The key equity benchmarks ended with modest losses on Monday, triggered by weakness in other Asian markets. However, India's better-than-expected WPI inflation number boosted investors sentiment. The Nifty settled below above the 18,350 mark after hitting the day's high at 18,399.45 in morning trade. Metals, IT and realty shares were in demand. On the other hand, media and FMCG shares declined.
The barometer index, the S&P BSE Sensex, fell 170.89 points or 0.28% to 61,624.15. The Nifty 50 index lost 20.55 points or 0.11% to 18,329.15.
Dr Reddy's Laboratories (down 3.78%), Coal India (down 2.51%), ITC (down 2.50%), Hindustan Unilever (down 1.80%) and SBI (down 1.46%) were major Nifty losers.
Hindalco Industries (up 5.76%), Apollo Hospitals Enterprise (up 2.83%) and Tata Motors (up 2.36%) were top Nifty gainers.
The broader indices bucked the trend. The S&P BSE Mid-Cap index rose 0.05% while the S&P BSE Small-Cap index gained 0.25%.
The market breadth was negative. On the BSE, 1,718 shares rose, and 1,899 shares fell. A total of 152 shares were unchanged.
Economy:
India's wholesale price-based inflation declined to a 19-month low of 8.39% in October, on easing prices of fuel and manufactured items. This is the first time in 19 months that the WPI inflation print has come in single digits.
"Decline in the rate of inflation in October 2022 is primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc," the commerce and industry ministry said on Monday.
India's industrial growth, as per the Index of Industrial Production (IIP), rose to 3.1% in September, data released on Friday showed. The growth was primarily owing to a rise in manufacturing and mining outputs. The IIP had grown 4.4% in September 2021.
According to the government data, the output of the manufacturing sector rose 1.8% in September 2022 as against a 4.3% growth recorded in the year-ago period, as per latest data from the National Statistical Office (NSO).
Numbers to Track:
The yield on India's 10-year benchmark federal paper declined to 7.2866 as compared with 7.307 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 81.25, compared with its close of 80.78 during the previous trading session.
MCX Gold futures for 5 December 2022 settlement added 0.37% to Rs 52,530.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.75% to 107.09.
The United States 10-year bond yield rose 1.38% to 3.882.
In the commodities market, Brent crude for January 2023 settlement fell 96 cents or 1% at $95.03 a barrel.
Global Markets:
The Dow Jones index futures were down 98 points, indicating a negative opening in the US stocks today.
European shares advanced while Asian stocks settled on a mixed note on Monday. Investors cheered the US inflation reading, betting that the Federal Reserve would soon slow its aggressive tightening campaign.
Later this week, Japan is slated to report figures for gross domestic product, trade and consumer inflation, while Indonesia's central bank holds a monetary policy meeting.
US stocks ended sharply higher on Friday amid continued optimism over cooler-than-expected US inflation print.
Stocks in Spotlight:
Grasim Industries rose 2.40%. The Aditya Birla Group company's consolidated net profit declined 17% to Rs 1,097 crore in Q2 FY23 from Rs 1,327 crore posted in Q2 FY22. Revenue from operations jumped 22% to Rs 27,486 crore in quarter ended 30 September 2022 as against Rs 22,567 crore recorded in the corresponding quarter previous year.
Life Insurance Corporation of India (LIC) jumped 5.85%. The life insurance company reported net premium of Rs 1.32 lakh crore for the quarter ended September FY23 as compared to net premium of Rs 1.04 lakh crore for the quarter ended September FY22. The net profit for the quarter jumped to Rs 15,952 crore from Rs 1,434 crore last year. The company's other income stood at Rs 6,795 crore as against Rs 46 crore a year back for the quarter, including refund of income tax.
Godfrey Phillips India jumped 6.22%. The company's consolidated net profit surged 92.3% to Rs 201.82 crore on 60.2% rise in revenue from contracts with customers to Rs 1,012.13 crore in Q2 FY23 over Q2 FY22.
Exide Industries advanced 4.91% after the company's consolidated net profit jumped 22.7% to Rs 241.20 crore on 13.3% increase in net sales to Rs 3,841.13 crore in Q2 FY23 over Q2 FY22.
Zee Entertainment Enterprises (ZEEL) fell 2.41%. ZEEL reported consolidated net profit of Rs 112.8 crore in Q2 FY23 as against a net profit of Rs 266.1 crore in Q2 FY22. Operating revenue increased to Rs 2028.4 crore in Q2 FY23 from Rs 1978.8 crore posted in Q2 FY22.
Thermax slipped 3.75%. The company reported 24% rise in consolidated net profit to Rs 109 crore on a 41% increase in operating revenue to Rs 2,075 crore in Q2 FY23 over Q2 FY22.
Adani Power shed 0.22%. On a Consolidated basis, the Adani group firm reported profit after tax for Q2 FY23 at Rs 696 crore as against loss of Rs 231 crore in Q2 FY22, due to higher one-time income. Total income for Q2 FY23 was higher by 52% at Rs 8,446 crore compared with Rs 5,572 crore in Q2 FY22. This increase in revenue was aided by improved tariffs under long term Power Purchase Agreements (PPAs) on account of higher import coal prices, as well as improved merchant/short term tariffs due to higher demand.
Trident tumbled 4.83%. The company's standalone net profit slumped 82.7% to Rs 39.66 crore on 14.6% decrease in revenue from operations to Rs 1,419.17 crore in Q2 FY23 over Q2 FY22. Trident has announced capex worth Rs 893 crore for capacity addition in Yarn, Bath linen & Chemical business.
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