Broader market outperform; European markets trade mixed

The domestic equity barometers currently traded near the day`s low in afternoon trade. The Nifty traded tad above the 18,350 level. European and Asian markets traded in a mixed manner.

At 13:29 IST, the barometer index, the S&P BSE Sensex, was down 165.85 points or 0.27% to 62,179.86. The Nifty 50 index shed 37.25 points or 0.2% to 18,361.60.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.63% while the S&P BSE Small-Cap index rose 0.55%.

The market breadth was strong. On the BSE, 2,018 shares rose and 1,378 shares fell. A total of 158 shares were unchanged.

Economy:

Merchandise exports in April 2023 were $34.66 billion, as compared to $39.70 billion in April 2022, registering a de-growth of 12.7%.

Merchandise imports in April 2023 were $49.90 billion, as compared to $58.06 billion in April 2022, down 14%.

India`s overall exports (Merchandise and Services combined) in April 2023 is estimated to be $65.02 billion. Overall imports in April 2023 are estimated to be $66.40 billion.

Riding on the high exports base of April 2022, India`s overall exports are projected to grow at 2% during April 2023.

Stocks in Spotlight:

UltraTech Cement shed 0.55%. UltraTech Nathdwara Cement (UNCL), a wholly owned subsidiary of UltraTech Cement, has commissioned a 0.8 million tonnes per annum (MTPA) brownfield cement factory at Neem Ka Thana in Rajasthan.

Cipla rose 0.82%. The pharma major said that it has entered into a binding term sheet to sell its entire stake of 51% held in Saba Investment, UAE (Saba), to Shibam Group Holding, UAE.

Berger Paints India declined 2.45%. The company`s consolidated net profit fell 15.6% to Rs 186.01 crore in Q4 FY23 as against Rs 220.29 crore reported in Q4 FY22. Total income from operations rose 7.6% year on year to Rs 2443.63 crore in the quarter ended 31 March 2023.

Procter & Gamble Health added 2.53%. The company reported 16% increase in net profit to Rs 59.2 crore on a 21% rise in total sales to Rs 316.3 crore in Q3 March 2023 as compared with Q3 March 2023.

Global Markets:

Markets in Europe and Asia traded in a mixed fashion on Tuesday, with investors digesting global growth concerns, political uncertainty as well as more corporate earnings.

Investors have traded in a cautious manner Tuesday, with data showing that the U.K. unemployment rate unexpectedly rose to 3.9% in March while pay growth, which has been fueling inflation, remained strong by historical standards.

The European Commission on Monday lifted its gross domestic product estimate higher for this year, now forecasting 1% growth, up from a previous 0.8% estimate.

However, it also raised its forecasts for inflation for the euro area to 5.8% this year and 2.8% in 2024, expecting the European Central Bank to continue with rate hikes, potentially adding to growth concerns.

Adding to these growth concerns is the political uncertainty in Turkey as well as the drawn-out U.S. debt ceiling debate.

Meanwhile, China`s industrial output grew 5.6% in April from a year earlier, official data showed on Tuesday, accelerating from a 3.9% gain seen in March.

Retail sales jumped 18.4%, significantly faster than the 10.6% increase in March and marked the quickest growth since March 2021.

Fixed asset investment expanded 4.7% in the first four months of 2023 from the same period a year earlier. It grew 5.1% in the January-March period.

US stocks rose on Monday amid ongoing debt ceiling negotiations between the White House and Republicans. In focus for investors were debt ceiling talks, which were postponed to this week from Friday. President Joe Biden is expected to host top congressional leaders on Tuesday.

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