SENSEX ADVANCES 178 PTS, NIFTY ENDS ABOVE 18,300; NSE VIX CROSSES 13 MARK

The headline equity indices had a volatile session on Wednesday but managed to end with decent gains. The Nifty index closed above the 18,300 level, despite hitting a low of 18,211.95 earlier in the day. Global cues were negative as investors are exercising caution due to two main events: the release of the US consumer price index report and a meeting between US political leaders to discuss the debt ceiling. The CPI report may provide insights into whether inflation is continuing to ease, while the meeting on the debt ceiling could have implications for market stability. Back home, realty and oil & gas shares were in demand, while PSU banks, metals, and IT shares lagged.

The barometer index, the S&P BSE Sensex advanced 178.87 points or 0.29% to 61,940.20. The Nifty 50 index added 49.15 points or 0.27% to 18,315.10.

In the broader market, the S&P BSE Mid-Cap index rose 0.34% while the S&P BSE Small-Cap index gained 0.33%.

The market breadth was positive. On the BSE, 1757 shares rose and 1737 shares fell. A total of 143 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 3.19% to 13.08.

On the political front, the Karnataka Assembly Elections were held today, 10 May 2023, in a single phase for 224 constituencies. The exit poll results will be declared shortly after the voting is over. The Election Commission of India will declare the election results on May 13th.

In addition to the Karnataka Assembly Elections, by-elections took place today in Jalandhar for a Lok Sabha seat, in Uttar Pradesh for Suar and Chhanbey Assembly seats, and in Odisha for the Jharsuguda assembly seat. The citizens of the East Khasi Hill district of Meghalaya also voted for the Sohiong Assembly constituency, which had been adjourned during the previous Assembly Elections due to the death of a candidate.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper fell 0.10% to 7.039 as compared with previous close of 7.046.

In the foreign exchange market, the rupee edged slightly higher against the dollar. The partially convertible rupee was hovering at 82.0250, compared with its close of 82.0625 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement lost 0.24% to Rs 61,270.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.09% to 101.70.

The United States 10-year bond yield declined 0.64% to 3.500.

In the commodities market, Brent crude for July 2023 settlement lost $0.88 or 1.14% to $ 76.56 a barrel as industry data revealed a surprise surge in US crude stock, indicating a potential weakness in demand.

Global Markets:

Shares in both Europe and Asia declined on Wednesday, following a fall in the US stock market overnight. Investors are growing increasingly cautious ahead of a critical inflation report and concerns over the US debt ceiling.

The market is closely monitoring the Labor Department`s CPI report for clues on whether inflation is continuing to ease.

Despite negotiations between US President Joe Biden and congressional Republicans, little progress has been made to avert a possible US default, and talks on spending are ongoing.

Stocks in Spotlight:

Relaxo Footwears rose 2.90%. Revenue at Rs 765 crore in Q4FY23 as against revenue of Rs 698 crore in Q4FY22, a growth of 10% Y-o-Y. This is mainly due to volume growth across all categories. Profit after Tax stood at Rs 63 crore in Q4FY23, was up 1% YoY.

JSW Steel declined 0.03%. The steel major said that its standalone crude steel production in April 2023 stood at 17.77 lakh tonnes, registering a growth of 7% year on year. The company recorded crude steel production of 16.67 lakh tonnes in April 2022.

Lupin gained 0.53%. The company reported consolidated net profit of Rs 242.4 crore in Q4 FY23 as compared with net loss of Rs 511.9 crore in Q4 FY22. Total revenue rose to Rs 4430.1 crore in the quarter ended 31 March 2023 as compared with Rs 3883 crore posted in corresponding quarter last year.

Apollo Tyres fell 3.45%. The company reported net profit of Rs 427.3 crore in Q4 FY23 as compared with net profit of Rs 113.4 crore in Q4 FY22. Total income rose to Rs 6264.2 crore in the quarter ended 31 March 2023 as compared with Rs 5615.4 crore posted in corresponding quarter last year.

Shipping Corporation of India (SCI) jumped 5.41%. The company`s consolidated net profit surged 156.38% to Rs 379.91 crore on 8.35% rise in net sales to Rs 1418.14 crore in Q4 March 2023 over Q4 March 2022.

Latent View Analytics tumbled 10.01%. The company reported a consolidated net profit of Rs 34.2 crore in Q4 FY23, representing a 34.9% quarter-on-quarter decline and a 3.9% year-on-year decline. The company`s consolidated revenue from operations increased by 20.1% YoY to reach Rs 141.10 crore in Q4 FY23, but it declined by 3% QoQ.

Nazara Technologies declined 3.94%. The company reported consolidated net profit of Rs 9.4 crore in Q4 FY23 as compared with net profit of Rs 4.9 crore in Q4 FY22. Revenue rose to Rs 289.3 crore in the quarter ended 31 March 2023 as compared with Rs 175.1 crore posted in corresponding quarter last year.

Eveready Industries India surged 5.09%. The company reported net loss of Rs 21.9 crore in Q4 FY23 as compared with net loss of Rs 38.4 crore in Q4 FY22. Total income rose to Rs 286.2 crore in the quarter ended 31 March 2023 as compared with Rs 241.2 crore posted in corresponding quarter last year.

Godrej Agrovet slipped 3.68%. The Godrej group company`s consolidated net profit slumped 74.6% to Rs 31.02 crore in Q4 FY23 as against Rs 122.29 crore in Q4 FY22. Revenue from operations rose marginally to Rs 2,094.99 crore in the quarter ended 31 March 2023, from Rs 2,080.75 crore in same quarter last year.

Castrol India fell 2.01%. The company`s net profit declined 11.3% to Rs 202.50 crore in Q1 FY23 as compared with Rs 228.40 crore in Q1 FY22. Revenue from operations rose 4.7% to Rs 1,293.89 crore in quarter ended 31 March 2023 as compared with Rs 1235.70 crore posted in corresponding quarter previous year.

Rain Industries tumbled 4.24%. The company`s consolidated net profit tumbled 62% to Rs 105.37 crore in Q1 CY23 as against Rs 105.37 crore posted in Q1 CY22. Revenue from operations rose 18.4% to Rs 5,253.49 crore in the quarter ended 31 March 2023 from Rs 4,436.54 crore recorded in the same period last fiscal.

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