Nifty above 17,900; Sensex adds 76 pts; Airtel down over 4%
Published on Jan 11, 2023 13:31
The key equity indices continued to trade with small gains in the afternoon trade. The Nifty traded above the 17,900 level after hitting the day`s low at 17,824.35 in early trade. IT, financial services and bank shares advanced while FMCG, healthcare and auto stocks declined.
At 13:27 IST, the barometer index, the S&P BSE Sensex, was up 75.84 points or 0.13% to 60,191.32. The Nifty 50 index added 5.90 points or 0.03% to 17,920.05.
In the broader market, the S&P BSE Mid-Cap index fell 0.31% while the S&P BSE Small-Cap index gained 0.14%.
The market breadth was positive. On the BSE, 1,857 shares rose and 1,537 shares fell. A total of 147 shares were unchanged.
Investors looked ahead to the U.S. consumer price index report due on Thursday for more clues on the rate-hike trajectory. Meanwhile, the World Bank slashed its growth forecasts for most countries and regions and warned that new adverse shocks could tip the global economy into a recession.
US Federal Reserve Chairman Jerome Powell on Tuesday emphasized the need for the central bank to be free of political influence while it tackles high inflation. Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.
Gainers & Losers:
Hindalco Industries (up 2.19%), Bharat Petroleum Corporation (BPCL) (up 2.02%), Tata Consultancy Services (TCS) (up 1.72%), HDFC Bank (up 1.67%) and Sun Pharmaceutical Industries (up 1.65%) were the top Nifty gainers.
On the other hand, Bharti Airtel (down 4.49%), Cipla (down 2.66%), Apollo Hospitals Enterprise (down 2.16%), Divi`s Laboratories (down 2.13%) and Eicher Motors (down 1.85%) were the top losers.
The World Bank in its latest economic update has said that India`s economic growth will slow to 6.6% in the next fiscal year from an expected 6.9% in the current year.
"The slowdown in the global economy and rising uncertainty will weigh on export and investment growth," the World Bank said.
Increased infrastructure spending and "business facilitation measures" will, however, crowd-in private investment and support the expansion of manufacturing capacity, it added.
India is expected to be the fastest-growing economy of the seven largest emerging markets and developing economies, it said.
Beyond the fiscal year ending March 2024, growth in India is likely to slip back towards its potential rate of just over 6%, the bank added.
Stocks in Spotlight:
Tata Motors added 1.34%. Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors, and Ford India (FIPL) had executed a unit transfer agreement on 7 August 2022 for acquisition of Ford India`s manufacturing plant situated at Sanand, Gujarat for Rs 725.70 crore. The parties have completed the transaction and TPEML has acquired the Sanand Property and the VM Plant and Machinery.
Adani Ports and Special Economic Zone fell 0.15%. The company said that the company`s consortium with Israel`s Gadot Chemical Tankers has completed the acquisition of HPC from the Government of Israel.
Hindalco Industries gained 2.19% to Rs 487.55 after the company announced that its board has approved fund raising of upto Rs 700 crore by issuing non-convertible debentures (NCDs) on private placement basis.
Sun Pharmaceutical Industries advanced 1.65% after the drug maker announced that one of its wholly-owned subsidiaries has launched a novel anti-cancer drug, Palbociclib in India for patients who have advanced breast cancer. The pharma major said that the drug will be available under the brand name of Palenotm (Palbociclib).
Bharti Airtel slipped 4.49% after a foreign broker downgraded the stock to underperform from overweight and slashed its target price to Rs 710 from Rs 860 earlier. The target price is at 7% discount to the ruling market price. According to the media reports, the foreign broker is of the view that delayed price recovery likely will impact telecom players. 5G rollouts drive CAPEX intensity, it said.
Adani Wilmar rose 1.69% after the edible oil major said it had another good quarter, with strong volume growth across all segments leading to continued gain in market share across key product categories in Q3 FY23.
The company reported high-single digit growth in edible oil volumes, while the growth in value terms was in low-single digit. Food & FMCG basket continued to grow at a very strong rate of high-20s in volumes and mid-40 growth in value in percentage terms during the quarter. Industry essentials registered a strong volume growth of over 40% and high-teens growth in value during Q3 FY23.
Most of the Asian stocks advanced on Wednesday as investors looked ahead to the U.S. consumer price index, which would set the Federal Reserve`s trajectory in its attempt to tackle inflation.
US stocks ended firmly higher on Tuesday on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy.
Fed Chairman Jerome Powell on Tuesday stressed the need for the central bank to be free of political influence while it tackles persistently high inflation. In a speech delivered to Sweden`s Riksbank, Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.
Meanwhile, the World Bank slashed its growth forecasts for most countries and regions and warned that new adverse shocks could tip the global economy into a recession. Global gross domestic product will probably increase 1.7% this year, about half the pace forecast in June, the Washington-based lender said Tuesday. The bank, which also cut its growth estimates for 2024, said persistent inflation and higher interest rates are among the key reasons. It also cited the impact of Russia`s invasion of Ukraine, and a decline in investment.
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