The domestic equity benchmarks ended with modest gains after a volatile session on Friday. The Nifty managed to close above the 17,750 mark. Auto and oil & gas shares advanced while metal, pharma and bank stocks witnessed a bit of a selling pressure.
As per provisional closing data, the barometer index, the S&P BSE Sensex, added 203.01 points or 0.34% to 59,959.85. The Nifty 50 index gained 49.85 points or 0.28% to 17,786.80.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.41% while the S&P BSE Small-Cap index lost 0.62%.
The market breadth was negative. On the BSE, 1,531 shares rose and 1,911 shares fell. A total of 125 shares were unchanged.
Economy:
The International Monetary Fund (IMF) has noted in a latest update that India's economy is likely to expand at 6.8% in 2022, revised down by 1.4% points since the April 2022 World Economic Outlook because of a weaker-than- expected recovery in the second quarter and subdued external demand. A further slowdown of India's growth to 6.1% is expected in 2023 as external demand and a tightening in monetary and financial conditions weigh on growth.
Meanwhile, the Reserve Bank of India (RBI) on Thursday said that the Monetary Policy Committee (MPC) will hold an additional meeting on 3 November 2022. The MPC last met on 28 - 30 September 2022. It was slated to meet for the last time this calendar year on 5 - 7 December 2022.
Buzzing Index:
The Nifty Auto index rose 1.63% to 13,190.90. The index has added 3.90% in four sessions.
MRF (up 2.33%), Bosch (up 2.05%), Hero MotoCorp (up 1.5%) and Bharat Forge (up 1.32%) were the top gainers.
Among the other gainers were Bajaj Auto (up 1.29%), Mahindra & Mahindra (up 1.24%), Eicher Motors (up 0.99%), Ashok Leyland (up 0.84%) and Samvardhana Motherson International (up 0.63%).
On the other hand, Sona BLW Precision Forgings (down 3.24%), Tube Investments of India (down 2.68%) and Balkrishna Industries (down 0.01%) turned lower.
Maruti Suzuki India rallied 5.19%. The auto major reported a standalone net profit of Rs 2,061.5 crore in Q2 FY23, steeply higher than Rs 475.3 crore recorded in Q2 FY22. Net sales jumped 47.91% to Rs 28,543.5 crore in quarter ended 30 September 2022, as against Rs 19,297.8 crore posted in the same period last year.
Stocks in Spotlight:
SBI Cards and Payment Services slipped 5.33%. The company's net profit jumped 52.1% to Rs 525.64 crore on 28.1% rise in total income to Rs 3,453.32 crore in Q2 FY23 over Q2 FY22. Interest income increased by 26.5% to Rs 1,484.46 crore in Q2 FY23 as against Rs 1,173.16 crore recorded in the same quarter last year. Income from fees and services surged 29.5% to Rs 1,611 crore in the Q2 FY23 from Rs 1,244 crore posted in Q2 FY22.
Indus Towers skid 1.96%. The company's consolidated net profit slumped 44.1% to Rs 871.80 crore in Q2 FY23 as against Rs 1,558.50 crore recorded in Q2 FY22. Revenue from operations stood at Rs 7,966.60 crore in Q2 FY23 from Rs 6,876.50 crore posted in the corresponding quarter previous year, registering a growth of 15.9%.
Tata Chemicals dropped 4.87%. The company reported a consolidated net profit (from continuing operations) of Rs 685 crore in Q2 FY23, steeply higher than Rs 248 crore posted in Q2 FY22. Revenue from operations jumped 40.2% to Rs 4,239 crore in quarter ended 30 September 2022 from Rs 3,022.63 crore recorded in Q2 FY22.The company said that the operating performance reflects improved realisations and efficient cost management in the context of elevated energy and input costs.
Dhanuka Agritech jumped 5.86%. The board of directors at its board meeting scheduled to be held on 1 November 2022 shall consider the proposal for buyback of fully paid-up equity shares of the company through tender offer route, up to such amount of the aggregate of company's paid up equity share capital and free reserves.
Infibeam Avenues hit an upper circuit of 20%. The company informed that the Reserve Bank of India has granted in-principle authorisation to operate as a 'Payment Aggregator' under the Payment and Settlement Systems Act, 2007 to the Company.
Vedanta fell 1.20%. The company said that the government has approved the extension of the production sharing contract (PSC) for the Rajasthan gas facility under the pre‐NELP Extension Policy by 10 years from 15 May 2020 to 14 May 2030.
Aditya Birla Sun Life AMC slumped 4.75%. The AMC reported 10.8% rise in consolidated net profit to Rs 191.69 crore despite of 6.3% decrease in revenue from operations to Rs 311.09 crore in Q2 FY23 over Q2 FY22.
Vardhman Textiles rose 1.17%. The company reported 57.1% drop in consolidated net profit to Rs 204.90 crore a 3.5% increase in revenue from operations to Rs 2,469.58 crore in Q2 FY23 oer Q2 FY22.
C E Info Systems fell 2.85%. The company's consolidated net profit rose 0.08% to Rs 25.41 crore on 34.63% increase in net sales to Rs 76.31 crore in Q2 September 2022 over Q2 September 2021.
Supreme Petrochem lost 3.08%. The company reported 53.1% fall in net profit to Rs 59.65 crore despite a 3.6% rise in net sales to Rs 1231.76 crore in Q2 FY23 over Q2 FY22.
Global Markets:
Shares in Europe and Asia tumbled on Friday as the European Central Bank (ECB) hiked its interest rate by 75 basis points on Thursday, its third consecutive increase this year.
The latest rate hike takes the ECB's main benchmark from 0.75% to 1.5%. The ECB also announced that it was changing the terms and conditions of its targeted longer-term refinancing operations or TLTRO.
Japan's central bank left interest rates unchanged on Friday. The Bank of Japan also said it would purchase necessary amounts of Japanese government bonds at a fixed rate in order to keep 10-year JGB yields at 0%.
"The Bank will support financing, mainly of firms, and maintain stability in financial markets, and will not hesitate to take additional easing measures if necessary, it reportedly said in its monetary policy statement.
Meanwhile, Japan's jobless rate rose to 2.6% in September, while the availability of jobs improved for the ninth straight month to two and a half year high, government data showed on Friday. Analysts reportedly expected unemployment to stay unchanged from August at 2.5%.
The jobs-to-applicants ratio stood at 1.34, labour ministry data showed, higher than 1.32 in August and marking its highest since March 2020.
In US, the S&P 500 and the Nasdaq posted losses on Thursday, as investors contended with solid economic data and a mixed bag of corporate earnings.
The U.S. economy grew at a 2.6% annualized pace for the period, the Bureau of Economic Analysis report showed. The chain-weighted price index, a cost-of-living measure that is adjusted to reflect changing consumer behavior, rose 4.1% for the quarter. Headline inflation rose 4.2%, down sharply from 7.3%, according to a gauge the Federal Reserve uses.
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