The domestic equity benchmarks ended near the day's high after a strong session on Tuesday. The Nifty managed to close above the 17,250 mark, staging a stellar bounce back from its previous close of 16,887.35. Shares across sectors advanced with metals, banks and IT stocks leading the charge.
As per provisional closing data, the barometer index, the S&P BSE Sensex, surged 1276.66 points or 2.25% to 58,065.47. The Nifty 50 index added 386.95 points or 2.29% to 17,274.30.
In the broader market, the S&P BSE Mid-Cap index rose 2.42% while the S&P BSE Small-Cap index gained 1.49%.
Buyers outnumbered sellers. On the BSE, 2,582 shares rose and 863 shares fell. A total of 119 shares were unchanged.
Investors cheered after witnessing a declining trend in the dollar index (DXY) and the US 10-year bond yields. The persistence of this trend could lead to a return of FIIs in a big way in the Indian markets. In September, FIIs sold shares worth Rs 18,308.30 in the cash market while DIIs purchased stocks worth Rs 14,119.75 crore during the period under review.
The Indian stock market will remain closed for trading tomorrow (5 October 2022) on account of Dussehra.
Primary Market:
The initial public offer (IPO) of Electronics Mart India received bids for 4.44 crore shares as against 6.25 crore shares on offer, according to stock exchange data 15:21 IST on Tuesday (04 October 2022). The issue was subscribed 0.71 times.
The issue opened for bidding on Tuesday (04 October 2022) and it will close on Friday (07 October 2022). The price band of the IPO is fixed at Rs 56-59 per share. An investor can bid for a minimum of 254 equity shares and in multiples thereof.
The issue comprises only fresh issue of equity shares aggregating to Rs 500 crore. Of the net proceeds about Rs 111.441 crore towards funding of capital expenditure (largely opening of stores and warehouses); Rs 220 crore towards funding incremental working capital requirements and Rs 55 crore towards repayment / prepayment of certain borrowings in part or full.
Buzzing Index:
The Nifty Metal index advanced 3.23% to 5,774.85. The index had declined 3.02% to end at 5,593.95 yesterday.
Jindal Steel & Power (up 4.59%), Steel Authority of India (up 4.41%), Vedanta (up 3.91%), Hindustan Copper (up 3.49%) and Hindalco Industries (up 3.32%) were the top gainers.
Among the other gainers were JSW Steel (up 3.03%), APL Apollo Tubes (up 2.99%), National Aluminium Company (up 2.91%), Tata Steel (up 2.69%) and Adani Enterprises (up 2.69%).
Stocks in Spotlight:
Housing Development Finance Corporation (HDFC) rose 3.02%. HDFC said that during the quarter ended 30 September 2022, the corporation assigned loans amounting to Rs 9,145 crore compared to Rs 7,132 crore in the corresponding quarter of the previous year.
Avenue Supermarts added 1.24%. The company's standalone revenue from operations for the quarter ended (QE) 30 September 2022 stood at Rs 10,384.66 crore. Standalone revenue from operations for the quarter ended (QE) 30 September 2021 was Rs 7,649.64 crore.
Mahindra & Mahindra Financial Services surged 11.50%. The NBFC said that it has recorded a disbursement of approximately Rs 4,080 crore in September 2022, delivering a 110% year on year (YoY) growth.
Larsen & Toubro (L&T) advanced 3.03%. The EPC major announced that the power transmission & distribution business of L&T Construction has bagged 'significant' orders in India and abroad. As per L&T's classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.
IndusInd Bank jumped 5.58%. The private lender's net advances improved to Rs 2,59,647 crore as of 30 September 2022, registering a growth of 18% from Rs 2,20,808 crore as of 30 September 2021. The bank reported a 15% growth in deposits to Rs 3,15,824 crore as of 30 September 2022 as against Rs 2,75,473 crore as of 30 September 2021.
Marico shed 0.26%. The company said that in Q2 FY23, the India business posted low single-digit volume growth with the 3-year CAGR in high single digits. The International business maintained its strong run, delivering double-digit constant currency growth. Each of the markets contributed positively, despite global macro and geo-political uncertainties. Consolidated revenue in the quarter grew in low single digits on a year-on-year basis. Operating margin is expected to near the levels of the corresponding quarter last year. Net profit will be further impacted by higher effective tax rate (ETR).
Angel One rallied 12.70%. The brokerage company said its client base jumped 77.4% to 11.57 million in September 2022 as against 6.52 millions in September 2021. On a sequential basis, the company's client base rose by 3.4% month on month (MoM) from 11.18 million clients in August 2022.
Hindustan Zinc rose 2.47%. The zinc miner said its mined metal production rose 3% to 255,000 tonnes in Q2 FY23 as against 248,000 tonnes in Q2 FY22. The miner reported highest-ever second quarter mined metal production driven by better grades and improved mill recoveries. Sequential growth of 1% was largely on account of better grades.
KEC International slipped 1.47%. The company has secured new orders of Rs 1,407 crore. We are pleased with the continuous order inflows across businesses. Our YTD order intake now stands at approximately Rs 8,400 crore, with a robust growth of approximately 50% vis-vis last year, the company's MD & CEO Vimal Kejriwal said.
Easy Trip Planners surged 6.32%. The company said its board will consider the proposal for increase in authorised share capital through issue of bonus equity shares and/or stock split on 10 October 2022.
Bank of Maharashtra gained 3.13%. The bank's deposits stood at Rs 1,95,849 crore as of 30 September 2022, recording a growth of 15.93% over Rs 1,81,572 crore as of 30 September 2021. The bank reported a 28.65% growth in gross advances to Rs 1,48,246 crore as of 30 September 2022 as against Rs 1,15,236 crore as of 30 September 2021. CASA ratio stood at 56.27% as of 30 September 2022 as compared to 53.91% as of 30 September 2021.
Global Markets:
The Dow Jones futures rallied 388 points, indicating a positive opening in the US stock market today.
Shares in Europe advanced while Asian stocks traded mixed on Tuesday after stocks on Wall Street rallied overnight. Markets in mainland China and Hong Kong are closed for a holiday.
The Reserve Bank of Australia is set to announce its interest rate decision later Tuesday. As per reports, the Reserve Bank of Australia is likely to hike its benchmark interest rate by 50 basis points to 2.85%.
Wall Street's three major indices rallied to close over 2% on Monday as US Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year's final quarter.
US manufacturing activity grew at its slowest pace in nearly 2.5 years in September. The Institute for Supply Management (ISM) said on Monday that its manufacturing PMI dropped to 50.9 this month, the lowest reading since May 2020, from 52.8 in August.
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