The headline equity indices traded in a narrow range with modest gains in early afternoon trade. The Nifty hovered above the 18,550 mark. PSU bank, IT and auto stocks were in demand while realty, consumer durables and healthcare shares corrected.
At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 312.06 points or 0.50% to 62,442.63. The Nifty 50 index added 77.50 points or 0.42% to 18,574.65.
In the broader market, the S&P BSE Mid-Cap index rose 0.09% while the S&P BSE Small-Cap index gained 0.34%.
The market breadth was strong. On the BSE, 2,048 shares rose and 1,378 shares fell. A total of 143 shares were unchanged.
Economy:
India's consumer price inflation moderated to 5.88% in November on an annual basis - marking an 11 month low. The inflation stood at 6.77% in October. The number has dropped within RBI's tolerance band after 10 months. The Food inflation eased sharply to 4.67% in November compared to 7.01% in previous month.
Meanwhile, Ministry of Statistics & Programme Implementation stated that for the month of October 2022, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 129.6, marking a 4% drop compared to October 2021. The IIP has turned negative for first time in four months.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 2.70% to 12.96. The Nifty 29 December 2022 futures were trading at 18,675.60, at a premium of 100.95 points as compared with the spot at 18,574.65.
The Nifty option chain for the 29 December 2022 expiry showed maximum Call OI of 36 lakh contracts at the 19,000 strike price. Maximum Put OI of 37.9 lakh contracts were seen at 18,000 strike price.
Buzzing Index:
The Nifty Auto index rose 0.59% to 12,950.85. The index added 0.63% in two trading sessions.
Sona BLW Precision Forgings (up 2.4%), Bharat Forge (up 1.9%), Mahindra & Mahindra (up 1.48%), Tata Motors (up 1.26%), Balkrishna Industries (up 1.14%), Bajaj Auto (up 0.65%), Hero MotoCorp (up 0.56%), Ashok Leyland (up 0.42%), Bosch (up 0.08%) and Maruti Suzuki India (up 0.01%) edged higher.
Tata Motors (TML) rose 1.26% after the company's board approved partial divestment of the equity shares held by TML in Tata Technologies, a subsidiary of the company, through initial public offering (IPO). The auto maker said that the IPO Committee, duly constituted by the board of directors, has accorded its in-principle approval to explore the possibility of partial divestment of the company's investment in Tata Technologies, a subsidiary of the company, through an IPO route at an opportune time, subject to market conditions, applicable approvals, regulatory clearances and certain other considerations.
Stocks in Spotlight:
Kirloskar Brothers (KBL) declined 1.69%. The company on Monday said its shareholders have rejected a resolution pertaining to a forensic audit in the affairs of the company by an external agency. KBL on 8 December 2022 called for an extraordinary general meeting (EGM) of its shareholders to consider and approve forensic audit of the affairs of the company by an external agency. The company infomed on Monday that 63.99% of the shareholders voted against the resolution while 36.01% were in favour of the resolution proposed by Kirloskar Industries (KIL).
ICICI Bank rose 0.40%. The private lender said that it has allotted 50,000 senior unsecured redeemable long term bonds in the nature of debentures aggregating to Rs 5,000 crore on private placement basis. The bonds are redeemable at the end of 7 years (redemption date being 12 December 2029). There are no special rights/ privileges attached to the bonds, it said. The bonds carry a coupon of 7.63% p.a. payable annually and were issued at par.
Bandhan Bank gained 1.20% after the bank said that it has received claim amounting to Rs 916.61 crore under the Credit Guarantee Fund for Micro Units (CGFMU) scheme for FY 2022-23.
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