ITC rally as government holds stake

Indian Markets:

• Nifty 50 Movement: Indices opened at 17,840.35 and marched higher as the session progressed to settle above the 17,900 level.  
• FMCG and IT shares were major source of strength today. Metal and banks shares also supported gains. Investors awaited US retail inflation reading for January 2023, scheduled for release later in the day.
• Meanwhile, the European Commission lifted its projections for the EU, saying the bloc will likely dodge a recession, thanks in part to easing gas costs. The outlook for headline inflation in the 27-member bloc was also lowered, but the EUs executive arm warned that price pressures remain both strong and persistent.

Global Markets:

• Markets in Europe and Asian advanced on Tuesday as investors await the release of the U.S. consumer price index report, which will shape the Federal Reserves path ahead.
• The rate of unemployment in the U.K. remained unchanged at 3.7% in the three months to December, according to data released by the Office for National Statistics. The rate remains close to the lowest level the country has seen in 50 years, which was 3.5% in the three months to August 2022.
• Japans economy expanded by 0.6% on an annualized basis for the fourth quarter of 2022. The figure was a rebound from a revised contraction of 1% seen in the third quarter of 2022 compared to a year ago.
• The Japanese government nominated Kazuo Ueda for its next Bank of Governor, media reports stated. The government also nominated Ryozo Himino and Shinichi Uchida for the deputy governor roles, the report added.
• Wall Street closed sharply higher on Monday as investors awaited inflation data likely to hint at the path of the Federal Reserves future interest rate hikes, while Meta Platforms gained after a report that the Facebook parent was planning fresh layoffs.

Stocks in Spotlight:

?Media reported that the government does not plan to sell its indirectly held stake in ITC for now. The government does not plan to sell its indirectly held stake in ITC at this point.  The media earlier reported that the Centre was reviving a plan to sell part of its indirectly held stake in ITC and the transaction could even be completed in the current financial year. The government held 7.86% stake in ITC via the Specified Undertaking of the Unit Trust of India (SUUTI).

?RIL was the top contributor to the Nifty and Sensex rally. Foreign brokerage firm Jefferies has reiterated its target price of Rs 3,100 for Reliance Industries, citing the company’s adequately funded balance sheet and low leverage as reasons to consider it a ‘buy’. 

?Glenmark stock closed 1.75 percent higher after global research and broking firm Nomura retained its “buy” rating but raised the target price for the stock.

News from the IPO world?

• India IPO activity picks in December quarter
• Drone maker IdeaForge files for IPO
• Adani Wilmar to be dropped from S&P BSE IPO index

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