Indices open higher; HUL rises 2%

Equity indices saw gap-up opening and traded with gains in early trade amid positive global cues. The Nifty hovered at the 17,100 level.

At 9:25 IST, the S&P BSE Sensex rose 204.45 points or 0.36% to 57,023.13. The Nifty 50 index gained 66.55 points or 0.39% to 17,104.25.

The broader market traded with gains as well. The S&P BSE Mid-Cap index rose 0.43% while the S&P BSE Small-Cap index added 0.3%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1677 shares rose while 788 shares fell. A total of 111 shares were unchanged.

Trading could be volatile as traders roll over positions in the F&O segment from the near month April series to May series. The April 2022 F&O contracts will expire today, 28 April 2022.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,064.54 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,917.51 crore in the Indian equity market on 27 April, provisional data showed.

Earnings Impact:

Hindustan Unilever gained 2.85%.The FMCG major reported 8.59% rise in standalone net profit to Rs 2,327 crore on 10.40% increase in sales to Rs 13,190 crore in Q4 FY22 over Q4 FY21. During the quarter, HUL's volume growth was flat. Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter stood at Rs 3,245 crore, a growth of 10% YoY. EBITDA margin at 24.6% remained healthy despite very high inflationary headwinds. Profit before tax rose 10.84% year on year to Rs 3,128 crore in Q4 FY22 as compared to Q4 FY21.

Bajaj Auto fell 1.18%. The company reported 2% fall in consolidated net profit to Rs 1526 crore on 7% fall in revenue from operations to Rs 7975 crore in Q4 FY22 over Q4 FY21. EBITDA fell 10% year on year to Rs 1,396 crore in Q4 FY22. EBITDA margin declined to 17.5% in Q4 FY22 from 18.1% in Q4 FY21.

Global markets:

Asian stocks were trading higher on Thursday, as investors in the region look ahead to the Bank of Japan's latest monetary policy decision. Chinese tech stocks rose, boosted by news to support the economy.

Investors in Asia-Pacific have been continuing to monitor developments surrounding the Covid situation in mainland China. Chinese President Xi Jinping on Tuesday called for an all-out effort to construct infrastructure. His comments come as mainland China has since March been facing its worst outbreak of Covid-19 since the initial shock of the pandemic in early 2020.

Japan's retail sales rose more than expected in March, according to government data released Thursday. Retail sales gained 0.9% in March as compared with a year earlier.

U.S. stocks edged higher in choppy trading Wednesday, clawing back some of their losses after selling off sharply a day earlier.

The US trade deficit in goods widened to a record high in March. The goods trade deficit jumped 17.8% to an all-time high of $125.3 billion. The increase likely reflected both higher volumes and prices. Imports of goods accelerated 11.5% to $294.6 billion. They were boosted by a 15.% surge in imports of industrial supplies, which include petroleum products.

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