The domestic equity benchmarks ended the week with minor cuts. The Nifty settled above the 17,200 level. Broader markets, however, witnessed steep sell-off this week. Investor sentiment sunk to low levels of bullishness after fresh data showed high US inflation. The surging US inflation will likely lead to higher interest rates for longer, hastening a global recession. In the week ended on Friday, 14 October 2022, the Sensex lost 271.32 points or 0.47% to settle at 57,919.97. The Nifty 50 index fell 128.95 points or 0.74% to settle at 17,185.70. The BSE Mid-Cap index slipped 2.66% to settle at 24,709.86. The BSE Small-Cap index declined 2.26% to settle at 28,522.85. Weekly Index Movement:

The market ended with modest losses on Monday, pressurised by weak global cues. The barometer index, the S&P BSE Sensex, declined 200.18 points or 0.34% to 57,991.11. The Nifty 50 index lost 73.65 points or 0.43% to 17,241.

Indian equity benchmarks tumbled on Tuesday, extending their fall for the third straight session amid weak global cues. The S&P BSE Sensex dropped 843.79 points or 1.46% to 57,147.32. The Nifty 50 index lost 257.45 points or 1.49% to 16,983.55.

Domestic equity benchmarks snapped a three-day losing streak and ended with decent gains on Wednesday, shrugging mixed global cues. The S&P BSE Sensex, was up 478.59 points or 0.84% to 57,625.91. The Nifty 50 index added 140.05 points or 0.82% to 17,123.60.

Indices advanced on Thursday, as traders built up positions ahead of Q2 result season starting next week. The barometer index, the S&P BSE Sensex, rose 156.63 points or 0.27% to 58,222.10. The Nifty 50 index added 57.50 points or 0.33% to 17,331.80.

The headline equity indices ended with robust gains on Friday. The barometer index, the S&P BSE Sensex, rose 654.64 points or 1.20% to 57,919.97. The Nifty 50 index added 189.75 points or 1.12% to 17,204.10.

Stocks in Spotlight:

Tata Motors slipped 3.88%. Tata Motors said that Jaguar Land Rover's retail sales in Q2 stood at 88,121 vehicles, an increase of 9,296 units or 11.8% as compared with the previous quarter ending 30 June 2022. The retail sales are, however, lower by 4.9% in comparison to the second quarter of FY22.

The Tata Motors Group global wholesales in Q2 FY23, including Jaguar Land Rover (JLR), stood at 3,35,976 units, rising 33%, as compared to Q2 FY22.

Tata Consultancy Services (TCS) rose 1.07%. The IT major reported 10.1% rise in consolidated net profit to Rs 10,431 crore on 4.8% increase in revenue to Rs 55,309 crore in Q2 FY23 over Q1 FY23. The board recommended an interim dividend of Rs 8 per share. The record date for the same is 18 October 2022 and the payment date is 7 November 2022.

Larsen & Toubro (L&T) lost 0.67%. The EPC major on Tuesday said that the water & effluent treatment business of L&T Construction has secured repeat orders from the Water Resources Department, Government of Odisha. As per L&T's classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.

Seperately, L&T announced that its heavy engineering arm has won several 'significant' contracts in Q2 of FY23. As per Larsen & Toubro's (L&T) classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.

Adani Ports and Special Economic Zone declined 4.47%. It has received approvals from National Company Law Tribunals (NCLT) Ahmedabad and NCLT Hyderabad for acquiring the remaining 58.1% stake in Gangavaram Port through the composite scheme of arrangement. With this stake purchase, Gangavaram Port (GPL) will become a 100% subsidiary of Adani Ports. This stake purchase is through a share swap arrangement, said the company.

In another development, Adani Ports said that it has received letter of award (LoA) from West Bengal Industrial Development Corporation, Kolkata, for development of deep-sea port at Tajpur, West Bengal. The deep-sea port would be developed on a design, build, finance, operate and transfer basis.

Wipro slumped 7.55%. The IT major's consolidated net profit rose 3.72% to Rs 2,659 crore on 4.7% increase in revenue form operations to Rs 22,539.7 crore in Q2 FY23 over Q1 FY23.

On a year on year (YoY) basis, the IT firm's net profit declined 9.27% while revenue jumped 14.6% in Q2 FY23. The company's large deal bookings grew by 42% YoY in H1 FY23. Overall order book in total contract value (TCV) terms grew 23.8% YoY in Q2 FY23.

