The domestic equity benchmarks traded with significant gains in the mid-morning trade as inflation eased to a five-month low, according to data released by Ministry of Statistics & Programme Implementation (MoSPI). The Nifty traded above the 23,150 mark after hitting the day's low of 22,992.20 in early trade. Metal shares extended gains for the second day in a row. Trading was volatile due to the weekly Nifty 50 F&O series expiry today.
At 11:30 IST, the barometer index, the S&P BSE Sensex, gained 443.80 points or 0.58% to 76,618.96. The Nifty 50 index added 114.25 points or 0.63% to 23,189.50.
In the broader market, The S&P BSE Mid-Cap index jumped 1.14%, and the S&P BSE Small-Cap index rallied 0.71%.
The market breadth was strong. On the BSE, 2,428 shares rose and 1,231 shares fell. A total of 150 shares were unchanged.
Economy:
India’s retail inflation, based on the Consumer Price Index (CPI), eased to a five-month low of 4.31% in January 2025, mainly due to lower food prices, according to official data released on Wednesday. CPI-based retail inflation was 5.22% in December and 5.1% in January 2024.
India’s industrial production growth, measured by the Index of Industrial Production (IIP) eased to 3.2% in December, down from a 6-month high of 5.2% in the previous month, according to data released by Ministry of Statistics & Programme Implementation (MoSPI). The slowdown was largely due to weaker manufacturing activity, which grew 3% in December compared to 5.5% in November.
IPO Update:
The initial public offer (IPO) of Hexaware Technologies received bids for 37,80,903 shares as against 9,14,23,354 shares on offer, according to stock exchange data at 11:15 IST on 13 February 2024. The issue was subscribed to 0.04 times.
The issue opened for bidding on 12 February 2024 and it will close on 14 February 2024. The price band of the IPO is fixed between Rs 674 and Rs 708 per share. An investor can bid for a minimum of 21 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Metal index jumped 1.79% to 8,416.80. The index rallied 2.47% in two consecutive trading sessions.
Steel Authority of India (up 4.12%), Welspun Corp (up 3.51%), Tata Steel (up 3.42%), Hindustan Copper (up 2.81%), Jindal Steel & Power (up 2.59%), JSW Steel (up 2.36%), NMDC (up 1.94%), APL Apollo Tubes (up 1.83%), Vedanta (up 1.74%) and National Aluminium Company (up 1.66%) advanced.
On the other hand, Adani Enterprises (down 0.89%), Hindustan Zinc (down 0.11%) and Ratnamani Metals & Tubes (down 0.07%) edged lower.
Stocks in Spotlight:
P N Gadgil Jewellers hit an upper circuit of 10% after the company’s consolidated net profit jumped 49.36% to Rs 86.03 crore in Q3 FY25 as compared with Rs 57.60 crore in Q3 FY24. Revenue from operations jumped 23.51% YoY to Rs 2,435.75 crore in Q3 FY25.
ITD Cementation India shed 0.89%. The company’s consolidated net profit jumped 10.75% to Rs 87.04 crore on 11.28% rise in revenue from operations to Rs 2,244.86 crore in Q3 FY25 over Q3 FY24.
Balaji Amines declined 2.68% after the company’s consolidated net profit slipped 17.79% to Rs 33.19 crore on 18.42% drop in revenue from operations to Rs 312.73 crore in Q3 FY25 over Q3 FY24.
Global Markets:
Asian stocks saw a mixed performance on Thursday. A surge in Chinese tech stocks, driven by enthusiasm for artificial intelligence, and news of potential deals in Japan's technology sector provided positive momentum. However, concerns about high U.S. inflation tempered gains.
Market sentiment was also boosted by reports of potential peace talks between Russia and Ukraine, raising hopes for an end to the protracted conflict. This news contributed to a drop in oil prices.
It was reported that both the Russian and Ukrainian presidents expressed a desire to resolve the conflict in separate phone calls, and that steps were being taken to initiate peace talks. This development followed reports that Ukraine would no longer pursue NATO membership, a key point of contention for Russia.
U.S. stocks fell overnight after stronger-than-anticipated consumer price index (CPI) data was released. The inflation figures lessened expectations of near-term interest rate cuts.
At the NYSE close, the Dow Jones Industrial Average decreased by 0.50%, the S&P 500 index fell by 0.27%, and the NASDAQ Composite index showed a slight gain of 0.03%.
The CPI increased by 0.5% month-over-month, while the core CPI rose by 0.4%. These results fueled concerns about persistent inflationary pressures. Analysts pointed to the "upside surprise" in the CPI report, noting that it contradicted earlier forecasts of moderating inflation.
Overall market sentiment remained cautious due to ongoing trade tensions, including recently implemented tariffs on commodity imports and the potential for retaliatory tariffs.
Individual stock performance saw CVS Health Corp. rallying by nearly 15%, and Gilead Sciences Inc. increasing by 7.5%.