Sensex jumps 379 pts, Nifty ends above 17,800; autos rally

The domestic equity benchmarks ended with strong gains on Tuesday, aided by positive global cues. Better-than-expected domestic inflation data also lifted sentiment. Interest rate sensitive realty, automobile and banking stocks advanced on hopes that easing inflation may limit the pace of rate hikes by the RBI. The Nifty closed above the 17,800 level.

The barometer index, the S&P BSE Sensex, advanced 379.43 points or 0.64% to 59,842.21. The Nifty 50 index added 127.10 points or 0.72% to 17,825.25.

HDFC Life Insurance Company (up 4.78%), Eicher Motors (up 3.95%), BPCL (up 3.70%), Maruti Suzuki India (up 3.37%) and Tata Motors (up 2.71%) were major Nifty gainers.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index rose by 1.03% each.

The market breadth was positive. On the BSE, 1,990 shares rose and 1,554 shares fell. A total of 161 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.44% to 17.69.

Economy:

India`s inflation based on wholesale price index (WPI) stood at 13.93% in July 2022 compared with 11.57% in July 2021. The WPI grew 15.18% in June 2022, while the figure for May was 15.88%.

India`s retail inflation based on the Consumer Price Index (CPI) eased to 6.71% in July 2022 compared with 7.01% in preceding month. Inflation eased mainly due to easing prices in the food & beverages section.

India`s factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 12.3% in June 2022. Industrial production grew 19.6% in May 2022. IIP growth in June 2021 was 13.8%, the data showed.

India`s overall exports including merchandise and services exhibited growth last month. Exports registered growth of 11.51% over the same period of last year and estimated to be $61.18 billion. Overall imports also exhibited a growth of 42.90% in comparison to the corresponding period of last year. The country`s imports in the last month are estimated to be $82.22 billion.

Numbers to Watch:

MCX Gold futures for 5 October 2022 settlement fell 1.37% to Rs 51,862.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, added 0.27 % to 106.83.

In the commodities market, Brent crude for October 2022 settlement declined 93 cents or 0.98% at $94.17 a barrel. The contract declined $3.05 or 3.11% to settle at $95.1 a barrel during the previous trading session.

Global Markets:

Shares in Europe and Asia advanced on Tuesday. The People`s Bank of China lowered the rate on its 1-year policy loans by 10 basis points to 2.75% and the 7-day reverse repo rate to 2% from 2.1% on Monday. It defied expectations that the central bank would act on rate cuts.

China still needs more growth policies to stabilize its economy after the central bank moved unexpectedly to cut its key interest rates, the Chinese state media said on Tuesday.

US stocks rose on Monday with mega-cap growth shares, extending the market`s recent rally amid investor optimism the Federal Reserve can achieve a soft landing for the economy.

Stocks in Spotlight:

Adani Ports and Special Economic Zone (APSEZ) rallied 4.61% after the company said its wholly owned subsidiary, Adani Logistics, signed a definitive agreement to acquire the ICD Tumb from Navkar Corporation for an enterprise value of Rs 835 crore.

Oil and Natural Gas Corporation (ONGC) added 0.47%. The corporation reported a standalone net profit of Rs 15,206 crore in Q1 FY23, steeply higher than Rs 4,335 crore recorded in Q1 FY22. Net revenue increased 83.8% YoY to Rs 42320.72 crore during the quarter.

Life Insurance Corporation of India (LIC) rose 2.30%. LIC reported a standalone net profit of Rs 682.89 crore in Q1 FY23, steeply higher than Rs 2.94 crore recorded in Q1 FY22. The insurer`s total premium income surged 20.35% to Rs 98,351.76 crore in the quarter ended 30 June 2022 as against Rs 81,721.42 crore posted in the corresponding quarter previous year.

Muthoot Finance slumped 12.47%. On standalone basis, the company`s net profit dropped 17.4% to Rs 802.01 crore on 7.6% decline in total income to Rs 2,509.27 crore in Q1 FY23 over Q1 FY22.

Hero MotoCorp gained 2.02%. The two-wheeler maker recorded 71% jump in standalone net profit to Rs 625 crore in Q1 FY23 from Rs 365 crore in Q1 FY22. Revenue from operations for the first quarter stood at Rs 8,393 crore, a growth of 53% over the corresponding quarter in the previous fiscal.

Zee Entertainment Enterprises (ZEE) slipped 1.63%. The company reported 50.1% drop in consolidated net profit to Rs 106.6 crore despite a 4% increase in operating revenue to Rs 1845.7 crore in Q1 FY23 over Q1 FY22.

Apollo Tyres jumped 6.06%. The tyre maker`s consolidated net profit surged 49.2% to Rs 190.68 crore on 29.6% jump in net sales to Rs 5,942 crore in Q1 FY23 over Q1 FY22.

Maithan Alloys zoomed 7.25%. The company`s consolidated net profit surged 95.4% to Rs 218.95 crore on 80.4% rise in net sales to Rs 1,020.31 crore in Q1 FY23 over Q1 FY22.

Marksans Pharma jumped 6.33%. The company`s consolidated net profit slipped 3.9% to Rs 60.2 crore despite of 24.3% rise in revenue form operations to Rs 433.8 crore in Q1 FY23 over Q1 FY22.

Forbes & Company spurted 11.49%. The company reported consolidated net profit of Rs 145.78 crore in Q1 June 2022 as against net loss of Rs 4.34 crore in Q1 June 2021. Net sales declined 6.36% to Rs 121.85 crore in Q1 June 2022 over Q1 June 2021.

DFM Foods hit an upper circuit of 20% at Rs 304.30. The company`s promoter has announced a proposal to delist equity shares of the company from the stock exchanges.

Samvardhana Motherson International jumped 4.81%. The company`s board recommended the issue of bonus shares in the ratio of one bonus equity share against two existing equity shares.

UTI Asset Management Company (UTI AMC) jumped 15%. The media reported that rival Tata Asset Management Co is set to buy a significant stake in the company.

Max Healthcare Institute zoomed 9.72% after the counter witnessed large block deals in early trade today.

On the BSE, 26.49 crore shares were traded on the counter during the trading session as compared with average daily volumes of 34,000 shares in the past two weeks.

The media reported that American private equity major KKR and Co will sell up to 26.83% in Max Healthcare Institute for Rs 9,416 crore via block deals on Tuesday (16 August). The offer will mark the exit of KKR from the company. The shares will be sold at Rs 350 to Rs 362 a share � a discount of over 3% to its closing price on Friday (12 August).

Surya Roshni dropped 6.78% after the company`s consolidated net profit declined 40.38% to Rs 22.24 crore on 26.59% rise in net sales to Rs 1839.89 crore in Q1 June 2022 over Q1 June 2021.

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