Morning Update :–Wall Street closed substantially higher on Wednesday, with ride-hailing companies Lyft and Uber rallying, and Nvidia displacing Alphabet as the third most valuable business on the US stock market.
Sensex – Rise +216 Points at 72,039
Nifty 50 – Rise +66 Points at 21,906
Indian Market
FII AND DII
| FII Sold | Â Â 3,929.60Â Cr |
| DII Bought | 2,897.98 Cr |
Indian Market News
- Wall Street ends higher, boosted by Uber, Lyft, and Nvidia.
- US producer prices were revised downward in December.
- Dollar pauses as Fed officials weigh in; yen strengthens amid GDP surprise
- Asian markets were generally higher, with Taiwan up 2.7%.
- Oil prices fall following a significant increase in US crude stockpiles.
- Rudra Gas Enterprise will debut on BSE SME on February 15.
- Alpex Solar will float its shares on NSE Emerge on February 15.
- Mahindra & Mahindra’s Q3 net profit rises 60% YoY to Rs 2,454 crore.
- LE Travenues Technology refiles draft documents and reduces fresh issue size to Rs 120 crore.
- SEBI issues an administrative warning to Piramal Alternatives Investment Fund.
- Sun TV’s Q3 earnings is up 6.8%, with a 7% increase in overall income.
- Muthoot Finance’s Q3 net profit rises 14% YoY at Rs 1,027 crore.
- Crompton Greaves’ Q3 net profit drops 3.1% to Rs 85 crore.
- Gland Pharma Q3 PAT stands at Rs 192 crore.
Global Markets updates
GIFT Nifty
The GIFT Nifty, which gained 80 points, or 0.37 percent, suggests that the Indian index as a whole is off to a good start. The 21,993 mark was the focal point of the Nifty futures trade.
US Markets
On Wednesday, Wall Street closed substantially higher after ride-hailing services Lyft and Uber experienced a surge in value. Meanwhile, Nvidia overtook Alphabet as the third most valuable firm in the US stock market.
With its shares rising 2.5 percent, Nvidia’s market capitalization surpassed Alphabet’s advance of the leading AI chipmaker’s quarterly findings the following week. As a result, Nvidia’s stock market value is now $1.825 trillion.
Uber’s $7 billion share buyback plan helped it rise nearly 15% to a record high.
At the end of the day, the S&P 500 was up 0.96 percent, or 5,000.62 points. The Dow Jones Industrial Average increased by 0.40 percent to 38,424.27 points, while the Nasdaq gained 1.30 percent to 15,859.15 points.
Asian Markets
After largely declining on Wednesday, Asian markets rose as worries that the Federal Reserve would hold interest rates higher for longer were fueled by stronger-than-expected US inflation statistics.
Dollar
Following the hotter-than-expected U.S. inflation report from the previous day, investors consolidated gains, which caused the dollar to retreat from a new three-month high against a major currency basket on Wednesday.
The January inflation report caused betting on an early Federal Reserve rate drop to be pushed back to the middle of the year.
The top currency authorities in Japan issued a warning against what they called “rapid and speculative yen moves,” which contributed to the dollar’s decline versus the yen.
The dollar depreciated 0.2 percent against the Japanese yen to 150.52, not far from its three-month high reached on Tuesday. Since the beginning of the year, the value of the U.S. unit has increased by roughly 10 yen.
Gold Prices
Due to investor withdrawal from bets on potential Federal Reserve rate reduction following a stronger-than-expected U.S. inflation report, gold prices continued their downward trend on Wednesday, remaining below the crucial $2,000 per ounce threshold.
At $1,991.09 an ounce, spot gold dropped 0.1 percent to its lowest level since December 13. Tuesday saw a 1.4 percent decline in gold prices, the most decrease in a single day since December 4. US gold futures fell to $2,004.40/oz, down 0.1 percent.
Crude Oil
Wednesday saw a $1 drop in oil futures as rising US crude inventories drove down prices and raised concerns about a potential security risk to the US, which might reduce demand for oil in the largest economy in the world.
Futures for Brent crude dropped $1.17, or 1.4 percent, to close at $81.60 per barrel. US West Texas Intermediate (WTI) oil futures saw a $1.23, or 1.6 percent, loss before settling at $76.64 per barrel.
News Updates
December saw a revision of lower US producer prices.
