Nifty ends above 19,650; Eicher Motors jumps over 5%

Domestic equity indices ended with major gains on Wednesday as trading resumed on domestic bourses after the Diwali break. The Nifty settled above the 19,650 level. Cooling inflation in the US, UK and India raised the animal spirits of the investor community.

The barometer index, the S&P BSE Sensex jumped 742.06 points or 1.14% to 65,675.93. The Nifty 50 index surged 231.90 points or 1.19% to 19,675.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.91% while the S&P BSE Small-Cap index advanced 1.13%.

The market breadth was strong. On the BSE, 2,268 shares rose and 1,477 shares fell. A total of 139 shares were unchanged.

Eicher Motors (up 5.34%), Tech Mahindra (up 3.77%), Hindalco Industries (up 3.72%), Infosys (up 2.80%) and Tata Motors (up 2.79%) were major Nifty gainers.

Economy:

India`s merchandise trade deficit in October stood at $31.46 billion as the country�s imports shot up to $65.03 billion during the month which offset the increase in exports.

The sharp spike in global crude oil prices has led to an increase in the country�s import bill. Similarly, gold imports were up 5.5 per cent to $29.48 billion compared to October 2022.

The trade deficit stood at $19.37 billion in September.

The country�s merchandise exports increased by 6.2 per cent to $33.57 billion in October, up from $31.60 billion in October 2022, while themerchandise imports stood at $65.03 billion, up from $57.91 billion year-on-year.

The increase in exports during the month came as a welcome relief as it broke the declining trend in the recent months.

Continuing the downward trend, domestic retail inflation slipped to a four-month low of 4.87 per cent in October, mainly due to easing food prices and inched towards the Reserve Bank`s target of 4 per cent, according to government data released on Monday.

Domestic wholesale price inflation remained in the negative territory for the seventh month in a row in October at (-) 0.52 per cent on easing prices of food items.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined 0.76% to 7.228 from its previous close of 7.283.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.1050, compared with its close of 83.3300 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement rose 0.56% to Rs 60,404.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.16% to 104.21.

The United States 10-year bond yield advanced 0.63% to 4.470.

In the commodities market, Brent crude for January 2024 settlement lost 32 cents or 0.39% to $82.15 a barrel.

Global Markets:

Markets in Europe and Asia advanced on Wednesday as global markets digested data out of the U.S. and China.

U.K. inflation fell sharply in October to 4.6% from 6.7% the previous month, hitting a two-year low. The headline consumer price index was flat on a monthly basis. The country�s core CPI fell to an annual 5.7% in October from 6.1% in September.

Japan�s economy shrank in the July-September period for the first time in four quarters, provisional government data showed Wednesday, amid slowing global demand and rising domestic inflation. Provisional gross domestic product fell 2.1% in the third quarter compared to a year ago, while also recording a 0.5% decline from the previous quarter.

On the geopolitical front, U.S. President Joe Biden and China�s President Xi Jinping are expected to meet in person in San Francisco for the first time in about a year.

US stocks rallied Tuesday, building on their strong November gains, as Wall Street cheered the soft U.S. inflation report. The consumer price index was flat in October from the previous month but increased 3.2% from a year ago. The headline CPI had increased 0.4% in September.

Late Tuesday, the House of Representatives passed a bill to avert a government shutdown. The measure will go to the Senate for a vote. If cleared by lawmakers, the legislation goes to President Joe Biden.

Stocks in Spotlight:

Siemens advanced 2.26%. The company�s promoter Siemens AG has announced its plans to acquire 18% stake in the company from Siemens Energy for 2.1 billion euros. This would increase Siemens� stake in the publicly listed Siemens Ltd. India from 51% to 69%, while Siemens Energy�s stake would decrease from 24% to 6%.

Asian Paints rose 0.85%. The original installed production capacity of the Khandala plant has been increased to 4,00,000 KL per annum in order to meet the medium-term capacity requirements of the company. An amount of Rs. 385 crore (approx.) has been invested by the company towards the above increase in installed capacity and the same has been funded through internal accruals.

Grasim Industries added 0.61%. The company has reported 6% rise in consolidated net profit of Rs 1164 in Q2 FY24 from net profit of Rs 1097 crore in Q2 FY23. Revenue increased 10% rise in total income to Rs 30221 crore in Q2 FY24 from Rs 27486 crore in Q2 FY23.

Rajesh Exports dropped 8.09%. The company has posted 87.9% drop in consolidated net profit to Rs 45.3 crore in Q2 FY24 from Rs 373 crore in Q2 FY23. Revenue for the period under review added up to Rs 38,066 crore, down 52.6% YoY.

Narayana Hrudayalaya jumped 4.26%. The company reported 34.2% rise in consolidated net profit to Rs 226.58 crore on 14.3% increase in revenue from operations to Rs 1,305.25 crore in Q2 FY24 over Q2 FY23.

Adani Energy Solutions lost 0.66%. The distribution arm of Adani Energy Solutions Ltd., Adani Electricity Mumbai Ltd., announced a tender offer to buyback up to $120 million of its outstanding $1,000 million of 3.949% senior secured notes due 2030. The tender offer is being fully funded through its cash surplus and internal accruals.

NMDC fell 3.14%. The state-owned miner`s consolidated net profit (from operating operations) grew 15.73% to Rs 1,025.07 crore on 20.6% increase in revenue from operations to Rs 4,013.98 crore in Q2 FY24 over Q2 FY23.

Rail Vikas Nigam (RVNL) added 2.42%. The company received a Rs 311 crore LoA from Central Railways for the construction of tunnels and bridges in Madhya Pradesh. The time period by which the order is to be executed is 18 months.

IDFC First Bank gained 0.67%. The company received a PFRDA nod for the merger of IDFC and IDFC Financial Holding Co. with IDFC First Bank. The company also received BSE and NSE`s nods for the merger of IDFC and IDFC Financial Holding Co. with itself.

Knowledge Marine & Engineering Works tumbled 5.82%. The company bagged a project from the Mumbai Port Authority for the hiring of two dock tugs for a period of 7 years for an amount of Rs. 34.49 crore.

Trident rallied 5.39%. The company reported consolidated net profit of Rs 90.71 crore in Q2 FY24, steeply higher than Rs 37.39 crore posted in Q2 FY23. Revenue from operations increased 25.03% year on year (YoY) to Rs 1,797.52 crore in the quarter ended 30 September 2023.

Ethos jumped 4.68%. The company reported 36.8% rise in net profit to Rs 18.6 crore on a 32.4% increase in revenue to Rs 235.2 crore in Q2 FY24 as compared with Q2 FY23.

New Listing:

Shares of ASK Automotive jumped 10% to end at Rs 310.20 on the BSE, representing a premium of 10% as compared with the issue price of Rs 282. The scrip was listed at Rs 304.90, exhibiting a premium of 8.12% to the issue price.

The stock had hit a high of 317 and a low of 304.15. On the BSE, over 14.32 lakh shares of the company were traded in the counter.

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