Indian equity benchmarks snapped
their two-day losing run to end nearly a per cent higher on Tuesday, as
supportive global cues and healthy buying in heavyweights lifted sentiment.
Equity benchmarks made a positive start and traded in fine fettle in early
deals as the data with the BSE showing that Foreign Portfolio Investors (FPIs)
remained net buyers on Monday, purchasing shares worth Rs 1,322.39 crore.
Traders got encouragement after India's inflation based on wholesale price
index (WPI) eased further to 4.73% for the month of January 2023 against 4.95%
recorded in December 2022. Decline in the rate of inflation in January is
primarily contributed by mineral oils, chemicals & chemical products,
textiles, crude petroleum & natural gas, textiles, and food products. The
wholesale inflation was 5.85% in November 2022.
Sliding crude oil prices in the international markets also bolstered
sentiment. Sentiments remained up-beat in late afternoon deals, even as the
government data showing that India's retail inflation breached the RBI's
comfort zone and rose to a three-month high of 6.52 per cent in January 2023,
mainly on account of a spike in food prices. The inflation rate based on the
Consumer Price Index (CPI) stood at 5.72 per cent in December and 6.01 per cent
in January 2022. Meanwhile, Commerce and industry minister Piyush Goyal has
urged member countries of the IPEF group to focus on early deliverables which
can benefit all the nations. Indo-Pacific Economic Framework (IPEF) was
launched by the US and other partner countries of the Indo-Pacific region on
May 23 last year in Tokyo. The 14 partner countries represent 40 per cent of
global GDP and 28 per cent of global goods and services trade. Finally, the BSE
Sensex rose 600.42 points or 0.99% to 61,032.26 and the CNX Nifty was up by
158.95 points or 0.89% to 17,929.85.
The US markets ended mostly lower
on Tuesday, reversing earlier gains, following the release of a Labor
Department report showing U.S. consumer prices increased in line with street
estimates in the month of January. The report said the consumer price index
climbed by 0.5 percent in January following a revised 0.1 percent uptick in
December. Street had expected consumer prices to rise by 0.5 percent compared
to the 0.1 percent dip originally reported for the previous month. Excluding
food and energy prices, core consumer prices rose by 0.4 percent in January,
matching a revised increase in December as well as street estimates. The Labor
Department also said the annual rate of growth in consumer prices slowed to 6.4
percent in January from 6.5 percent in December. While the year-over-year price
growth reflected the smallest increase since October 2021, street had expected
the pace of annual growth to slow to 6.2 percent. The annual rate of core
consumer price growth slowed to 5.6 percent in January from 5.7 percent in
December. The pace of growth was expected to slow to 5.5 percent.
Crude oil futures ended lower on
Tuesday after the United States said it would release more crude from its
Strategic Petroleum Reserve (SPR), lifting some supply concerns from the
market. The U.S. Department of Energy (DOE) said on Monday it would sell 26
million barrels of oil from the SPR, which is already at its lowest level since
1983, a release that had been mandated by Congress in previous years. Both
benchmarks traded more than $2 lower earlier in the session, however pared some
losses after data showed the U.S. consumer price index accelerated at its
slowest annual pace since late 2021, raising the likelihood of less aggressive
interest rate hikes by the U.S. Federal Reserve. Benchmark crude oil futures
for March delivery fell 87 cents or 1.1 percent at $79.27 a barrel on the New
York Mercantile Exchange. Brent crude for April delivery dropped 96 cents or
1.1 percent at $85.65 a barrel on London's Intercontinental Exchange.
Indian Rupee ended lower against
the US dollar on Tuesday as market participants remained on the sidelines ahead
of the US inflation data. Besides, India's retail inflation breached the RBI's
comfort zone and rose to a three-month high of 6.52 per cent in January 2023,
mainly on account of a spike in food prices. The inflation rate based on the
Consumer Price Index (CPI) stood at 5.72 per cent in December and 6.01 per cent
in January 2022. Traders ignored report that India's inflation based on
wholesale price index (WPI) eased further to 4.73% for the month of January
2023 against 4.95% recorded in December 2022. On the global front, dollar fell
on Tuesday ahead of a keenly anticipated inflation report, while the yen
strengthened as surprise pick Kazuo Ueda was nominated as the Bank of Japan's
next governor. Finally, the rupee ended at 82.82 (Provisional), depreciate by
12 paise from its previous close of 82.70 on Monday.
The FIIs as per Tuesday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 7413.55 crore against gross selling of Rs 5916.60 crore, while
in the debt segment, the gross purchase was of Rs 872.48 crore against gross
selling of Rs 119.75 crore. Besides, in the hybrid segment, the gross buying
was of Rs 1.28 crore against gross selling of Rs 6.23 crore.
The US markets ended mostly in
red on Tuesday after the release of US inflation data that came in
hotter-than-expected. Asian markets are trading lower on Wednesday following a
largely lower close on Wall Street. Indian markets ended higher on Tuesday
propelled by market heavyweight RIL, ITC, banking and IT shares amid positive
global cues. Today, markets are likely to get negative start tracking weakness
in the global peers. Trading sentiments continue to remain subdued amid
concerns over rising inflation in the country. However, foreign fund inflows
likely to support domestic sentiments. Foreign institutional investors (FII)
bought shares worth Rs 1,305.30 crore on February 14, according to the
provisional data available with NSE. Some support will come as India's
foodgrain production is estimated at an all-time high of 323.55 million tonnes
in the current crop year ending June, driven by the projection of a record
output of rice, wheat and pulses. Traders may take note of Vivek Johri, CBIC
Chairman's statement that the Central Board of Indirect Taxes and Customs
(CBIC) will use the data of electric meters and property tax to increase the
base of goods and services tax (GST). Meanwhile, amid stakeholders facing
glitches in submitting forms under the companies law through the MCA21 portal,
Union minister Nirmala Sitharaman asked the corporate affairs ministry to form
a special team to address public grievances on a priority basis. Banking stocks
will be in focus with a private report stating that public-sector banks (PSBs)
in Q3FY23 wrote off bad loans worth Rs 29,000 crore, up from Rs 23,000 crore in
the same quarter a year ago, as part of a clean-up exercise. There will be some
buzz in the auto stocks with rating agency Icra's report that the commercial
vehicle industry volume is expected to grow in the range of 7-10 per cent in
the next financial year. It noted that the volume growth would be on account of
government infrastructure spending, replacement demand, back-to-school and
office scenarios and e-commerce expansion.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,929.85
|
17,835.09
|
17,989.59
|
BSE
Sensex
|
61,032.26
|
60,687.42
|
61,239.91
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
311.64
|
109.30
|
108.40
|
110.05
|
ITC
|
291.25
|
385.95
|
377.25
|
391.15
|
State Bank of India
|
185.60
|
541.00
|
532.96
|
546.81
|
Adani Ports and Special Economic Zone
|
179.76
|
564.00
|
541.11
|
584.06
|
Adani Enterprises
|
145.79
|
1750.00
|
1611.24
|
1888.89
|
HDFC Bank has executed an agreement to sell 1,65,731 Equity Shares, being the 9.95% equity stake held by the Bank in STGPL for a total sale consideration of Rs 9.94 crore.
Reliance Industries is seeking a minimum $12.75 per million British thermal unit for coal bed methane from a block in Shahdol district of Madhya Pradesh.
ICICI Bank has signed MoU with BNP Paribas to cater to the banking requirements of European corporates operating in India and Indian companies in the European Union.
Adani Enterprises has reported many fold jump in its consolidated net profit at Rs 739.88 crore for Q3FY23 as compared to Rs 1.80 crore for the same quarter in the previous year.