The equity benchmark indices ended with small gains after a volatile session on Tuesday. The Nifty managed to close above the 17,650 mark after hitting the day's low of 17,537.55 in the morning trade. PSU bank, media and auto scrips were in demand while IT, oil & gas and pharma stocks witnessed a bit of a selling pressure. Global shares declined ahead of upcoming interest rate decision by the US Federal Reserve, Bank of England and European Central Bank later this week in an effort to tame the inflation.

As per provisional closing data, the barometer index, the S&P BSE Sensex rose 49.49 points or 0.08% to 59,549.90. The Nifty 50 index added 13.20 points or 0.07% to 17,662.15.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.47% while the S&P BSE Small-Cap index gained 2.21%.

The market breadth was strong. On the BSE, 2,441 shares rose and 1,056 shares fell. A total of 128 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 4.71% to 16.88.

Economic Survey 2023:

Union finance minister Nirmala Sitharaman today tabled the Economic Survey 2023 in the Parliament. The government has projected that India will remain the fastest growing major economy in the world with a GDP growth forecast of 7% in FY23 and 6-6.8% in FY24.

The Survey further highlighted that the challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed. CAD may continue to widen as global commodity prices remain elevated, economic growth momentum stays strong. Rupee may come under pressure if current account defict (CAD) widens.

It further stated that the RBI projection of 6.8% inflation this fiscal outside the upper target limit, not high enough to deter private consumption, also not too low to weaken inducement to invest. Borrowing cost may remain 'higher for longer', entrenched inflation may prolong tightening cycle.

India's services sector witnessed a swift rebound in FY22, growing Year-on-Year (YoY) at 8.4% compared to a contraction of 7.8% in the previous financial year. This swift rebound was driven by growth in the contact intensive services sub-sector which registered sequential growth of 16% driven by the release of pent-up demand, ease of mobility restriction, and near-universal vaccination coverage.

Meanwhile, India's external sector has been facing considerable global headwinds reflecting the geopolitical developments. India's current account balance (CAB) recorded a deficit of US$ 36.4 billion (4.4 per cent of GDP) in Q2FY23 in contrast to a deficit of US$ 9.7 billion (1.3 per cent of GDP) during the corresponding period of the previous year. The widening of the current account deficit (CAD) in the second quarter of FY23 was mainly on account of a higher merchandise trade deficit of US$ 83.5 billion and an increase in net investment income outgo.

Economy:

The International Monetary Fund (IMF) has retained its GDP growth forecasts for India for 2022-23 and 2023-24 at 6.8% and 6.1%, respectively. Growth in India is set to decline from 6.8% in 2022-23 to 6.1% in 2023-24 before picking up to 6.8% in 2024-25, with resilient domestic demand despite external headwinds, the IMF said in an update to its World Economic Outlook report.

Adani Enterprises FPO Update :

The follow-on public offer (FPO) of Adani Enterprises was subscribed 1.10 times on the last day of bidding. As on 15:30 IST on Tuesday (January 31), the issue received bids for 5,00,66,620 equity shares against the issue size of 4,55,06,791 equity shares.

The portion reserved for retail individual investors (RIIs) was subscribed by 0.11 times with bids of 25,60,704 equity shares against offered 2,29,08,464 equity shares.

Meanwhile, the portion reserved for qualified institutional buyers (QIBs) was subscribed by 1.26 times. The non-institutional investors (NII) category has been subscribed by 3.26 times.

The FPO consists of fresh issuance of equity shares for an amount aggregating to Rs 20,000 crore. The price band for the offer was fixed at Rs 3,112-3,276 per share and the minimum bid quantity is 4 shares. The issue opened for public participation on 27 January 2023 and it will close on 31 January 2023.

Stocks in Spotlight:

Sun Pharmaceutical Industries declined 1.51%. The pharma major reported 5.2% rise in consolidated net profit to Rs 2,166 crore in Q3 FY23 as compared with Rs 2,058.8 crore posted in Q3 FY22. Total sales increased by 13% year on year to Rs 11,100.14 crore in the third quarter.

Sales of formulations in India for Q3 FY23 were at Rs 3391.87 crore, up 7% over Q3 last year. India formulation sales accounted for about 31% of total consolidated sales. Formulation sales in the US were $422 million recording a growth of 6.3% over Q3 last year; accounting for over 31% of total consolidated sales. Taro posted Q3FY23 sales of $139 million, flat over Q3 last year and net profit of US$ 7.3 million, compared to US$ 26.3 million for Q3 last year.

