Indices snap 3-day losses, Nifty regains 17,000 mark

Domestic equity benchmarks snapped a three-day losing streak and ended with decent gains on Wednesday, shrugging mixed global cues. The Nifty 50 index regained the 17,000 mark, helped by buying across sectors. Banks, energy and FMCG stocks were among the top gainers while pharma and media shares were subdued.

The S&P BSE Sensex, was up 478.59 points or 0.84% to 57,625.91. The Nifty 50 index added 140.05 points or 0.82% to 17,123.60. In the previous three sessions, the Sensex slipped 1.85% while the Nifty tumbled 2.01%.

Power Grid Corporation of India (up 3.48%), Coal India (up 2.93%), Axis Bank (up 2.83%), Bajaj Auto (up 2.59%) and NTPC (up 2.45%) were top Nifty gainers today.

In the broader market, the S&P BSE Mid-Cap index rose 0.66% while the S&P BSE Small-Cap index added 0.22%.

The market breadth was negative. On the BSE, 1602 shares rose and 1840 shares fell. A total of 129 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.53% to 20.18.

Economy:

The International Monetary Fund on Tuesday cut its global growth forecast for next year to 2.7%.

Cutting India`s GDP growth forecast to 6.8% for the financial year 2023, the IMF predicted that India will continue to remain on track to become one of the fastest-growing economies in the world.

IMF expects that inflation in India will come down to 4% range next year. It is said that global inflation will likely perak at 9.5% this year 4.1% by 2024. IMF also warned that a major economic slump is yet to come, and 2023 will feel like a recession to many people.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose to 7.435 as compared with 7.426 at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.33, compared with its close of 82.21 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement shed 0.32% to Rs 50,930.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.10% to 113.11.

The United States 10-year bond yield rose 0.42% to 3.955.

In the commodities market, Brent crude for December 2022 settlement rose 50 cents or 0.53% at $94.79a barrel.

Global Markets:

The Dow Jones futures rose 140 points, indicating a positive opening in the US stock market today.

Shares Europe and Asia were mixed on Wednesday amid concerns over the global economy. Investors are also waiting for inflation data from the U.S. due later this week.

The British pound on Wednesday morning recovered losses following a media report that said the Bank of England is privately signaling a willingness to extend its emergency bond-buying program. Following the reports, the pound reversed early losses and was back above the $1.10 mark.

Meanwhile, Banks in China extended 2.47 trillion yuan ($344 billion) of new loans in September, compared with 1.25 trillion yuan in August, the country`s central bank said in a statement late Tuesday.

The Bank of Korea raised its policy rate to 3%, an increase of 50 basis points in line with expectations. Inflation in South Korea stood at 5.6% in September, above the central bank`s target.

In US, the S&P 500 and Nasdaq ended lower on Tuesday, with indications from the Bank of England that it would support the country`s bond market for just three more days adding to market jitters late in the session.

Stocks in Spotlight:

Wipro rose 0.85%. The IT major`s consolidated net profit rose 3.72% to Rs 2,659 crore on 4.7% increase in revenue form operations to Rs 22,539.7 crore in Q2 FY23 over Q1 FY23.

On a year on year (YoY) basis, the IT firm`s net profit declined 9.27% while revenue jumped 14.6% in Q2 FY23. The company`s large deal bookings grew by 42% YoY in H1 FY23. Overall order book in total contract value (TCV) terms grew 23.8% YoY in Q2 FY23.

For the quarter ending 31 December 2022, Wipro expects revenue from its IT Services business to be in the range of $2,811 million to $2,853 million. This translates to a sequential growth of 0.5% to 2%.

Infosys added 0.35%. The IT firm on Tuesday announced that Ravi Kumar S. resigned as president with effect from 11 October 2022. In his role, Ravi Kumar led the Infosys global delivery organization across all global industry segments.

Marksans Pharma jumped 4.07% after the drug firm said it has inked a pact with Tevapharm India to acquire its Goa-based pharmaceutical formulations business, as a going concern on a slump sale basis.

L&T Finance Holdings advanced 3.87%. The company said it has received approval from SEBI for sale of 100% shareholding in subsidiary L&T Investment Management to HSBC Asset Management (India).

Delta Corp ended almost flat at Rs 217.55. The company reported a consolidated net profit of Rs 68.25 crore in Q2 FY23 as against a net loss of Rs 22.57 recorded in Q2 FY22. Revenue surged to Rs 269.97 crore in the second quarter from Rs 74.72 crore reported in the same period last year.

NMDC shed 0.27%. The miner said that it has received Ministry of Corporate Affairs (MCA) order approving scheme of arrangement for merger of NMDC into NMDC Steel and their respective shareholders and creditors.

Adani Green Energy slipped 1.45%. The company on Tuesday announced that its wholly owned subsidiary, Adani Renewable Energy Holding Four, incorporated two new subsidiaries, Adani Renewable Energy Forty Four and Adani Renewable Energy Forty Eight. The company`s arm, Adani Renewable Energy Holding Four, has incorporated two new subsidiaries with an authorised and paid-up capital of Rs 1 lakh each. The aggregate cost of acquisition is Rs 2 lakh (Rs 1 lakh for each of the new subsidiaries).

Suzlon Energy fell 2.11% after the company announced that it has received a new order for the development of 144.9 megawatt (MW) wind power projects for the Aditya Birla Group. Suzlon will install 69 units of wind turbine generators (Wind Turbines) with a hybrid lattice tubular (HLT) tower and a rated capacity of 2.1 MW each.

HFCL declined 0.19%. The company said that it has received purchase orders aggregating to Rs 39.19 crore from Reliance Projects & Property Management Services for providing Services to roll out long distance fiber network.

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