Barometers trade with modest gains; European mkt advance

The domestic equity benchmarks traded with moderate gains in afternoon trade. The Nifty traded above 21,650 mark. Banking stocks advanced while metal, realty and media shares declined.

At 13:26 IST, the barometer index, the S&P BSE Sensex, gained 362.47 points or 0.51% to 71,434.96. The Nifty 50 index added 78.10 points or 0.36% to 21,694.15.

In the broader market, the S&P BSE Mid-Cap index rose 0.04% and the S&P BSE Small-Cap index shed 0.41%.

The market breadth was weak. On the BSE, 1,465 shares rose and 2,315 shares fell. A total of 103 shares were unchanged.

Economy:

India`s retail inflation, based on Consumer Price Index Numbers, eased to a three-month low of 5.10% in January 2024 against 5.69% during the previous month, the latest data released by the Ministry of Statistics & Programme Implementation showed on Monday. India`s factory output, meanwhile, grew 3.8% in December 2023, the data showed. The IIP in November 2023 stood at 2.4%, while during the year-ago period, the factory output stood at 5.1%.

Gainers & Losers:

Coal India (up 3.69%), UPL (up 3.49%), HDFC Life Insurance Company (up 2.63%), ICICI Bank (up 2.09%) and NTPC (up 2.02%) major Nifty gainers.

Hindalco Industries (down 14.07%), Grasim Industries (down 4.03%), Adani Enterprises (down 1.14%), Power Grid Corporation of India (down 1.42%) and Mahindra & Mahindra (down 1.41%) were major Nifty losers.

Hindalco Industries tumbled 14.27% to Rs 499.25 as concerns arise over cost overruns in Novelis Inc`s Bay Minette project.

The company`s wholly owned foreign subsidiary, Novelis, is constructing greenfield rolling and recycling plant in Bay Minette, Alabama, the company anticipate that it will be able to initially produce 600 kilotonnes of finished goods for the beverage packaging and automotive markets in North America. This is the first fully integrated aluminum plant built in the U.S. in nearly 40 years, and the largest project in company history. With a high level of project engineering complete, and all key equipment and the majority of materials contracted, the project capital cost is now expected to be $4.1 billion, and to commission in the second half of calendar year 2026.

Novelis announced its Q3 FY24 result. Its net income attributable to common shareholder significantly improved to $121 million in Q3 FY24 as compared with $12 million in Q3 FY23. Net sales declined 6% to $ 3,935 million in Q3 FY24 as compared with $3794 million posted in corresponding quarter last year, driven by lower average aluminum prices as shipments were in line with prior year levels.

Coal India rallied 3.66% after the company�s consolidated net profit jumped 17.80% to Rs 9,093.69 crore on 2.79% increase in revenue from operations to Rs 36,153.97 crore in Q3 FY24 over Q3 FY23.

Mahindra & Mahindra`s declined 1.26%. The company�s total production increased 32.38% to 1,01,169 units in the month of January 2024 as against 76,421 units as compared with January 2023.

Stocks in Spotlight:

KIOCL gained 4.13% to after the mining company reported net profit of Rs 39.03 crore in Q3 FY24 as against net loss of Rs 33.88 posted in Q3 FY23 Revenue from operations surged 90.86% year on year (YoY) to Rs 549.44 crore in the quarter ended 31 December 2023.

Steel Authority of India (SAIL) declined 3.74% after the company�s standalone net profit declined 28.50% to Rs 331.40 crore in Q3 FY24 as against with Rs 463.54 crore posted in Q3 FY23. Revenue from operations fell 6.77% year on year to Rs 23,345.48 crore in the quarter ended 31 December 2023.

Global Markets:

European stocks advanced while Asia-Pacific markets higher on Tuesday ahead of a key U.S. inflation report that could help shape the Federal Reserve`s rates outlook and determine the timing of interest rate cuts. Markets are closed in China, Hong Kong, Taiwan and Vietnam for Lunar New Year holidays.

U.S. indices ended on a mixed note on Monday after hitting new highs ahead of data expected to underscore further disinflation, paving the way for the Federal Reserve to start cutting interest rates this year.

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