Sensex up 147 points, Nifty above 18,300; FMCG stocks rally
The market breadth was in the favour of the bulls as 1,659 shares advanced compared to 591 declining while 98 remained unchanged.
Domestic benchmark equity indices are opened higher on Wednesday as U.S. stocks climbed to record levels as major corporations continued to turn in solid quarterly results. In opening trades Sensex jumped 147 points or 0.24% to 61,497 while the Nifty 50 was quoting at 18,318 higher by 50 points or 0.28%.
“It is important to take note of the fact that sustained FII selling ( Rs 2639 cr yesterday) is not impacting the resilience of the market. This is in contrast to the pre-Covid market scenario where heavy FII selling always invariably led to sharp market corrections. The takeaway from this new trend is that it is the retail investors who are calling the shots now. From a fundamental perspective FII selling is rational and retail buying, particularly in the broader market, is without justification. But fundamentals can remain secondary in the short run,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
A major concern now is the inevitability of higher inflation. The CPI print is lower due to the favourable base effect. The reality is that prices, particularly of industrial inputs, are rising fast. This is bound to get reflected in inflation numbers soon and RBI will have to normalise policy earlier than expected.
The flood of results today will witness the market responding to the numbers. The market is positively responding to good numbers like in ICICI bank and negatively responding to below expectation numbers as in the case of Asian Paints. Corrections in prices in high-quality stocks may turn out to be buying opportunities, Vijayakumar added.
Gainers & losers
Top gainers & losers on the Sensex.
Sectoral strand
Sectoral indices were trading mixed on the NSE. Nifty FMCG index surged 0.58%, while Nifty Pharma and Nifty IT indices gained 0.49% and 0.44% respectively. Whereas Nifty Realty, Nifty Auto and Nifty Metal indices were trading with mild gains of 0.10-0.20%.
On the downside, Nifty Bank lost 0.14%.
Broader markets
Broader markets mirrored the gains in benchmark indices and were trading in the green. BSE MidCap index rose 96 points or 0.38% to 25,681 and the BSE SmallCap index was trading at 28,548 higher by 99 points or 0.35%.
The market breadth was in the favour of the bulls as 1,659 shares advanced compared to 591 declining while 98 remained unchanged.
Earnings today
Larsen & Toubro, ITC, IndusInd Bank, Bajaj Auto, Titan Company, Lupin, Maruti Suzuki India, Punjab National Bank, SBI Life Insurance Company, Zee Entertainment Enterprises, Aarti Drugs, Adani Enterprises, Adani Ports and Special Economic Zone, Aegis Logistics, Apollo Tricoat Tubes, Arvind, Asahi India Glass, Astec Lifesciences, Balaji Amines, Cummins India, Dalmia Bharat, Deepak Nitrite, Exxaro Tiles, Geojit Financial Services, Greenpanel Industries, Happiest Minds Technologies, IIFL Finance, IIFL Wealth Management, India Grid Trust, Indian Overseas Bank, JK Paper, KEC International, KPR Mill, Lakshmi Machine Works, Mahindra Logistics, Phillips Carbon Black, Poonawalla Fincorp, PSP Projects, Ramco Systems, Raymond, Reliance Power, Shriram City Union Finance, SKF India, Sona BLW Precision Forgings, Tata Chemicals, Tube Investments of India, Torrent Power, TTK Prestige, United Breweries, United Spirits, and Welspun India will be reporting their September quarter earnings today.
Global markets
Overseas, Asian stocks are trading lower on Wednesday even as major indexes on Wall Street notched fresh record highs again overnight.
Profits at China’s industrial firms rose at a faster pace in September even as surging raw material prices and supply bottlenecks squeezed margins and weighed on factory activity. Profits jumped 16.3% on-year to 738.74 billion yuan ($115.72 billion), the statistics bureau said on Wednesday, quickening from the 10.1% gain reported in August.
Australia’s consumer price index rose 0.8% in the September 2021 quarter, data from the country’s Bureau of Statistics showed Wednesday.
U.S. stocks climbed to record levels on Tuesday as major corporations continued to turn in solid quarterly results, but major averages closed off their highs of the day with some major tech names rolling over.
On the data front, US consumer confidence unexpectedly rose in October as concerns about high inflation were offset by improving labor market prospects. The consumer confidence index increased to a reading of 113.8 this month from 109.8 in September.