Sensex, Nifty at the high point of the day; European markets advance

The domestic equity benchmarks extended gains and hit fresh intraday high in afternoon trade. The Nifty marched towards the 18,450 level. Markets in Asia and Europe mostly edged higher today.

At 13:29 IST, the barometer index, the S&P BSE Sensex, was up 447.76 points or 0.72% to 62,475.66. The Nifty 50 index added 119.95 points or 0.65% to 18,434.75.

In the broader market, the S&P BSE Mid-Cap index gained 0.64% while the S&P BSE Small-Cap index rose 0.54%.

The market breadth was positive. On the BSE, 1,920 shares rose and 1,602 shares fell. A total of 188 shares were unchanged.

On the political front, Congress has made a comeback in Karnataka, as per the results declared by the Election Commission over the weekend. The Congress has won 136 seats, the BJP`s tally has been reduced to 66 and the JD(S) 19.

Economy:

The provisional data for April 2023 shows a negative inflation rate of (-) 0.92% based on all India Wholesale Price Index (WPI), compared to a rate of 1.34% recorded in March 2023.

�Decline in the rate of inflation in April, 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical & chemical products, rubber & plastic products and paper & paper products,� the Ministry of Commerce & Industry said in a statement today.

Meanwhile, India`s consumer price inflation continued to moderate and fell to an 18-month low of 4.70% in April on an annual basis. The reading stood at 5.66% in March. The consumer-price index (CPI) based inflation has remained within the Reserve Bank of India`s (RBI) tolerance band of 2-6% for the second consecutive month. The consumer food price index also eased to 3.84% in April.

Separately, India`s foreign exchange reserves rose by $7.196 billion to $595.976 billion in the week ended on May 5, the Reserve Bank of India said on Friday. The overall reserves had dropped by $4.532 billion to $588.78 billion in the previous reporting week. In October 2021, the country`s forex reserve had reached an all-time high of $645 billion.

Stocks in Spotlight:

Tata Motors advanced 2.97%. The auto major reported a consolidated net profit of Rs 5,407.79 crore in Q4 FY23 as against a net loss of Rs 1,032.84 crore recorded in Q4 FY22. Total revenue from operations jumped 35.05% YoY to Rs 1,05,932.35 crore in the quarter ended 31 March 2023.

Avenue Supermarts (DMart) slipped 3.76%. The company reported 7.8% increase in consolidated net profit to Rs 460.13 crore on 20.57% jump in revenue from operations to Rs 10,594.11 crore in Q4 FY23 over Q4 FY22.

DLF surged 8.43%. The realty major`s consolidated net profit jumped 40.6% to Rs 570.01 crore in Q4 FY23 as against Rs 405.33 crore recorded in Q4 FY22. Revenue from operations declined 5.9% year on year to Rs 1,456.06 crore in the quarter ended 31 March 2023.

Hindustan Petroleum Corporation (HPCL) shed 0.40%. HPCL reported 79.5% jump in standalone net profit of Rs 3,222.62 crore as against Rs 1,795.26 crore posted in Q4 FY22. Net sales (excluding excise duty) grew by 10.6% to Rs 1,07,536.62 crore in Q4 FY23 from Rs 97,226.51 crore recorded in the same period a year ago.

Adani Enterprises fell 2.83% and Adani Transmission was locked in 5% lower circuit. Adani Enterprises said that it would raise Rs 12,500 crore, while Adani Transmission plans to raise Rs 8,500 crore through qualified institutional placement (QIP).

Global Markets:

Markets in Europe and Asian edged higher on Monday.

Investors focus remained on the results of Turkey`s presidential election.

Meanwhile, Thailand`s currency strengthened against the greenback as the country`s opposition party was on course to secure a win in its general election, ending nearly a decade of conservative ruled backed by the military.

Thailand`s gross domestic product for the first quarter grew 2.7% year-on-year, beating expectations of a 2.3% rise. On a seasonally adjusted quarter-on-quarter basis, Thailand`s economy grew 1.9% in the first quarter of the year.

South Korea`s trade deficit narrowed for a fourth straight month to a revised figure of $2.65 billion in April, a Monday release showed, slightly higher than the preliminary figure of $2.62 billion released earlier this month.

China is slated to releases a slew of economic data on Tuesday: Industrial production, retail sales, fixed asset investment growth as well as unemployment rate.

US stocks ended slightly lower on Friday, led by weaker megacap shares following their recent rally, as data showed US consumer sentiment dropped to a six-month low.

The Congressional Budget Office said on Friday the U.S. faces a "significant risk" of defaulting on payment obligations within the first two weeks of June without a debt ceiling increase.

U.S. consumer sentiment slumped to a six-month low in May, a survey showed on Friday. The University of Michigan`s preliminary reading on the overall index of consumer sentiment came in at 57.7 this month, the lowest reading since last November and down from 63.5 in April.

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