Indices rise for 6th day, Nifty ends above 18,600; HUL jumps over 4%

November 29,2022

The equity benchmarks ended with decent gains on Tuesday, rising for the sixth trading session. The buying was supported by positive global cues and falling crude oil prices. FMCG, consumer durables and metal shares were in demand. Autos, PSU banks and realty shares were under pressure.

The barometer index, the S&P BSE Sensex, added 177.04 points or 0.28% to 62,681.84. The Nifty 50 index gained 55.30 points or 0.30% to 18,618.05. Both the indices jumped 2.5% in six sessions.

The Sensex opened lower but reversed losses to touched its all-time intraday peak at 62,887.40. Similarly, the Nifty 50 index marked its life-time intraday high at 18,678.10 in afternoon trade.

Hindustan Unilever (up 4.39%), JSW Steel (up 2.16%), Cipla (up 1.85%), Hero Motocorp (up 1.74%) and Sun Pharmaceutical Industries (up 1.52%) were top Nifty gainers.

The broader market underperformed the benchmarks. The S&P BSE Mid-Cap index fell 0.39% while the S&P BSE Small-Cap index declined 0.29%.

The market breadth was negative. On the BSE, 1716 shares rose and 1763 shares fell. A total of 148 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.281 compared with 7.274 at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.72, compared with its close of 81.685 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement gained 0.66% to Rs 52,516.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.43% to 106.23.

The United States 10-year bond yield fell 1.31% to 3.653.

In the commodities market, Brent crude for January 2023 settlement rose $2.18 or 2.60% to $86.07 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Tuesday as investors continued to monitor news from China over Covid restrictions. The media reports hinted that some kind of change to China's zero-Covid policy could be announced given growing unrest over continuing lockdowns.

US stocks settled sharply lower on Monday as investors sold off amid mounting concerns over supply chain disruptions amid Covid-related protests in China.

St. Louis Fed President James Bullard said Monday that the Fed should continue to raise its benchmark interest rate in the coming months and that the market may be underestimating the chance that the Fed has to get more aggressive.

Federal Reserve Chair Jerome Powell will speak at the Brookings Institution about the outlook for the U.S. economy and the labor market on Wednesday.

Stocks in Spotlight:

State Bank of India (SBI) shed 0.05%. The state-run lender on Tuesday said that the executive committee of the bank's central board approved a proposal to raise Rs 10,000 crore through issue of infrastructure bonds during FY23. In an exchange filing, SBI stated, “Raising infrastructure bonds up to an amount of Rs 10,000 crore (including a green shoe option of Rs 5,000 crore) through a public issue or private placement, during FY23.”

IndusInd Bank declined 1.5% while Tata Motors fell 0.03%. The private lender announced that it has partnered with Tata Motors to offer an exclusive Electric Vehicle (EV) Dealer Financing solution to its authorized passenger EV dealers. Under this scheme, IndusInd Bank will provide additional inventory funding with attractive authorized passenger EV dealers of Tata Motors. This additional inventory funding would be over and above the internal combustion engines (ICE) finance limit of the dealers. Repayment tenure will range from 60 to 75 days.

Shakti Pumps (India) jumped 5.29% after the company's promoter acquired 12,000 shares of the company from the open market on Monday. As per the exchange filing, Vintex Tools, an entity belonging to the promoter group of Shakti Pumps, acquired 12,000 shares of the company (equivalent to 0.07% stake) in the open market on 28 November 2022. Prior to this acquisition, Vintex Tools held 7,26,000 share or 3.94% stake in Shakti Pumps. Post the said acquisition, its holding in the company has gone up to 4.01%.

Hindustan Aeronautics (HAL) fell 0.36%. The PSU company said that the Ministry of Defence has conveyed that C B Ananthakrishnan, Director (Finance), will hold the additional charge for the post of Chairman & Managing Director of the company, for a period of three months. Ananthakrishnan's tenure will take effect from 1 November 2022. The announcement was made during market hours today, 29 November 2022.

Lupin gained 2.34% after the drug major announced that it has launched Formoterol Fumarate Inhalation Solution in the United States (US). Separately, Lupin's wholly-owned subsidiary in Brazil, MedQuímica Indústria Farmacêutica (MedQuímica), has signed a definitive agreement to acquire all rights to nine medicines from BL Indústria Ótica, a subsidiary of Bausch Health Companies Inc.

Cipla rose 1.81% after the drug major announced the launch of Leuprolide Acetate Injection Depot 22.5 mg, the approval for which was granted by the US FDA based on an NDA submitted under the 505(b)(2) regulatory pathway.

Filatex Fashions rallied 3.14% after the company said that it is planning a capacity expansion of Rs 300 crore for its production facility in next one and a half year. Under this expansion, the company will install another 500 machines to meet the growing demand for the company's existing products. The said machines will require about 400,000 square feet of space for installation and the company's existing land will be enough for the same. This capex will generate additional turnover of around Rs 400 crore and provide employment to more than 1,000 workers.

Five-Star Business Finance shed 0.25%. The NBFC reported 22.35% rise in net profit to Rs 144.18 crore on a 17.29% increase in total income to Rs 361.86 crore in Q2 FY23 over Q2 FY22. During the quarter, Net AUM growth was of Rs 435.9 crore as against Rs 59.9 crore in Q2 FY22. Disbursements stood at Rs 802.8 crore as against Rs 353.3 crore during Q2 FY22.

Lumax Industries advanced 1.61%. The company said that its board will meet on 7 December 2022 to consider and approve the proposal for setting up of the company's new manufacturing unit in Chakan, Pune (Maharashtra) and funding options.

IPO Updates:

The initial public offer (IPO) of Dharmaj Crop Guard received bids for 4,78,68,720 shares as against 80,12,990 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (29 November 2022). The issue was subscribed 5.97 times.

The issue opened for bidding on Monday (28 November 2022) and it will close on Wednesday (30 November 2022). The price band of the IPO is fixed at Rs 216-237 per share. An investor can bid for a minimum of 60 equity shares and in multiples thereof.

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