Sensex jumps for 8th day, Nifty ends near 18,150; VIX spurts about 9% to 11.90

The key equity benchmarks showed modest gains on Tuesday, with the Nifty 50 index settling just below the 18,150 level. Despite the negative global trend, domestic shares managed to advance, driven by strong Q4 earnings and favorable macroeconomic indicators. Stocks in the metals, oil and gas, and IT sectors were in demand, while those in the pharma, FMCG, and realty sectors were under pressure.

The S&P BSE Sensex achieved its eighth consecutive session of gains, rising by 242.27 points or 0.40% to reach 61,354.71. Meanwhile, the Nifty 50 index extended its winning streak for six sessions, increasing by 82.65 points or 0.46% to 18,147.65.

Infosys (up 2%), Reliance Industries (up 0.86%) and HDFC (up 0.60%) boosted the indices.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, zoomed 8.67% to 11.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.74% while the S&P BSE Small-Cap index advanced 0.63%.

The market breadth was strong. On the BSE, 2066 shares rose and 1582 shares fell. A total of 168 shares were unchanged.

Looking ahead, all eyes will be on the Federal Open Market Committee`s (FOMC) interest rate decision on 3rd May, as the US central bank commences its two-day meeting on 2nd May.

Economy:

In April, India`s gross Goods and Services Tax (GST) revenue collection increased by 12% to reach Rs 1.87 lakh crore, marking the highest monthly collection since the implementation of the indirect tax system in July 2017. The previous record for highest GST collection was set in April 2022, with Rs 1.68 lakh crore. In contrast, the GST collection for March 2023 was Rs 1.60 lakh crore.

On Friday, government data revealed that the output of India`s eight infrastructure sectors grew 3.6% in March 2023, the slowest pace in five months.

Further, the S&P Global India Manufacturing Purchasing Managers` Index (PMI) increased to 57.2 in April, up from 56.4 in the previous month, with all sub-components contributing more strongly to this month`s reading.

Numbers to track:

The yield on India`s 10-year benchmark federal paper declined to 7.110 from 7.116 in previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.8600, compared with its close of 81.82 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement rose 0.36% to Rs 59,978.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.12% to 102.27.

The United States 10-year bond yield fell 1.07% to 3.536.

Global Markets:

European shares declined while Asian peers advanced on Tuesday, with investors awaiting the commencement of the U.S. Federal Reserve`s monetary policy meeting.

According to Eurostat, the Eurozone`s headline inflation for last month was 7%, after dropping to 6.9% in March. Meanwhile, core inflation, which does not take into account food and energy prices, remained at 5.6% in April, down from 5.7% in March.

Mainland Chinese markets were closed for a holiday on Tuesday, while South Korea`s inflation rate eased to 3.7% in April from March`s figure of 4.2%.

U.S. stocks remained relatively unchanged on Monday, with investors reacting to the weekend auction of First Republic Bank and preparing for the Federal Reserve`s expected interest rate hike later this week. The Fed, which has been raising rates to combat inflation, is reportedly expected to raise rates by an additional 25 basis points on Wednesday.

April Auto Sales Impact:

Mahindra & Mahindra (M&M) rose 0.85%. M&M announced that its overall auto sales for the month of April 2023 stood at 62,294 vehicles, up by 36% from 45,640 vehicles sold in the same period last year. M&M`s Farm Equipment Sector (FES) sold 36,405 tractor units in April 2023 as against 40,939 tractor units in the same period last year, recording a de-growth of 11% on YoY basis.

Tata Motors declined 1.01% after the company`s domestic and international sales for April 2023 stood at 69,599 vehicles, down 3.69% compared to 72,468 units during April 2022.

Maruti Suzuki India advanced 2.14%. The company announced that its total sales in the month of April 2023 aggregated to 160,529 units, which is higher by 7% as compared with 150,661 units sold in the same period last year. While the company`s total domestic sales rose by 9% to 143,558 units, exports declined by 8% to 16,971 units in April 2023 over April 2022.

�The shortage of electronic components had some impact on the production of vehicles. The Company took all possible measures to minimise the impact,� the auto maker said in a statement.

Bajaj Auto added 1.57%. The auto company`s total auto sales increased by 7% to 3,31,278 units in April 2023 from 3,10,774 units sold in April 2022.

TVS Motor Company rose 1.89%. The auto major said that total sales in the month of April 2023 were 306,224 units, recording a sales growth of 4% as compared with the same period last year. Total sales in April 2022 amounted to 295,308 units.

