Nifty  17274.30  386.95  (2.29%)

Sensex  58065.47  1,276.66  (2.25%)

USDINR  81.69  -0.16  (-0.20%)

Market rallies for 4th day, Sensex jumps 456 pts, Nifty ends above 18,050
(15:46, 13 Sep 2022)

The domestic equity benchmarks ended with strong gains on Tuesday. Positive global cues boosted the sentiment. The Nifty closed above the 18,050 mark. Metal, consumer durables and financial services stocks were in demand. On the other hand, oil & gas, realty and IT shares declined. Investors kept a close eye on the U.S. inflation data due on Tuesday which will offer a crucial guide to the interest rate outlook of the US Federal Reserve.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was up 455.95 points or 0.76% to 60,571.08. The Nifty 50 index gained 133.70 points or 0.75% to 18,070.05. In four consecutive sessions, the Sensex has added 2.61% while the Nifty has gained 2.53%.

In the broader market, the S&P BSE Mid-Cap index gained 0.32% while the S&P BSE Small-Cap index rose 0.24%.

The market breadth was positive. On the BSE, 1,858 shares rose and 1,636 shares fell. A total of 106 shares were unchanged.

Economy:

India's consumer price inflation rose to 7% in August from 6.71% in July, figures from the National Statistical Office revealed Monday. In the same period last year, inflation was 5.30%. Food price inflation advanced to 7.62% in August from 6.69% in the previous month. Month-on-month, consumer prices gained 0.52% and food prices moved up 0.75% in August.

Meanwhile, India's industrial production logged an annual growth of 2.4% in July, much weaker than June's 12.7% expansion, data released by the National Statistical Office showed Monday. In the same month of 2021, industrial output had advanced 11. %. Among three main sectors, manufacturing output grew 3.2% and electricity output climbed 2.3%. On the other hand, mining shrank 3.3% from the last year. In the April to July period, industrial production posted an expansion of 10% annually.

Buzzing Index:

The Nifty Bank index rose 0.72% to 40,864.90, extending its gaining streak for the fourth consecutive session. The index advanced 3.57% in four trading sessions.

Bandhan Bank (up 3.4%), IndusInd Bank (up 2.39%), AU Small Finance Bank (up 2.15%), HDFC Bank (up 1.29%), Axis Bank (up 0.56%), ICICI Bank (up 0.39%), State Bank of India (up 0.39%), Kotak Mahindra Bank (up 0.05%) edged higher.

On the other hand, Punjab National Bank (down 1.37%), IDFC First Bank (down 1.18%) and Federal Bank (down 0.54%) declined.

Ujjivan Small Finance Bank slipped 3.75%. The bank said its qualified institutional placement (QIP) issue opened for subscription on 12 September 2022. The floor price has been fixed at Rs 21.93 per share, representing 13.3% discount to yesterday's closing price of Rs 25.30.

A meeting of the merger and placement committee of the board is scheduled to be held on 15 September 2022 to approve the issue price for the equity shares to be allotted to qualified institutional buyers, pursuant to the issue.

Stocks in Spotlight:

Tata Consultancy Services (TCS) declined 0.37%. The IT major said that it has been chosen by C&S Wholesale Grocers to build a new operations platform on Google Cloud to reduce the company's carbon footprint and enhance the customer experience. C&S has partnered with TCS to reimagine its operations platforms, including customer experience and grocery distribution. TCS will lead the company-wide project and help C&S establish a new cloud-based architecture that will unify its current systems, said TCS.

Tata Consumer Products gained 2.81% after the company said that it entered into a health supplements segment and launched Tata GoFit. Tata GoFit, a health supplement range for women, is a plant-based easy-to-mix product formulated with the goodness of gut-friendly probiotics.

Pidilite Industries shed 0.06%. The company said that 100X.VC, a leading seed stage CAT 1 VC Fund, has partnered with the company for its venture arm called Pidilite Ventures. As a part of the partnership, 100X.VC will collaborate with Pidilite Ventures to identify strategic investment opportunities for them. Pidilite Ventures will aim to mentor and guide innovative businesses that have synergies with Pidilite's core and adjacent businesses.

Bajaj Finserv rallied 4.21% as the counter traded ex-bonus and ex-split today. The company had announced 5-for-1 stock split and 1:1 bonus issue of shares. The company will split each equity share of face value Rs 5 each into Rs 1 each. Later it will issue one fully paid bonus equity share of the face value of Rs 1 each against one equity share of the face value of Rs 1 each. The record date for bonus and stock split is set on 14 September 2022.

Vedanta advanced 2.65% after the media reported that the company has signed a joint venture agreement with Taiwan's Foxconn for a semiconductor project in Gujarat. According to the media reports, Foxconn will bring technical expertise to the venture whereas Vedanta, which has a background in mining, will finance the project. The state of Gujarat will offer subsidies on capital expenditure and electricity to the project, it added.

Adani Transmission rose 0.85%. The company said that it had incorporated its wholly owned subsidiary in the name of Adani Electricity Jewar (AEJL) with an initial authorised and paid up capital of Rs 1 lakh each. AEJL will carry on the business of transmission, distribution and supply of power and other infrastructure services relating thereto. AEJL will commence its business operations in due course,” the comapny said in a statement.

Gujarat Apollo Industries was locked in 20% upper circuit. The company said that it has entered into a joint venture (JV) agreement with Belgium-based PFH BV (Keestrack). Apollo and Keestrack have decided to work jointly and in cooperation with each other for the purposes of carrying on the business of agricultural and farming machineries and components thereof as set in the agreement by forming a joint venture company in India and to be incorporated, operated and managed on the terms and conditions set out in the JV agreement. The proposed joint venture will result in increased efficiencies and allow the company to offer improved products in the market, by harnessing each other's synergies.

Zydus Lifesciences fell 0.32%. The drug maker on Tuesday (13 September 2022) announced that it has received approval from the United States Food and Drug Administration (USFDA) to market Lenalidomide capsules. The company said that it has received final approvals for 5 mg, 10 mg, 15 mg and 25 mg strengths and tentative approvals for 2.5 mg and 20 mg strength. The pharmaceutical company said that the drug will be manufactured at the group's formulation manufacturing facility at Ahmedabad SEZ, India. The product would be launched in the US market soon, the drug maker said.

Global Markets:

The Dow Jones futures were up 130 points, indicating a positive opening in the US stock market today.

Shares in Europe and Asia traded higher on Tuesday as investors look ahead to the U.S. inflation report for the month of August.

Headline inflation in the U.S. is expected to decline in August, as per reports. But core inflation, excluding energy and food, is projected to rise.

Global markets are gearing up for the latest reading of U.S. inflation, with the August data set to be released Tuesday. The report is one of the last pieces of data on inflation the U.S. Federal Reserve will see ahead of its September meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation.

Fed Chair Jerome Powell reiterated last week that he is “strongly committed” to bringing down inflation.

Wall Street equity indexes closed higher on Monday boosted by weaker dollar and growing confidence that higher prices have peaked.

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