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Sensex surges for 8th day; Nifty tops 18,800; VIX drops 3.24% to 13.36

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Capital Market
Last Updated : Dec 01 2022 | 5:50 PM IST

The Indian equity benchmarks advanced on Thursday, extending the winning run to eighth straight session. The Sensex and the Nifty hit record levels in intraday as well as on a closing basis. Trading was volatile due to expiry of weekly index options on the NSE. IT, metals and realty shares rallied. On the other hand, autos, oil & gas and FMCG shares declined. Global stock markets advanced after the Federal Reserve Chair Jerome Powell indicated that the US central bank could slow down its pace of interest rate hikes going forward, starting as soon as next month.

The barometer index, the S&P BSE Sensex, gained 184.54 points or 0.29% to 63,284.19. The Nifty 50 index rose 54.15 points or 0.29% to 18,812.50. In eight consecutive sessions, the Sensex has jumped 3.5% while the Nifty has climbed 3.59%.

The two benchmarks hit all-time highs in intraday today at 18,887.60 for Nifty 50 index and 63,583.07 for Sensex. Further, the Nifty Bank index also registered its fresh record high today at 43,515.05.

UltraTech Cement (up 2.86%), Tata Steel (up 2.79%), TCS (up 2.44%), Tech Mahindra (up 2.27%) and Wipro (up 1.63%) were major index movers.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.62% while the S&P BSE Small-Cap index rose 0.63%.

The market breadth was strong. On the BSE, 2,033 shares rose and 1,463 shares fell. A total of 140 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, dropped 3.24% to 13.36.

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Economy:

India's manufacturing sector activity rose at the fastest pace in three months, as output and new orders grew at sharper rates amid easing price pressures, survey data published by S&P Global showed on Thursday. The manufacturing Purchasing Managers' Index rose to 55.7 in November from 55.3 in September. A reading above 50 indicates expansion in the sector. Both new orders and output rose at the strongest pace in three months. There was a sharp upturn in output, which was above trend and the strongest since August.

Indian economy recorded 6.3% annual growth rate in July-September after double-digit surge in the previous quarter. Ministry of Statistics and Programme Implementation (MoSPI) released India's economic growth data for the second quarter of the current financial year (FY23). India's gross domestic product or GDP grew by 6.3% in Q2 on a year-on-year basis. In other words, it was 6.3% more than the GDP in the same months in 2021. MoSPI also reported that India's Gross Value Added (or GVA) in Q2 grew by. 5.6% on a year on year basis.

Meanwhile, India's eight core sectors' output growth almost turned flat in October, coming at just 0.1% from 7.8% in September, with cement and refinery products slipping into contraction. The Index of Core Industries released by the Commerce and Industry Ministry, which constitutes about 40% of the Index of Industrial Production (IIP), was unchanged month-on-month at 138.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.209 as compared with 7.280 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 81.265, compared with its close of 81.3075 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement gained 0.99% to Rs 53,001.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.34% to 105.59.

The United States 10-year bond yield fell 2.63% to 3.603.

In the commodities market, Brent crude for February 2023 settlement rose 62 cents or 0.71% to $87.59 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Thursday after US Federal Reserve Chair Jerome Powell confirmed smaller rate hikes could start in December.

The Caixin/Markit Manufacturing Purchasing Managers' Index for China came in at 49.4, higher than expectations. The reading marks a fourth consecutive month of contraction, after a reading of 49.2 from October and dipping to 48.1 in September.

South Korea's revised gross domestic product for the third quarter confirmed growth of 3.1% compared to the same period a year ago - higher than a 2.9% expansion seen in the second quarter. The economy saw slower quarterly growth of 0.3% in the third quarter, following a growth of 0.7% in the previous period.

Wall Street ended sharply higher on Wednesday. Federal Reserve Chair Jerome Powell on Wednesday said it was time to slow the pace of coming interest rate hikes while also signaling a protracted economic adjustment to a world where borrowing costs will remain high, inflation comes down slowly and the United States remains chronically short of workers.

November Auto Sales Impact:

Tata Motors shed 0.24%. The auto major said that its sales in the domestic & international market for November 2022 stood at 75,478 vehicles, up by 21.36% as compared to 62,192 units sold during November 2021. While total commercial vehicle (CV) sales fell by 10% to 29,053 units, total passenger vehicles (includes EV) sales jumped 55% to 46,425 units in November 2022 over November 2021. Total domestic sales rose by 27% to 73,467 units in November 2022 from 58,073 units in November 2021

Mahindra & Mahindra (M&M) declined 1.06%. M&M said that its overall auto sales for the month of November 2022 stood at 58,303 vehicles, registering a growth of 45.39% as against 40,102 vehicles sold in November 2021. M&M's Farm Equipment Sector (FES) announced its tractor sales numbers for November 2022. The company's total tractor sales (domestic + exports) jumped 10% YoY to 30,528 units in November 2022 from 27,681 units sold in November 2021.

