Market snaps 3-day losing run, Sensex surges 847 pts, Nifty reclaims 18,100 level

The headline equity indices ended with robust gains on Monday, snapping a three day losing streak. The Nifty settled a tad above the 18,100 mark. Value buying emerged after indices corrected sharply in the past three sessions. Barring the Nifty Consumer Durables index, all the other sectoral indices on the NSE were in the green with IT, metal and oil & gas stocks gaining the most. Hopes of a cool down in US rate hikes and improving global economic outlook buoyed by reopening of China's borders lifted the investor sentiment.

As per provisional closing data, the barometer index, the S&P BSE Sensex advanced 846.94 points or 1.41% to 60,747.31. The Nifty 50 index added 241.75 points or 1.35% to 18,101.20. In three consecutive sessions, the Sensex slipped 2.27% while the Nifty fell 2.05%.

IT major, Tata Consultancy Services (TCS) rallied 3.35% ahead of Q3 results today.

In the broader market, the S&P BSE Mid-Cap index gained 0.93% while the S&P BSE Small-Cap index rose 0.50%.

The market breadth was positive. On the BSE, 2,052 shares rose and 1,577 shares fell. A total of 170 shares were unchanged.

Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.47% to 14.65.

Buzzing Index:

The Nifty IT index rallied 2.83% to 28,748.15. The index witnessed bargain hunting after declining 3.47% in the past three trading sessions.

Persistent Systems (up 3.75%), Tata Consultancy Services (up 3.35%), HCL Technologies (up 3.37%), Coforge (up 3.16%), Tech Mahindra (up 2.96%), Wipro (up 2.63%), Infosys (up 2.46%), LTI Mindtree (up 2.33%), L&T Technology Services (up 1.48%) and Mphasis (up 1.03%) advanced.

Stocks in Spotlight:

Titan Company fell 1.98%. The Tata Group company said that it witnessed healthy double digit growth in Q3FY23 despite a high base in the same period of last year with overall sales growing 12% year on year (YoY). The company said that continuing its network expansion (net), the retail presence stood at 2,362 stores at the end of the quarter.

Tata Steel rose 1.64% after the steel maker said that the crude steel production of the India business in Q3 FY23 stood at 5 million tons and was up 4% on YoY and up 4% on QoQ basis. Deliveries of Tata Steel India were at 4.73 million tons and were up 7% YoY primarily driven by 11% growth in domestic deliveries, which also led to improvement in product mix.

One 97 Communications (Paytm) gained 2.30% after the company's loan distribution business recorded disbursals of Rs 3,665 crore in the month of December, growing 330% YoY. Consequently, total disbursements for three months ended December 2022 was Rs 9,958 crore, a growth of 357% YoY. The number of loans grew 117% YoY to 3.7 million for the month of December, and 137% YoY to 10.5 million cumulative loans for the three months ended December 2022.

Kalyan Jewellers India rallied 3.95% after the company said Q3 December 2022 quarter witnessed positive momentum in footfalls and revenue across all the markets majorly driven by strong festive demand. The company recorded consolidated revenue growth of approximately 13% in Q3 FY2023 as against the same period in the previous financial year, and approximately 35% for YTD (nine months) FY2023 compared with the same period in the previous financial year.

Asian Paints added 0.17%. The paint major said that its board approved setting up a new water-based paint manufacturing facility with a capacity of 4 lakhs kilolitres per annum at an approximate investment of Rs 2,000 crore.

JSW Steel advanced 1.73%. The Mumbai-based steel making company said that the Group's combined crude steel production for Q3 FY23 was 6.24 million tonnes, registering a growth of 17% YoY.

Lupin rose 1.2% after the global pharma major announced that it received approval from the US drug regulator for its Abbreviated New Drug Application (ANDA), Fesoterodine Fumarate extended-release tablets, 4 mg and 8 mg. The drug is a generic equivalent of Toviaz extended-release tablets, 4 mg and 8 mg, of Pfizer Inc. This medication is used to treat certain bladder problems (overactive bladder, neurogenic detrusor overactivity).

Bandhan Bank gained 1.80%. The bank's total loan book and advances increased by 14% YoY to Rs 1,00,520 crore in Q3 FY23. During the quarter, the private bank's loans & advances increased by 5% from Rs 95,835 crore posted in Q2 FY23. Total deposits with the bank as on 31 December 2022 amounted to Rs 1,02,283 crore, which is higher by 21% as compared with Rs 84,500 crore as on 31 December 2021.

Ajmera Realty & Infra India (ARIIL) advanced 2.62% after the company announced that its sales value advanced 19% to Rs 128 crore in Q3 FY23 compared with Rs 108 crore reported in Q3 FY22. The sales value dropped 23% last quarter compared with Rs 166 crore posted in Q2 FY23.

Global Markets:

Markets in Europe and Asia advanced across the board on Monday as Hong Kong and mainland China resumed quarantine-free travel over the weekend, signaling the end of zero-Covid policy which kept borders effectively closed for nearly three years.

Wall Street's main indices advanced on Friday after December payrolls expanded more than expected even as wage increases slowed and services activity contracted, easing worries about the Federal Reserve's interest rate hiking path.

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