Sensex, Nifty gain over 1% each as broader market underperforms

After witnessing a sharp sell-off on Friday, the domestic equity markets witnessed strong buying demand on Monday. The Nifty managed to close above the 18,250 mark. Autos, banks and financials contributed significantly to today`s up-move.

The barometer index, the S&P BSE Sensex, surged 709.96 points or 1.16% to 61,764.25. The Nifty 50 index added 195.40 points or 1.08% to 18,264.40.

In the broader market, the S&P BSE Mid-Cap index advanced 0.94% while the S&P BSE Small-Cap index gained 0.56%. The market breadth favored the buyers.

Among the sectoral indices on the NSE, the Nifty Auto index (up 1.79%), the Nifty Private Bank index (up 1.70%) and the Nifty Realty index (up 1.64%) outperformed the Nifty50 index. Meanwhile, the Nifty Consumer Durables index (up 0.03%), the Nifty PSU Bank index (down 0.93%) and the Nifty Media index (down 0.60%) underperformed the Nifty50 index.

Global Markets:

Markets in Europe and Asian advanced on Monday as traders looked ahead to more corporate earnings, economic data and a Bank of England rate decision this week.

Market players have spent weeks juggling concerns over inflation and interest rates, with the Bank of England due for a rate-setting meeting on Thursday. Both the Federal Reserve and the European Central Bank hiked rates by a quarter of a percentage point last week, with many now expecting the former to start cutting rates at some point during the summer.

The Bank of Japan`s board members discussed concerns over inflation rising more than expected, minutes from former governor Haruhiko Kuroda`s final meeting showed. They also warned against �hasty� changes to the central bank`s monetary policy, including its inflation target of 2%.

US stocks rebounded Friday, ending largely higher as shares of Apple surged after upbeat results and U.S. jobs data pointed to a resilient labor market.

U.S. job growth accelerated in April while wage gains increased solidly. The non-farms payroll report showed U.S. employers added 253,000 new jobs in April, up from 165,000 in March. The Labor Department`s closely watched employment report on Friday also showed the unemployment rate falling back to 3.4%.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper advanced 0.43% to 7.044 from 7.014 in previous trading session.

In the foreign exchange market, the rupee edged slightly lower against the dollar. The partially convertible rupee was hovering at 81.7825, compared with its close of 81.78 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement rose 0.49% to Rs 60,925.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.13% to 101.08

The United States 10-year bond yield added 0.45% to 3.462.

In the commodities market, Brent crude for July 2023 settlement gained $1.50 or 1.99% to $76.80 a barrel.

Stocks in Spotlight:

Marico surged 7.45%. The company reported 20% jump in consolidated net profit to Rs 302 crore on a 4% rise in revenue from operations to Rs 2,240 crore in Q4 FY23 as compared with Q4 FY22.

UPL added 0.01%. On consolidated basis, the company reported 42.57% decline in net profit to Rs 792 crore in Q4 FY23 as against Rs 1,379 crore recorded in Q4 FY22. Revenue from operations rose 4.46% year on year to Rs 16,569 crore in the quarter ended 31 March 2023.

Coal India fell 1.87%. The state-run company reported consolidated net profit of Rs 5527.62 crore in Q4 FY23 as compared with Rs 6715 crore in Q4 FY22. Net sales rose to Rs 35,161.44 crore in the quarter ended 31 March 2023 as compared with Rs 29,985.45 crore posted in corresponding quarter last year.

Canara Bank declined 1.63%. The public sector bank`s standalone net profit surged 90% to Rs 3,174.74 crore in Q4 FY23 from Rs 1,666.22 crore in Q4 FY22. Total income increased 28.5% year on year to Rs 28,684.97 crore in the quarter ended 31 March 2023.

Britannia Industries shed 0.52%. The FMCG company recorded 47% jump in consolidated net profit to Rs 559 crore on a 11% rise in sales to Rs 3,892 crore in the quarter ended 31 March 2023 as compared with the same period last year.

Adani Power declined 0.42%. The company reported 12.9% rise in consolidated net profit of Rs 5,242.48 crore despite of 3.4% decline in revenue from operations to Rs 10,242.06 crore in Q4 FY23 over Q4 FY22.

One 97 Communications jumped 4.95%. The company reported a consolidated net loss of Rs 167.5 crore in Q4 FY23, which is significantly lower as compared with a net loss of Rs 762.5 crore in Q4 FY22. Consolidated revenue from operations for the quarter under review surged by 51% YoY to Rs 2,334 crore, led by increase in GMV, higher merchant subscription revenues, and growth of loans distributed through the company`s platform.

Bank of India tumbled 5.97%. The state-run bank reported 122.75% surge in net profit of Rs 1,350.44 crore in Q4 FY23 as compared with Rs 606.27 crore in Q4 FY22. Total income jumped 44.61% to Rs 16,548.93 crore in the quarter ended 31 March 2023 as compared with Rs 11,443.46 crore posted in corresponding quarter last year.

Aditya Birla Fashion & Retail (ABFRL) declined 3.76% while TCNS Clothing was locked in lower circuit of 20%. ABFRL is acquiring TCNS Clothing, the owner of ethnic fashion brands W, Aurelia, Wishful, Folksong and Elleven. The total value of the deal is approximately Rs 1650 crore for a 51% stake in TCNS, making it one of the largest deals in the Indian fashion space.

Alembic Pharma zoomed 7.07%. The company reported net profit of Rs 152.60 crore in Q4 FY23, steeply higher from Rs 21.92 crore in Q4 FY22. Revenue from operations declined marginally to Rs 1406.45 crore in quarter ended 31 march 2023 from Rs 1415.74 crore in same quarter last year.

Equitas Small Finance Bank advanced 4.49%. The company reported 32% jump in net profit to Rs 922 crore on a 28% increase in net interest income to Rs 707 crore in Q4 FY23 as compared with Q4 FY22.

Olectra Greentech gained 3.92%. The company`s consolidated net profit jumped 52% to Rs 27.01 crore on 38.6% rise in revenue from operations to Rs 375.91 crore in Q4 FY23 over Q4 FY22.

Aether Industries declined 2.33%. The specialty chemicals maker reported 44.4% surge in consolidated net profit to Rs 37.56 crore on 24.6% increase in revenue from operations to Rs 183.78 crore in Q4 FY23 over Q4 FY22.

Blue Dart Express slipped 1.59%. The company reported 49.3% decline in net profit of Rs 69.44 crore despite of 4.3% jump in revenue from operations to Rs 1,216.55 crore in Q4 FY23 over Q4 FY22.

Pennar Industries surged 5.75%. The Pennar Group secured orders worth Rs 682 crore across its various business verticals. The orders are expected to be executed within the next two quarters.

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