For the quarter ending 31 December 2022, Wipro expects revenue from its IT Services business to be in the range of $2,811 million to $2,853 million. This translates to a sequential growth of 0.5% to 2%.

HCL Technologies jumped 4.71%. The company reported 6.27% rise in consolidated net profit to Rs 3,489 crore on a 5.2% rise in revenue to Rs 24,686 crore in Q2 FY23 over Q1 FY23. Compared with Q2 last year, net income rose 7.09% while topline jumped 19.5% in the second quarter.

For FY23, the company increased revenue guidance to 13.5%-14.5% YoY in constant currency. Services revenue is expected to grow 16%-17% YoY in constant currency. EBIT margin guidance is revised to 18%-19%.

Infosys added 1.54%. The IT firm on Tuesday announced that Ravi Kumar S. resigned as president with effect from 11 October 2022. In his role, Ravi Kumar led the Infosys global delivery organization across all global industry segments.

Infosys reported 12.3% rise in consolidated net profit to Rs 6,021 crore on a 6% increase in revenue to Rs 36,538 crore in Q2 FY23 over Q1 FY23. As compared with Q2 FY22, the company's net profit and revenues have grown by 11.1% and 23.4%, respectively.

In dollar terms, the company reported revenues of $4,555 million (up 2.5% QoQ and up 13.9% YoY) for the quarter ended 30 September 2022. In constant currency terms, the company's revenue has grown by 4% QoQ and by 18.8% YoY. Large deal TCV for the quarter was at $2.7 billion, highest in last 7 quarters.

The company has revised its FY23 revenue guidance to 15%-16%. The operating margin guidance has also been revised to 21%-22%.

Meanwhile, Infosys board has approved a proposal to buyback equity shares, from the open market route, amounting to Rs 9,300 crore at a price not exceeding Rs 1,850 per share (maximum buyback price), subject to shareholders' approval. The board has also approved an interim dividend of Rs 16.50 per share.

Economy:

India's forex reserves dropped by $4.9 billion and the country's reserves declined for a ninth consecutive week for the week ended September 30, 2022. They were $537.52 billion at the end of the previous week. The fall in the foreign exchange reserves can be attributed to a fall in the Foreign Currency Assets (FCA), which is a major component of the overall reserves, according to the Weekly Statistical Supplement released by RBI. Foreign currency assets fell $4.41 billion to $472.81 billion for the same period.

The International Monetary Fund on Tuesday cut its global growth forecast for next year to 2.7%.

Cutting India's GDP growth forecast to 6.8% for the financial year 2023, the IMF predicted that India will continue to remain on track to become one of the fastest-growing economies in the world.

IMF expects that inflation in India will come down to 4% range next year. It is said that global inflation will likely perak at 9.5% this year 4.1% by 2024. IMF also warned that a major economic slump is yet to come, and 2023 will feel like a recession to many people.

India's inflation based on wholesale price index (WPI) stood at 10.7% in September 2022 as against 12.41% recorded in August 2022 and 11.8% in September 2021.

Inflation in September 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, chemicals & chemical products, basic metals, electricity, textiles etc. as compared to the corresponding month of the previous year, the Ministry of Commerce & Industry said in a statement.

Global Markets:

Banks in China extended 2.47 trillion yuan ($344 billion) of new loans in September, compared with 1.25 trillion yuan in August, the country's central bank said in a statement late Tuesday.

The Bank of Korea raised its policy rate to 3%, an increase of 50 basis points in line with expectations. Inflation in South Korea stood at 5.6% in September, above the central bank's target.

The German consumer price index rose by 10% year-on-year in September and 1.9% month-on-month, the country's Federal Statistical Office reportedly said Thursday. EU-harmonized CPI inflation was 10.9% annually and 2.2% on the month, the reports added.

The British pound on Wednesday morning recovered losses following a media report that said the Bank of England is privately signaling a willingness to extend its emergency bond-buying program. Following the reports, the pound reversed early losses and was back above the $1.10 mark.

The US economy added 263,000 jobs last month, showing a steady slowdown from the blistering pace in 2020 and 2021, the Labor Department said in the closely-watched report. The unemployment rate slipped two-tenths of a percentage point to 3.5 percent.

The Federal Reserve's September meeting minutes, released Wednesday, show that the central bank expects to continue increasing interest rates and hold them higher until inflation shows signs of abating.

In the U.S., inflation data showed consumer prices increased more than expected in September, with CPI rising 0.4% from August, and 8.2% from September last year. Core inflation was up 6.6% from a year ago, the biggest 12-month gain since August 1982.