Nifty above 15,900 level, FMCG shares advance

The headline equity indices traded with modest gains in the early afternoon trade. The Nifty traded a tad above the 15,900 level. Auto, FMCG and realty shares advanced while metal, oil & gas and media stocks corrected.

At 12:29 IST, the barometer index, the S&P BSE Sensex, was up 320.81 points or 0.60% to 53,455.16. The Nifty 50 index added 94.05 points or 0.59% to 15,904.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.89% while the S&P BSE Small-Cap index gained 0.36%.

The market breadth was positive. On the BSE, 1,570 shares rose and 1,541 shares fell. A total of 156 shares were unchanged.

Some cooling off in global crude prices boosted domestic investor sentiment and raised expectations for some relief from surging local inflation. Weak crude price benefits India as it positively impacts growth, current account deficit (CAD), inflation and fiscal deficit.

Investors will closely monitor the release of the Federal Reserve's minutes of meeting in June, to be out late on Wednesday.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 1.82% to 20.41. The Nifty 28 July 2022 futures were trading at 15,864.95, at a discount of 39.95 points as compared with the spot at 15,904.90.

The Nifty option chain for the 28 July 2022 expiry showed maximum Call OI of 23.4 lakh contracts at the 16,500 strike price. Maximum Put OI of 34.5 lakh contracts was seen at 15,000 strike price.

Buzzing Index:

The Nifty FMCG index rose 1.54% to 40,300.70. The index declined 0.16% in the past trading session.

Emami (up 3.51%), Godrej Consumer Products (up 3%), Britannia Industries (up 2.96%), Hindustan Unilever (up 2.62%), Dabur India (up 1.71%), Colgate-Palmolive (India) (up 1.53%), Marico (up 1.49%), Nestle India (up 1.46%), Procter & Gamble Hygiene and Health Care (up 1.39%) and Tata Consumer Products (up 1.21%) edged higher.

Marico rose 1.49%. The FMCG major said its India business volumes in Q1FY23 declined in 49mid-single digits, particularly dragged by a sharp drop in Saffola Oils, while Parachute coconut oil recorded a minor volume decline. Among key inputs, copra prices remained soft during the quarter. Edible and crude oil prices cooled to some extent towards the end of the quarter, but the company consumed higher cost inventory in this quarter.

Gross margin is expected to expand on a year-on year basis, but remain near the same levels as the preceding quarter.The company expects operating margin to expand, leading to reasonable operating profit growth on a year on year basis.

Powered by Capital Market - Live News