The domestic stock market rallied on Friday, driven by the strong growth forecast for the Indian economy and the expectation of a normal monsoon. The Nifty settled around the 18,500 level following a broad-based rally led by FMCG, IT and realty shares. Foreign institutional investors (FIIs) have been net buyers of Indian equities in recent months, which has also supported the market rally.
The barometer index, the S&P BSE Sensex advanced 629.07 points or 1.02% to 62,501.69. The Nifty 50 index added 178.20 points or 0.97% to 18,499.35.
In the broader market, the S&P BSE Mid-Cap index gained 0.82% while the S&P BSE Small-Cap index advanced 0.49%. Both these indices hit 52-week high today.
The market breadth was positive. On the BSE, 1,907 shares rose and 1,600 shares fell. A total of 123 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 4.95% to 11.90.
Economy:
State Bank of India's (SBI) research report, Ecowrap, released on Friday, 26 May 2023, said that India's economic growth in the fourth quarter of the financial year 2022-23 (FY23) is likely to be 5.5%. This would lead to the country's overall growth for FY23 at 7.1%. The advance estimates released by the National Statistical Office (NSO) in January 2023 had pegged growth for the year ended 31 March 2023, at 7%.
Monsoon Forecast:
India is expected to witness normal amount of monsoon rains in 2023, the India Meteorological Department (IMD) said today. As per the weather department, rainfall during the June-September period is likely to be 96% of the long-term average, with an error margin of +/-4% of the long period average. It would be the fifth straight year of normal or above monsoon rains for the country.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper fell 0.04% to 7.004 as compared with previous close of 7.007.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.59, compared with its close of 82.7250 during the previous trading session.
MCX Gold futures for 5 June 2023 settlement rose 0.16% to Rs 59,556.
The United States 10-year bond yield declined 0.76% to 3.785.
In the commodities market, Brent crude for July 2023 settlement rose 22 cents or 0.29% to $76.48 a barrel.
Global Markets:
European and Asian stocks advanced on Friday as talks to raise the U.S. debt ceiling reached their crucial final week. Investors were hopeful that a deal would be reached soon to avoid a default, which would have a negative impact on the global economy.
Wall Street ended sharply higher on Thursday after a blowout forecast from Nvidia sent the chipmaker's stock soaring and fueled a rally in AI-related companies.
US Republican negotiators on Thursday said some progress had been made in debt-ceiling talks, though a deal has not yet been reached.
Stocks in Spotlight:
Reliance Industries (RIL) jumped 2.79%. RIL said that Reliance Consumer Products (RCPL), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures (RRVL) has completed the acquisition of 51% controlling stake in Lotus Chocolate Company for an aggregate consideration of Rs. 74 crore. It also subscribed to non-cumulative redeemable preference shares of Lotus Chocolate Company for an aggregate consideration of Rs 25 crore. RCPL has also completed the acquisition of equity shares pursuant to the open offer. RRVL is subsidiary of RIL.
Sun Pharmaceutical Industries advanced 2.75% after the company reported net profit of Rs 1,837.8 crore in Q4 FY23 as compared with net loss of Rs 1996.5 crore in corresponding quarter last year. Net sales jumped 15.71% to Rs 10930.6 crore in Q4 FY23 as against Rs 9446.7 crore recorded in Q4 FY22.
Mahindra & Mahindra's (M&M) added 0.34%. The automobile maker's standalone net profit rose 22.1% to Rs 1,548.97 crore on 30.94% jump in revenue from operations to Rs 22,571.37 crore in Q4 FY23 over Q4 FY22. M&M sold 1,89,227 vehicles in Q4 FY23, recording a growth of 21% as against 1,55,906 vehicles sold in the same quarter a year ago. Total tractors sold in Q4 FY23 stood at 89,128 units, rising 24% year on year.
Grasim Industries fell 0.93% after the Aditya Birla Group company's consolidated net profit declined 4% to Rs 1,369 crore in Q4 FY23 as against Rs 1,419 crore recorded in Q4 FY22. Revenue from operations grew by 16% year on year to Rs 33,462 crore in the quarter ended 31 March 2023.
Mrs Bectors Food Specialities surged 8.64% after the company's consolidated net profit zoomed 171.06% to Rs 27.65 crore in Q4 FY23 as against Rs 10.20 crore in Q4 FY22. Revenue from operations jumped 37.16% year on year (YoY) to Rs 346.08 crore in the quarter ended 31 March 2023.
eClerx Services jumped 9.23% after the company's consolidated net profit rose 11.6% to Rs 132.55 crore on 17.1% increase in revenue from operations to Rs 693.10 crore in Q4 FY23 over Q4 FY22.
MedPlus Health Services rallied 17.26% after the company's consolidated net proifit surged 126.6% to Rs 26.58 crore in Q4 FY23 as compared with Rs 11.73 crore in Q4 FY22. Revenue from operations jumped 29.7% year on year to Rs 1252.98 crore in Q4 FY23.
Nucleus Software Exports hit an upper limit of 20% after the IT firm's consolidated net profit surged 76.45% to Rs 67.65 crore in Q4 FY23 from Rs 38.34 crore in Q3 FY22. Revenue from operations rose 34.74% quarter on quarter (QoQ) to Rs 206.20 crore during the quarter.
ZEE Entertainment Enterprises (ZEEL) surged 6.69%. The company reported a consolidated net loss (from continuing operations) of Rs 72.89 crore in Q4 FY23 as against a net profit of Rs 244.35 crore posted in Q4 FY22. Revenue from operations declined 9% year on year to Rs 2,112.11 crore in the quarter ended 31 March 2023.
Gujarat State Fertilizers & Chemicals (GSFC) fell 2.93% after the company's standalone net profit declined 17.7% to Rs 240.49 crore despite of 17.7% rise in revenue from operations to Rs 2,410.19 crore in Q4 FY23 over Q4 FY22.
Radico Khaitan advanced 1.81% after the liquor maker's standalone net profit slipped 19.6% to Rs 37.26 crore in Q4 FY23 as against Rs 46.36 crore recorded in Q4 FY22. Net revenue from operations was at Rs 831.84 crore during the quarter, up 2.4% from Rs 812.52 crore reported in the corresponding quarter previous year.
Page Industries tumbled 8.95% after the company's net profit slumped 58.9% to Rs 78.35 crore on 12.8% decline in revenue from operations to Rs 969.09 crore in Q4 FY23 over Q4 FY22.
Vodafone Idea added 1.14% after the company reported net loss of Rs 6,418.90 crore in Q4 FY23 as compared with Rs 6,563.10 crore posted in Q4 FY22. Revenue from operations rose 2.7% to Rs 10,509.50 crore in Q4 FY23 as against Rs 10,234.60 crore in Q4 FY22.
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