The key equity benchmarks ended with strong gains on Wednesday. The Nifty closed tad below the crucial 16,000 level. Shares rallied across the board with autos, FMCG, realty and banks stocks leading the charge.
As per provisional closing data, the barometer index, the S&P BSE Sensex, jumped 616.62 points or 1.16% to 53,750.97. The Nifty 50 index added 178.95 points or 1.13% to 15,989.80.
In the broader market, the S&P BSE Mid-Cap index rose 1.76% while the S&P BSE Small-Cap index gained 0.94%.
The market breadth was positive. On the BSE, 1,846 shares rose and 1,453 shares fell. A total of 137 shares were unchanged.
Some cooling off in global crude prices overnight boosted domestic investors sentiment. 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.
Buzzing Index:
The Nifty Auto index rose 2.65% to 11,958.70. The index had declined 0.53% in the past two sessions.
Tube Investments of India (up 8.45%), Escorts Kubota (up 3.91%), Hero MotoCorp (up 3.53%), Eicher Motors (up 3.51%) and Maruti Suzuki India (up 3.36%) were the top index gainers.
Among the other gainers were Bosch (up 3.08%), MRF (up 2.5%), Bajaj Auto (up 2.47%), Mahindra & Mahindra (up 2.07%) and Sona BLW Precision Forgings (up 1.69%).
Q1 Update Impact:
Bajaj Finance rose 4.71%. The NBFC registered 60.9% jump in new loans booked to 74 lakh during Q1 FY23 as against 46 lakh in Q1 FY22. Customer franchise as of 30 June 2022 stood at 6.03 crore as compared to 5.05 crore as of 30 June 2021, climbing 19.4% YoY. Core assets under management (AuM) stood approximately at Rs 2,04,000 crore as of 30 June 2022 as against Rs 1,56,115 crore as of 30 June 2021, jumping 31% YoY.
Bajaj Finance's deposit book stood at approximately Rs 34,100 crore as of 30 June 2022 compared with Rs 27,972 crore as of 30 June 2021, recording a growth of 22% YoY.
Marico added 1.49%. The FMCG major said its India business volumes in Q1FY23 declined in mid-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.
Macrotech Developers rose 5.26%. The realty major's pre-sales for Q1 FY23 stood at Rs 2,814 crores in India, jumping 194% from Rs 957 crore posted in Q1 FY22. The real estate developer's collections grew by 53% year on year to Rs 2,616 crore in Q1 FY23. Meanwhile, net debt for India business has been reduced to Rs 8,858 crore in Q1 FY23 from 9,300 crore registered in Q4 FY22 and Rs 12,417 crore posted in Q1 FY22.
Godrej Consumer Products advanced 6%. The company said that in India, it expects to deliver early double-digit sales growth in Q1 FY23 on a high base. In its quarterly update, the company said that some of its short-term challenges such as continued unprecedented global commodity inflation and the performance of its Indonesia business, as highlighted in the previous quarter, continued to play out in this quarter as well, impacting consumption and margins.
Dabur India rose 2.36%. The FMCG major said that its India business is expected to report high single digit revenue growth as compared to a very high base of 35.4% revenue growth in Q1 FY22. The growth in India business is backed by mid-single digit volume growth. Food & Beverages vertical has seen strong double-digit growth in the quarter on the back of improving out of home consumption, innovation, and intense summer season, Home and Personal Care portfolio is expected to record high single to low double-digit growth on a high base of 26.1% growth in Q1 FY22.
Stocks in Spotlight:
Biocon gained 2.36%. The company's subsidiary Biocon Biologics has received a EU GMP certificate from the Health Products Regulatory Authority (HPRA), Ireland, for its new monoclonal antibodies (mAbs) drug substance manufacturing facility (B3) at Biocon Park, Bengaluru, following a GMP inspection in April 2022.
Aurobindo Pharma rose 1.95% to Rs 539.40 after Eugia Pharma receives US FDA approval for Triamcinolone Acetonide Injectable Suspension.
KPI Green Energy jumped 13.88%. The company said it received an order for executing solar power project of 23.60 MWdc capacity from Nouveau Jewellery and 3 MWdc capacity from Nouveau Diamonds Manufacturing India.
Global markets:
European stocks rose across the board while Asian shares slumped on Wednesday.
In central bank news, Bank Negara Malaysia is expected to release its monetary policy statement today.
US stock indices initially fell sharply on Tuesday before rallying in the afternoon. Concerns about a possible recession in the US weighed on investor sentiment but lower interest rates appeared to boost the tech sector.
The Nasdaq Composite ended the session 1.75% higher at 11,322.24, while the S&P 500 was up 0.16% at 3,831.39. The Dow Jones Industrial Average, however, shed 129.44 points, or 0.42%.
New orders for US-manufactured goods increased more than expected in May. The Commerce Department said on Tuesday that factory orders rose 1.6% in May after advancing 0.7% in April.
Crude oil futures rose after plunging overnight. In the commodities market, Brent crude for September 2022 settlement was up $1.98 or 1.93% at $104.75 a barrel. The contract slumped 7.94% on Tuesday to settle at $102.77 a barrel.
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