The key equity indices ended with small gains on Thursday, rising for the third straight session. The Nifty closed above the 18,000 level after hitting the day's low of 18,000.65 in late trade. Trading was volatile on account of weekly index options expiry on the NSE. IT and metal shares rallied while banks and auto shares declined.
The barometer index, the S&P BSE Sensex gained 44.42 points or 0.07% to 61,319.51. The Nifty 50 index added 20 points or 0.11% to 18,035.85. Both the indices advanced 1.5% in three sessions.
Tech Mahindra (up 5.58%), TCS (up 1%) and Infosys (up 0.34%) boosted the indices.
The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.93% while the S&P BSE Small-Cap index advanced 0.90%.
The market breadth was positive. On the BSE, 1870 shares rose and 1586 shares fell. A total of 169 shares were unchanged.
The overall gains remained capped as higher-than-estimated January US retail sales data fuelled concerns about further interest rate hikes by the Fed. US retail sales rose to 3% in January 2023 after two consecutive monthly declines, due to a rise in motor vehicle purchases. The number is the highest since the 4.9% revised jump for January 2022.
Economy:
India's trade deficit narrowed in January as imports fell at a faster rate than exports. The trade deficit narrowed to $17.75 billion in January, compared with $23.76 billion in December 2022.
India's exports in January dipped by 6.58% to $32.91 billion, as against $35.23 billion in the same month last year. Imports in January also declined by 3.63% to $50.66 billion, as against $52.57 billion in the same month last year.
Engineering exports dipped by 3.37% to $88.27 billion during April-January 2022-23. In the same period, gems and jewellery shipments declined by 0.54% to $31.61 billion. Gold imports during April-January this fiscal declined by 11.26% to $29 billion, as against $40.35 billion in the same period last year.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper declined to 7.343 from 7.347 previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.7025, compared with its close of 82.83 during the previous trading session
MCX Gold futures for 5 April 2023 settlement rose 0.06% to Rs 56,160.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.27% to 103.64.
The United States 10-year bond yield fell 0.66% to 3.782.
In the commodities market, Brent crude for April 2023 settlement declined 25 cents or 0.29% to $85.13 a barrel.
Global Markets:
Shares in Europe and Asia advanced on Thursday as investors digested Japan's record trade deficit of $26 billion. Investors also digested a stronger than expected US retail sales report from Wall Street.
US stocks ended higher on Wednesday after stronger-than-expected retail sales data offered evidence of resilience in the U.S. economy, but gains were capped as investors worried about more interest rate hikes by Federal Reserve in the months ahead.
US retail sales increased by the most in nearly two years in January after two straight monthly declines. The Commerce Department said on Wednesday that retail sales surged 3% percent last month, the largest increase since March 2021, after declining by an unrevised 1.1% in December.
Production at US factories rebounded in January. Manufacturing output increased 1% last month, the Federal Reserve said on Wednesday. Data for December was revised down to show production at factories declining 1.8% instead of the previously reported 1.3%.
Stocks in Spotlight:
Nestle India advanced 1.64%. The FMCG major reported 65.5% jump in net profit to Rs 628.06 crore on 13.58% rise in revenue from operations to Rs 4,256.79 crore in Q4 CY22 over Q4 CY21.
Total sales increased 13.96% year on year to Rs 4,233.27 crore in Q4 CY22 against Q4 CY21. Domestic sales and export sales for the quarter ended December 2022 rose by 13.83% and 17.07% respectively. Domestic sales growth was broad based.
Shares of two oil explorers Oil and Natural Gas Corporation (ONGC) (up 5.66%) and Oil India (up 5.21%) climbed after the Central Government reduced the windfall profit tax on petrol, diesel, jet fuel and crude oil.
Shilpa Medicare jumped 10.32% after the company said that its Bengaluru facility has been registered with Ministry of Health, United Arab Emirates for manufacture and testing of Orodispersible films and Transdermal systems. This registration enables company to register the products (Orodispersible films and Transdermal systems) in UAE for commercialization.
NTPC added 1.06%. The state-run power major said that it declared commercial operation of third part capacity of 50 megawatt (MW) out of 300 MW Nokhra Solar PV project at Bikaner, Rajasthan.
Vedanta advanced 0.62%. The company was declared the preferred bidder for Sijimali Bauxite Block, located in Rayagada and Kalahandi districts of Odisha, under the mineral block auction conducted by the Odisha government. The block has estimated reserves of 311 million tonnes of bauxite.
InterGlobe Aviation (IndiGo) tumbled 4.46% on high volumes. The media reported earlier that Shobha Gangwal, the wife of IndiGo co-promoter Rakesh Gangwal, would be offloading her 4% stake in the airliner via a block deal today.
Mishra Dhatu Nigam (MIDHANI) jumped 5.50%. MIDHANI has signed eleven MoUs with various organization. These MoUs are in the area of developing and manufacturing Aerospace and Naval materials, R&D, Exports, Health Care and Training etc.
Bharat Electronics advanced 3.33% after the company announced the signing of a MoU with Israel Aerospace Industries (IAI) for domestic manufacture and supply of its LORA Weapon System for the Indian Tri-services.
Bharat Dynamics surged 12.62% after the company entered into ten memorandum of understandings (MoU) with several foreign and Indian companies during Aero India 2023.
Tanla Platforms surged 8.85% after the company said it will launch Wisely ATP (patent pending), an Anti-Phishing Technology Platform.
Ambuja Cements added 1%. The company has been declared the preferred bidder for the Uskalvagu limestone block in Odisha. The block contains an estimated limestone resource of 141 million tonnes.
Aurobindo Pharma gained 1.30%. The Unit I & III of APL Healthcare, the company's subsidiary, based in Telangana, was inspected by the U.S. FDA from Jan. 9 to 18, 2023. These facilities have now been classified as Voluntary Action Indicated by the U.S. FDA.
Hindustan Aeronautics (HAL) zoomed 7.32%. HAL and Argentinian Air Force has signed a pact for supply of spares and engine repair of legacy two tonne class helicopters.
Patel Engineering surged 4%. The company, along with its joint venture partners, has been chosen for projects worth Rs 1,567 crore in Madhya Pradesh and Maharashtra, to be completed within 36 months.
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