Nifty above 18,050 mark, FMCG stocks in demand

The headline equity indices traded with moderate gains in the mid-afternoon trade. The Nifty traded above the 18,050 mark. FMCG shares extended gains for the fifth consecutive trading session. Investors kept a close eye on the U.S. inflation data due on Tuesday which will offer a crucial guide to the interest rate outlook of the US Federal Reserve.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was up 472.88 points or 0.79% to 60,588.01. The Nifty 50 index gained 140.80 points or 0.79% to 18,077.15.

In the broader market, the S&P BSE Mid-Cap index rose 0.33% while the S&P BSE Small-Cap index gained 0.28%.

The market breadth was positive. On the BSE, 1,896 shares rose and 1,542 shares fell. A total of 130 shares were unchanged.

Economy:

India`s consumer price inflation rose to 7% in August from 6.71% in July, figures from the National Statistical Office revealed Monday. In the same period last year, inflation was 5.30%. Food price inflation advanced to 7.62% in August from 6.69% in the previous month. Month-on-month, consumer prices gained 0.52% and food prices moved up 0.75% in August.

Meanwhile, India`s industrial production logged an annual growth of 2.4% in July, much weaker than June`s 12.7% expansion, data released by the National Statistical Office showed Monday. In the same month of 2021, industrial output had advanced 11. %. Among three main sectors, manufacturing output grew 3.2% and electricity output climbed 2.3%. On the other hand, mining shrank 3.3% from the last year. In the April to July period, industrial production posted an expansion of 10% annually.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.128 as compared with 7.181 at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 79.20, compared with its close of 79.5350 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement declined 0.23% to Rs 50,415.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, shed 0.30% to 108.

In the commodities market, Brent crude for November 2022 settlement rose 87 cents or 0.93% at $94.87 a barrel.

Buzzing Index:

The Nifty FMCG index rose 0.63% to 44,197.30, extending its gaining streak for the fifth consecutive session. The index added 1.54% in five trading sessions.

Emami (up 2.41%), Tata Consumer Products (up 1.8%), Britannia Industries (up 1.46%), ITC (up 1.1%), Varun Beverages (up 1.09%), Nestle India (up 1.02%), United Spirits (up 0.44%), Colgate-Palmolive (India) (up 0.39%), Hindustan Unilever (up 0.37%) and Marico (up 0.29%) jumped.

On the other hand, Radico Khaitan (down 1.78%), United Breweries (down 0.14%) and Godrej Consumer Products (down 0.09%) declined.

Tata Consumer Products gained 1.8% after the company said that it entered into a health supplements segment and launched Tata GoFit. Tata GoFit, a health supplement range for women, is a plant-based easy-to-mix product formulated with the goodness of gut-friendly probiotics.

Stocks in Spotlight:

Adani Transmission rose 0.40%. The company said that it had incorporated its wholly owned subsidiary in the name of Adani Electricity Jewar (AEJL) with an initial authorised and paid up capital of Rs 1 lakh each. AEJL will carry on the business of transmission, distribution and supply of power and other infrastructure services relating thereto. "AEJL will commence its business operations in due course,� the comapny said in a statement.

Vedanta gained 2.70% after the media reported that the company has signed a joint venture agreement with Taiwan`s Foxconn for a semiconductor project in Gujarat. According to the media reports, Foxconn will bring technical expertise to the venture whereas Vedanta, which has a background in mining, will finance the project. The state of Gujarat will offer subsidies on capital expenditure and electricity to the project, it added.

Zydus Lifesciences added 0.04%. The drug maker on Tuesday (13 September 2022) announced that it has received approval from the United States Food and Drug Administration (USFDA) to market Lenalidomide capsules. The company said that it has received final approvals for 5 mg, 10 mg, 15 mg and 25 mg strengths and tentative approvals for 2.5 mg and 20 mg strength. The pharmaceutical company said that the drug will be manufactured at the group`s formulation manufacturing facility at Ahmedabad SEZ, India. According to IQVIA MAT July 2022 data, Lenalidomide had annual sales of $2.86 billion in the United States. The product would be launched in the US market soon, the drug maker said.

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