Domestic headline equity indices ended with strong gains on Monday, mirroring positive global cues. Encouraging Q2 results declared by the IT companies so far also boosted invetors confidence. After hitting a low of 17,098.55, the Nifty 50 index marched higher as the session advanced and closed near the day's high of 17,328.55. Banks and financial services shares were in demand. However, media, realty and metal shares declined.
The barometer index, the S&P BSE Sensex, jumped 491.01 points or 0.85% to 58,410.98. The Nifty 50 index gained 126.10 points or 0.73% to 17,311.80.
SBI (up 3.03%), Bajaj Finserv (up 2.10%), Axis Bank (up 2%), NTPC (up 1.94%) and ICICI Bank (up 1.87%) were top Nifty gainers.
In the broader market, the S&P BSE Mid-Cap index gained 0.26% while the S&P BSE Small-Cap index rose 0.09%.
The market breadth was negative. On the BSE, 1609 shares rose and 1926 shares fell. A total of 166 shares were unchanged.
RBI Minutes:
The Reserve Bank of India's (RBI) monetary policy committee may lean more on data in deciding the key interest rate going ahead, minutes of its September meeting suggested on Friday, 14 October 2022.
The MPC raised its benchmark repo rate by 50 basis points late last month, the fourth straight increase to tame high inflation.
"Going forward, monetary policy needs to remain watchful and nimble, based on incoming data and evolving conditions," RBI governor Shaktikanta Das wrote in the minutes. "The need of the hour is calibrated monetary policy action, with a clear understanding that it is required for sustaining our medium-term growth prospects," Das said.
Minutes from two external members Ashima Goyal and Jayant Varma, however, showed their preference for a tapering of the rate-hike cycle going ahead.
"A pause is needed after this hike because monetary policy acts with lags," Varma wrote in his minutes. "It is dangerous to push the policy rate well above the neutral rate in an environment where the growth outlook is very fragile," he added.
Michael Patra, deputy governor in-charge of monetary policy, underlined the importance of front-loading rate hikes. "Front-loading of monetary policy actions can keep inflation expectations firmly anchored and balance demand against supply so that core inflation pressures ease," Patra wrote. "It will also reduce the medium-term growth sacrifice associated with steering inflation back to target."
Numbers to Track:
The yield on India's 10-year benchmark federal paper tumbled to 7.415 as compared with 7.470 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 82.3000, compared with its close of 82.19 during the previous trading session.
MCX Gold futures for 5 December 2022 settlement declined 1.19% to Rs 50,280.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.40% to 112.86.
The United States 10-year bond yield fell 1.48% to 3.947.
In the commodities market, Brent crude for December 2022 settlement rose 43 cents or 0.47% at $92.06 a barrel.
Global Markets:
The US Dow Jones 30 Futures were currently trading with a gain of 312 points, indicating a positive start to equities on Wall Street today.
Shares in Europe advanced across the board while most Asian stocks ended higher on Monday.
The People's Bank of China rolled over its medium-term lending facility (MLF) loans and kept its interest rate unchanged at 2.75%, according to a statement. The central bank announced it would keep the one-year rate unchanged for a second month and injected 500 billion yuan ($70 billion) through the MLF.
Chinese President Xi Jinping affirmed Sunday the country's recent shift away from rapid growth and greater focus on national self-sufficiency, especially in technology. Xi briefly mentioned in that opening section how the country's Covid policy has achieved "positive results" in coordination with economic development.
US stocks dropped on Friday as worsening inflation expectations kept intact worries that the Federal Reserve's aggressive rate hike path could trigger a recession.
Buzzing Segment:
The Nifty PSU Bank index jumped 3.47% to 3,050.95. The index has risen 3.94% in two sessions.
Indian Bank (up 6.08%), Canara Bank (up 4.92%), Bank of Baroda (up 4.75%), Punjab National Bank (up 3.49%), SBI (up 3.03%), Union Bank of India (up 1.86%), Indian Overseas Bank (up 0.58%) and Bank of India (up 0.43%) advanced.
Bank of Maharashtra gained 5.01% after the state-run bank's net profit surged 102.93% to Rs 535 crore and total income rose 7% to Rs 4,317 crore in Q2 FY23 over Q2 FY22. Net Interest Income (NII) grew by 25.84% on YoY basis to Rs 1,887 crore in Q2 FY23 as against Rs 1,500 crore for Q2 FY22. The same is up by 11.94% on a QoQ basis.
