The key equity benchmarks ended with strong gains on Wednesday. After opening at 15,818.20, the Nifty marched higher as the session progressed and closed near the 16,000 mark. The broader rally was led by autos, FMCG and consumer durables stocks.
The barometer index, the S&P BSE Sensex, jumped 616.62 points or 1.16% to 53,750.97. The Nifty 50 index added 178.95 points or 1.13% to 15,989.80.
Bajaj Finserv (up 4.54%), Bajaj Finance (up 4.51%), Hindustan Unilever (up 4.01%), Maruti Suzuki India (up 3.48%) and Asian Paints (up 3.45%) boosted the indices.
In the broader market, the S&P BSE Mid-Cap index gained 1.76% while the S&P BSE Small-Cap index rose 0.94%.
The market breadth was positive. On the BSE, 1,827 shares rose and 1,472 shares fell. A total of 137 shares were unchanged.
Some cooling off in global crude prices overnight boosted domestic investors sentiment. Weak crude price benefits India as it positively impacts growth, current account deficit (CAD), inflation and fiscal deficit.
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Investors will closely monitor the release of the Federal Reserve's minutes of meeting in June, to be out late on Wednesday.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper fell to 7.298 as compared with 7.391 at close in the previous trading session.
In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 79.30, compared with its close of 79.3350 during the previous trading session.
MCX Gold futures for 5 August 2022 settlement declined 0.15% to Rs 51,226.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.21% to 106.76.
In the commodities market, Brent crude for September 2022 settlement rose $1.13 or 1.10% at $103.90 a barrel. The contract slumped $8.86 or 7.94% to settle at $102.77 a barrel during the previous trading session.
Foreign Markets:
European stocks rose across the board while Asian shares slumped on Wednesday.
In central bank news, Bank Negara Malaysia is expected to release its monetary policy statement today.
US stock indices initially fell sharply on Tuesday before rallying in the afternoon. Concerns about a possible recession in the US weighed on investor sentiment but lower interest rates appeared to boost the tech sector.
The Nasdaq Composite ended the session 1.75% higher at 11,322.24, while the S&P 500 was up 0.16% at 3,831.39. The Dow Jones Industrial Average, however, shed 129.44 points, or 0.42%.
New orders for US-manufactured goods increased more than expected in May. The Commerce Department said on Tuesday that factory orders rose 1.6% in May after advancing 0.7% in April.
Buzzing Segment:
The Nifty FMCG index rose 2.64% to 40,740.15. The index fell 0.16% in the previous session.
Emami (up 6.51%), Britannia Industries (up 4.69%), Hindustan Unilever (up 4.31%), Varun Beverages (up 3.56%), United Breweries (up 3.28%), Tata Consumer Products (up 2.61%), Colgate-Palmolive (India) (up 2.56%), Procter & Gamble Hygiene & Health Care (up 2.15%), United Spirits (up 2.02%), Nestle India (up 2%) and ITC (up 0.84%) advanced.
Godrej Consumer Products jumped 6.13% after the company said that in India, it expects to deliver early double-digit sales growth in Q1 FY23 on a high base. In India, the company expects to deliver early double-digit sales growth on a high base during the quarter and 3-year compound annual growth rate (CAGR) is expected to remain robust and in early double-digits.
In Indonesia, as hygiene performance waned after COVID-19 and there is a large hygiene comparator in base, the company expects a high single-digit sales decline. In Godrej Africa, USA and Middle East, Godrej Consumer expects to deliver double-digit sales growth, with a continued focus on driving sustainable, profitable sales growth. Further, the company is expecting a constant currency sales growth in the high teens in its Latin America business.
Marico rose 1.30%. The FMCG major said its India business volumes in Q1FY23 declined in mid-single digits, particularly dragged by a sharp drop in Saffola Oils, while Parachute coconut oil recorded a minor volume decline. Value added hair oils grew in low single digits in value terms despite weak consumption sentiment, especially in rural. The International business maintained its strong momentum, delivering high-teen constant currency growth. Consolidated revenue in the quarter ended June 2022 was marginally higher on a year-on-year basis, Marico said on Tuesday.
Dabur India rose 2.39% after the FMCG major said that its India business is expected to report high single digit revenue growth as compared to a very high base of 35.4% revenue growth in Q1 FY22. The growth in India business is backed by mid-single digit volume growth.
Dabur's International business is expected to register high single digit revenue growth during the quarter in constant currency, however due to currency devaluation particularly of Turkish Lira the reported growth in Rs would be in low single digit.
Overall, the consolidated revenue is expected to grow at mid to high single digits. The company said that it will continue to grow ahead of category growths and gain market share in most of our segments.
Stocks in Spotlight:
Kiri Industries hit an upper circuit of 20% at Rs 553.60 after the company said it won the Appeal in the Supreme Court of Singapore in respect of the valuation judgements of Singapore International Commercial Court (SICC).
Kiri Industries had filed a suit against Senda International Capital regarding its minority stake held in DyStar. Following the suit, the International court had directed Senda to buyout Kiri's minority stake held in DyStar. The company said that the latest judgement would enhance value of company's stake substantially.
Bajaj Finance rose 4.51%. The NBFC registered 60.9% jump in new loans booked to 74 lakh during Q1 FY23 as against 46 lakh in Q1 FY22. Customer franchise as of 30 June 2022 stood at 6.03 crore as compared to 5.05 crore as of 30 June 2021, climbing 19.4% YoY. Core assets under management (AuM) stood approximately at Rs 2,04,000 crore as of 30 June 2022 as against Rs 1,56,115 crore as of 30 June 2021, jumping 31% YoY. Bajaj Finance's deposit book stood at approximately Rs 34,100 crore as of 30 June 2022 compared with Rs 27,972 crore as of 30 June 2021, recording a growth of 22% YoY.
Macrotech Developers rose 5.14%. The realty major's pre-sales for Q1 FY23 stood at Rs 2,814 crores in India, jumping 194% from Rs 957 crore posted in Q1 FY22. The real estate developer's collections grew by 53% year on year to Rs 2,616 crore in Q1 FY23. Meanwhile, net debt for India business has been reduced to Rs 8,858 crore in Q1 FY23 from 9,300 crore registered in Q4 FY22 and Rs 12,417 crore posted in Q1 FY22.
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