Market highlights: Sensex up 612 points, Nifty at 21,700 ahead of budget; Sun Pharma rallies 3.5%

The rupee ended higher at 83.04 per US dollar from Tuesday's close of 83.11.

Indian benchmark indices ended in the green after a volatile session ahead of the Fed's rates decision later today and the Union Budget tomorrow.

At close, the Sensex was up 612.21 points or 0.86% at 71,752.11, and the Nifty was up 203.60 points or 0.95% at 21,725.70.

Sun Pharma consolidated net profit rose 16.5% cent to ₹2,523.75 crore for the December quarter from ₹2,166.01 crore a year ago. Total income increased 10.7% to ₹12,630.90 crore.

Net profit up 8% at ₹514.2 crore against ₹476.7 crore and revenue up 7% at ₹3,255.1 crore versus ₹3,043.2 crore.

Bank of Baroda reported a 19% rise in its net profit for Q3 at ₹4,579 crore, up from ₹3,852.70 crore in the base period. Net interest income also grew nearly 3% year to ₹11,101 crore. Asset quality also improved as gross NPAs contracted to 3.08% from 3.32% in the previous quarter. Net NPAs also fell to 0.7% from 0.76% a quarter ago.

Oil prices fell on Wednesday as lacklustre economic activity in China, the world's biggest crude importer, weighed on sentiment, but prices were set for their first monthly gain since September as broadening Middle East conflicts raised supply concerns.

Brent crude futures for March, which expire today, fell 31 cents or 0.4% to $82.56 a barrel by 0700 GMT. The more actively-traded April contract fell 29 cents to $82.21.

US West Texas Intermediate crude futures declined 25 cents or 0.3% to $77.57 a barrel.

• Revenue down 17% at ₹12,828.4 crore from ₹15,438 crore 
• Ebitda down 16.7% at ₹503.8 crore from ₹605 crore
• Margin flat at 4% 

At 2 pm the Sensex was up 496.08 points or 0.70% at 71,635.98, and the Nifty was up 165.10 points or 0.77% at 21,687.20.

• Net profit up 33% at ₹3,130 crore from ₹2,351 crore 
• Revenue up 15% At ₹33,309.7 crore from ₹29,044 crore
• Ebitda up 38% at ₹3,909 crore from ₹2,833 crore
• Margin increased to 11.7% from 9.8% 

The Sri Lankan government said on Wednesday it has pre-qualified Jio Platforms, a unit of India's Reliance Industries Ltd, and Gortune International Investment Holding to bid for stakes in Sri Lanka Telecom, Reuters reported.

This is a part of Sri Lanka's efforts to reduce government stake in state-owned firms under the $2.9 billion International Monetary Fund (IMF) programme.

Ambuja Cements has reported 39% growth in standalone net profit at ₹514 crore for the December quarter, from ₹369 crore a year ago. Revenue from operations rose 8% year-on-year to ₹4,439 crore from ₹4,128 crore a year ago.

Asian shares fell broadly on Wednesday, while the Australian dollar slid after surprisingly soft inflation data and Japanese government bond yields ticked higher on growing bets of an imminent policy shift from the Bank of Japan.

Chinese markets wobbled after an official factory survey showed China's manufacturing activity in January contracted for a fourth month as the world's second-largest economy struggles to regain momentum.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.4% and was heading for a monthly loss of roughly 5%, snapping a two-month winning streak.

Hong Kong's Hang Seng Index shed more than 1%, weighed down by property and tech names, and was on track for its worst January performance since 2016 with a 9% loss.

At 1 pm the Sensex was up 487.25 points or 0.68% at 71,627.15, and the Nifty was up 150.20 points or 0.7% at 21,672.30.

Apeejay Surrendra Park Hotels has set the price band for its initial public offering (IPO) at ₹147 to ₹155 per equity share, the company said on Wednesday. The IPO will be open for subscription from 5 to 7 February.

Japan's Nikkei average notched its best January in 26 years after shaking off early chip-led declines on Wednesday. The index recovered from losses as steep as 1% in early trading to end the day up 0.61% at 36,286.71, extending its gains for the month to 7.77%, its best start to the year since an almost 9% jump in January 1998.

AI-related companies lost $190 billion in stock market value late on Tuesday after Microsoft, Alphabet and AMD delivered quarterly results that failed to impress investors who had sent their stocks soaring, Reuters reported.

The selloff following the tech giants' reports after the bell underscored investors' elevated expectations following an AI-fueled stock market rally in recent months that propelled their shares to record highs with the promise of incorporating the technology across the corporate landscape.

At 12 pm the Sensex was up around 0.9% at 71,781.93, and the Nifty was up 0.9% at 21,716.85.

Gold prices Wednesday are headed for their first monthly dip in four months as investors tempered their bets of swift and deep rate cuts in the US in the light of a resilient economy, and also awaited remarks from the Federal Reserve due later in the day. Spot gold fell 0.1% to $2,033.88 an ounce after touching a two-week high of $2048.12 in the previous session. Prices have dropped 1.4% so far this month. US gold futures rose 0.1% to $2,033.30.

