Sensex rises for 4th day, Nifty ends at 17,769.25; PSU banks climb

The key equity indices ended with small gains on Tuesday. The Nifty settled above the 17,750 mark, rebounding from the day`s low of 17,716.85 during early trading. Traders were cautiously optimistic and made selective bets in metals, oil & gas, and PSU banks stocks amid negative global cues.

The S&P BSE Sensex continued its winning streak for the fourth consecutive session, rising by 74.61 points or 0.12% to reach 60,130.71. Similarly, the Nifty 50 index also gained, adding 25.85 points or 0.15% to close at 17,769.25.

Bajaj Finance (up 2.46), ICICI Bank (up 0.93%) and Reliance Industries (up 0.76%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index ended flat, while the S&P BSE Small-Cap index recorded a slight gain of 0.19%.

The market breadth was positive. On the BSE, 1,883 shares rose and 1,649 shares fell. A total of 117 shares were unchanged.

Numbers to track:

The yield on India`s 10-year benchmark federal paper declined to 7.095 from 7.111 in previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.9275 compared with its close of 81.92 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement lost 0.18% to Rs 59,890.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.10% to 101.45.

The United States 10-year bond yield slipped 2.11% to 3.441.

In the commodities market, Brent crude for June 2023 settlement fell 42 cent or 0.51% to $82.31 a barrel.

Global Markets:

The US stock market is likely to see a negative opening today as the Dow Jones futures is down by 90 points.

Stock markets in Europe and Asia took a dip on Tuesday, as investors react to a slew of corporate earnings announcements.

Meanwhile, South Korea`s gross domestic product climbed 0.8% in the first quarter compared with a year ago, according to advance estimates from the country`s central bank. On a quarter-on-quarter basis, South Korea`s GDP expanded by 0.3%.

US stocks closed mixed on Monday as investors braced for mega tech earnings and economic data.

Investors are paying close attention to the banking sector as First Republic, a US regional bank, reported a 40.8% fall in deposits in the first quarter, which is worse than market expectations. However, the bank has reassured that they have stabilized.

The focus this week is on the first-quarter results of mega-tech companies such as Amazon, Facebook`s owner Meta, Google-parent Alphabet, and Microsoft. In addition, economic data on housing, industrial output, and first-quarter GDP will also be released this week.

Stocks in Spotlight:

Nestle India ended almost flat at Rs 20,663. The FMCG major reported 24.69% jump in net profit to Rs 736.64 crore on 21% rise in revenue from operations to Rs 4,830.53 crore in Q1 CY23 over Q1 CY22.Total sales increased by 21.34% year on year to Rs 4,808.4 crore in Q1 CY23. Domestic sales and export sales for the quarter ended March 2023 rose by 21.2% and 24.92% respectively.

HDFC Asset Management Company fell 0.73%. The asset management company reported 9.5% jump in net profit to Rs 376.20 crore on 9.79% increase in total income to Rs 637.81 crore in Q4 FY23 over Q4 FY22. The AMC had a QAAUM (quarterly average assets under management) of Rs 4,49,800 crore as of 31 March 2023 compared to Rs 4,32,100 crore as on 31 March 2022 and its market share was 11.1% in QAAUM of the mutual fund industry.

Larsen & Toubro (L&T) rose 0.80% after the company announced that its Power Transmission & Distribution business has secured `significant` orders in India and overseas. As per L&T classification, the value of the large project is Rs 1,000 crore to Rs 2,500 crore. The business has secured orders to develop distribution infrastructure in two discom circles of western Rajasthan and a power supply system order for the second phase of Chennai Metro.

Sun Pharmaceutical Industries fell 0.67%. The pharma major said that one of its wholly owned subsidiaries has launched a novel ophthalmology treatment, CEQUA, in India for patients who have dry eye disease (DED).

