Domestic stock indices on Tuesday snapped a two-day losing streak to settle higher. Weakness, however, prevailed in the broader market with almost two stocks ending lower for every one stock that rose, thanks to a handful of disappointing quarterly results by small and midcap companies..
For the day, the BSE Sensex surged 600 points, or 0.99 per cent, to 61,032.26. The Nifty50 Index rallied 158.95 points, or 0.89 per cent, to 17,929.8. Broader markets underperformed the headline peers, as BSE midcap and smallcap indices settled with cuts. India VIX eased about 2 per cent to 13.45-level.
Traders will be keenly looking at US inflation data later in the day, which will provide some cues on the US Fed policy decisions. Most global markets traded higher as investors pinned hopes that key US inflation data for January due later in the day will show downward pressure on prices year-on-year, although gains were limited, said Deepak Jasani, Head of Retail Research, HDFC Securities.
“India’s wholesale inflation fell to its lowest level since January 2021, led by a decline in inflation in manufactured products,” he said. “Nifty has closed at the highest since January 24. In the process it has formed a bullish ascending triangle type of pattern. It could now stay in the 17824-18027 band for the near term with an upward bias.”
On a sectoral front, Nifty PSU Bank, Metal, FMCG, IT and Financial Services indices rose over a per cent each. On the other hand, the Nifty Realty index plunged 2 per cent. Pharma, Media and Auto indices were among the laggards.
Adani Enterprises settled with a 2 per cent gain, as the company reported profit for the December quarter. Adani Ports jumped 2 per cent while ACC added 1 per cent. However, Ambuja Cements declined over 1 per cent.
Adani Green Energy, Adani Total Gas, Adani Power, Adani Transmission, Adani Wilmar and New Delhi Television (NDTV) were locked at their lower circuit limits of 5 per cent each.
Among Nifty stocks, UPL topped gainers with a 4 per cent rise. ITC jumped 3 per cent while Reliance Industries advanced 2 per cent for the day. Apollo Hospitals and Eicher Motors fell over 2 per cent each. SBI Life Insurance, Bharat Petroleum, Grasim and NTPC declined over 1 per cent each.
Domestic indices edged higher, inspired by their global counterparts, as investors await the US inflation numbers today, said Vinod Nair, Head of Research at Geojit Financial Services.
“The whammy over India’s retail inflation breaching the RBI’s tolerance level was cooled by WPI inflation easing to 4.73 per cent in January. IT stocks were in focus as investors anticipated a slowdown in US inflation, which could result in favourable Fed policy,” he said.
A total of 3,614 stocks traded for the day on BSE, of which 2,205 declined, while 1,296 settled higher. A total of 114 stocks remained unchanged.
In the broader market, Nucleus Software Solutions hit an upper circuit of 20 per cent. National Fertilizers and Mirza International gained up to 16 per cent for the day. All three companies reported strong after strong quarterly performance. Neuland Labs jumped 13 per cent while Nilkamal also added 9 per cent for the day.
EKI Energy Services hit its 20 per cent lower circuit limit for the second straight session, as auditors flag some concerns. Allcargo Logistics and Emami Papers plunged 10 per cent each after disappointing Q3 performance. Olectra Greentech tumbled 10 per cent too. RHI Magnesita and Indiabulls Real Estate plunged 8 per cent each.
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