Market Commentary - End-Session
Barometers rise for 5th day, Nifty ends above 22,000; IT stocks surge As on : 15-Jan-24  17:37

The stock market continued its upward trajectory today, rising for the fifth trading session. The Sensex and Nifty achieved new milestones fueled by widespread buying, particularly in IT, oil & gas, and banking sectors. The Bank Nifty showed signs of a positive momentum reversal. Traders are closely monitoring the upcoming HDFC Bank results, which could have a significant impact on the market's future trajectory.

The barometer index, the S&P BSE Sensex jumped 759.49 points or 1.05% to 73,327.94. The Nifty 50 index added 202.90 points or 0.93% to 22,097.45.

The benchmarks, Nifty50 and Sensex hit an all-time high of 22,099.10 and 73,402.16, respectively.

Infosys (up 2.47%), HDFC Bank (up 1.97%) and Reliance Industries (up 1.73%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index gained 0.67% and the S&P BSE Small-Cap index added 0.11%.

The market breadth was positive. On the BSE, 2061 shares rose and 1893 shares fell. A total of 107 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 5.22% to 13.79.

Economy:

India's wholesale price inflation in December 2023 stood at 0.73%, with price increases in various sectors including food articles, machinery & equipment, and electronics contributing to the positive rate.

Consumer price inflation rose to 5.69% in December, up from 5.55% in November, driven mainly by higher food prices.

The Index for Industrial Production (IIP) growth decreased to 2.4% in November from 11.7% in October.

Furthermore, India's forex reserves dropped by $5.89 billion to $617.3 billion in the week ended January 5th, following an overall increase of $55.72 billion so far in the fiscal year.

Gold reserves decreased to $47.48 billion, while the special drawing rights (SDRs) and the reserve position with the IMF also experienced declined during the reporting week.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.03% to 7.142 as compared with previous close 7.178.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.8200, compared with its close of 82.9500 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement added 0.33% to Rs 62,570.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.26% to 102.67.

The United States 10-year bond yield rise 0.02% to 3.974.

In the commodities market, Brent crude for March 2024 settlement loss 0.56 cent or 0.72% to $77.73 a barrel.

Global Markets:

European shares declined across the board on Monday as government bond yield climbed in response to the European Central Bank's warnings of premature rate reduction.

The German economy contracted 0.3% in 2023, data published by the national statistics agency.

Most of the Asian stocks advanced, Chinese shares under pressure after the People's Bank unexpectedly kept lending rates on hold, while outperformance in Japanese markets continued.

Investors will be closely watching China?s fourth-quarter gross domestic numbers due on Wednesday, while Japan will release inflation figures for December on Friday.

U.S. stock and bond markets will be closed on Monday for Martin Luther King Day. On Friday in the U.S., all three major indexes ended mixed as the fourth-quarter earnings season got under way, with four Big Banks posting downbeat results.

Stocks in Spotlight:

Wipro jumped 6.25% after the IT major's consolidated net profit rose 1.81% to Rs 2,694.2 crore despite of 1.38% decline in revenue from operations to Rs 22,205.1 crore in Q3 FY24 over Q2 FY24. On year on year basis, the IT firm?s net profit tumbled 11.75% and revenue fell 4.41% in Q3 FY24.

For the quarter ending 31 December 2023, Wipro expects revenue from its IT Services business segment to be in the range of $2,615 million to $2,669 million. This translates to sequential guidance of -1.5% to +0.5% in constant currency terms.

HCL Technologies advanced 2.90% after the company reported 13.52% jump in consolidated net profit to Rs 4,350 crore on 6.65% increase in revenue from operations to Rs 28,446 crore in Q3 FY24 over Q2 FY24. Compared with Q3 FY23, the company's net profit and revenue were higher by 6.20% and 6.54%, respectively.

In terms of FY24 guidance, the company?s CC Revenue growth (including ASAP acquisition) expected to be between 5% and 5.5% YoY. EBIT margin expected to be between 18% and 19%.

Avenue Supermarts (DMart) rose 0.39%. In third quarter of the financial year 2023-24, DMart saw a 14.9% increase in standalone net profit, amounting to Rs 737 crore, with total revenue rising by 17.2% to Rs 13,247 crore as against the same quarter last year.

Titagarh Rail Systems added 2.04% after the company launched its first indigenous 25T Bollard Pull Tug that will carry out a wide range of naval operations for the Indian Navy.

Tata Consumer Products shed 0.67%. Tata Consumer Products said that it has signed definitive agreement with Capital Foods to acquire 100% stake in a phased manner. Capital Foods enterprise value on 'no cash/no debt basis' for 100% of the target company is Rs 5,100 crore.

Just Dial advanced 1.90% after the company recorded 22.3% increase in net profit to Rs 92 crore on a 19.7% rise in operating revenues to Rs 265 crore in Q3 FY24 over Q3 FY23.

Anand Rathi Wealth slipped 4.55%. The company has reported a consolidated net profit of Rs 58 crore for Q3 FY24, an increase of 34% compared to the PAT figure of Rs 43.2 crore recorded in Q3 FY23. Total revenue for the period under review rose by 34% YoY to Rs 187 crore.

Adani Enterprises shed 0.48%. The company said that its wholly owned subsidiary, Adani New Industries received letter of award (LoA) from Solar Energy Corporation of India (SECI) for setting up manufacturing capacity for Electrolysers in India.

Bharat Heavy Electricals rose 2.44% after the company said that it has received an order worth Rs 15,000 crore from NLC India, Neyveli for setting up 3x800 MW NLC Talabira Thermal Power Project (NTTPP), Jharsuguda, Odisha, India.

eMudhra advanced 4.18% after the company said that its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 443.56 per share. The company's board authorized and declared the opening of the issue on Friday, 12 January 2024.

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