Sensex rises 271 pts, Nifty settles above 21,600, RIL hits record high

The domestic equity indices closed higher today despite volatility, as investors awaited CPI inflation data and key Q3 earnings. The Nifty settled above the 21,600 level after hitting the day�s low of 21,448.65 in early trade. Gains in healthcare, IT and metal shares supported the indices. The market is in search of new triggers for direction, with US and Indian inflation data expected to influence the near-term market trajectory. The focus will soon shift to the earnings season. The forthcoming Q3 results, particularly in the IT sector, will be closely monitored, emphasizing the significance of management commentary over actual results.

The barometer index, the S&P BSE Sensex advanced 271.50 points or 0.38% to 71,657.71. The Nifty 50 index gained 73.85 points or 0.34% to 21,618.70.

Shares of index heavyweight Reliance Industries (RIL) hit all time high of Rs 2,658.95 during intraday session, boosting the benchmark indices.

In the broader market, the S&P BSE Mid-Cap index added 0.23% and the S&P BSE Small-Cap index advanced 0.35%.

The market breadth was positive. On the BSE, 2,045 shares rose and 1,790 shares fell. A total of 100 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, slipped 2.20% to 12.97.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.14% to 7.179 as compared with previous close 7.189.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.0200, compared with 83.1300 its close of during the previous trading session.

MCX Gold futures for 5 February 2024 settlement rose 0.23% to Rs 62,320.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.18% to 102.39.

The United States 10-year bond yield slipped 0.83% to 3.987.

In the commodities market, Brent crude for March 2024 settlement loss 23 cents or 0.30% to $77.36 a barrel.

Global Markets:

European shares declined while Asian stocks ended mixed on Wednesday, as investors were looking forward for the key US inflation data.

The global economy is on course to record its worst half decade of growth in 30 years, according to the World Bank. Global growth is forecast to slow for the third year in a row in 2024, dipping to 2.4% from 2.6% in 2023, the bank said in its latest �Global Economic Prospects� report. The bank warned that without a �major course correction,� the 2020s will go down as �a decade of wasted opportunity.�

US stock markets were muted on Tuesday. Investors will now focus on a inflation report from the US on Thursday for cues on the timing of the Fed�s rate cut.

The US trade deficit narrowed in November as imports of consumer goods fell to a one-year low. The trade deficit contracted 2% to $63.2 billion, the Commerce Department`s Census Bureau said. Imports declined 1.9%, or $6.1 billion, to $316.9 billion. Exports decreased 1.9%, or $4.8 billion, to $253.7 billion.

Stocks in Spotlight:

Media shares rallied. Network18 Media & Investments (up 12.11%), TV18 Broadcast (up 7.34%), DishTV India (up 5.68%), Hathway Cable & Datacom (up 5.39%), D B Corp (up 0.9%) and Zee Entertainment Enterprises (up 0.74%) surged.

Delta Corp rose 2.42% after the gaming and casino firm`s consolidated net profit dropped to Rs 34.48 crore in Q3 December 2023 as compared to net profit of Rs 84.82 crore in Q3 December 2022. Total income rose to Rs 244.47 crore in Q3 December 2023 from Rs 285.02 crore in Q3 December 2022.

Cochin Shipyard hit an upper limit of 20% at a record high level of Rs 802.40 as the stock traded ex-split. The PSU shipbuilder executed a stock split, dividing each stock into two with a face value of Rs 5 each. The company set 10 January 2024, as the record date to determine shareholders` eligibility for the sub-division of equity shares.

Marathon Nextgen Realty jumped 2.96% after the company said that its area sold in Q3 FY24 aggrgaged to 2,21,862 square feet, which is higher by 24% as compared with the same period last year.

GHCL Textiles surged 9.71 following its announcement of a Memorandum of Understanding (MoU) with the Nodal Agency of the Government of Tamil Nadu. The MoU, formed on 8th January 2024 as part of the Tamil Nadu Global Investors Meet 2024, involves an investment commitment of up to Rs 535 crore over a four-year period.

Power Finance Corporation (PFC) shed 0.87%. The PFC received No Objection letter from Reserve Bank of India (RBI) for setting up of a finance company (as a wholly owned subsidiary) in International Financial Services Centre (IFSC) situated in GIFT City, Gujarat.

Lupin rose 0.65%. The drug maker announced the launch of Bromfenac Ophthalmic Solution, 0.07%, after having received an approval from the United States Food and Drug Administration (U.S. FDA). Lupin is the exclusive first-to-file for this product and is eligible for 180-day exclusivity

One 97 Communications (Paytm) shed 0.02%. The company announced that it will invest Rs 100 crore in Gujarat International Finance Tec-City (GIFT City) to build a global financial ecosystem in Gandhinagar, Gujarat.

RailTel Corporation of India rose 0.61%. The firm stated that it has received the work order from Centre for Development of Telematics (C-DoT) worth Rs 29.54 crore. The contract involves Installation, Testing, and commissioning of MPLS VPN connectivity at 26 sites across India. The order has to be executed within a period of 14 weeks from the date of receipt of purchase order.

Karnataka Bank declined 0.57%. The Karnataka Bank has partnered with fintech company Digivriddhi (DGV) to offer host of financial services catering to the needs of dairy farmers & Milk Societies. The services will be made available at Village Dairy Co-operative Societies, associated with Milk unions of Karnataka Milk Federation (KMF).

KIOCL slipped 2.76% after the firm announced that the operations of Pellet Plant Unit of the company situated at Mangalore, have been temporarily suspended, with effect from 9th January 2024 due to non-availability of iron-ore fines.

IPO Update:

The initial public offer (IPO) of Jyoti CNC Automation received bids for 6,87,09,015 shares as against 1,75,39,681 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (10 January 2024). The issue was subscribed 3.92 times.

The issue opened for bidding on Tuesday (9 January 2024) and it will close on Thursday (11 Thursday 2024). The price band of the IPO is fixed at Rs 315-331 per share. An investor can bid for a minimum of 45 equity shares and in multiples thereof.

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