Informist, Thursday, Jul 7, 2022
NEW DELHI – Domestic benchmark indices rose nearly 1% today as a continued fall in crude oil prices eased concerns around inflationary pressures and lifted sentiment. Gains were largely broad-based, which comfortably kept the Nifty 50 around 16100 points throughout the session.
Crude prices continued to ease amid persistent fears that an impending recession may hurt demand. Prices of Brent crude slipped below $100 per barrel for the first time since late April, which gave some respite to investors and corporates.
A slew of robust quarterly business updates by companies across sectors also triggered gains. The positive numbers came at a time when companies across the world are struggling with high commodity prices, rising interest rates and a slowdown in demand.
The indices opened higher today, tracking gains across global markets that rose as the minutes of the US Federal Reserve’s latest monetary policy meeting did not give any shocks to the market.
The minutes of the Fed’s policy meeting reiterated that another rate hike of 50-75 basis points might be likely in its July 26-27 meeting, which was along expected lines.
The correlation between domestic and global markets is now more evident than ever and the trend is likely to continue as the indices will react more to how their global peers perform than to what the technical charts largely indicate, said Sham Chandak, head – institutional broking at Wilson Financial Services.
Hence, the relief rally for the domestic market is unlikely to sustain longer if fears of a recession continue to intensify in the US, Chandak said.
The Nifty 50 tested a high of 16150.50 points before it ended 0.9% higher at 16132.90 points. Similarly, the 30-stock Sensex inched higher towards 54146.68 points earlier in the day to eventually close 0.8% higher at 54178.46 points.
Buying was prominent across key frontline sectors like banks, metals and automobiles.
Hindalco Industries, JSW Steel and Tata Steel gained 4-6% as sentiment for metal companies improved due to hopes of a revival in demand on news that China was considering a $220-bln infrastructure stimulus to revive its economy.
Other metal stocks also rose, which pulled the Nifty Metal index to end nearly 4% higher.
Automobile and most paint manufacturers benefited from the fall in crude prices. Tata Motors was the biggest gainer in the automobile pack as it rose 3.5%.
Strong quarterly updates by several banks fuelled optimism of strong earnings by lenders and spurred buying in the sector. The Nifty Bank and Nifty PSU Bank indices gained 1.7% and 3.4%, respectively.
On the stock specific front, Titan Co notched strong gains and ended nearly 6% higher as the company reported a manifold surge in Apr-Jun sales in its quarterly update.
Ajmera Realty, Sobha Ltd and Kalyan Jewellers India also jumped 4-10% after their strong quarterly business updates.
Index-heavyweight Reliance Industries was a major laggard as it fell 1% and capped some gains for the Nifty 50.
However, the overall market breadth remained positive as all small and mid-cap indices on the National Stock Exchange outperformed the headline index and rose 1-2%.
* Among Nifty 50 stocks, 38 rose and 12 fell
* Among Sensex stocks, 21 rose and 9 fell
* On the NSE, 1,461 stocks rose, 600 fell and 70 were unchanged
* On the BSE, 2,266 stocks rose, 1,022 fell and 150 were unchanged
* Nifty Metal: Up 3.7%; Nifty Auto: Up 1.4%; Nifty PSU Bank: Up 3.4%
BSE National Stock Exchange
Sensex: 54178.46 points, up 427.49 pts (0.8%) Nifty 50: 16132.90, up 143.10 pts (0.9%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17) : 2022 Closing High: 18308.10 (Jan 17)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
2022 Low (intraday): 50921.22 (Jun 17) : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)-
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
US$1 = 79.18 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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