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End - Session

Detailed review of the post market session of the day.

Benchmarks snap 7-day streak; Sensex rallies 1017 pts, Nifty regains 17K mark

30-Sep-22 17:18 Hrs IST

The key equity indices settled with robust gains on Friday, snapping a seven-day losing streak. The relief rally came after the Reserve Bank of India (RBI) today raised benchmark repo rate by 50 basis points, along expected lines. Positive global cues also supported buying. The Nifty ended near the 17,100 mark, reversing from the day's low of 16,747.70 in the early trade. All the sectoral indices on the NSE ended in the green. Metals, banks and financial shares rallied.

The barometer index, the S&P BSE Sensex jumped 1,016.96 points or 1.80% at 57,426.92. The Nifty 50 index gained 276.25 points or 1.64% at 17,094.35. In the past seven sessions, both the indices dropped over 5.5% each.

Bharti Airtel (up 4.49%), Bajaj Finance (up 3.28%) and Titan Company (up 2.95%) rallied today.

In the broader market, the S&P BSE Mid-Cap index rose 1.39% while the S&P BSE Small-Cap index gained 1.45%. Both the indices underperformed the headline indices.

The market breadth was strong. On the BSE, 2335 shares rose and 1107 shares fell. A total of 96 shares were unchanged.

Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 6.26% to 19.97.

RBI Policy:

The Monetary Policy Committee (MPC) at its meeting today (30 September 2022) decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.90% with immediate effect. The decision was on the expected lines.

Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.65% and the marginal standing facility (MSF) rate and the Bank Rate to 6.15%.

The MPC also decided 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 MPC projected that while inflation will average 6.7% in 2022-23, it will head lower in the next financial year.

Inflation is projected at 6.7% in 2022-23, with Q2 at 7.1%; Q3 at 6.5%; and Q4 at 5.8%, and risks are evenly balanced. CPI inflation for Q1:2023-24 is projected at 5%.

FY23 real GDP growth is seen at 7% from 7.2% earlier. Real GDP growth for Q2 2022-23 is projected at 6.3%; Q3 at 4.6%; and Q4 at 4.6%, and risks broadly balanced. For Q1:2023-24, it is projected at 7.2%.

The next meeting of the MPC is scheduled during 5-7 December 2022.

Economy:

The central government's fiscal deficit stood at Rs 5.42 lakh crore in April-August, accounting for 32.6% of the full-year target, data released on September 30 by the Controller General of Accounts showed.

The fiscal deficit for April-August 2021 had accounted for 31.1% of the FY22 target.

Net tax receipts rose to about Rs 7 lakh crore while total expenditure was Rs 13.90 lakh crore, the data showed.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined to 7.4362 as compared with 7.34 at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 81.46, compared with its close of 81.735 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement rose 0.47% to Rs 50,230.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.07% to 112.33.

The United States 10-year bond yield declined 1.62% to 3.686.

In the commodities market, Brent crude for November 2022 settlement gained 33 cents, or 0.38% at $87.51 a barrel.

Global Markets:

The Dow Jones index futures were up 169 points, indicating a positive opening in the US market today.

European shares advanced while Asian shares ended on a mixed note on Friday.

Euro zone inflation hit a new record high of 10% in September, Eurostat data showed on Friday, up from 9.1% in August and above consensus projections of 9.7%.

China's official factory activity data unexpectedly expanded in August, beating estimates. China's official manufacturing Purchasing Managers' Index surprisingly grew in September to 50.1. The official non-manufacturing PMI came in at 50.6 in September, down from 52.6 in August.

Wall Street ended sharply lower on Thursday on worries that the US Federal Reserve's aggressive fight against inflation could hobble the US economy, and as investors fretted about a rout in global currency and debt markets.

Buzzing Segment:

The Nifty Bank index jumped 2.61% to 38,631.95. The index dropped 9.21% in the past seven sessions.

Federal Bank (up 5.62%), PNB (up 4.87%), IDFC First Bank (up 4.71%), Bank of Baroda (up 4.16%), Indusind Bank (up 4.01%), Kotak Mahindra Bank (up 2.99%), HDFC Bank (up 2.87%), AU Small Finance Bank (up 2.76%), ICICI Bank (up 2.71%), Axis Bank (up 2.36%), Bandhan Bank (up 2.07%) and SBI (up 1.88%) advanced.

Stocks in Spotlight:

Heritage Foods jumped 7.96% to Rs 335.80. The company's board has approved issuing 1 new fully paid equity share for each fully paid equity share held (1:1) by eligible shareholders as on the record date. The company plans to issue 4,63,98,000 in the proposed rights issue. The board has constituted 'Rights Issue Committee' to decide detailed terms and conditions of the rights issue.

Lupin rallied 3.91% after the drug maker said that it has received ANDA approval for its Mirabegron extended-release tablet from the US Food and Drug Administration (USFDA). The approved abbreviated new drug application (ANDA) is generic equivalent of Myrbetriq extended-release tablets of Astellas Pharma Global Development, Inc. The pharma major said that the product will be manufactured at Lupin's facility in Nagpur, India.

Rail Vikas Nigam (RVNL) gained 2.28% after the company said it bagged a contract for construction of 4 lane highway in Andhra Pradesh. The total awarded cost of the project is Rs 408 crore.

Nestle India rose 0.77%. The FMCG major on Friday (30 September 2022) said that David Steven McDaniel, executive director - finance & control and chief financial officer (CFO), shall demit office effective from 1 March 2023. McDaniel will be taking up a new assignment with a Nestlé Affiliate, the company stated. Svetlana Boldina, currently Head of Finance and Control, Nestlé Indonesia, has been nominated to succeed David McDaniel as “executive director - finance & control and chief financial officer” effective from 1 March 2023, subject to approvals.

Bajaj Electricals advanced 5.83% after the company received an order under the transmission line tower package TW04 from Power Grid Corporation of India. The value of the order aggregated to Rs 332.65 crore and is expected to be completed within 15 months from the date of issue of NOA/LOA.

Motherson Sumi Wiring India added 0.52%. The company's board on Friday (30 September) recommended issuing 2 bonus equity shares against 5 existing equity shares (2:5).

Zydus Lifesciences rose 0.82% after the company on announced that Zydus Animal Health and Investments, a wholly owned subsidiary of the firm received two observations after the pre-approval inspection by USFDA at its Ahmedabad manufacturing facility.