Barometers trade with modest gains; European shares decline

The key equity indices traded with moderate gains in the afternoon trade. The Nifty traded above the 17,500 mark. Oil & gas, FMCG and financial services shares advanced while IT, media and PSU bank shares declined.

At 13:24 IST, the barometer index, the S&P BSE Sensex, was up 241.41 points or 0.41% to 59,202.01. The Nifty 50 index gained 59.50 points or 0.34% to 17,546.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.19% while the S&P BSE Small-Cap index gained 0.20%.

The market breadth was strong. On the BSE, 1,759 shares rose and 1,595 shares fell. A total of 145 shares were unchanged.

Further, strong buying from DIIs has completely overwhelmed the selling pressure caused by FII selling. In the past three session, DIIs have bought a total of Rs 5,290 crore worth stocks in the cash market, sharply outperforming the equities sold by FIIs worth Rs 1,537 crore.

Gainers & Losers:

Housing Development Finance Corporation (HDFC) (up 2.21%), Reliance Industries (up 2.04%), Nestle India (up 1.59%), Bajaj Auto (up 1.52%) and ITC (up 1.44%) were the top Nifty 50 gainers.

State Bank of India (down 1.64%), JSW Steel (down 1.37%), Tata Consumer Products (down 1.36%), Coal India (down 1.18%) and Bajaj Finserv (down 1.14%) were top Nifty 50 losers.

Earnings Impact:

Nestle India rose 1.59%. The FMCG major reported 8.3% rise in net profit to Rs 668.34 crore on 18.3% rise in revenue from operations to Rs 4,591 crore in Q3 CY22 over Q3 CY21.

Total sales jumped 18.2% year on year to Rs 4,567 crore in Q3 CY22 against Q3 CY21. Domestic sales and export sales for the quarter ended September 2022 increased by 18.3% and 15.7% respectively. Domestic sales growth was broad based with a healthy balance of pricing and volume.

In its commodity outlook, the company said that it is witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials. However, fresh milk, fuels, grains and green coffee costs are expected to remain firm with continued increase in demand and volatility.

L&T Technology Services (LTTS) slipped 4.33% after the company reported 3% rise in consolidated net profit to Rs 282.4 crore on a 6.5% rise in revenue to Rs 1,995.1 crore in Q2 FY23 over Q1 FY23. As compared with Q2 FY22, the company's net profit and revenue are higher by 22.8% and 24.1%, respectively. During the quarter, LTTS won $60 million plus deal and a deal with total contract value (TCV) of $10 million.

ICICI Lombard General Insurance Company shed 1.25%. The general insurance company's net profit rose 32.2% to Rs 590.53 crore on 18.14% rise in total income to Rs 4,499.03 crore in Q2 FY23 over Q2 FY22.

Schaeffler India declined 0.85%. The company reported 26.1% jump in net profit to Rs 215.4 crore on a 18.1% increase in net sales to Rs 1,756.43 crore in Q3 September 2022 over Q3 September 2021. Net profit margin in the third quarter stood 12.3% as compared with 11.5% during the corresponding quarter of 2021.

Mahindra CIE Automotive rose 0.50%. The comapny reported 3% rise in consolidated net profit to Rs 171.37 crore on 30.3% rise in revenue from operations to Rs 2,723.15 crore in Q3 calender year (CY) 2022 over Q3 CY 2021.

Global Markets:

Most of the European shares declined while Asian stocks traded mixed on Wednesday as traders assessed a solid start to the corporate-earnings season that helped extend a rally in US markets.

The U.K. reported a rise in the consumer price index to 10.1% in September on Wednesday, matching the 40-year high posted by the Office for National Statistics in July.

Wall Street stocks closed higher and Treasury yields dipped on Tuesday as upbeat earnings and better-than-expected factory data stoked a risk-on rally.

Production at US factories spiked in September. Manufacturing output rose 0.4% last month, keeping pace with an upwardly revised 0.4% gain in August, the Federal Reserve said on Tuesday. Output increased 4.7% from a year earlier.

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