Sensex adds 117 pts, ITC at record high

The domestic equity barometers traded sideways in mid-morning trade. The Nifty traded a tad above the 17,600 mark. FMCG shares extended gains for the third consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 116.91 points or 0.20% to 59,824.99. The Nifty 50 index fell 5.70 points or 0.03% to 17,610.60.

In the broader market, the S&P BSE Mid-Cap index rose 0.22% while the S&P BSE Small-Cap index gained 0.92%.

The market breadth was positive. On the BSE, 1,879 shares rose and 1,392 shares fell. A total of 145 shares were unchanged.

The US Federal Reserve hiked its key interest rate by 25 basis points on Wednesday, taking the rate to a target range of 4.50-4.75%. Further, the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.

Buzzing Index:

The Nifty FMCG index rose 2.23% to 45,961.95, extending gains for the third day. The index advanced 3.94% in three trading sessions.

ITC (up 5.67%), Britannia Industries (up 4.75%), Radico Khaitan (up 2.89%), Procter & Gamble Hygiene and Health Care (up 1.44%), Godrej Consumer Products (up 1.22%), Colgate-Palmolive (India) (up 1.2%), United Breweries (up 1.09%), Hindustan Unilever (up 0.87%), Emami (up 0.85%) and United Spirits (up 0.3%) jumped.

On the other hand, Varun Beverages (down 3.45%), Dabur India (down 1.06%) and Marico (down 0.6%) edged lower.

Britannia Industries rallied 4.75% after the company's consolidated net profit surged 151.2% to Rs 932.39 crore on 16.2% increase in net sales to Rs 4,101.49 crore in Q3 FY23 over Q3 FY22. The net profit includes an exceptional gain (net of tax) of Rs 359 crore, pursuant to a joint venture agreement with Bel SA for the Cheese business and consequent sale of 49% equity stake in its subsidiary & fair valuation of the residual stake of 51%.

Stocks in Spotlight:

Alembic Pharmaceuticals added 0.29%. The drug maker reported 29% drop in consolidated net profit to Rs 121.92 crore despite a 18.7% rise in net sales to Rs 1509.02 crore in Q3 FY23 over Q3 FY22.

UTI Asset Management Company shed 0.44% . The asset manager reported 53% drop in consolidated net profit to Rs 60 crore in Q3 FY23 from Rs 127 crore in Q3 FY22. Total revenue from operations fell by 5% YoY to Rs 295 crore during the quarter. The total Assets under Management for the company stood at Rs 14,97,777 crore.

Symphony rose 1.35% after the company said its board will consider a share buyback on 8 February 2023.

Global Markets:

Most of the Asian stocks edged higher on Thursday as investors digested the U.S. Federal Reserve's smaller rate hike of 25 basis points and Fed Chairman Jerome Powell acknowledged inflation is falling.

US stocks rose on Wednesday after Federal Reserve chair Jerome Powell acknowledged that inflation was starting to ease, in remarks he made following a quarter-point rate hike by the U.S. central bank.

The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75%. "Inflation has eased somewhat but remains elevated," said the Fed's policy-setting Federal Open Market Committee (FOMC) in a statement. "The committee anticipates that ongoing increases in the target range will be appropriate" to bring inflation back to policymakers' 2% target over time, the statement said.

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