Maruti Suzuki India fell 0.23%. The car major recorded total sales of 1,59,044 units in November 2022, recording a growth of 14.27% as against 1,39,184 units sold in November 2021. Total sales in the month include domestic sales of 135,055 units (up 19.50% YoY), sales to other OEM of 4,251 units (down 10.96% YoY) and exports of 19,738 units (down 7.74% YoY).

TVS Motor Company added 0.31%. The 2-wheeler maker's total sales rose by 2% in November 2022 with sales of 277,123 units as against 272,693 units in the month of November 2021. Total two-wheelers sales grew 2% to 263,642 units in November 2022 as compared to 257,863 units sold in November 2021. Domestic two-wheeler sales stood at 191,730 units in November 2022, registering a growth of 9% from 175,940 units sold in the same period last year.

Bajaj Auto declined 1.14% after the company recorded 19% fall in total auto sales to 3,06,552 units in November 2022 from 3,79,276 units in November 2021. While domestic sales declined by 4% YoY to 1,52,716 units, exports contracted by 30% YoY to 1,53,836 units during the period under review. The company sold 2,62,120 two-wheeler units (down 23% YoY) and 44,432 commercial vehicle units (up 9% YoY) in November 2022.

Ashok Leyland shed 0.13%. The Hinduja Group company's total commercial vehicle (CV) sales jumped 39% to 14,561 units in November 2022 from 10,480 units sold in November 2021. While the total sales of medium & heavy commercial vehicle (M&HCV) surged 69% year on year to 9,474 units and total sales of light commercial vehicle (LCV) rose 4% year on year to 5,087 units during the period under review.

Escorts Kubota gained 2.65%. The company's Agri Machinery Segment sold 7,960 tractors in November 2022, which is higher by 11.9% as compared with 7,116 tractors sold in November 2021. Domestic tractor sales in November 2022 were at 7,359 tractors registering a growth of 13.4% on YoY basis. The company's Construction Equipment Segment recorded sales of 402 machines during the month, up 28.8% YoY. The segment had sold 312 machines sold in November 2021.

Stocks in Spotlight:

Piramal Enterprises advanced 4.69% after the company's board of directors approved the issuance of market linked non-convertible debentures (NCDs) aggregating up to Rs 250 crore, on private placement basis. The size of the issue is up to Rs 50 crore along with an option to retain over subscription of up to Rs 200 crore, aggregating up to Rs 250 crore. These secured, rated, listed, redeemable, principal protected, market linked non-convertible debentures are to be redeemed at par on 24 May 2024.

Hatsun Agro Product jumped 6.90% after the company said a special committee of the board will decide terms of rights share issue on 3 December 2022.

Easy Trip Planners (EaseMyTrip) rallied 5.79% after the company announced that it has entered into a definitive agreement to acquire the 75% stake in Nutana Aviation Capital IFSC. The company said that in a growing charter market across the globe, Nutana Aviation will be carrying business for renting and booking of charter aircrafts.

Adani Green Energy rose 0.15%.The company through its subsidiary Adani Solar Energy AP Six raised 27,954 million Japanese Yen (JPY) denominated facility to refinance its existing indebtedness. The project loan facility is supported by MUFG Bank, and Sumitomo Mitsui Banking Corporation with equal participation.

Apollo Hospitals Enterprise added 0.86%. The company announced that its board has approved the issue of non-convertible debentures (NCDs) aggregating to Rs 105 crore on private placement basis. The company will issue 1050 unsecured, redeemable, rated, listed, non convertible debentures (NCDs) having face value of Rs 10 lakh each aggregating to Rs 105 crore.

KPI Green Energy slipped 2.90%. The power generation company said that the board of directors of the company has recommended issue of bonus shares in the ratio of 1 (one) bonus equity share against 1 (one) existing equity shares.

IPO Update:

The initial public offer (IPO) of Uniparts India received bids for 2,04,29,925 shares as against 1,01,37,360 shares on offer, according to stock exchange data at 17:00 IST on Thursday (1 December 2022). The issue was subscribed 2.02 times

The issue opened for bidding on Wednesday (30 November 2022) and it will close on Friday (2 December 2022). The price band of the IPO is fixed at Rs 548-577 per share. An investor can bid for a minimum of 25 equity shares and in multiples thereof.

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First Published: Dec 01 2022 | 5:12 PM IST

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