The domestic benchmark indices advanced for the second consecutive session on Monday, supported by expectations of progress in US debt-ceiling negotiations. The Nifty settled above the 18,300 level after hitting day's low of 18,178.85 in early trade. Indices opened lower, tracking mixed global cues, but soon turned positive and traded in the green for the remainder of the session.
The gains were broad-based, with buying seen across sectors, except for banking. IT stocks rebounded on bargain hunting. Tech Mahindra (up 3.03%), Wipro (up 2.50%), TCS (up 2.37%), HCL Technologies (up 2.18%) and Infosys (up 1.91%) boosted the indices. The sector has been under pressure in recent months due to concerns about a slowdown in global growth. Investors remained cautious ahead of the release of US FOMC minutes on Wednesday, which could provide some indication of a pause in rate hikes.
The barometer index, the S&P BSE Sensex advanced 234 points or 0.38% to 61,963.68. The Nifty 50 index added 111 points or 0.61% to 18,314.40.
In the broader market, the S&P BSE Mid-Cap index rose 0.73% while the S&P BSE Small-Cap index gained 0.41%.
The market breadth was negative, with 1719 stocks advancing and 1901 stocks declining and 168 stocks unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 2.17% to 12.57.
Economy:
The Reserve Bank of India (RBI) has decided to start withdrawing 2,000-rupee notes from circulation, citing clean note policy. The 2,000-rupee note will remain legal tender. People will be able to deposit the Rs 2,000 note at the bank, or exchange it for notes of smaller denominations up to Rs 20,000 at a time between May 23 and September 30. The Rs 2,000 note was introduced in November 2016, after the government announced demonetisation of Rs 500 and Rs 1,000 notes.
Numbers to track:
The yield on India's 10-year benchmark federal paper declined 0.26% to 6.986 as compared with previous close of 7.004.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.8600, compared with its close of 82.6700 during the previous trading session.
MCX Gold futures for 5 June 2023 settlement fell 0.09% to Rs 60,323.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 103.09.
The United States 10-year bond yield declined 0.73% to 3.679.
In the commodities market, Brent crude for July 2023 settlement rose 13 cents or 0.17% to $75.71 a barrel.
Global Markets:
European shares declined as investors awaited the outcome of debt ceiling talks in the U.S.
Asian stocks closed higher on Monday after the Group of Seven summit in Hiroshima concluded and the People's Bank of China left its 1-year and 5-year loan prime rates unchanged.
U.S. stocks finished lower Friday, weighed down by worries over the debt-ceiling deadline and concerns that more mergers involving regional banks may be needed.
Federal leaders are expected to continue with negotiations on the U.S. debt ceiling on Monday as the country approaches a potential default. President Joe Biden and House Speaker Kevin McCarthy, R-Calif., are scheduled to meet in person at the White House. Treasury Secretary Janet Yellen has said the U.S. could default on its debt as early as June 1.
Stocks in Spotlight:
Balaji Amines shed 6.24% after the company said that Naveena Thammishetty Chandra, Kashinath Revappa Dhole, Satyanarayana Murthy Chavali, Amarender Reddy Minupuri and Vimala Behram Madon have resigned as independent directors of the company from the closing hours on 20 May 2023. The aforementioned former independent directors Balaji Amines have cited 'personal reasons' as the reason for their resignation.
The company's whole-time director & CFO Hemanth Reddy Gaddam has also resigned to focus on subsidiary company, Balaji Speciality Chemicals Limited as whole time director.
Meanwhile, Balaji Amines reported 58% fall in consolidated net profit to Rs 55.21 crore on a 39% decline in revenue from operations to Rs 476.90 crore in Q4 FY23 as compared with Q4 FY22.
NTPC gained 0.46%. NTPC recorded 1% rise in standalone net profit to Rs 5,672.32 crore on a 21.8% increase in total income to Rs 43,399.15 crore in Q4 FY23 as compared with Q4 FY22.
