MKT SHRUGS NEGATIVE GLOBAL CUES, NIFTY ENDS ABOVE 17,800

The benchmark indices closed with noteworthy gains on Wednesday, despite negative global cues. The Nifty, which had hit a low of 17,711.20 in morning trade, ended the day above the 17,800 level. The realty, FMCG, and auto shares performed exceptionally well, while metal, healthcare, and oil & gas shares declined.

The barometer index, the S&P BSE Sensex, rose for the fifth consecutive session, advanced 169.87 points or 0.28% to 60,300.58. The Nifty 50 index rose 44.35 points or 0.25% to 17,813.60.

In the broader market, the S&P BSE Mid-Cap index added 0.27% while the S&P BSE Small-Cap index gained 0.34%.

The market breadth was positive. On the BSE, 1849 shares rose and 1647 shares fell. A total of 135 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 1.15% to 11.65.

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose to 7.122 from 7.110 in previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.74 compared with its close of 81.9550 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement shed 0.14% to Rs 60,174.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.58% to 101.27.

The United States 10-year bond yield advanced 0.32% to 3.409.

In the commodities market, Brent crude for June 2023 settlement declined 10 cents or 0.12% to $80.67 a barrel.

Global Markets:

Markets in Europe and Asia declined on Wednesday amid concerns surrounding the health of the global banking sector.

Investor sentiment was impacted following the drop in the shares of First Republic Bank by over 49% on Tuesday. This came after the regional bank revealed its latest quarterly results on Monday, indicating a 40% decline in deposits to $104.5 billion in Q1. The bank stated in its earnings release that it is contemplating strategic moves to restructure its balance sheet.

Meanwhile, South Korea`s composite consumer index for April showed an improvement in consumer sentiment, reaching 95.1 points, an increase of 3.1 points from March.

On Tuesday, US stocks decreased due to recession fears arising from poor earnings and soft economic data.

Earnings Impact:

HDFC Life Insurance Company rose 0.34%. The insurer`s standalone net profit rose marginally to Rs 358.66 crore in Q4 FY23 as against Rs 357.52 crore posted in Q4 FY22. The life insurer`s net premium income jumped 35.95% to Rs 19,426.57 crore in the quarter ended 31 March 2023 as compared with Rs 14,289.66 crore recorded in Q4 FY22.

Maruti Suzuki India added 0.26%. The auto major`s standalone net profit surged 42.67% to Rs 2,623.6 crore on 20.8% rise in net sales to Rs 30,821.8 crore in Q4 FY23 over Q4 FY22.The company sold a total of 5,14,927 vehicles during the quarter, higher by 5.3% compared to the same period previous year. The company`s board has recommended highest-ever dividend of Rs 90 per equity share for the financial year ended on 31 March 2023.

In light of the estimated market demand including exports, the board in principle approved the creation of additional capacity of upto one million vehicles per year.

Bajaj Auto skid 1.11%. The auto major reported consolidated net profit rose 11.7% to Rs 1,704.74 crore on 11.97% increase in total revenue from operations to Rs 8,929.23 crore in Q4 FY23 over Q4 FY22.

Tata Consumer Products gained 1.64%. The company`s consolidated net profit jumped 21.13% to Rs 289.56 crore on 13.96% rise in revenue from operations to Rs 3,618.73 crore in Q4 FY23 over Q4 FY22.

KPIT Technologies surged 6.20% after the IT firm`s consolidated net profit rose 11.06% to Rs 111.60 crore on 10.93% increased in revenue from operations to Rs 1,017.37 crore in Q4 FY23 over Q3 FY23. On a year on year (YoY) basis, the company`s net profit surged 41.49% while revenue jumped 56.09% in Q4 FY23. Total contract value (TCV) of total deals won during the quarter was $272 million.

Mahindra CIE Automotive jumped 6.98% after the company reported 73% jump in consolidated net profit to Rs 279.1 crore in Q1 CY2023 from Rs 161.4 crore in Q1 CY2022. Revenue from operations in the first quarter increased by 18% YoY to Rs 2440.2 crore.

AU Small Finance Bank slipped 2.45%. The bank reported 22.7% rise in net profit to Rs 424.63 crore on a 31.8% increase in total income to Rs 2,607.91 crore in Q4 FY23 over Q4 FY22. Net interest income stood at Rs 1,213 crore in the quarter ended 31 March 2023, up 29.46% YoY. Net interest margin (NIM) for the quarter declined to 6.1% in Q4 FY23 as against 6.3% in Q4 FY22.

Rallis India lost 4.02% after the company`s net loss widened to Rs 69.13 crore in Q4 FY23 as against a net loss of Rs 14.13 crore posted in Q4 FY22. Revenue from operations rose 3% to Rs 522.62 crore in the quarter ended 31 March 2023 from Rs 507.54 crore recorded in Q4 FY22.

Stocks in Spotlight:

Shares of 7 PSU firms in Gujarat rallied 0.99% to 20% after the state government announced a policy for minimum levels of dividend distribution and bonus shares for state PSUs.

Gujarat Industries Power Company (up 20%), Gujarat Mineral Development Corporation (up 20%), Gujarat State Fertilisers and Chemicals (up 20%), Gujarat Alkalies and Chemicals (up 17.31%), Gujarat Narmada Valley Fertilizers & Chemicals (up 10.54%), Gujarat State Petronet (up 6.83%) and Gujarat Gas (up 1%) rally.

Multi Commodity Exchange of India (MCX) tumbled 6.32% after Shashank Sathe, chief technology officer (CTO) of the company tendered his resignation on account of personal reasons and for better prospects.

UCO Bank gained 1.30%. The bank`s board will consider fund raising on 2 May 2023.

IPO Update:

The initial public offer (IPO) of Mankind Pharma received bids for 2.45 crore shares as against 2.80 crore shares on offer, according to stock exchange data at 17:00 IST on Wednesday (26 April 2023). The issue was subscribed 0.87 times.

The issue opened for bidding on Tuesday (25 April 2023) and it will close on Thursday (27 April 2023). The price band of the IPO is fixed at Rs 1,026 - Rs 1,080 per share. An investor can bid for a minimum of 13 equity shares and in multiples thereof.

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