Sensex jumps 469 pts, Nifty above 17,850 mark

The headline equity indices continued to trade with strong gains in afternoon trade. The Nifty scaled above the 17,850 level. Barring the Nifty Auto index, all the sectoral indices on the NSE were in the green.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 469.44 points or 0.78% to 60,755.48. The Nifty 50 index added 160.15 points or 0.90% to 17,881.65.

In the broader market, the S&P BSE Mid-Cap index rose 0.84% while the S&P BSE Small-Cap index gained 0.68%.

The market breadth was positive. On the BSE, 1,931 shares rose, and 1,467 shares fell. A total of 147 shares were unchanged.

RBI Monetary Policy Outcome:

The Reserve Bank of India (RBI) raised the key policy repo rate by 25 basis points and said it remained focused on the withdrawal of accomodation.

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (8 February 2023) decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.50% with immediate effect.

Consequently, the standing deposit facility (SDF) rate stands adjusted to 6.25% and the marginal standing facility (MSF) rate and the Bank Rate to 6.75%.

The MPC also decided by a majority of 4 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

The outlook for inflation is mixed. Inflation is projected to be at 6.5% in 2022-23, with Q4 at 5.7%. On the assumption of a normal monsoon, CPI inflation is projected at 5.3% for 2023-24, with Q1 at 5%, Q2 at 5.4%, Q3 at 5.4% and Q4 at 5.6%, and risks evenly balanced.

Real GDP growth for 2023-24 is projected at 6.4% with Q1 at 7.8%, Q2 at 6.2%, Q3 at 6% and Q4 at 5.8%, and risks broadly balanced.

"The global economic outlook does not look as grim now as it did a few months ago. Growth prospects in major economies have improved, while inflation is on a descent, though it still remains well above the target in major economies," RBI Governor Shaktikanta Das said in his statement.

"Inflation is expected to average 5.6% in Q4:2023-24," he added.

Gainers & Losers:

Adani Enterprises (up 13.43%), Adani Ports and Special Economic Zone (up 7.48%), HDFC Life Insurance Company (up 4.67%), SBI Life Insurance Company (up 2.89%) and Bajaj Finance (up 2.81%) were major Nifty gainers.

Hero MotoCorp (down 1.78%), Eicher Motors (down 1.62%), Bharti Airtel (down 1.29%), Larsen & Toubro (down 1.24%) and Axis Bank (down 0.67%) were top Nifty losers.

Bharti Airtel declined 1.29%. The telecom major's consolidated net income surged 91.5% to Rs 1,588 crore on 19.9% increase in total revenues to Rs 35,804 crore in Q3 December 2022 over Q3 December 2021. On a consolidated basis, profit before tax jumped 67.6% year-on-year to Rs 4,359 crore in Q3 December 2022.

Hero MotoCorp fell 1.78%.The company reported net profit of Rs 711 crore in Q3 FY23, compared to net profit of Rs 686 crore posted in Q3 FY22. Revenue from operations rose 1.9% to Rs 8031 crore. The company declared interim dividend of Rs. 65 per equity share.

Stocks in Spotlight:

Adani Green Energy (AGEL) shed 1.67%. The renewable energy company's consolidated net profit zoomed 110.2% to Rs 103 crore in Q3 FY23 from Rs 49 crore reported in Q3 FY22. Revenue from operations stood at Rs 1,959 crore in the quarter ended 31 December 2022, registering a growth of 40.8% as against Rs 1,391 crore posted in Q3 FY22.

NHPC declined 0.74%. The power generation company's consolidated net profit declined 17.4% to Rs 671.67 crore in Q3 FY23 from Rs 813.21 crore recorded in Q3 FY22. Revenue from operations was at Rs 2,582.76 crore in the quarter ended 31 December 2022 as against Rs 2,156.72 crore posted in Q3 FY22, registering a growth of 19.8%.

Deepak Nitrite gained 2.22% after the specialty chemical maker's consolidated net profit declined 13.8% to Rs 209.05 crore despite of a 15.6% rise in revenue from operations to Rs 1,991.06 crore in Q3 FY23 over Q3 FY22.

Sobha skid 0.71%. The real estate company's consolidated net profit tumbled 47.9% to Rs 31.80 crore in Q3 FY23 as against Rs 61 crore posted in Q3 FY22. Net sales stood at Rs 868.20 crore in the quarter ended 31 December 2022, recording a growth of 39.5% from Rs 622.30 crore reported in the same period last year.

Global Markets:

Asian stocks traded mixed on Wednesday, as Federal Reserve Chairman Jerome Powell overnight acknowledged that inflation is declining, a sign the central bank may soon pause its rate hikes.

US stocks advanced on Tuesday, but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank might need to tame inflation.

US inflation is starting to cool but the road ahead will likely be long and bumpy, Federal Reserve Chair Jerome Powell warned Tuesday, adding that stronger-than-expected economic data could bring more rate hikes.

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