Oil India declined 0.33%. Fitch Ratings has affirmed Oil India`s long-term foreign-currency issuer default rating (IDR), senior unsecured rating and the rating on its outstanding senior unsecured debt at `BBB-`. The outlook on the IDRs is `stable`, the credit rating agency said.

IndiaMART InterMESH gained 1.85% after the company said that its board will meet on Friday, 28 April 2023 to consider the proposal of bonus issue.

Persistent Systems added 0.61% .The IT company recorded 5.7% increase in consolidated net profit to Rs 251.51 crore on a 3.9% rise in revenue to Rs 2,254.47 crore in Q4 FY23 over Q3 FY23. As compared with Q4 FY22, the company`s net profit and revenue are higher by 25.1% and 37.6%, respectively. The order booking for the quarter ended on 31 March 2023 was at $421.6 million in total contract value (TCV) and at $310.4 million in annual contract value (ACV) terms.

Century Textiles & Industries slipped 3.38%. The Aditya Birla Group company`s consolidated net profit jumped 68.8% to Rs 145.27 crore in Q4 FY23 as against Rs 84 crore posted in Q4 FY22. Net sales declined marginally to Rs 1,186.76 crore in Q4 FY23 from Rs 1,188.22 crore recorded in corresponding quarter previous year.

IIFL Securities jumped 7.67% after the stockbroker reported 9.4% rise in consolidated net profit to Rs 86.34 crore on a 15.9% increase in revenue from operations to Rs 401.90 crore in Q4 FY23 over Q4 FY22. During the financial year 2022-2023, the assets under management and custody stood at Rs 1,24,573 crore.

Ipca Laboratories tumbled 10.22% while Unichem Laboratories rose 1.14%. Ipca Laboratories slipped 9.43% to Rs 747.70 after the pharma company said that it has entered into a definitive share purchase agreement for acquisition of 33.38% of share capital in Unichem Laboratories aggregating to Rs 1,034.06 crore. Ipca will acquire 2,35,01,440 fully paid-up equity shares from one of its promoter shareholder at a price of Rs 440 per equity share aggregating to Rs 1,034.06 crore.

Tata Teleservices (Maharashtra) lost 2.55%. The company has reported a net loss of Rs 277.07 crore in Q4 FY23 as against a net loss of Rs 280.62 crore posted in Q4 FY22. Revenue from operations stood at Rs 280.13 crore in Q4 FY23, up 2.7% from Rs 272.78 crore recorded in the same period a year ago.

Welspun India advanced 2.73% after the company said its board will consider a share buyback on 27 April 2023.

Anupam Rasayan India rallied 4.17% after the company signed letter of intent (LoI) worth revenue of $46 million (Rs 380 crore) with American multinational company to supply new age specialty chemical advance intermediate for next 5 years. This product will be manufactured in the upcoming multipurpose manufacturing facilities, said the speciality chemical maker.

NELCO surged 11.51% after the company reported a consolidated net profit of Rs 5.66 crore in Q4 FY23, which is higher by 87% as compared with Rs 3.03 crore in Q4 FY22. Revenue from operations during the quarter increased by 14% YoY to Rs 81.98 crore.

Meghmani Finechem dropped 5.36% after the company`s consolidated net profit declined 23% to Rs 76.73 crore in Q4 FY23 from Rs 99.18 crore in Q4 FY22. Revenue from operations increased by 13% YoY to Rs 562.17 crore in the fourth quarter.

IPO Update:

The initial public offer (IPO) of Mankind Pharma received bids for 40.57 lakh shares as against 2.80 crore shares on offer, according to stock exchange data at 17:00 IST on Tuesday (25 April 2023). The issue was subscribed 0.14 times.

The issue opened for bidding on Tuesday (25 April 2023) and it will close on Thursday (27 April 2023). The price band of the IPO is fixed at Rs 1,026 - Rs 1,080 per share. An investor can bid for a minimum of 13 equity shares and in multiples thereof.

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