Post Session: Quick Review

US markets handover positive cues to Indian markets, which ended higher by around a percent on Tuesday amid investors await the all-important U.S. consumer price inflation report later in the day, which could impact the outlook for interest rates. Investors seem to be expecting a moderation in inflation in the US which would also have an impact on the interest rate hike cycle. Indices showed a strong move to the upside during trading on Tuesday as positive cues from other Asian markets bolstered investors’ sentiments. The strength on street came as some traders picked up stocks at relatively reduced levels. IT and Banking counters brought support to markets during the day. However, weakness was visible in the broader markets throughout the day. Realty stocks sagged under pressure after India’s retail inflation or consumer price index (CPI) breached the Reserve Bank of India’s (RBI’s) comfort zone and rose to a three-month high of 6.52 per cent in January 2023.

Markets opened higher and remained in the green as investors assessed the outlook for inflation and economic growth. Traders ignored report that India's retail inflation breached the RBI's comfort zone and rose to a three-month high of 6.52 per cent in January 2023, mainly on account of a spike in food prices. Indices traded largely steady in afternoon session and soared at higher level till the end, as traders got encouragement after India’s inflation based on wholesale price index (WPI) eased further to 4.73% for the month of January 2023 against 4.95% recorded in December 2022. 

On the global front, European markets were trading higher as investors assess the economic outlook. Asian markets ended mostly in green as investors remained convinced that key U.S. inflation data due later in the day would show an easing in price pressures on an annual basis. Back home, Society of Indian Automobile Manufacturers' (SIAM's) Director General Rajesh Menon has said that passenger vehicle (PV) wholesales rose 17 per cent to 2,98,093 units in January 2023 driven by robust offtake of utility vehicles, including the fast-growing sports utility vehicles. The overall passenger vehicle dispatch from companies to dealers was 2,54,287 units in January 2022.

The BSE Sensex ended at 61,032.26, up by 600.42 points or 0.99% after trading in a range of 60,550.25 and 61,102.74. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.44%, while Small cap index was down by 0.61%. (Provisional)

The top gaining sectoral indices on the BSE were TECK up by 1.00%, IT up by 0.97%, FMCG up by 0.91%, Bankex up by 0.85% and Metal was up by 0.75%, while Realty down by 1.80%, Utilities down by 1.71%, Power down by 1.35%, Industrials down by 0.46% and Healthcare was down by 0.44% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were ITC up by 3.11%, Reliance Industries up by 2.41%, Bajaj Finance up by 1.84%, ICICI Bank up by 1.78% and Infosys up by 1.57%. On the flip side, NTPC down by 1.16%, Ultratech Cement down by 0.80%, Larsen & Toubro down by 0.53%, Sun Pharma down by 0.52% and Maruti Suzuki down by 0.49% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) eased further to 4.73% for the month of January 2023 against 4.95% recorded in December 2022. Decline in the rate of inflation in January is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products. The wholesale inflation was 5.85% in November 2022.

The Component wise, primary articles index, having weight of 22.62%, increased 0.93% to 174.0 (provisional) in January 2023 from 172.4 (provisional) for the month of December 2022. Prices of Minerals, Non-food Articles and Food Articles increased in January 2023 as compared to December, 2022. Prices of Crude Petroleum & Natural Gas declined 0.85% in January 2023 as compared to December 2022.

Fuel & Power index, having weight of 13.15%, declined 1.39% to 155.8 (provisional) in January 2023 from 158.0 (provisional) for the month of December 2022. Prices of Mineral Oils declined 2.13% in January 2023 as compared to December 2022.

Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, increased 0.14% to 141.3 (provisional) in January 2023 from 141.1 (provisional) for the month of December 2022. Meanwhile, for the month of November, 2022 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011- 12=100) stood at 152.5 and 6.12% respectively.

The CNX Nifty ended at 17,929.85, up by 158.95 points or 0.89% after trading in a range of 17,800.05 and 17,954.55. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 3.79%, ITC up by 3.27%, Reliance Industries up by 2.36%, Adani Ports up by 2.06% and Adani Enterprises up by 1.87%. On the flip side, Eicher Motors down by 2.37%, Apollo Hospital down by 2.06%, SBI Life down by 1.48%, BPCL down by 1.12% and Grasim Industries down by 1.08% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 32.99 points or 0.41% to 7,980.59, France’s CAC rose 29 points or 0.4% to 7,237.59 and Germany’s DAX was up by 20.9 points or 0.14% to 15,418.24.

Asian markets settled mostly higher on Tuesday tracking Wall Street gains overnight, despite cautious mood ahead of key US inflation data due later in the day. Chinese shares gained after reports that US Secretary of State Antony Blinken is considering meeting top Chinese diplomat Wang Yi in Munich this week after the United States shot down a series of unidentified objects. Japanese shares rose, in spite of data showing that the Japanese economy grew much less than expected in the fourth quarter. Meanwhile, Japan announced its nomination of Kazuo Ueda as the new Bank of Japan governor.