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Nifty above 17,500 level, rupee hits fresh record low

Published on Oct 19, 2022 14:36

The headline equity indices traded with decent gains in the mid-afternoon trade. The Nifty hovered above the 17,500 level. FMCG shares extended gains for the fourth consecutive trading sessions.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was up 220.6 points or 0.37% to 59,181.20. The Nifty 50 index gained 47.50 points or 0.27% to 17,534.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.26% while the S&P BSE Small-Cap index gained 0.23%.

The market breadth was positive. On the BSE, 1,741 shares rose and 1,643 shares fell. A total of 147 shares were unchanged.

The domestic equity barometers extended their upward movement for fourth day on Wednesday, supported by a drop in oil prices as India is the third largest importer of oil. In three sessions, the Sensex has gained 3.4% while the Nifty has added 3.06%.

Further, strong buying from DIIs has completely overwhelmed the selling pressure caused by FII selling. In the past three session, DIIs have bought a total of Rs 5,290 crore worth stocks in the cash market, sharply outperforming the equities sold by FIIs worth Rs 1,537 crore.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.445 as compared with 7.426 at close in the previous trading session.

In the foreign exchange market, the rupee hits a fresh record low against the US dollar. The currency opened at 82.3225 and touched a fresh all time low of 82.81. Currently, The partially convertible rupee was hovering at 82.7675, compared with its close of 82.40 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement shed 0.59% to Rs 50,116.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, added 0.23% to 112.39.

The United States 10-year bond yield jumped 1.72% to 4.067.

In the commodities market, Brent crude for December 2022 settlement rose 11 cents or 0.12% at $89.92 a barrel.

Buzzing Index:

The Nifty FMCG index rose 0.54% to 43,950.35, extending gains for the fourth session. The index advanced 2.12% in four trading sessions.

Nestle India (up 1.84%), ITC (up 1.73%), Varun Beverages (up 1.12%), Radico Khaitan (up 1%), Emami (up 0.69%), United Breweries (up 0.33%), Marico (up 0.32%), United Spirits (up 0.02%) edged higher.

On the other hand, Godrej Consumer Products (down 0.98%), Dabur India (down 0.94%) and Tata Consumer Products (down 0.88%) declined.

Nestle India rose 1.84%. The FMCG major reported 8.3% rise in net profit to Rs 668.34 crore on 18.3% rise in revenue from operations to Rs 4,591 crore in Q3 CY22 over Q3 CY21.

Total sales jumped 18.2% year on year to Rs 4,567 crore in Q3 CY22 against Q3 CY21. Domestic sales and export sales for the quarter ended September 2022 increased by 18.3% and 15.7% respectively. Domestic sales growth was broad based with a healthy balance of pricing and volume.

In its commodity outlook, the company said that it is witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials. However, fresh milk, fuels, grains and green coffee costs are expected to remain firm with continued increase in demand and volatility.

Stocks in Spotlight:

KPIT Technologies declined 1.25% after the IT company`s consolidated net profit fell 2.28% to Rs 83.48 crore despite of 8.62% increase in revenue from operations to Rs 744.83 crore in Q2 FY23 over Q1 FY23. On a year on year (YoY) basis, the company`s net profit surged 28.23% while revenue jumped 26.06% in Q2 FY23. With respect to outlook, KPIT Technologies said that it has increased CC revenue growth to 31%-32%. Reported $ growth will be impacted adversely due to cross currency headwinds.

TV18 Broadcast dropped 5.86% after the company`s consolidated net profit slumped 96% to Rs 5.69 crore in Q2 FY23 as against Rs 140.86 crore recorded in Q2 FY22. Revenue from operations stood at Rs 1,473.43 crore in the quarter ended 30 September 2022 from Rs 1,307.90 crore posted in the Q2 FY22, registering a growth of 12.7%.

Bharat Electronics (BEL) added 0.09%. The company has signed a memorandum of understanding (MoU) with Munitions India (MIL) to jointly address the requirements of Indian Defence and export markets in the areas of ammunition, explosives and related systems. The MoU plans at leveraging the complementary strengths and capabilities of BEL and MIL and strengthens the spirit of the Make In India initiative of Government of India, for achieving self-reliance in Defence Sector, said the company.

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