Escorts Kubota increased 0.17%. The company said that its Agri Machinery business had sold 7,565 tractors in April 2023 as against 8,325 tractors sold in April 2022, recording a de-growth of 9.1% on YoY basis. Domestic tractor sales during the month fell by 5.5% to 7,252 units from 7,676 units sold in April 2022.

Ashok Leyland declined 1.61%.The commercial vehicles maker reported 10% rise in total vehicle sales to 12,974 units in April 2023 from 11,847 units in April 2022.

Hero MotoCorp slipped 2.35% after the company`s total sales declined by 5% to 396,107 units in April 2023 from 418,622 units in April 2022.

Stocks in Spotlight:

Rail Vikas Nigam Limited (RVNL) hit an upper circuit of 10% after the company and its JV partner emerged as the lowest bidder for construction works related to an irrigation project in Rajasthan. The project costs Rs 2248.95 crore and is divided between RVNL and SCC, with RVNL owning 51% of the project and SCC owning 49%. Meanwhile, RVNL was recently accorded with the status of `Navratna` central public sector enterprise (CPSE) by the Finance Ministry.

Oil and Natural Gas Corporation (ONGC) (up 3.37%), Oil India (up 1.22%) and Reliance Industries (up 0.86%) climbed after the government cut the windfall tax on petroleum crude to Rs 4,100 per tonne from Rs 6,400 per tonne, effective from 2 May 2023. The government left the windfall tax on petrol, diesel and aviation turbine fuel at zero.

Kotak Mahindra Bank shed 0.89%. The bank`s net profit rose to Rs 3,495.59 crore in Q4 FY23 as against Rs 2,767.40 crore posted in Q4 FY22. Total income rose to Rs 12,007.23 crore in Q4 FY23 from Rs 8,770.04 crore recorded in the corresponding quarter of previous year.

Ambuja Cements fell 0.48%. The cement major`s standalone net profit rose marginally to Rs 502.40 crore in Q1 CY23 from Rs 494.41 crore reported in Q1 CY22. Revenue from operations grew by 8.39% year on year to Rs 4256.31 crore in the quarter ended 31 March 2023. Sequentially, the company`s net profit jumped 36.16% while the revenue rose 3% in Q1 CY23. The company said that it reported growth in revenue despite the adverse impact on volumes from halting of the operations at the Himachal Pradesh plants for 50 days. The company`s sales volume (cement+ clinker) was at 8.1 million tons in the quarter ended 31 March 2022 (up 5.19% QoQ and up 8% YoY).

UltraTech Cement fell 1.30%. The cement major`s consolidated net profit (from continuing operations) tumbled 31.48% to Rs 1,685.95 crore in Q4 FY23 as against Rs 2,460.51 crore posted in Q4 FY22. Revenue from operations grew by 18.36% to Rs 18,662.38 crore in Q4 FY23 from Rs 15,767.28 crore recorded in the corresponding quarter of previous year.

Adani Green Energy (AGEL) added 2.47% after the power generation company reported a consolidated net profit of Rs 508 crore in Q4 FY23, steeply higher than Rs 121 crore recorded in Q4 FY22. Revenue from operations climbed 81.65% year on year to Rs 2,583 crore during the quarter.

SBI Cards and Payment Services advanced 1.26%. The company reported a 2.7% rise in net profit to Rs 596.47 crore in Q4 FY23 from Rs 580.86 crore recorded in Q4 FY22. Total income jumped 29.9% year on year to Rs 3,916.57 crore in the quarter ended 31 March 2023.

IDFC First Bank rallied 3.69% after the bank`s net profit surged 134.2 % to Rs 802.62 crore in Q4 FY23 as compared with Rs 342.73 crore in Q4 FY22. Total income jumped 45.3% to Rs 7,821.83 crore in quarter ended 31 March 2023 as against Rs 5,384.88 crore recorded in quarter ended 31 March 2022.

UCO Bank added 2.06% after the bank`s net profit jumped 86% to Rs 581.24 crore 36.35% increase in total income to Rs 5,946.94 crore in Q4 FY23 over Q4 FY22. On full year basis, the bank`s net profit jumped 100.30% to Rs 1,862.34 crore in FY23 as compared with Rs 929.76 crore in FY22. Total income increased by 11.49% year on year in FY23 over FY22. Net interest income (NII) increased to Rs 7,343.13 crore in FY23 as against Rs 6,472.95 crore in FY22 registering the growth of 13.44% fuelled by healthy growth in loan book and improved yield on advances. Net interest margin stood at 2.87% in FY23 as against 2.81% in FY22.

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