Barometers trade with strong gains; European markets edge higher

The key equity barometers traded with strong gains in afternoon trade. The Nifty traded above the 17,250 level. Strong global cues boosted the investor sentiments. Shares across sectors advanced, with IT, banks and financial stocks gaining the most.

At 13:22 IST, the barometer index, the S&P BSE Sensex, was up 949.97 points or 1.66% to 58,185.30. The Nifty 50 index added 260.35 points or 1.53% to 17,274.70.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index, both gained 0.72%.

Buyers outnumbered sellers. On the BSE, 2,379 shares rose and 935 shares fell. A total of 157 shares were unchanged.

Economy:

India's inflation based on wholesale price index (WPI) stood at 10.7% in September 2022 as against 12.41% recorded in August 2022 and 11.8% in September 2021.

Inflation in September 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, chemicals & chemical products, basic metals, electricity, textiles etc. as compared to the corresponding month of the previous year, the Ministry of Commerce & Industry said in a statement today.

Stocks in Spotlight:

Infosys jumped 4.51%. The IT major reported 12.3% rise in consolidated net profit to Rs 6,021 crore on a 6% increase in revenue to Rs 36,538 crore in Q2 FY23 over Q1 FY23. As compared with Q2 FY22, the company's net profit and revenues have grown by 11.1% and 23.4%, respectively.

The company has revised its FY23 revenue guidance to 15%-16%. The operating margin guidance has also been revised to 21%-22%.

Mindtree rose 2.33%. The L&T Group company's consolidated net profit jumped 7.9% to Rs 508.7 crore on 8.9% rise in revenue to Rs 3,400.4 crore in Q2 FY23 over Q1 FY23. As compared to Q2 FY22, the IT company's consolidated net profit and revenue increased by 27.5% and 31.5%, respectively. The company had a healthy order book of $518 million, up 44% YoY in Q2 FY23. H1 total contract value (TCV) crosses $1 billion.

Power Mech Projects (PMPL) added 3.59%. The company announced the receipt of a letter of award (LOA) worth Rs 499.41 crore from Sangalore Metro Rail Corporation (SMRCL). The contract is for the construction of depot cum workshop at Challaghatta in reach-2 Extension of Sangalore Metro Rail Project, Phase-2.

Larsen & Toubro (L&T) advanced 2.65%. The EPC major said that the water & effluent treatment business of L&T Construction has secured repeat orders from the Narmada Water Resources, Water Supply & Kalpsar Department, Government of Gujarat, to execute pumping system and pipeline works from Tappar Dam to Nirona Dam (Northern Link). This is the single largest order secured by the business in Gujarat, it added.

Global Markets:

Shares in Europe and Asia rallied across the board on Friday, tracking cues from US stocks overnight.

Singapore's gross domestic product in the July-to-September quarter came in at 4.4%, much higher than expected.

Separately, the country's central bank tightened monetary policy for the fifth time in a year, in line with expectations, as rising costs continue to weigh on the economy.

US stocks ended sharply higher after a volatile session on Thursday, with each major index gaining more than 2%. The Dow Jones Industrial Average rose 827 points, or 2.83%, to close at 30,038.06 after being down more than 500 points earlier in the day. The S&P 500 ticked up 2.60% to 3,669.87, breaking a six-day losing streak. The Nasdaq Composite gained 2.23% to end the day at 10,649.15.

In the U.S., inflation data showed consumer prices increased more than expected in September, with CPI rising 0.4% from August, and 8.2% from September last year. Core inflation was up 6.6% from a year ago, the biggest 12-month gain since August 1982.

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