Benchmarks end flat, investors eye upcoming US inflation figures

The domestic equity market had a flat closing on Tuesday. The Nifty 50 index opened above 18,300 and surged to a high of 18,344.20 in mid-morning trade. However, profit booking caused the index to decline later in the day. Investors are now keeping a close eye on the upcoming US inflation figures on 10 May 2023. There is some concern that if US inflation remains above 5%, the Federal Reserve may continue with a hawkish stance. Despite this, the market has been supported by foreign institutional investors, preventing any significant correction. IT, auto, and pharma shares closed on a positive note, while PSU banks and realty shares saw a dip.

The barometer index, the S&P BSE Sensex lost 2.92 points to 61,761.33. The Nifty 50 index added 1.55 points or 0.01% to 18,265.95.

Axis Bank (up 1.09%), TCS (up 1.04%) and Reliance Industries (up 0.32%) supported the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.03% while the S&P BSE Small-Cap index fell 0.35%.

The market breadth was negative. On the BSE, 1,577 shares rose and 1,921 shares fell. A total of 142 shares were unchanged.

The two major factors in domestic market include the ongoing Q4 results season and the upcoming Karnataka state assembly election on 10 May 2023, with counting of votes on 13 May 2023.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper added 0.03% to 7.049 from 7.047 in previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.0625, compared with its close of 81.7800 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement advanced 0.53% to Rs 61,250.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.14% to 101.52.

The United States 10-year bond yield fell 0.99% to 3.484.

In the commodities market, Brent crude for July 2023 settlement lost 75 cents or 0.97% to $76.26 a barrel.

Global Cues:

Global stock markets fell on Tuesday, with both European and Asian markets declining.

The Dow Jones index futures were currently down 133 points, indicating a weak opening in the US stocks today.

In China, imports dropped 7.9% in April, while exports grew by 8.5%, although at a slower pace than in March. Although China`s economy had grown more than expected in Q1 2023, manufacturing is still struggling to recover from the effects of the pandemic.

On Monday, US stocks took a breather following previous session`s rally, as investors shifted their attention to a key inflation reading later in the week. The Labor Department`s inflation reading on Wednesday is in the spotlight this week, along with producer prices, weekly jobless claims, and consumer sentiment data, all of which are scheduled for release later this week.

Stocks in Spotlight:

Indiabulls Real Estate (IBREL) fell by the maximum limit of 20% following the company`s announcement that the National Company Law Tribunal (NCLT), Chandigarh Bench, has put on hold the proposed merger of NAM Estates and Embassy One Commercial Property Developments into IBREL.

Pidilite Industries rose 0.81%. The company reported 11.3% rise in consolidated net profit to Rs 283.03 crore on 7.3% increase in revenue from operations to Rs 2,689.25 crore in Q4 FY23 over Q4 FY22.

Mahanagar Gas rallied 7.49%. The company`s net profit soared 104% to Rs 268.81 crore in Q4 FY23 as compared with Rs 131.80 crore in Q4 FY22. Revenue from operations jumped 48.2% to Rs 1,610.48 crore in Q4 FY23 as against Rs 1,086.77 crore in Q4 FY22.

Kansai Nerolac Paints fell 1.53%. The company reported a standalone net profit of Rs 93.99 crore in Q4 FY23, steeply higher than Rs 24.53 crore recorded in Q4 FY22. Revenue from operations grew by 13.6% year on year to Rs 1,605.11 crore in the quarter ended 31 March 2023.

Aarti Industries rose 0.42%. The company reported consolidated net profit of Rs 149 crore in Q4 FY23 as compared with net profit of Rs 146 crore in Q4 FY22. Total income rose to Rs 1,656 crore in the quarter ended 31 March 2023 as compared with Rs 1,437 crore posted in corresponding quarter last year.

Birlasoft surged 7.14% after the company reported a consolidated net profit of Rs 112.17 crore in Q4 FY23 as against net loss of Rs 16.36 crore in Q3 FY23. Revenue from operations rose marginally to Rs 1,226.39 crore in Q4 FY23 from Rs 1221.89 crore posted in Q3 FY23. The company said it signed deals of total contract value (TCV) $286 million during the quarter. TCV of new deal wins was $114 million and renewals amounted to $172 million for Q4 FY23.

Happiest Minds Technologies shed 0.13%. The IT solutions provider`s consolidated net profit rose marginally to Rs 57.66 crore in Q4 FY23 from Rs 57.58 crore recorded in Q3 FY23. Revenue from operations grew by 3.03% to Rs 377.98 crore in Q4 FY23 over Q3 FY23.

Ganesh Housing Corporation zoomed 4.52% after the company`s consolidated net profit rose 84.38% to Rs 46.50 crore on 17.61% increase in total income to Rs 183.01 crore in Q4 March 2023 over Q4 March 2022.

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