Larsen & Toubro (L&T) added 0.37%. The EPC major posted a consolidated net profit of Rs 2,553 crore in Q3 FY23, registering a growth of 24% from Rs 2,055 crore recorded in Q3 FY22. The conglomerate recorded revenues of Rs 46,390 crore for the quarter ended 31 December 2022, recording a YoY growth of 17%.

Ambuja Cements rallied 4.07%. With reference to the news item dated 30 January 2023 captioned Adani Group said to plan Rs 3000 cr Ambuja, APSEZ buybacks, the cement major clarified to the stock exchanges that there was no such plan and hence, it was not in a position to comment on the veracity of said media report.

Ultratech Cement gained 3.09%. The cement major said that UltraTech Cement Middle East Investments has entered into a share sale and purchase agreement with Seven Seas Company LLC, Oman, for acquisition of 70% equity shares in Duqm Cement Project International. UltraTech Cement Middle East Investments is Ultratech's wholly owned subsidiary in UAE.

Tech Mahindra fell 2%. On a consolidated basis, the IT major's net profit rose marginally to Rs 1,296.6 crore in Q3 FY23 as against Rs 1,285.4 crore posted in Q2 FY23. Revenue from operations grew 4.61% quarter on quarter (QoQ) to Rs 13,734.6 crore in quarter ended 31 December 2022.

BPCL added 2.67%. BPCL posted a consolidated net profit of Rs 1959.58 crore in Q3 FY23 from Rs 2828.45 crore recorded in Q3 FY22. Total income rose to Rs 133783.39 crore in Q3 FY23 from Rs 118166.92 crore recorded in Q3 FY22.

Indian Oil Corporation's (IOCL) rose 0.37%. On a standalone basis, Indian Oil Corporation's (IOCL) net profit tumbled 92.36% to Rs 448.01 crore in Q3 FY23 as against Rs 5,860.80 crore recorded in Q3 FY22. Revenue from operations (excluding excise duty) rose 22.76% to Rs 204,740.20‬ crore in Q3 FY23 from Rs 166,784.61 crore recorded in the same period a year ago.

INOX Leisure added 0.95% after the company reported a consolidated net loss of Rs 40.41 crore in Q3 FY23 as against a net loss of Rs 1.32 crore in Q3 FY22. The multiplex chain operator recorded 73.9% jump in revenue from operations to Rs 515.57 crore in Q3 FY23 as against Rs 296.47 crore posted in the corresponding period last year.

Bajaj Holdings & Investment's (BHIL) declined 1.72%. The company's consolidated net profit increased 23.6% to Rs 1,285.65 crore on a 3% rise in total revenue from operations to Rs 98.41 crore in Q3 FY23 over Q3 FY22.

Mangalore Refinery & Petrochemicals (MRPL) added 0.26%. The company reported a standalone net loss of Rs 187.96 crore in Q3 FY23 as compared to a net profit of Rs 586.37 crore in Q3 FY22. Revenue from operations (excluding excise duty) jumped 30% to Rs 26,557.44‬ crore in Q3 FY23 from Rs 20,419.45 crore recorded in corresponding quarter previous year.

Century Textiles & Industries jumped 5.20%. The company's consolidated net profit (from continuing operations) tumbled 44.33% to Rs 6.77 crore in Q3 FY23 from Rs 12.16 crore reported in Q3 FY22. Net sales was at Rs 1,149.94 crore in Q3 FY23, up 9.5% as against Rs 1,049.95 crore posted in the corresponding quarter last year.

Global Markets:

Markets in Europe and Asia declined across the board on Tuesday as attention turns to the U.S. Federal Reserve's latest policy meeting that starts later today on the States' side.

Investors widely expect a 25 basis point increase, but will monitor commentary for clues about how much further the Fed intends to hike, or when it plans to cut rates. The Fed will announce its interest rate decision Wednesday.

European markets will be keeping an eye on fourth-quarter eurozone gross domestic product data that will be published Tuesday, for a gauge on the region's state of health. Preliminary German and French inflation data for January is also due to be released.

US stocks traded lower Monday, pausing a January rally as investors braced for the busiest week of earnings season and a possible interest rate hike from the Federal Reserve.

The Federal Open Market Committee meets on Tuesday and Wednesday, when the Fed is expected to hike rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation.

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