Shares of Cochin Shipyard are up 4% after the firm reported a net profit of ₹244.4 crore for the third quarter, against a net loss of ₹110.4 crore a year ago.

Tata Consultancy Services announced a 15-year expansion of its partnership with Aviva, the British insurance, wealth and retirement provider, to transform its business and enhance customer experience. The stock is currently up 0.3%.

China's manufacturing activity contracted for the fourth straight month in January, an official factory survey showed on Wednesday, suggesting the sprawling sector and the broader economy were struggling to regain momentum at the start of 2024, Reuters reported.

The official purchasing managers' index (PMI) rose to 49.2 in January from 49.0 in December, driven by a rise in output but still below the 50-mark separating growth from contraction. It was in line with a median forecast of 49.2 in a Reuters poll.

Indian government bond yields ended lower on Tuesday, tracking their US peers, while broader market sentiment stayed positive in the run up to the union budget on Thursday. India's benchmark 10-year yield ended at 7.1570%, down from its previous close at 7.1735%.

At 11 am the Sensex was up 435.75 points or 0.61% at 71,575.65, and the Nifty was up 127.10 points or 0.59% at 21,649.20.

Shares of Nova Agritech listed on the BSE at ₹56, a premium of 36.6% over the issue price of ₹41.

Shares of PB Fintech, the parent company of Policybazaar, are currently up 12.65% at ₹1,024.30. On Tuesday the company posted a net profit of ₹37 crore for the December quarter, against a net loss of ₹87 crore a year ago. Revenue from operations jumped 43% you to ₹871 crore.

The company posted a net loss of ₹27.6 crore for the December quarter, narrowing from a loss of ₹110.5 crore a year ago despite a healthy topline, thanks to increased input costs. Consolidated revenue from operations increased 31% yoy to ₹2,625.7 crore.

The stock is currently up 3.25% at ₹1,050.

"The Fed decision tonight and the interim budget tomorrow will weigh on markets in the near-term. Global markets will be keenly watching the Fed comment on the timeline and quantum of rate cuts. The first rate cut is likely to come in June 2024. The decline in the 10-year yield to 4.02% is positive since it will restrain FPI outflows. 

“The domestic market will be focused on the interim budget particularly on any proposals regarding taxation of investments relating to the capital market. The fiscal deficit and its glide path also is important since growth with stability is hugely important from the market perspective. Stock specific movements are likely in response to sectoral allocations in the budget.”

At 10 am the Sensex was up 11.29 points or 0.02% at 71,151.19, and the Nifty was up 12.30 points or 0.06% at 21,534.40.

Quarterly numbers were weaker than estimated, owing to the chemicals business. Ebitda margin was 18.5% from 24% last year. Ebitda was down 32.1% and net profit down 50%.

The company registered 10.6% yoy growth in consolidated net profit at ₹1,378.9 crore for the December quarter, despite higher tax cost. Revenue from operations rose 6.6% to ₹7,215 crore from a year ago.

The stock is currently up 1.44% at ₹5,925.

Shares of Policybazaar's parent firm PB Fintech crossed their IPO price of ₹980 after the company declared its Q3 results. The company posted a net profit of ₹37 crore for the December quarter, against a net loss of ₹87 crore a year ago. Revenue from operations jumped 43% you to ₹871 crore.

L&T's stock is currently down 5.24% at ₹3,443.05 after the company recorded 15% yoy growth in consolidated net profit at ₹2,947 crore for the December quarter. Consolidated revenue from operations grew 19% yoy to ₹55,128 crore.

Indian indices opened lower, with the Nifty below 21,500.

Oil prices edged off in early Asian trading on continued bearish fundamentals, following gains in the previous session amid an escalating conflict in the Middle East.

Recorded 15% yoy growth in consolidated net profit at ₹2,947 crore for the December quarter. Consolidated revenue from operations grew 19% yoy to ₹55,128 crore.

US job openings increased unexpectedly in December and data for the prior month was revised higher, suggesting that the labour market likely remains too strong for the Fed to start cutting interest rates in the first quarter. However, the report from the Labor Department also showed more Americans were staying put at their current jobs, which could help to slow wage growth.

Companies that will announce their December-quarter earnings today:

Maruti Suzuki India, Sun Pharmaceutical Industries, Shree Cement, Ambuja Cements, Bank of Baroda, Dabur India, Amara Raja Energy & Mobility, Adani Wilmar, Balaji Amines, Dixon Technologies, Fino Payments Bank, GMR Airports Infrastructure, Godrej Consumer Products, IRB Infrastructure Developers, Jindal Steel & Power, Jubilant FoodWorks, Jyothy Labs, Kalyan Jewellers India, Mankind Pharma, PVR Inox, and Suzlon Energy.

Tokyo stocks opened lower on Wednesday following tech losses on Wall Street, with investors awaiting interest rate signals from the US Federal Reserve.

The GIFT Nifty is trading 10 points or 0.05% lower at 21,619, signaling a muted start for India's stock market.