Power Grid Corporation of India rose 0.24%. The company has reported a net profit of Rs 4,320 crore for Q4 FY23 on a consolidated basis which is 4% increase over Q4 FY22. The total income on consolidated basis for Q4 FY23 rose by 13% to Rs 12,557 crore compared to Rs 11,068 crore for Q4 FY22.
Elgi Equipments surged 18.20% after the company's consolidated net profit stood at Rs 170.10 crore in Q4 FY23, steeply higher from Rs 73.06 crore in Q4 FY22. The net profit for the quarter includes profit on sale of property held by the subsidiary, Pattons Inc., USA, amounting to Rs 77.45 crore (net of tax). Consolidated net sales jumped 14.9% to Rs 835.74 crore in Q4 FY23 as compared with Rs 727.61 crore in Q4 FY22.
Narayana Hrudayalaya surged 7.49% after the company reported a consolidated net profit of Rs 173.2 crore in Q4 FY23 as compared with Rs 69 crore in Q4 FY22, recording a growth of 151% on YoY basis. Consolidated revenue increased by 29.9% to Rs 1,221.6 crore during the period under review. Of this, India revenue was Rs 977.1 crore (up 29% YoY) and Health City Cayman Islands (HCCI) revenue was Rs 244.5 crore (up 33.3% YoY).
Divi's Laboratories jumped 5.42%. The pharmaceutical company's net profit slumped 63.9% to Rs 318.79 crore on 23.52% decline in revenue from operations to Rs 1,908.17 crore in Q4 FY23 over Q4 FY22.
Fineotex Chemical surged about 20% after the company's consolidated net profit rose 56.30% to Rs 25.82 crore on 13.43% increase in net sales to Rs 137.69 crore in Q4 March 2023 over Q4 March 2022.
Zomato fell 1.50% after the online food delivery platform reported a consolidated net loss of Rs 188.2 crore in Q4 FY23, as against a net loss of Rs 359.7 crore posted in Q4 FY22. Revenue from operations surged 69.66% to Rs 2056 crore in quarter ended 31 March 2023 from Rs 1211.8 crore reported in Q4 FY22. Adjusted revenue grew 57% year on year to Rs 2,413 crore (33% YoY growth ex-quick commerce).
Bharat Electronics (BEL) rallied 3.13% after the company's standalone net profit rose 19.6% to Rs 1,365.36 crore on 2% increase in revenue from operations to Rs 6,327.48 crore in Q4 FY23 over Q4 FY22.
Som Distilleries & Breweries surged 5.80% after the company announced strategic tie-up with Carlsberg India for the Odisha plant. Under this tie-up, Som's Odisha plant will be partly utilized to produce a wide range of world-class beverages, including popular brands from Carlsberg India's portfolio.
Abbott India advanced 2.30% after the company's net profit jumped 9.5% to Rs 231.42 crore on 7% rise in net sales to Rs 1,343.08 crore in Q4 FY23 over Q4 FY22.
Bandhan Bank added 1.85%. The private lender's net profit tumbled 57.5% to Rs 808.29 crore in Q4 FY23 as against Rs 1,902.34 crore recorded in Q4 FY22. Total income rose marginally to Rs 4,897.39 crore in Q4 FY23 from Rs 4844.02 crore posted in Q4 FY22.
JK Lakshmi Cement (JKLC) dropped 7.38% after the company's net profit slumped 43.3% to Rs 97.32 crore in Q4 FY23 as against Rs 171.73 crore in Q4 FY22. However, revenue from operations rose 15.4% year on year to Rs 1,728.87 crore in the quarter ended 31 March 2023.
Cochin Shipyard tumbled 10.07% after the company's consolidated net profit slumped 85.7% to Rs 39.34 crore in Q4 FY23 from Rs 274.62 crore recorded in Q4 FY22. Revenue from operations dropped 50.5% year on year to Rs 600.09 crore in the quarter ended 31 March 2023.
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