Indian markets open higher as retail inflation eases — Paytm, ICICI Bank, Dalmia Bharat among stocks to watch out for

• Sensex opened at 62,263, up by 133 points while the 50-stock index Nifty50 was up 26 points at 18,524.
• SGX Nifty, an early indicator of how the markets may perform, was up 0.19% early morning today.
• India's retail inflation eased sharply to a 11-month low of 5.88% in November from 6.77% in the previous month.
• Most global markets were trending higher on expectations that the pace of interest rate hikes in the US will slowdown.

Indian benchmark indices Sensex and Nifty50 opened higher on Tuesday, thanks to easing inflation in India and positive cues from global peers.

SGX Nifty, an early indicator of how the markets may perform, was up 0.19% early morning today.

Sensex opened at 62,263, up by 133 points while the 50-stock index Nifty50 was up 26 points at 18,524.

India's retail inflation eased sharply to a 11-month low of 5.88% in November from 6.77% in the previous month. The inflation figures were better than analysts’ expectations. This comes as a huge relief as the inflation falls back into the RBI tolerance range for the first time this year.

“Dip in food and vegetable prices are the primary reasons for the softness in inflation. The core inflation remains elevated though. The critical thing to watch out for will be the durability of this trend for the RBI to soften its stance in the fight against inflation,” said Nish Bhatt, founder & CEO at Millwood Kane International.

Meanwhile, India’s factory output that is measured through index of industrial production (IIP) shrank 4% in October.

“Overall, the combination of lower inflation and weaker growth is likely to persist in CY23, though the magnitude of fall (in both) was surprising today. Since IIP is a key input in quarterly GDP estimates, it imparts downward bias in 3Q GDP growth. At the same time, details of CPI are not so encouraging. Thus, we maintain a 25bp rate hike in February 2023 by the RBI,” said Nikhil Gupta, chief economist at Motilal Oswal Financial Services Group.

Global markets trend upwards on hope
Most global markets were trending higher on expectations that the pace of interest rate hikes in the US will slowdown.

This comes ahead of US inflation numbers that are to be announced today, while the US Fed rate hike decision takes place tomorrow. These two events may provide markets with a direction to move into 2023.

Asian markets were trading mixed on Tuesday, with the Hang Seng index gaining the most by 0.45% followed by Nikkei 225 up 0.37% while Shanghai Composite fell 0.17%, Taiwan SE Weighted Index down 0.15%.

The US markets ended on a higher note on Monday with S&P 500 up 1.43%, the tech-heavy Nasdaq closing 1.26% higher. The Dow Jones Industrial Average also ended higher with 1.58% gains.

Stocks to watch
Paytm: The fintech company said that its loan disbursals reached an annualised run rate of around ₹39,000 crore in November this year. Moreover, it will meet today to consider a share buyback proposal.

Dalmia Bharat: Dalmia Bharat’s subsidiary Dalmia Cement on Monday said it plans to acquire the cement, clinker and power plants of Jaiprakash Associates for a total enterprise value of ₹5,666 crore, as it looks to expand its domestic presence. This deal is part of Jaiprakash Associates’ efforts to reduce its debt.

ICICI Bank: The private sector lender raised ₹5,000 crore through bonds to fund business growth.

Maruti Suzuki India: The automaker has unveiled India’s first mass segment flex fuel car -- Wagon R Flex Fuel prototype model in Delhi as part of its decarbonization journey.

Stocks under F&O ban
Bharat Heavy Electricals, Gujarat Narmada Valley Fertilizers & Chemicals, Delta Corp and Punjab National Bank are stocks banned in the F&O ban list on Tuesday.


SEE ALSO: Dalmia Bharat to acquire cement, power plants of Jaiprakash Associates for ₹5,666 crore enterprise value
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