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Nifty ends above 17,800; broader market outperforms
(15:39, 16 Aug 2022)

The domestic equity benchmarks ended with strong gains after a volatile session on Tuesday. The Nifty closed above the 17,800 level. Auto, realty and FMCG stocks advanced while PSU bank, media and IT shares lagged behind.

As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 379.43 points or 0.64% to 59,842.21. The Nifty 50 index added 127.10 points or 0.72% to 17,825.25.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index, both gained 1.03%.

The market breadth was positive. On the BSE, 1,995 shares rose and 1,553 shares fell. A total of 157 shares were unchanged.

Economy:

India's inflation based on wholesale price index (WPI) stood at 13.93% in July 2022 compared with 11.57% in July 2021. The WPI grew 15.18% in June 2022, while the figure for May was 15.88%. WPI for the month of August 2022 will release on 14 September 2022.

India's retail inflation based on the Consumer Price Index (CPI) eased to 6.71% in July 2022 compared with 7.01% in preceding month. Inflation eased mainly due to easing prices in the food & beverages section.

India's factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 12.3% in June 2022. Industrial production grew 19.6% in May 2022. IIP growth in June 2021 was 13.8%, the data showed.

India's overall exports including merchandise and services exhibited growth last month. Exports registered growth of 11.51% over the same period of last year and estimated to be $61.18 billion. Overall imports also exhibited a growth of 42.90% in comparison to the corresponding period of last year. The country's imports in the last month are estimated to be $82.22 billion.

Stocks in Spotlight:

Oil and Natural Gas Corporation added 0.50%. The corporation reported a standalone net profit of Rs 15,206 crore in Q1 FY23, steeply higher than Rs 4,335 crore recorded in Q1 FY22. Net revenue increased 83.8% YoY to Rs 42320.72 crore during the quarter.

Life Insurance Corporation of India (LIC) rose 2.23%. LIC reported a standalone net profit of Rs 682.89 crore in Q1 FY23, steeply higher than Rs 2.94 crore recorded in Q1 FY22. The insurer's total premium income surged 20.35% to Rs 98,351.76 crore in the quarter ended 30 June 2022 as against Rs 81,721.42 crore posted in the corresponding quarter previous year.

Muthoot Finance slumped 12.50%. On standalone basis, the company's net profit dropped 17.4% to Rs 802.01 crore on 7.6% decline in total income to Rs 2,509.27 crore in Q1 FY23 over Q1 FY22.

Hero MotoCorp gained 2.05%. The two-wheeler maker recorded 71% jump in standalone net profit to Rs 625 crore in Q1 FY23 from Rs 365 crore in Q1 FY22. Revenue from operations for the first quarter stood at Rs 8,393 crore, a growth of 53% over the corresponding quarter in the previous fiscal.

Zee Entertainment Enterprises (ZEE) slipped 1.55%. The company reported 50.1% drop in consolidated net profit to Rs 106.6 crore despite a 4% increase in operating revenue to Rs 1845.7 crore in Q1 FY23 over Q1 FY22.

Apollo Tyres jumped 6.06%. The tyre maker's consolidated net profit surged 49.2% to Rs 190.68 crore on 29.6% jump in net sales to Rs 5,942 crore in Q1 FY23 over Q1 FY22.

Maithan Alloys zoomed 7.17%. The company's consolidated net profit surged 95.4% to Rs 218.95 crore on 80.4% rise in net sales to Rs 1,020.31 crore in Q1 FY23 over Q1 FY22.

Marksans Pharma jumped 6.53%. The company's consolidated net profit slipped 3.9% to Rs 60.2 crore despite of 24.3% rise in revenue form operations to Rs 433.8 crore in Q1 FY23 over Q1 FY22.

Forbes & Company spurted 11.43%. The company reported consolidated net profit of Rs 145.78 crore in Q1 June 2022 as against net loss of Rs 4.34 crore in Q1 June 2021. Net sales declined 6.36% to Rs 121.85 crore in Q1 June 2022 over Q1 June 2021.

Surya Roshni fell 7.08% to Rs 352.35 after the company's consolidated net profit declined 40.38% to Rs 22.24 crore on 26.59% rise in net sales to Rs 1839.89 crore in Q1 June 2022 over Q1 June 2021.

DFM Foods was locked in a 20% upper circuit at Rs 304.30. The company's promoter has announced a proposal to delist equity shares of the company from the stock exchanges.

Samvardhana Motherson International jumped 4.64%. The company's board recommended the issue of bonus shares in the ratio of one bonus equity share against two existing equity shares.

UTI Asset Management Company (UTI AMC) jumped 14.27%. The media reported that rival Tata Asset Management Co is set to buy a significant stake in the company.

Max Healthcare Institute zoomed 11.31% after the counter witnessed large block deals in early trade today.

On the BSE, 26.49 crore shares were traded on the counter during the trading session as compared with average daily volumes of 36,983 shares in the past two weeks.

The media reported that American private equity major KKR and Co will sell up to 26.83% in Max Healthcare Institute for Rs 9,416 crore via block deals on Tuesday (16 August). The offer will mark the exit of KKR from the company. The shares will be sold at Rs 350 to Rs 362 a share — a discount of over 3% to its closing price on Friday (12 August).

Global Markets:

Shares in Europe advanced across the board while most of the Asian stocks ended higher on Tuesday.

The People's Bank of China lowered the rate on its 1-year policy loans by 10 basis points to 2.75% and the 7-day reverse repo rate to 2% from 2.1% on Monday. It defied economists expectations that the central bank would act on rate cuts.

China still needs more growth policies to stabilize its economy after the central bank moved unexpectedly to cut its key interest rates, the Chinese state media said on Tuesday.

Citing Wen Bin, chief economist of China Minsheng Bank, media reports said for the economy to recover further, the rate of increase in infrastructure investments needed to accelerate, especially since recovery momentum has slowed.

US stocks rose on Monday with mega-cap growth shares, extending the market's recent rally amid investor optimism the Federal Reserve can achieve a soft landing for the economy.

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