The key equity indices ended near the day's high with strong gains on Tuesday. Favourable domestic economic numbers and positive global cues underpinned investors' sentiment. After opening at 18,524.40 mark, the Nifty 50 index advanced as the session progressed and settled above the 18,600 mark. PSU banks soared while IT shares witnessed value buying. However, realty, consumer durables and FMCG shares declined.
The barometer index, the S&P BSE Sensex, gained 402.73 points or 0.65% to 62,533.30. The Nifty 50 index added 110.85 points or 0.60% to 18,608.
Infosys (up 1.65%), TCS (up 1.44%), Bajaj Finance (up 1.21%) and Reliance Industries (up 0.46%) pushed the indices higher.
The Nifty Bank index hit a record high of 43,983.80 today. Punjab National Bank (up 3.10%), Indusind Bank (up 2.13%) and IDFC First Bank (up 1.86%) were top sector movers.
In the broader market, the S&P BSE Mid-Cap index rose 0.25% while the S&P BSE Small-Cap index gained 0.40%.
The market breadth was positive. On the BSE, 1,920 shares rose and 1,605 shares fell. A total of 144 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 3.26% to 12.88.
Investors keenly waited for the US Federal Reserve's highly anticipated monetary policy decision due on Wednesday. The U.S. central bank is widely expected to raise interest rates by 50 basis points. Traders also focused on the U.S. inflation data due later in the day.
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 per cent 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.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper declined to 7.266 as compared with 7.294 at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.90, compared with its close of 82.515 during the previous trading session.
MCX Gold futures for 3 February 2023 settlement rose 0.29% to Rs 54,287.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.10% to 105.03.
The United States 10-year bond yield declined 0.30% to 3.60.
In the commodities market, Brent crude for February 2023 settlement rose $1.02 or 1.31% to $79.01 a barrel.
Global Markets:
The Dow Jones index futures were up 133 points, indicating a positive opening in the US stocks today.
European shares rose across the board while Asian stocks ended mixed on Tuesday as investors look ahead to a highly anticipated US Federal Reserve meeting outcome and U.S. CPI data.
US stocks indexes rallied on Monday, lifted in part by gains in Microsoft and Pfizer, as investors girded for inflation data on Tuesday and a policy announcement from the Federal Reserve later in the week.
The Federal Reserve is set to begin its two-day meeting on Tuesday. The U.S. central bank is widely expected to raise rates by half a percentage point Wednesday. The latest reading for the U.S. consumer price index report for November is also slated for Tuesday. Traders are hoping for signs of easing inflation.
Stocks in Spotlight:
Tata Motors (TML) rose 1.06%. 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).
Separately, the company announced that it will be increasing the prices of its commercial vehicles (CV) up to 2% from January 2023. While the price increase will vary as per individual model and variant, it will be applicable across the entire range of commercial vehicles.
Kirloskar Brothers (KBL) declined 1.49%. 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 0.27%. 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.
Mahindra CIE Automotive added 0.72%. The company has invested Rs 24.26 million towards subscription of 3,03,250 equity shares of Strongsun Solar Private Limited (Strongsun) which will constitute 27.35% of the post-issue paid-up capital of Strongsun.
Bandhan Bank gained 1.95% 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
Kama Holdings declined 1.10% to Rs 13,636.50. The company announced that its board approved share buyback upto Rs 50.02 crore at a price not exceeding Rs 14,500 per share through the tender offer route, on a proportionate basis. The maximum buyback price of Rs 14,500 per equity share represents a 5.16% premium to Monday's closing price of Rs 13,788.05 on the BSE.
IPO Update:
The initial public offer (IPO) of Sula Vineyards received bids for 1,10,99,256 shares as against 1,88,30,372 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (13 December 2022). The issue was subscribed 59%.
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 35,27,260 shares as against 1,28,00,000 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (13 December 2022). The issue was subscribed 28%.
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 14,04,383 shares as against 80,41,805 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (13 December 2022). The issue was subscribed 17%.
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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