Nifty above 17,450 mark, auto shares in demand

The benchmark indices continued to trade with strong gains in the mid-morning trade. Positive global cues boosted the sentiment. The Nifty traded above the 17,450 mark. PSU bank, auto and media shares were in demand while pharma and healthcare stocks corrected.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 543.93 points or 0.93% to 58,954.91. The Nifty 50 index gained 164.25 points or 0.95% to 17,476.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.52% while the S&P BSE Small-Cap index gained 0.60%.

The market breadth was strong. On the BSE, 2,104 shares rose and 1,147 shares fell. A total of 132 shares were unchanged.

Economy:

Reserve Bank of India (RBI) stated that aggressive and synchronised monetary tightening has further weakened global economic prospects as financial markets sold off, investors took fright and jettisoned risky assets. In India, broader economic activity has remained resilient and poised to expand further with domestic demand accelerating as the contact-intensive sectors are experiencing a bounce-back. Robust credit growth and fortified corporate and bank balance sheets provide further strength to the economy. Headline inflation is set to ease from its September high, albeit stubbornly, on the back of easing momentum and favourable base effects. These factors will entrench India`s prospects as one of the fastest growing economies of the world.

Buzzing Index:

The Nifty Auto index rose 1.26% to 12,720.30. The index added 1.94% in two trading sessions.

TVS Motor Company (up 3.53%), Mahindra & Mahindra (up 2.43%), Hero MotoCorp (up 1.61%), Tata Motors (up 1.54%), Eicher Motors (up 1.4%), Ashok Leyland (up 1.35%), Bharat Forge (up 1.32%), Maruti Suzuki India (up 0.89%), MRF (up 0.79%) and Tube Investments of India (up 0.73%) advanced.

Stocks in Spotlight:

Spandana Sphoorty Financial rose 0.84%. THE NBFC reported a consolidated net profit of Rs 55.15 crore in Q2 FY23 as against a net loss of Rs 57.94 crore in Q2 FY22. Total income declined 21.7% YoY to Rs 310.15 crore during the quarter ended 30 September 2022. During Q2 FY23, Gross collection efficiency (including arrears) was at 101.3% and net collection efficiency was at 93.3%. The GNPA stood at 7.47% and NNPA was at 3.96 %. The total provision was Rs 303 crore comprising 5.23 % of the AUM.

Suzlon Energy rallied 4.29% after the company said it secured an order for developing a 48.3 MW wind power project for Adani Green Energy. Suzlon will install 23 units of their wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each. The project is located in Mandvi, Kutch Gujarat and is expected to be commissioned in 2023.

Global Markets:

Asian stocks advanced across the board on Tuesday after Wall Street`s rally overnight. The UK`s decision to reverse more of its unfunded tax cuts also aided global market sentiment.

Wall Street jumped to robust gains on Monday as solid earnings and a financial policy reversal in Britain fueled risk appetite.

Britain`s new finance minister Jeremy Hunt scrapped Prime Minister Liz Truss`s proposed tax cuts and reined in her energy subsidies, while Bank of America Corp posted consensus-beating third quarter results, having benefited from a spate of interest rate hikes from the Federal Reserve.

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