore in Q2 FY23 from Rs 606.46 crore posted in Q2 FY22. Revenue from operations declined 6.7% year on year to Rs 1,854.54 crore in the quarter ended 30 September 2022 as against Rs 1,987.51 crore recorded in the same quarter last year.

Aditya Birla Capital advanced 3.67% after the life insurance company's consolidated net profit rose 30% to Rs 488.25 crore on 21% increase in revenue to Rs 7,210 crore in Q2 FY23 over Q2 FY22.

Godrej Agrovet shed 1.03%. The company reported 34.3% YoY fall in consolidated net profit to Rs 71.76 crore in Q2 FY23. It had recorded a net profit of Rs 109.26 crore in the corresponding period last year. Revenue from sale of products increased by 13.5% to Rs 2,442.17 crore in Q2 FY23 from Rs 2,151.70 crore in Q2 FY22 in same period last year.

Global Markets:

The Dow Jones futures were up 130 points, indicating a positive opening in the US stock market today.

Shares in Europe and Asia traded higher on Monday as investors digest the latest U.S. jobs report and look ahead to the midterm elections.

US stocks rose on Friday on hopes the Federal Reserve would scale back future interest rate hikes following the latest jobs report.

U.S. employers likely hired the fewest workers in nearly two years in October and increased wages at a moderate pace. The U.S. Labor Department's closely watched non-farm payrolls report showed a rise in the unemployment rate to 3.7% last month from 3.5% in September. The survey of establishments showed nonfarm payrolls increased 261,000 last month, the smallest gain since December 2020. Data for September was revised higher to show 315,000 jobs added instead of 263,000 as previously reported.

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First Published: Nov 07 2022 | 3:49 PM IST

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