Revisions to official data released on Wednesday indicated that US producer prices fell more in December than first believed.
Annual revisions of the producer pricing index (PPI) statistics released by the Labour Department’s Bureau of Labour Statistics (BLS) revealed that the PPI for final demand fell by 0.2 percent in December, as opposed to the 0.1 percent previously reported.
Unrevised data for October and November showed the PPI falling by 0.4 percent and 0.1 percent, respectively.
Hindustan Unilever and the government of Andhra Pradesh are in discussions about working together to produce palm oil.
The government of Andhra Pradesh and Hindustan Unilever are in negotiations to work together on the state’s palm oil production. In order to establish at least 30,000 hectares of oil palm plantations, HUL aimed to collaborate with more than 15,000 farmers in Andhra Pradesh. Over Rs 300 crore will be invested as a result of the projected strategy during the project’s development phase. More than a thousand direct and indirect jobs are anticipated to be created in the state by the projected palm oil factory.
Stocks in news
Utkarsh Small Finance Bank: To assess the proposal for a reverse merger between the bank and its holding company, Utkarsh CoreInvest, the board of directors of the small finance bank will convene in due course.
One 97 Communications: Notices and requisitions for information, documents, and explanations regarding the customers who may have done business with the respective entities have been sent to the company, its subsidiaries, and its associate, Paytm Payments Bank, by the authorities, including the Enforcement Directorate (ED). The business and its partners have persisted in giving the authorities the records, information, and justifications that they demand. Paytm Payments Bank doesn’t handle remittances from outside the country.
NMDC: Supported by strong topline and operating figures, the state-owned iron ore business reported a 62.6 percent year-over-year increase in consolidated net profit at Rs 1,470 crore for the quarter that ended in December of FY24. For the quarter, the total revenue from operations increased by 45.4% year over year to Rs 5,410 crore.
Glenmark Pharmaceuticals: Affected by weaker operations in the US and India, the pharmaceutical company reported a combined net loss of Rs 449.6 crore for the October–December fiscal year of FY24 as opposed to a profit of Rs 185.8 crore in the same period last year. Operating revenue for the quarter was Rs 2,506.7 crore, a 19.1% decrease from the previous year.
Hindustan Unilever: To work together on the state of Andhra Pradesh’s palm oil output, the FMCG giant is now in negotiations with the government.
Aditya Birla Fashion & Retail: Higher other expenses contributed to the Aditya Birla Group company’s consolidated net loss of Rs 77.9 crore for the quarter that ended in December FY24, compared to a profit of Rs 15.8 crore in the same period last year. Operating revenue for the quarter increased by 16.1% YoY to Rs 4,166.7 crore.
Indiabulls home financing: For the quarter that concluded in December of last year, the home financing company declared a standalone profit of Rs 225.74 crore, a decrease of 1.6 percent from the same time the previous year. For the quarter, net interest income was Rs 196.61 crore, a 46.9% decrease from the previous year.
Muthoot Finance: The gold financing company declared a stand-alone profit of Rs 1,027.3 crore for the fiscal year that ended in December of 2024, a 14% increase over the same period the previous year. To Rs 1,905.7 crore, net interest income for the quarter rose 11.8% year over year. The board has approved the company’s plans to invest an extra Rs 300 crore in subsidiary Belstar Microfinance and to buy back up to Rs 75 crore worth of Belstar equity shares from the company’s current promoters.
Gujarat State Petronet: For the third quarter of FY24, the natural gas distribution company’s consolidated net profit increased by 9.9% year over year to Rs 394.9 crore. Operating revenue for the quarter increased to Rs 4,389 crore, a 9.8% year-over-year increase.
Crompton Greaves Consumer Electricals: Amidst lacklustre operating results, the electrical goods company reported a 0.9 percent increase in consolidated profit for the October–December fiscal year of FY24, amounting to Rs 86 crore. Operating revenue for the quarter increased to Rs 1,692.7 crore, an increase of 11.6 percent year over year.
Hinduja Global Solutions: Despite strong operating results, the IT services management company’s consolidated net profit for the third quarter of FY24 was Rs 8.2 crore, 84.1 percent less than the same period the previous year. The profit in Q3 FY23 was enhanced by tax write-backs and exceptional gains. Operating revenue for the quarter was Rs 1,203.7 crore, up 7.6% on an annual basis.
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