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Sensex, Nifty end with strong gains as broader market underperforms

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Last Updated : Feb 14 2023 | 3:50 PM IST

The domestic equity benchmarks ended with strong gains after an up-trending session on Tuesday. The Nifty managed to close above the 17,950 mark after hitting the day's low at 17,800.05 in early trade. IT, FMCG and financial services stocks were in demand while realty, media and healthcare shares saw some bit of selling pressure.

As per provisional closing data, the barometer index, the S&P BSE Sensex, jumped 600.42 points or 0.99% to 61,032.26. The Nifty 50 index advanced 158.95 points or 0.89% to 17,929.85.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.44% while the S&P BSE Small-Cap index slipped 0.61%

The market breadth was weak. On the BSE, 1,303 shares rose and 2,194 shares fell. A total of 117 shares were unchanged.

Traders in domestic as well as global markets will await the US retail inflation reading for January 2023, scheduled for release later in the day. Although the annual figure is expected to show further easing in price growth last month, it is still predicted to remain relatively high, which could invite more interest rate hikes by the Fed.

Adding to the broader economic picture was the release of fresh growth forecasts for the European Union. The European Commission lifted its projections for the EU, saying the bloc will likely dodge a recession, thanks in part to easing gas costs. The outlook for headline inflation in the 27-member bloc was also lowered, but the EU's executive arm warned that price pressures remain both strong and persistent.

Economy:

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India's annual wholesale price index (WPI) based inflation eased to 24-month low of 4.73% in January 2023 as compared to 4.95% recorded in December 2022 and 13.68% in January 2022.

Decline in the rate of inflation in January 2023 is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products, the Ministry of Commerce & Industry said in a statement today.

India's retail inflation accelerated to a three-month high in January, reverting to over the Reserve Bank of India's upper tolerance band of 6% after a gap of two months, led by a spike in food prices and elevated prices in the non-food segment.

Inflation based on the Consumer Price Index (CPI) hardened to 6.52% in January, after declining to a one-year low level of 5.72% in December, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday. Core inflation, which is non-food, non-fuel inflation remained over the 6% mark at 6.2% in January.

The unexpected surge in headline inflation has raised the likelihood of further tightening of the monetary policy in April, with economists reportedly estimating inflation to remain over the 6% mark over the coming months due to sticky core inflation.

Buzzing Index:

The Nifty IT index rose 0.99% to 30,588.75. The index had fallen 2.26% in the past two sessions.

Infosys (up 1.66%), Coforge (up 1.31%), Wipro (up 1.14%), Mphasis (up 1.08%) and HCL Technologies (up 0.96%) were the top gainers.

Among the other gainers were Tech Mahindra (up 0.92%), Persistent Systems (up 0.69%), L&T Technology Services (up 0.67%), Tata Consultancy Services (up 0.52%) and LTI Mindtree (up 0.24%).

Stocks in Spotlight:

Adani Enterprises advanced 3.88%. The company reported consolidated net profit of Rs 820.06 crore in Q3 FY23 as against a net loss of Rs 11.63 crore posted in Q3 FY22. The company's revenue from operations jumped 41.87% year on year (YoY) to Rs 26,612.23 crore in the quarter ended 31 December 2022.

Bharat Forge slipped 1.94% .The company reported 14.3% drop in standalone net profit to Rs 289.2 crore in Q3 FY23 from Rs 337.4 crore in Q3 FY22. Total revenue rose by 21.8% YoY to Rs 1,952.1 crore during the quarter

Zee Entertainment Enterprises (ZEEL) fell 1.08% after the company's consolidated net profit slumped 91.9% to Rs 24.31 crore in Q3 FY23 as against Rs 298.73 crore recorded in Q3 FY22. Revenue from operations declined marginally to Rs 2,111.18 crore in quarter ended 31 December 2022 from Rs 2,112.64 crore posted in the same period a year ago.

Steel Authority of India (SAIL) rose 1.14%. The iron & steel maker's standalone net profit slumped 67.9% to Rs 463.54 crore in Q3 FY23 as compared to Rs 1,443.10 crore in Q3 FY22. Revenue from operations declined marginally to Rs 25,041.88 crore during the quarter as compared with Rs 25,245.92 crore posted in the corresponding quarter last year.

