Shares climb on positive global cues, easing WPI

The market rallied on Monday, supported by positive signals from the Asian and European markets, as well as a continued decrease in wholesale inflation figures in India. Almost all the sectoral indices on the NSE ended in the green. Real estate shares witnessed substantial buying activity. The Nifty 50 index briefly surpassed the 18,400 mark in intraday. However, profit-taking in the last one hour led to its closure below the 18,400 mark.

The barometer index, the S&P BSE Sensex advanced 317.81 points or 0.51% to 62,345.71. The Nifty 50 index added 84.05 points or 0.46% to 18,398.85.

In the broader market, the S&P BSE Mid-Cap index rose 0.47% while the S&P BSE Small-Cap index gained 0.49%.

The market breadth was positive. On the BSE, 1,939 shares rose and 1,710 shares fell. A total of 172 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 2.48% to 13.17.

Politics:

The Congress party won a landslide victory in the Karnataka assembly elections on Saturday, winning 136 of the 224 seats. The Congress secured a vote share of 42.95%, while the BJP trailed with 65 seats and a vote share of 35.95%. The Janata Dal (Secular) party (JD(S)) was reduced to 19 seats, down from 37 seats in 2018.

Economy:

India`s inflation continues to moderate sharply. India`s wholesale price index (WPI) inflation fell to -0.92% in April 2023 as against 1.34% in March 2023. WPI inflation has dipped below zero in April for the first time since July 2020.

"Decline in the rate of inflation in April, 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical & chemical products, rubber & plastic products and paper & paper products," the Ministry of Commerce & Industry said in a statement today.

Meanwhile, India`s consumer price inflation continued to moderate and fell to an 18-month low of 4.70% in April on an annual basis. The reading stood at 5.66% in March. The consumer-price index (CPI) based inflation has remained within the Reserve Bank of India`s (RBI) tolerance band of 2-6% for the second consecutive month. The consumer food price index also eased to 3.84% in April.

Separately, India`s foreign exchange reserves rose by $7.196 billion to $595.976 billion in the week ended on May 5, the Reserve Bank of India said on Friday. The overall reserves had dropped by $4.532 billion to $588.78 billion in the previous reporting week. In October 2021, the country`s forex reserve had reached an all-time high of $645 billion.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose to 6.997 as compared with previous close of 6.995.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.3150, compared with its close of 82.1800 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement advanced 0.18% to Rs 60,995.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.15% to 102.52.

The United States 10-year bond yield rose 0.58% to 3.483.

In the commodities market, Brent crude for July 2023 settlement added 15 cents or 0.20% to $74.32 a barrel.

Global Markets:

The Dow Jones futures were up 128 points, indicating a positive opening in the US stock market today.

On Monday, both European and Asian markets saw a slight increase.

Thailand`s gross domestic product (GDP) surpassed expectations, growing by 2.7% year-on-year in the first quarter, higher than the anticipated 2.3% rise. On a seasonally adjusted quarter-on-quarter basis, the Thai economy expanded by 1.9% in Q1.

South Korea`s trade deficit continued to narrow for the fourth consecutive month, reaching a revised figure of $2.65 billion in April, slightly higher than the preliminary figure of $2.62 billion released earlier this month.

China is scheduled to release a series of economic data on Tuesday, including industrial production, retail sales, fixed asset investment growth, and the unemployment rate.

US stocks closed slightly lower on Friday, with a decline led by weaker megacap shares that had previously experienced a rally. This was accompanied by a decrease in US consumer sentiment, reaching a six-month low.

The Congressional Budget Office warned on Friday that the US faces a "significant risk" of defaulting on its payment obligations within the first two weeks of June unless the debt ceiling is increased.

In May, US consumer sentiment slumped to a six-month low, according to a survey by the University of Michigan. The preliminary reading of the overall consumer sentiment index was 57.7, the lowest since November of the previous year and down from 63.5 in April.

Stocks in Spotlight:

Tata Motors advanced 2.94% after the auto major reported a consolidated net profit of Rs 5,407.79 crore in Q4 FY23 as against a net loss of Rs 1,032.84 crore recorded in Q4 FY22. Total revenue from operations jumped 35.05% YoY to Rs 1,05,932.35 crore in the quarter ended 31 March 2023. The scrip hit a 52-week high of Rs 537.15 in today`s session.

Avenue Supermarts (DMart) slipped 4.22%. The company reported 7.8% increase in consolidated net profit to Rs 460.13 crore on 20.57% jump in revenue from operations to Rs 10,594.11 crore in Q4 FY23 over Q4 FY22.

Great Eastern Shipping Company (GE Ship) jumped 6.74% after the company`s consolidated net profit surged 282.04% to Rs 721.94 crore on 58.92% increase in net sales to Rs 1455.98 crore in Q4 March 2023 over Q4 March 2022.

Adani Enterprises fell 2.50% and Adani Transmission was locked in 5% lower circuit. Adani Enterprises said that it would raise Rs 12,500 crore, while Adani Transmission plans to raise Rs 8,500 crore through qualified institutional placement (QIP).

Colgate-Palmolive (India) rallied 2.95%. The FMCG major`s net profit declined 2.3% to Rs 316.22 crore in Q4 FY23 as against Rs 323.57 crore reported in Q4 FY22. Revenue from operations rose 3.7% year on year to Rs 1,341.69 crore in the quarter ended 31 March 2023. Domestic sales increased by 5.4% during the quarter. The scrip hit a 52-week high of Rs 1,713 in intraday today.

Subex tumbled 14.12% after the company reported consolidated net loss of Rs 47.18 crore in Q4 FY23 as compared with net profit of Rs 0.61 crore in Q4 FY22. Net sales declined 40.01% to Rs 47.27 crore in Q4 FY23 as against Rs 78.80 crore in Q4 FY22. The firm reported pre-tax loss of Rs 37.58 crore in Q4 FY23 as compared with profit before tax of Rs 21 crore in Q4 FY22. EBITDA stood at Rs 36.8 crore in Q4 FY23, steeply higher from Rs 5.1 crore posted in Q4 FY22.

Data Patterns (India) fell 3.41% after the company`s net profit declined 10.16% to Rs 55.36 crore on 8.54% increase in net sales to Rs 185.10 crore in Q4 March 2023 over Q4 March 2022. Profit Before Tax (PBT) fell 14.73% year-on-year (YoY) to Rs 72.12 crore in Q4 March 2023. Operational EBIDTA declined 16.13% YoY to Rs 73.35 crore during the quarter. The company`s order book stood at Rs 924 crore at the end of FY23, reflecting a 3x increase compared to order inflow in FY22. With orders finalised in April and May, the current order book is Rs 1,008 crore.

Advanced Enzyme Technologies slipped 1.43%. The company reported 27% increase in consolidated net profit to Rs 32.1 crore in Q4 FY23 from Rs 27.9 crore in Q4 FY22. Income from operations rose by 5% YoY during the quarter to Rs 138.7 crore.

Powered by Capital Market - Live News