Domestic equities cruised higher on Tuesday amid improving risk sentiments. Positive global cues, strong portfolio inflows and stable crude oil prices aided the upmove in domestic shares. The Nifty 50 index surpassed the psychological mark of 18,000. Metals, banks, FMCG and financial shares advanced while oil & gas and realty indices declined.
The barometer index, the S&P BSE Sensex, rose 455.95 points or 0.76% to 60,571.08. The Nifty 50 index gained 133.70 points or 0.75% to 18,070.05. In four consecutive sessions, the Sensex has added 2.61% while the Nifty has gained 2.53%.
HDFC Bank (up 1.27%), HDFC (up 1.25%) and Reliance Industries (up 0.87%) were major index movers.
In the broader market, the S&P BSE Mid-Cap index gained 0.32% while the S&P BSE Small-Cap index rose 0.24%.
The market breadth was positive. On the BSE, 1818 shares rose and 1677 shares fell. A total of 105 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.60% to 17.47.
Economy:
India's consumer price inflation rose to 7% in August from 6.71% in July, figures from the National Statistical Office revealed Monday. In the same period last year, inflation was 5.30%. Food price inflation advanced to 7.62% in August from 6.69% in the previous month. Month-on-month, consumer prices gained 0.52% and food prices moved up 0.75% in August.
Meanwhile, India's industrial production logged an annual growth of 2.4% in July, much weaker than June's 12.7% expansion, data released by the National Statistical Office showed Monday. In the same month of 2021, industrial output had advanced 11. %. Among three main sectors, manufacturing output grew 3.2% and electricity output climbed 2.3%. On the other hand, mining shrank 3.3% from the last year. In the April to July period, industrial production posted an expansion of 10% annually.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.109 as compared with 7.181 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 79.17, compared with its close of 79.5350 during the previous trading session.
MCX Gold futures for 5 October 2022 settlement declined 0.23% to Rs 50,415.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, shed 0.46% to 107.83.
In the commodities market, Brent crude for November 2022 settlement rose $1 or 1.06% at $95 a barrel.
Global Markets:
The Dow Jones futures were up 202 points, indicating a positive opening in the US stock market today.
Shares in Europe and Asia advanced on Tuesday as investors look ahead to the U.S. inflation report for the month of August later today, which will offer a crucial guide to the interest rate outlook of the US Federal Reserve.
The report is one of the last pieces of data on inflation the U.S. Federal Reserve will see ahead of its September meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation.
Fed Chair Jerome Powell reiterated last week that he is strongly committed to bringing down inflation.
Wall Street equity indexes closed higher on Monday, boosted by weaker dollar and growing confidence that higher prices have peaked.
Buzzing Segment:
The Nifty Metal index rose 1.28% to 6,158.90. The index has risen 2.45% in three sessions.
Adani Enterprises (up 2.78%), Ratnamani Metals & Tubes (up 2.38%), APL Apollo Tubes (up 2.24%), Hindustan Copper (up 2.16%), MOIL (up 1.39%), Jindal Steel & Power (up 1.38%), Hindalco Industries (up 1.24%), JSW Steel (up 0.5%), Jindal Stainless (up 0.38%), National Aluminium Company (up 0.37%), SAIL (up 0.36%) and Tata Steel (up 0.09%) jumped.
Vedanta rose 2.74% after the media reported that the company has signed a joint venture agreement with Taiwan's Foxconn for a semiconductor project in Gujarat.
According to the media reports, Foxconn will bring technical expertise to the venture whereas Vedanta, which has a background in mining, will finance the project. The state of Gujarat will offer subsidies on capital expenditure and electricity to the project, it added.
Stocks in Spotlight:
GPT Infraprojects hit an upper circuit of 20% at Rs 115.20 after the company said that it bagged an order valued at Rs 173 crore from Northern Railway. This contract is in joint venture in which the company's share is 51%.
Ujjivan Small Finance Bank fell 3.75% to Rs 24.35 after the bank said its qualified institutional placement (QIP) issue opened for subscription on 12 September 2022. The floor price has been fixed at Rs 21.93 per share. The bank may, at its discretion, offer a discount of not more than 5% on the floor price so calculated for the issue. The floor price is 13.32% discount to the stock's closing price of Rs 25.30 on Monday (12 September 2022).
Gujarat Apollo Industries hit an upper circuit of 20%. The company said that it has entered into a joint venture (JV) agreement with Belgium-based PFH BV (Keestrack). Apollo and Keestrack have decided to work jointly and in cooperation with each other for the purposes of carrying on the business of agricultural and farming machineries and components thereof as set in the agreement by forming a joint venture company in India and to be incorporated, operated and managed on the terms and conditions set out in the JV agreement. The proposed joint venture will result in increased efficiencies and allow the company to offer improved products in the market, by harnessing each other's synergies.
Tata Consultancy Services (TCS) declined 0.37%. The IT major said that it has been chosen by C&S Wholesale Grocers to build a new operations platform on Google Cloud to reduce the company's carbon footprint and enhance the customer experience. C&S has partnered with TCS to reimagine its operations platforms, including customer experience and grocery distribution. TCS will lead the company-wide project and help C&S establish a new cloud-based architecture that will unify its current systems, said TCS.
Tata Consumer Products gained 2.85% after the company on Monday announced its foray into the health supplements segment with the launch of Tata GoFit, a range of health supplements for women.
Pidilite Industries shed 0.05%. The company said that 100X.VC, a leading seed stage CAT 1 VC Fund, has partnered with the company for its venture arm called Pidilite Ventures. As a part of the partnership, 100X.VC will collaborate with Pidilite Ventures to identify strategic investment opportunities for them. Pidilite Ventures will aim to mentor and guide innovative businesses that have synergies with Pidilite's core and adjacent businesses.
Bajaj Finserv rallied 4% as the counter turned ex-bonus and ex-split today. The company had announced 5-for-1 stock split and 1:1 bonus issue of shares. The company will split each equity share of face value Rs 5 each into Rs 1 each. Later it will issue one fully paid bonus equity share of the face value of Rs 1 each against one equity share of the face value of Rs 1 each. The record date for bonus and stock split is set on 14 September 2022.
Adani Transmission rose 0.73%. The company said that it had incorporated its wholly owned subsidiary in the name of Adani Electricity Jewar (AEJL) with an initial authorised and paid up capital of Rs 1 lakh each. AEJL will carry on the business of transmission, distribution and supply of power and other infrastructure services relating thereto. "AEJL will commence its business operations in due course, the comapny said in a statement.
Zydus Lifesciences fell 0.23%. The drug maker on Tuesday (13 September 2022) announced that it has received approval from the United States Food and Drug Administration (USFDA) to market Lenalidomide capsules. The company said that it has received final approvals for 5 mg, 10 mg, 15 mg and 25 mg strengths and tentative approvals for 2.5 mg and 20 mg strength. The drug will be manufactured at the group's formulation manufacturing facility at Ahmedabad SEZ, India. The product would be launched in the US market soon, the drug maker said.
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