Market hits fresh life highs, Nifty above 22,050, Wipro hits 52-week high

The headline equity indices traded with strong gains in early trade on buying demand in index pivotals. The Nifty traded above 22,050 level. Sensex and Nifty, both attained record high levels in early trade. IT, banking and financial services stocks advanced while media, FMCG and consumer durables shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 667.15 points or 0.92% to 73,235.60. The Nifty 50 index added 178.40 points or 0.81% to 22,072.95.

The benchmarks, Nifty50 and Sensex hit a fresh all-time high of 22,081.95 and 73,288.78 respectively.

In the broader market, the S&P BSE Mid-Cap index rose 0.47% and the S&P BSE Small-Cap index gained 0.55%.

The market breadth was strong. On the BSE, 2,223 shares rose and 890 shares fell. A total of 117 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 340.05 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,911.19 crore in the Indian equity market on 12 January, provisional data showed.

Economy:

India`s retail inflation edged marginally in December on higher food prices. Inflation, measured by the annual change in the consumer price index (CPI), rose to a four-month high of 5.69% in December from 5.55% in November and it was 5.72% in December 2022.

Meanwhile, India`s Index for Industrial Production (IIP) growth declined to 2.4% in November from 11.7% in October.

Separately, after rising for four consecutive weeks, India�s foreign exchange (forex) reserves declined sharply by $5.89 billion to $617.3 billion during the week ended January 5, according to the latest RBI data.

So far this fiscal, the reserves have increased $55.72 billion. In the previous reporting week ended December 29, the reserves rose $2.759 billion to $623.2 billion, the highest so far this fiscal. In the week before that, the reserves increased $4.471 billion to $620.441.

Gold reserves also declined $839 million to $47.48 billion during the reporting week, while the special drawing rights (SDRs) were down $67 million to $18.29 billion, the RBI said. The country�s reserve position with the IMF also declined $26 million to $48.66 billion in the reporting week.

Stocks in Spotlight:

Wipro locked in an upper circuit of 10% after the IT major`s consolidated net profit rose 1.81% to Rs 2,694.2 crore despite of 1.38% decline in revenue from operations to Rs 22,205.1 crore in Q3 FY24 over Q2 FY24.

HCL Technologies rallied 3.27% after the company reported 13.52% jump in consolidated net profit to Rs 4,350 crore on 6.65% increase in revenue from operations to Rs 28,446 crore in Q3 FY24 over Q2 FY24. Compared with Q3 FY23, the company`s net profit and revenue were higher by 6.20% and 6.54%, respectively.

Avenue Supermarts rose 1.22% after the third quarter of the financial year 2023-24, Avenue Supermarts (DMart) saw a 14.9% increase in standalone net profit, amounting to Rs 737 crore, with total revenue rising by 17.2% to Rs 13,247 crore as against the same quarter last year.

Tata Consumer Products rose 0.28%. Tata Consumer Products said that it has signed definitive agreement with Capital Foods to acquire 100% stake in a phased manner. Capital Foods enterprise value on `no cash/no debt basis` for 100% of the target company is Rs 5,100 crore.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.43% to 7.147 as compared with previous close 7.178.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.8025, compared with its close of 82.9500 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement added 0.37% to Rs 62,591.00.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.6% to 102.35.

The United States 10-year bond yield was flat at 3.952.

In the commodities market, Brent crude for March 2024 settlement advanced 29 cents or 0.37% to $78.58 a barrel.

Global Markets:

Asian stocks were trading mixed on Monday, with Chinese shares under pressure after the People�s Bank unexpectedly kept lending rates on hold, while outperformance in Japanese markets continued.

Investors will be closely watching China�s fourth-quarter gross domestic numbers due on Wednesday, while Japan will release inflation figures for December on Friday.

U.S. stock and bond markets will be closed on Monday for Martin Luther King Day. On Friday in the U.S., all three major indexes ended mixed as the fourth-quarter earnings season got under way, with four Big Banks posting downbeat results.

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