The domestic equity benchmarks ended with robust gains on Tuesday. The Nifty opened at 17,840.35 and marched higher as the session progressed to settle above the 17,900 level. FMCG and IT shares were major source of strength today. Metal and banks shares also supported gains.
The barometer index, the S&P BSE Sensex jumped 600.42 points or 0.99% to 61,032.26. The Nifty 50 index advanced 158.95 points or 0.89% to 17,929.85.
Reliance Industries (up 2.35%), ITC (up 3.31%), ICICI Bank (up 1.78%), Infosys (up 1.61%) and HDFC Bank (up 0.89%) pushed the indices higher.
The broader market, however, declined. The S&P BSE Mid-Cap index fell 0.44% while the S&P BSE Small-Cap index slipped 0.61%.
The market breadth was weak. On the BSE, 1,255 shares rose and 2,248 shares fell. A total of 111 shares were unchanged.
Traders awaited US retail inflation reading for January 2023, scheduled for release later in the day.
Meanwhile, the European Commission lifted its projections for the EU, saying the bloc will likely dodge a recession, thanks in part to easing gas costs. The outlook for headline inflation in the 27-member bloc was also lowered, but the EU's executive arm warned that price pressures remain both strong and persistent.
Economy:
India's annual wholesale price index (WPI) based inflation eased to 24-month low of 4.73% in January 2023 as compared to 4.95% recorded in December 2022 and 13.68% in January 2022.
Decline in the rate of inflation in January 2023 is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products, the Ministry of Commerce & Industry said in a statement today.
India's retail inflation accelerated to a three-month high in January, reverting to over the Reserve Bank of India's upper tolerance band of 6% after a gap of two months, led by a spike in food prices and elevated prices in the non-food segment.
Inflation based on the Consumer Price Index (CPI) hardened to 6.52% in January, after declining to a one-year low level of 5.72% in December, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday. Core inflation, which is non-food, non-fuel inflation remained over the 6% mark at 6.2% in January.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper rose to 7.372 from 7.366 previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.81, compared with its close of 82.70 during the previous trading session
MCX Gold futures for 5 April 2023 settlement rose 0.53% to Rs 56,798.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.28% to 103.05.
The United States 10-year bond yield shed 0.78% to 3.690.
In the commodities market, Brent crude for April 2023 settlement declined $1.18 or 1.36% to $85.43a barrel.
Global Markets:
Markets in Europe and Asian advanced on Tuesday as investors await the release of the U.S. consumer price index report, which will shape the Federal Reserve's path ahead.
The rate of unemployment in the U.K. remained unchanged at 3.7% in the three months to December, according to data released by the Office for National Statistics. The rate remains close to the lowest level the country has seen in 50 years, which was 3.5% in the three months to August 2022.
Japan's economy expanded by 0.6% on an annualized basis for the fourth quarter of 2022. The figure was a rebound from a revised contraction of 1% seen in the third quarter of 2022 compared to a year ago.
The Japanese government nominated Kazuo Ueda for its next Bank of Governor, media reports stated. The government also nominated Ryozo Himino and Shinichi Uchida for the deputy governor roles, the report added.
A global research house on Monday reportedly cut Japanese stocks to "underweight", saying that a Bank of Japan (BOJ) policy change away from its "ultra-loose" monetary strategy could push global yields higher and reduce risk appetite.
Wall Street closed sharply higher on Monday as investors awaited inflation data likely to hint at the path of the Federal Reserve's future interest rate hikes, while Meta Platforms gained after a report that the Facebook parent was planning fresh layoffs.
Stocks in Spotlight:
ITC rose 3.31% after the media reported that the government does not plan to sell its indirectly held stake in ITC for now.
"The government does not plan to sell its indirectly held stake in ITC at this point," Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), told the media today, 14 February 2023.
The media earlier reported that the Centre was reviving a plan to sell part of its indirectly held stake in ITC and the transaction could even be completed in the current financial year.