Earnings Impact:
HDFC Bank rose 0.36%. The private lender's net profit rose 20.1% to Rs 10605.78 crore on 19.2% increase in total income to Rs 46181.96 crore in Q2 FY23 over Q2 FY22. Net interest income (interest earned less interest expended) for the quarter ended 30 September 2022 grew by 18.9% to 21,021.2 crore from 17,684.4 crore for the quarter ended 30 September 2021. Core net interest margin was at 4.1% on total assets, and 4.3% based on interest earning assets.
ACC added 1.09%. On a consolidated basis, the cement major reported net loss of Rs 87.32 crore in Q3 September 2022 as against net profit of Rs 450.21 crore in Q3 September 2022. Net sales rose 7.04% to Rs 3910.49 crore in Q3 September 2022 over Q3 September 2022. During the quarter ended 30 September 2022, cement volume grew by 4% compared with the same quarter last year. Ready Mix Concrete performed well with a volume growth of over 10% over the same quarter last year. Power and fuel expenses in Q3 September 2022 stood at Rs 1,317.53 crore, up 67.14% YoY.
Avenue Supermarts (DMart) fell 3.49%. The company reported 64.1% rise in consolidated net profit to Rs 686 crore on a 36.6% increase in total revenue to Rs 10,638 crore in Q2 FY23 over Q2 FY22. PAT margin stood at 6.4% in Q2 FY23 as compared to 5.3% in Q2 FY22.
Tata Elxsi tumbled 8.01%. The design led technology service provider reported 39.1% rise in net profit to Rs 174.28 crore on 28.2% increase in revenues from operations to Rs 763.17 crore in Q2 FY23 over Q2 FY21. On quarter on quarter basis, the company's net profit declined 5.65% while revenue from operations grew 5.1%, respectively, over Q1 FY23 (QoQ).
Bajaj Auto gained 1.60%. The two-wheeler maker's consolidated net profit dropped 15.71% to Rs 1,719.44 crore in Q2 FY23 as against Rs 2,039.86 crore recorded in Q2 FY22. Revenue from operations jumped 16.44% to Rs 10,202.71 in the quarter ended 30 September 2022 from Rs 8,762.18 crore posted in the same period a year ago.
Oberoi Realty dropped 4.71%. The Mumbai-based real estate developer has reported a 19.5% rise in consolidated net profit to Rs 318.62 crore despite of 8.7% decline in revenue from operations to Rs 688.59 crore in Q2 FY23 over Q2 FY22.
Just Dial advanced 4.68% after the company's consolidated net profit rose 58.49% to Rs 52.16 crore on 31.59% increase in net sales to Rs 205.26 crore in Q2 September 2022 over Q2 September 2021.
Larsen & Toubro Infotech (LTI) shed 0.68%. The IT company recorded 7.2% rise in net profit to Rs 679.8 crore on a 6.9% increase in revenue to Rs 4,836.7 crore in Q2 FY23 over Q1 FY23. As compared with Q2 FY22, the company's net profit and revenue has increased by 23.2% and 28.4%, respectively.
ICICI Prudential Life Insurance Company declined 0.76% after the company's consolidated net profit declined 55.1% to Rs 200.12 crore on a nearly 1% fall in total income to Rs 22,904.35 crore in Q2 FY23 over Q2 FY22. Net premium income rose 3.18% to Rs 9,581.72 crore in the quarter ended September 2022 as against Rs 9,286.53 crore in the quarter September 2021. Income from investments (net) slipped 5.37% to Rs 12,818.89 crore in Q2 FY23 from Rs 13,545.83 crore in Q2 FY22.
New Listing:
Shares of Electronics Mart India settled at Rs 84.45 on the BSE, a premium of 43.14% compared with the issue price of Rs 59.
The scrip was listed at Rs 89.40, representing a premium of 51.53% compared with the issue price.
The scrip has hit a high of Rs 91 and a low of Rs 83.20. Over 59.32 lakh shares of the company changed hands in the counter.
The initial public offer (IPO) of Electronics Mart India was subscribed 71.93 times. The issue opened for bidding on Tuesday (04 October 2022) and closed on Friday (07 October 2022). The price band of the IPO was fixed at Rs 56-59 per share.
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