Broader market outperform; FMCG shares in demand

The key equity benchmarks continued to trade with limited losses in early afternoon trade. The Nifty traded below the 18,100 level. FMCG shares witnessed across the board buying.

At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 260.87 points or 0.43% to 61,093.84. The Nifty 50 index lost 77.25 points or 0.43% to 18,070.40

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.37% while the S&P BSE Small-Cap index rose 0.32%.

The market breadth was positive. On the BSE, 1,842 shares rose and 1,519 shares fell. A total of 152 shares were unchanged.

Investors were cautious ahead of the Federal Open Market Committee`s (FOMC) interest rate decision later today, as the US central bank commences its two-day meeting.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.86% to 12. The Nifty 25 May 2023 futures were trading at 18,146, at a premium of 75.6 points as compared with the spot at 18,070.40.

The Nifty option chain for the 25 May 2023 expiry showed maximum Call OI of 29.3 lakh contracts at the 18,500 strike price. Maximum Put OI of 34.4 lakh contracts were seen at 17,500 strike price.

Buzzing Index:

The Nifty FMCG index rose 0.78% to 48,122.65. The index had declined 0.13% to end at 47,750.20 yesterday.

Varun Beverages (up 2.19%), United Spirits (up 1.37%), Hindustan Unilever (up 1.31%) and Marico (up 0.63%) were the top gainers.

Among the other gainers were Procter & Gamble Hygiene and Health Care (up 0.6%), ITC (up 0.57%), Dabur India (up 0.51%), Nestle India (up 0.43%) and United Breweries (up 0.38%).

Godrej Consumer Products advanced 1.91%. The company announced that its board on 10 May 2023 will consider a proposal to raise funds by way of issuance of NCDs aggregating to an amount upto Rs 5,000 crore. The said non-convertible debentures (NCDs) would be issued in one or more tranches.

At the same meeting, the company`s board will also consider and approve the audited financial results (standalone & consolidated) of the company for the quarter and financial year ended 31 March 2023.

Stocks in Spotlight:

Mahindra & Mahindra Financial Services rose 1.35%. The NBFC said that its overall disbursement increased 39% YoY to approximately Rs 3,775 crore in April 2023.

Anupam Rasayan India added 2.78%. The company`s consolidated net profit increased by 22.93% to Rs 56.67 crore on 47.71% jump in revenue from operations to Rs 479.96 crore in Q4 FY23 over Q4 FY22.

Home First Finance Company India shed 0.67%. The housing finance company reported 6.38% increase in net profit to Rs 64.03 crore on 48.19% jump in total income to Rs 231.30 crore in Q4 FY23 over Q4 FY22.

Ahluwalia Contracts gained 1.15%. The company announced that it has bagged an award for a project involving re-development of Chhatrapati Shivaji Maharaj Terminus (CSMT) at Mumbai on EPC basis. The said contract has been awarded by Rail Land Development Authority, New Delhi. The value of the said contract is Rs 2,450 crore and the project has to completed within a period of 30 months.

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