The government held 7.86% stake in ITC via the Specified Undertaking of the Unit Trust of India (SUUTI).
Adani Enterprises advanced 1.91%. The company reported consolidated net profit of Rs 820.06 crore in Q3 FY23 as against a net loss of Rs 11.63 crore posted in Q3 FY22. The company's revenue from operations jumped 41.87% year on year (YoY) to Rs 26,612.23 crore in the quarter ended 31 December 2022.
Bharat Forge slipped 1.75% .The company reported 14.3% drop in standalone net profit to Rs 289.2 crore in Q3 FY23 from Rs 337.4 crore in Q3 FY22. Total revenue rose by 21.8% YoY to Rs 1,952.1 crore during the quarter
Zee Entertainment Enterprises (ZEEL) fell 0.98% after the company's consolidated net profit slumped 91.9% to Rs 24.31 crore in Q3 FY23 as against Rs 298.73 crore recorded in Q3 FY22. Revenue from operations declined marginally to Rs 2,111.18 crore in quarter ended 31 December 2022 from Rs 2,112.64 crore posted in the same period a year ago.
Steel Authority of India (SAIL) rose 1.08%. The iron & steel maker's standalone net profit slumped 67.9% to Rs 463.54 crore in Q3 FY23 as compared to Rs 1,443.10 crore in Q3 FY22. Revenue from operations declined marginally to Rs 25,041.88 crore during the quarter as compared with Rs 25,245.92 crore posted in the corresponding quarter last year.
FSN E-Commerce (Nykaa) tumbled 4.48%. Nykaa reported 71% drop in consolidated net profit to Rs 8.49 crore in Q3 FY23 from Rs 29.02 crore in Q3 FY22. Operating revenue fell 0.1% YoY to Rs 2111.2 crore during the quarter.
Gujarat State Petronet jumped 4%. The company's standalone net revenue was down by 14.6% YoY to Rs 402 crore in Q3 FY23. EBITDA fell by 19.8% YoY to Rs 270 crore and EBITDA margin stood at 67.1% in Q3 FY23 as against 71.4% in Q3 FY22. Net Profit declined by 19.9% YoY to Rs 171 crore during the period under review.
RHI Magnesita India slumped 7.75% after the company reported 23% fall in consolidated net profit to Rs 59 crore in Q3 FY23 from Rs 76 crore in Q3 FY22. The Q3 FY 2022-23 income stood at Rs 649 crore, as compared to 547 crores during the Q3 FY 2021-22, registering a 19% growth in income. EBITDA declined by 11% to Rs 97 crore during the period under review as against Rs 109 crore recorded in the same period last year, leading to a fall of 5.1% in EBITDA margins. The deterioration in EBITDA was due to higher cost of trading goods and foreign exchange fluctuations.
Allcargo Logistics tumbled 9.75% after the company's consolidated net profit (from continuing operations) slumped 61.59% to Rs 124.43 crore in Q3 FY23 as against Rs 323.95 crore posted in Q3 FY22. Revenue from operations dropped 26.8% year on year to Rs 4,099.02 crore in the quarter ended 31 December 2022.
Jaiprakash Power Ventures slumped 9.48%. On a consolidated basis, the company reported net loss of Rs 217.97 crore in Q3 December 2022 as against net profit of Rs 106.83 crore in Q3 December 2021. Net sales declined 14.30% to Rs 1201.05 crore in Q3 December 2022 over Q3 December 2021.
Mirza International surged 13.73% after the company's consolidated net profit rose 31.1% to Rs 57.58 crore on 0.9% increase in revenue from operations to Rs 594.88 crore in Q3 December 2022 over Q3 December 2021.
FCS Software Solutions surged 7.35% after the company reported consolidated net profit of Rs 0.76 crore in Q3 December 2022 as against net loss of Rs 0.06 crore in Q3 December 2021. Revenue from operations rose 13.3% year-on-year to Rs 9.21 crore in Q3 December 2022 over Q3 December 2021.
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