Benchmarks rally for 6th day, Sensex gains 177 pts, Nifty settles above 18,600

November 29,2022

The headline equity indices ended with decent gains on Tuesday, extending gains for the sixth trading session. The Sensex and the Nifty hit record high levels. The Nifty closed above the 18,600 level. FMCG, metal and pharma stocks were in demand while realty, auto and oil & gas shares declined.

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

The two benchmarks hit all-time highs in intraday today at 18,678.10 for Nifty 50 index and 62,887.40 for Sensex.

The broader market underperformed the benchmark indices. 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, 1,722 shares rose and 1,756 shares fell. A total of 149 shares were unchanged.

IPO Updates:

The initial public offer (IPO) of Dharmaj Crop Guard received bids for 3,86,10,900 shares as against 80,12,990 shares on offer, according to stock exchange data at 15:24 IST on Tuesday (29 November 2022). The issue was subscribed 4.82 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.

Buzzing Index:

The Nifty FMCG index rose 1.87% to 45,078.55. The index added 2.21% in two trading sessions.

Emami (up 6.64%), Dabur India (up 6.21%), Hindustan Unilever (up 4.38%), Marico (up 3.45%), Britannia Industries (up 1.7%), Colgate-Palmolive (India) (up 1.54%), Nestle India (up 1.47%), Godrej Consumer Products (up 1.28%), United Spirits (up 0.94%) and ITC (up 0.62%) advanced.

On the other hand, Varun Beverages (down 3.02%), Radico Khaitan (down 0.64%) and Procter & Gamble Hygiene and Health Care (down 0.08%) edged lower.

Stocks in Spotlight:

State Bank of India (SBI) shed 0.08%. 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.”

Hindustan Aeronautics (HAL) fell 0.44%. 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 2.49% 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 1.67% 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 3.56% 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.

IndusInd Bank declined 1.57% while Tata Motors fell 0.25%. 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.

Five-Star Business Finance shed 0.40. 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 2.08%. The company said that the meeting of the board of directors of the company is scheduled 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.

Shakti Pumps (India) jumped 6.11% 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%.

Global Markets:

Shares in Europe traded mixed while most Asian stocks advanced on Tuesday despite an overnight fall in US stocks.

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.

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