FSN E-Commerce (Nykaa) tumbled 4.04%. Nykaa reported 71% drop in consolidated net profit to Rs 8.49 crore in Q3 FY23 from Rs 29.02 crore in Q3 FY22. Operating revenue fell 0.1% YoY to Rs 2111.2 crore during the quarter.

Castrol India declined 1.50%. The company reported consolidated net profit of Rs 193.32 crore in the quarter ended 31 December 2022 from Rs 188.58 crore in the quarter ended 31 December 2021. Total income increased to Rs 1195.65 crore from Rs 1103 crore.

Gujarat State Petronet jumped 4.25%. The company's standalone net revenue was down by 14.6% YoY to Rs 402 crore in Q3 FY23. EBITDA fell by 19.8% YoY to Rs 270 crore and EBITDA margin stood at 67.1% in Q3 FY23 as against 71.4% in Q3 FY22. Net Profit declined by 19.9% YoY to Rs 171 crore during the period under review.

Allcargo Logistics tumbled 9.65%. The company's consolidated net profit (from continuing operations) slumped 61.59% to Rs 124.43 crore in Q3 FY23 as against Rs 323.95 crore posted in Q3 FY22. Revenue from operations dropped 26.8% year on year to Rs 4,099.02 crore in the quarter ended 31 December 2022.

National Fertilizers (NFL) surged 16.91%. The company reported consolidated net profit of Rs 554.03 crore in Q3 FY23 as against a net loss of Rs 23.08 crore in Q3 FY22. Revenue from operations soared 99.1% year on year (YoY) to Rs 10,137.34 crore in the quarter ended 31 December 2022.

Ratnamani Metals & Tubes rose 1.03%. The company's consolidated net profit jumped 49.6% to Rs 133.32 crore on 18.5% rise in revenue from operations to Rs 1,098.71 crore in Q3 FY23 over Q3 FY22.

Mirza International zoomed 14.13% .The company's consolidated net profit rose 31.1% to Rs 57.58 crore on 0.9% increase in revenue from operations to Rs 594.88 crore in Q3 December 2022 over Q3 December 2021.

Ipca Laboratories declined 1.48%. The company's consolidated net profit tumbled 45.25% to Rs 107.84 crore in Q3 FY23 as compared to Rs 196.96 crore reported in Q3 FY22. Revenue from operations rose 8.08% to Rs 1,546 crore during the quarter as against Rs 1,430.47 crore recorded in the corresponding quarter last year.

Campus Activewear fell 1.64%. The company's consolidated net profit declined 11.7% to Rs 48.31 crore in Q3 FY23 from Rs 54.72 crore posed in Q3 FY22. However, revenue from operations rose 7.4% to Rs 465.62 crore in the quarter ended 31 December 2022 as against Rs 433.55 crore in the quarter ended 31 December 2021.

Global markets:

Markets in Europe and Asian advanced on Tuesday as investors await the release of the U.S. consumer price index report, which will shape the Federal Reserve's path ahead.

The rate of unemployment in the U.K. remained unchanged at 3.7% in the three months to December, according to data released by the Office for National Statistics. The rate remains close to the lowest level the country has seen in 50 years, which was 3.5% in the three months to August 2022.

Japan's economy expanded by 0.6% on an annualized basis for the fourth quarter of 2022. The figure was a rebound from a revised contraction of 1% seen in the third quarter of 2022 compared to a year ago.

The Japanese government nominated Kazuo Ueda for its next Bank of Governor, media reports stated. The government also nominated Ryozo Himino and Shinichi Uchida for the deputy governor roles, the report added.

A global research house on Monday reportedly cut Japanese stocks to "underweight", saying that a Bank of Japan (BOJ) policy change away from its "ultra-loose" monetary strategy could push global yields higher and reduce risk appetite.

Wall Street closed sharply higher on Monday as investors awaited inflation data likely to hint at the path of the Federal Reserve's future interest rate hikes, while Meta Platforms gained after a report that the Facebook parent was planning fresh layoffs.

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First Published: Feb 14 2023 | 3:38 PM IST

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