Sensex rallies 685 pts, Nifty ends at 17,185.70; HDFC twins advance

Domestic equity benchmarks ended with sharp gains on Friday, tracking strong global cues. The Nifty opened higher and hit the day`s high of 17,348.55 in early afternoon trade. The index, however, pared gains in late trade amid profit selling at higher levels. IT, banks, financial shares were in demand. Auto, oil & gas and realty shares declined.

The barometer index, the S&P BSE Sensex, rose 684.64 points or 1.20% to 57,919.97. The Nifty 50 index added 171.35 points or 1.01% to 17,185.70.

HDFC Bank (up 3.40%), HDFC (up 2.69%), ICICI Bank (up 1.90%) and Kotak Mahindra Bank (up 1.9%) boosted the indices.

The broader market underperformed the headline indices as trading booked profits. The S&P BSE Mid-Cap index fell 0.13% and the S&P BSE Small-Cap index rose 0.01%.

The market breadth was positive. On the BSE, 1743 shares rose and 1711 shares fell. A total of 139 shares were unchanged.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, tumbled 10.01% to 18.26.

Economy:

India`s inflation based on wholesale price index (WPI) stood at 10.7% in September 2022 as against 12.41% recorded in August 2022 and 11.8% in September 2021.

Inflation in September 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, chemicals & chemical products, basic metals, electricity, textiles etc. as compared to the corresponding month of the previous year, the Ministry of Commerce & Industry said in a statement today.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper jumped to 7.470 as compared with 7.422 at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.19, compared with its close of 82.24 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement declined 0.73% to Rs 50,514.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.31% to 112.72.

The United States 10-year bond yield fell 1.33% to 3.901.

In the commodities market, Brent crude for December 2022 settlement rose 70 cents or 0.74% at $93.87 a barrel.

Global Markets:

The Dow Jones index futures were up 180 points, indicating a strong opening in the US stocks today.

Shares in Europe and Asia advanced across the board on Friday, tracking cues from US stocks overnight.

Singapore`s gross domestic product in the July-to-September quarter came in at 4.4%, much higher than expected.

Separately, the country`s central bank tightened monetary policy for the fifth time in a year, in line with expectations, as rising costs continue to weigh on the economy.

US stocks ended sharply higher after a volatile session on Thursday, with each major index gaining more than 2%. The Dow Jones Industrial Average rose 827 points, or 2.83%, to close at 30,038.06 after being down more than 500 points earlier in the day. The S&P 500 ticked up 2.60% to 3,669.87, breaking a six-day losing streak. The Nasdaq Composite gained 2.23% to end the day at 10,649.15.

In the U.S., inflation data showed consumer prices increased more than expected in September, with CPI rising 0.4% from August, and 8.2% from September last year. Core inflation was up 6.6% from a year ago, the biggest 12-month gain since August 1982.

Earnings Impact:

Bajaj Auto fell 1.01%. On a standalone basis, the company`s net profit surged 20% to Rs 1,530 crore on 16% jump in total revenue from operations to Rs 10,203 crore during the period under review. The rise in the revenue was mainly aided by the recovery of volumes on improvement of semi-conductor supplies. EBITDA grew 26% year on year to Rs 1,759 crore in Q2 FY23. EBITDA margin improved to 17.2% during the quarter as against 16% reported in the same quarter last year. The growth in the margin was led by judicious price increases, dynamic cost management and better foreign exchange realization.

Infosys jumped 3.82%. The IT major reported 12.3% rise in consolidated net profit to Rs 6,021 crore on a 6% increase in revenue to Rs 36,538 crore in Q2 FY23 over Q1 FY23. As compared with Q2 FY22, the company`s net profit and revenues have grown by 11.1% and 23.4%, respectively. The company has revised its FY23 revenue guidance to 15%-16%. The operating margin guidance has also been revised to 21%-22%.

Mindtree rose 1.53%. The L&T Group company`s consolidated net profit jumped 7.9% to Rs 508.7 crore on 8.9% rise in revenue to Rs 3,400.4 crore in Q2 FY23 over Q1 FY23. As compared to Q2 FY22, the IT company`s consolidated net profit and revenue increased by 27.5% and 31.5%, respectively. The company had a healthy order book of $518 million, up 44% YoY in Q2 FY23. H1 total contract value (TCV) crosses $1 billion.

Federal Bank advanced 4.37% after the private bank posted a 52.89% rise in standalone net profit to Rs 703.71 crore in Q2 FY23 from Rs 460.26 crore in Q2 FY22. The bank`s total income grew 19.62% to Rs 4,630.30 crore in Q2 FY23 compared with Rs 3,870.90 crore in Q2 FY22.

Angel One advanced 3.84% after the company reported 59.2% rise in consolidated net profit to Rs 213.6 crore on a 35.9% increase in total revenue from operations to Rs 716.7 crore in Q2 FY23 over Q2 FY22. As compared with Q1 FY23, the company`s net profit and revenue are higher by 17.7% and 7%, respectively. The board recommended second interim dividend of Rs 9 per equity share.

Cyient fell 1.07%. The IT company`s consolidated net profit tumbled 31.87% to Rs 79.10 crore while revenue jumped 11.69% to Rs 1,396.20 crore in Q2 FY23 over Q1 FY23. Consolidated PBT before exceptional items stood at Rs 130.1 crore in Q2 FY23, declining 18.43% QoQ and sliding 19.49% YoY. The company`s US subsidiary incurred legal costs of Rs 21.6 crore on the antitrust lawsuit for the quarter and half year ended 30 September 2022. Meanwhile, group order intake grew by 58.6% YoY.

Anand Rathi Wealth added 1.24% after the company reported 41% jump in consolidated net profit to Rs 43 crore on a 34% increase in operating revenue to Rs 136.1 crore in Q2 FY23 over Q2 FY22.

Den Networks rose 0.45% after the cable TV distributor reported a 20.6% rise in consolidated net profit to Rs 47.51 crore despite of 11.6% fall in net sales to Rs 287.30 crore in Q2 FY23 over Q2 FY22.

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