The equity benchmark indices advanced on Wednesday, tracking positive Asian stock markets. Asian stocks advanced after the latest U.S. inflation showed that consumer prices rose less than expected in November, signaling that inflationary pressures could be starting to ease. Meanwhile, India's wholesale inflation easing to a 21-month low of 5.85% in November also boosted sentiment. Barring the Nifty FMCG index, all the sectoral indices on the NSE ended in the green. Realty, metal and IT shares topped the list of gainers.
The S&P BSE Sensex advanced 144.61 points or 0.23% to 62,677.91. The Nifty 50 index added 52.30 points or 0.28% to 18,660.30.
JSW Steel (up 1.79%), SBI (up 1.44%), HDFC (up 1.02%), TCS (up 0.98%) and HDFC Bank (up 0.80%) boosted the indices.
The Nifty Bank index hit a fresh record high today at 44,151.80.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.59% while the S&P BSE Small-Cap index gained 0.68%.
The market breadth was positive. On the BSE, 2,034 shares rose and 1,498 shares fell. A total of 145 shares were unchanged.
TheU.S. Federal Reservewill conclude its last meeting of 2022 on Wednesday and it is widely expected to raise rates by half a percentage point. Thursday will also see monetary policy decisions from theBank of England,European Central Bankand theSwiss National Bank.
Economy:
The annual rate of inflation based on all India Wholesale Index (WPI) number is 5.85% (provisional) for the month of November 2022 over November 2021. WPI inflation rose by 8.39% YoY in October 2022.
Decline in rate of inflation in November, 2022 is primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals & chemical products and paper & paper products as compared to the corresponding month of the previous year.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper declined to 7.244 compared with 7.265 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 82.49, compared with its close of 82.6025 during the previous trading session.
MCX Gold futures for 3 February 2023 settlement lost 0.12% to Rs 54,676.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.027% to 103.71.
The United States 10-year bond yield fell 0.32% to 3.492.
In the commodities market, Brent crude for February 2023 settlement rose 81 cents or 1% to $81.49 a barrel.
Global Markets:
Shares in Europe fell across the board while Asian stocks advanced on Wednesday.
Sentiment at Japan's large manufacturers worsened in the fourth quarter, according to the Bank of Japan's quarterly tankan business sentiment survey. The headline index for large manufacturers' sentiment came in at 7, a decline from the previous quarter's reading of 8. The index for small manufacturing slightly improved to -2 in the fourth quarter from -4 in the previous quarter.
US stocks rose for a second day on Tuesday, fueled by a cooler-than-anticipated inflation report.
The US consumer price index, which measures a wide basket of goods and services, rose just 0.1% from the previous month, and increased 7.1% from a year ago, data from the Labor Department showed.
The U.S. Federal Reserve concludes its last meeting of 2022 on Wednesday. Chair Jerome Powell will also speak Wednesday, giving further clues about what's coming from the Fed in 2023.
Stocks in Spotlight:
One 97 Communications (Paytm) skid 1.92% to Rs 529.15. The company on Tuesday said it will undertake a buyback of up to Rs 850 crore at a maximum price of Rs 810 per share. The board has decided to opt for the open market route through stock exchanges method, which is to be completed within a maximum period of 6 months.
UltraTech Cement slipped 0.36%. The company announced the commissioning of 1.9 mtpa greenfield clinker backed grinding capacity at Pali Cement Works, Rajasthan. The company along with its subsidiary now has 16.25 mtpa cement capacity in Rajasthan spread over 5 separate plant locations. The company's total cement manufacturing capacity in India now stands at 121.35 mtpa.
H.G. Infra Engineering rallied 6.74% after the company announced that it has been declared as lowest bidder by National Highway Authority of India for a road project in Haryana.
HDFC Bank rose 0.80%. The private lender on Wednesday announced that it will acquire 7.75% stake in a fintech start-up, Mintoak Innovations (Mintoak) for a total cash consideration of Rs 31.14 crore. Post transaction, HDFC Bank will hold 7.75% stake of the total share capital of Mintoak on a fully diluted basis. The acquisition is likely to be completed by 31 January 2023.
Mahindra & Mahindra (M&M) was up 0.19%. The auto major on Wednesday said that its investment of Rs 10,000 crore for setting up an electric vehicle (EV) manufacturing plant in Pune has been approved under the Maharashtra Government's industrial promotion scheme.
Bank of Baroda fell 0.75%. The bank said that its board has approved the divestment of its majority shareholding in the Nainital Bank. The board of the Mumbai-based bank has authorized issuance of an advertisement inviting expressions of interest (EOI) through a preliminary information memorandum (PIM) from interested parties (IPs). The government backed lender currently holds 98.57% of the total equity share capital of Nainital Bank.
Axis Bank declined 0.24%. The private lender on Tuesday announced that its board has approved raising Rs 12,000 crore through allotment of non-convertible bonds at a coupon rate of 7.88% p.a. payable annually, on a private placement basis.
Bharat Petroleum Corporation (BPCL) rose 0.77%. The company's board will meet on 20 December 2022 to consider a proposal on investment in major projects.
Coal India (CIL) rose 0.19% after the PSU company said that it has issued letters of acceptance (LoA) for seven coal projects to be pursued through engagement of mine developer and operators (MDO). Cumulatively, these projects have production capacity of close to 100 million tonne per year (MT/Y).
IPO Update:
The initial public offer (IPO) of Sula Vineyards received bids for 4,38,35,442 shares as against 1,88,30,372 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (14 December 2022). The issue was subscribed 2.33 times.
The issue opened for bidding on Monday (12 December 2022) and it will close on Wednesday (14 December 2022). The price band of the IPO is fixed at Rs 340-357 per share. An investor can bid for a minimum of 42 equity shares and in multiples thereof.
The IPO of Abans Holdings received bids for 58,75,155 shares as against 1,28,00,000 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (14 December 2022). The issue was subscribed 46%.
The issue opened for bidding on Monday (12 December 2022) and it will close on Thursday (15 December 2022). The price band of the IPO is fixed at Rs 256-270 per share. An investor can bid for a minimum of 55 equity shares and in multiples thereof.
The IPO of Landmark Cars received bids for 31,33,102 shares as against 80,41,805 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (14 December 2022). The issue was subscribed 39%.
The issue opened for bidding on Tuesday (13 December 2022) and it will close on Thursday (15 December 2022). The price band of the IPO is fixed at Rs 481-506 per share. An investor can bid for a minimum of 29 equity shares and in multiples thereof.
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