Well above the 18,300 level, financial services stocks are in demand



Benchmarks traded in a narrow range with strong gains in mid-morning trading. Positive global indices boosted sentiment. The Nifty traded above the 18,300 level. With the exception of the Nifty FMCG index, all of the NSE sector indices were in the green.

As of 11:30 a.m. IST, the barometer index, the S&P BSE Sensex, was up 992.03 points or 1.64% at 61,605.73. The Nifty 50 index gained 282.30 points or 1.57% to 18,310.50.

The market as a whole underperformed the frontline indices. The S&P BSE Mid-Cap Index gained 0.71% while the S&P BSE Small-Cap Index rose 0.66%.

The scale of the market was strong. On BSE, 1,985 shares rose and 1,319 shares fell. A total of 134 stocks remained unchanged.

Consumer inflation in the United States reached 7.7% in October. Weaker-than-expected inflation data could ease pressure on the Fed to maintain its policy of aggressively raising interest rates to fight inflation. The US central bank has made four consecutive 0.75% hikes this year in an attempt to slow price growth. Markets are now expecting a smaller 0.5% rise at the Fed’s meeting in December.

Zoom Index:

The Nifty Financial Services Index rose 1.88% to 18,954. The index lost 0.72% in two trading sessions.

Housing Development Finance Corporation (+3.95%), HDFC Bank (+3.61%), Indian Energy Exchange (+3.6%), Power Finance Corporation (+3.51%), HDFC Life Insurance Company (+ 3.14%), Cholamandalam Investment & Finance Company (+2.95%), HDFC Asset Management Company (+2.2%), Shriram Transport Finance Company (+2.16%), SBI Life Insurance Company (+1 .9%) and Bajaj Finance (+1.83%) increased slightly.

On the other hand, Muthoot Finance (-1.81%), State Bank of India (-0.07%) and ICICI Lombard General Insurance Company (-0.04%) fell.

Revenue impact:

Zomato jumped 7.97% after the online food delivery platform reported a consolidated net loss of Rs 250.80 crore in the second quarter of September 2022, compared to a net loss of Rs 429.60 crore in the second quarter of September 2021. Zomato reported a net loss of Rs 185.70 crore in the first quarter of June 2022. Operating revenue stood at Rs 1661.30 crore in Q2 September 2022, up 62.2 % from Rs 1024.20 crore reported in Q2 September 2021.

In the food delivery business, gross order value (“GOV”) growth was 3% QoQ (23% YoY) driven by growth in order volumes and average order value. Growth in revenue per order drove higher adjusted revenue growth (for food delivery) of 8% QoQ (27% YoY). The monthly average number of customers transacting increased 4.4% quarter-on-quarter to 17.5 million in Q2FY23 from 16.7 million in Q1 FY23.

Apollo Hospitals Enterprise grew 5.32%. The company recorded a 17.7% decline in consolidated net profit to Rs 203.99 crore despite a 14.4% increase in net sales to Rs 4,251.07 in Q2 FY23 compared to Q2 FY22.

Ashok Leyland rose 0.51%. The auto major reported a net profit of Rs 199 crore in Q2 FY23 against a net loss of Rs 83 crore in Q2 FY22. Revenue for the quarter stood at Rs 8,266 crore compared to Rs 4,458 crore in Q2 FY22. The company achieved a 32% market share in the second quarter of FY23.

Global Markets:

Asian stocks traded higher after the release of US inflation data in October, reviving investors’ hopes that inflation had peaked.

U.S. stocks saw their biggest rally since 2020 after October’s consumer price reading raised hopes among investors that inflation has peaked.

Price increases moderated in the United States last month. Consumer inflation rose to 7.7% in October from a year earlier and 0.4% from September, the Labor Department said Thursday. The year-over-year gain was the smallest since January. Excluding volatile food and energy prices, core inflation rose 6.3% over the past 12 months and 0.3% since September.

Meanwhile, US President Joe Biden is expected to discuss Russia’s war in Ukraine with Chinese President Xi Jinping next week in a face-to-face meeting. The meeting between the two leaders, the first since Biden assumed the US presidency, will take place ahead of the G-20 summit in Bali, Indonesia.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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