Daily Market Commentary - Jan 18, 2023 - Bonanza Portfolio

Mr. Jitendra Upadhyay, Sr. Equity Research Analyst, BONANZA PORTFOLIO LTD

Indian indices opened on a flat note amid mixed global cues. At the time of closing, the Sensex was up 390.02 points or 0.64% at 61,045.74, and the Nifty was up 112 points or 0.62% at 18,165.30.

During the day, the Indian rupee opened flat at 81.74 per dollar. Adani Transmission acquired an entire stake of equity shares representing 100% of the total issued, paid-up, and subscribed equity shares. Rail Vikas Nigam has emerged as the lowest bidder (L1) for the commissioning of the power supply receiving & distribution system for the Surat Metro Rail Project Phase-I with a cost Rs 673.8 crore, and for Ahmedabad Metro Rail Project Phase-II with a cost Rs 384.3 crore. Adani Green Energy to acquire 50% equity interest in Essel Saurya Urja Company of Rajasthan Essel Saurya Urja houses a 750 MW solar park in the state of Rajasthan. It had a revenue of Rs 9.87 crore in FY22. Gold prices inched lower as the U.S. dollar firmed, while expectations of a slowdown in the pace of Federal Reserve interest rate hikes limited the losses.

As per Moody's Recovery in marketing margins, lower oil prices to restore OMC profitability in FY24. State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are likely to see weak earnings in the current fiscal year despite fall in oil prices mainly because of losses they incurred on holding prices in the first half, Moody's Investors Service said.

Oil prices settled higher in choppy trading after China posted weak but expectation-beating annual economic growth data and in hopes that a recent shift in its Covid-19 policy will boost fuel demand. Bank of Japan maintains a policy balance rate at -0.1%. The Bank of Japan maintained ultra-low interest rates, including its 0.5% cap for the 10-year bond yield, defying market expectations it would phase out its massive stimulus programme in the wake of rising inflationary pressure. On the sectoral front, the metal index added 2 percent, and the capital goods index rose 1 percent, while bank and pharma indices added 0.5 percent each.

Nifty 50 top gainers are Hindalco Industries, Tata Steel, Larsen and Toubro, UPL and HDFC, while losers included Tata Motors, HDFC Life, UltraTech Cement, Adani Enterprises and BPCL.

Source : Equity Bulls

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