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India Stocks Review: End higher as steeper Fed rate hike jitters ease

Informist, Friday, Jul 15, 2022

 

By Vaibhavi

 

NEW DELHI – Domestic equity indices snapped a four-day losing streak to end higher today as fears of steeper interest rate hike by the US Federal Reserve in its upcoming meeting eased to an extent.

 

Comments by Fed Governor Christopher Waller that he would back a 75-basis-point rate hike in the meeting later this month gave some relief to investors that a historic 100 bps hike by the central bank may not be on the cards. 

 

As a result, unlike the previous two sessions, benchmark indices were able to retain their early gains for much of the session to close higher.

 

European markets also witnessed a positive opening and US equity futures also recovered from their early losses, indicating a higher open.

 

Despite the recovery, fears of a likely recession still persist and were fanned by the lower-than-expected Apr-June GDP growth in China, the world’s second-largest economy. China’s GDP growth came in at 0.4% on year, lower than expectations of a 1% rise, as the economy grappled with COVID-19 restrictions and lockdowns for most of the quarter.

 

The apprehension among investors due to this also reflected in the narrow range-bound movement of the Nifty 50 today and the strong selling pressure it faced every time it tried to decisively surpass 16050 points.

 

Going forward, Ratnesh Goyal, senior technical and derivatives analyst, Arihant Capital Markets, sees multiple resistances at higher levels for Nifty 50, which will make it difficult for the index to post a strong and sustainable recovery.

 

Immediate resistance for the Nifty 50 is at 16050-16100 points, Goyal said, followed by 16300 and 16500 points.

Today, the Nifty 50 opened on a positive note and tested a high of 16066.95 points before closing up 0.7% at 16049.20 points. Similarly, the BSE Sensex also touched a high of 53811.37 points to eventually close with 0.7% gains at 53760.78 points. Both indices have ended the week over 1% lower.

 

Gains were prominent in shares of consumer goods, automobile and select financial services companies.

 

Brent crude prices hovered around $100-per-barrel, even falling below that level overnight, which improved profitability and demand prospects for close-linked sectors such as consumer goods, automobile and paints.

 

Large-cap consumer goods companies, Hindustan Unilever, Tata Consumer Products, Nestle India, and Britannia Industries rose 2-3% and were the major gainers on the Nifty 50.

 

Gains of 1-4% across most automobile stocks lifted the Nifty Auto index over 2% higher.

 

The Nifty Bank and Nifty IT indices also came sharply off the day’s low in the last hour of trade which helped reduce pressure on the headline index and helped it surpass 16050 points at close.

 

The Nifty Metal index was the worst hit among sectoral indices, as metal prices continued to fall due to demand fears of an economic slowdown. The sectoral index ended 0.8% lower.

 

Among specific stocks, Tata Elxsi and Larsen & Toubro Infotech rose on better-than-expected Apr-Jun earnings, while GTPL Hathway fell on its weak operational performance during the quarter.

 

In the broader market, mid-cap indices moved in tandem with the Nifty 50, while those in the small-cap space underperformed.

 

Meanwhile, the rupee hit a fresh lifetime low of 79.9525 against the dollar today. The Indian unit has hit new record lows for five straight sessions.

 

* Among Nifty 50 stocks, 35 rose and 15 fell

* Among Sensex stocks, 18 rose and 12 fell

* On the BSE, 1,787 stocks rose, 1,500 fell and 147 were unchanged

* Nifty Metal: Down 0.8%; Nifty FMCG: Up 1.5%; Nifty Auto: Up 2%

BSE                                                 National Stock Exchange
Sensex: 53760.78 points, up 344.63 pts (0.7%)       Nifty 50: 16049.20, up 110.55 pts (0.7%)

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)

 

End

 

US$1 = 79.8775 rupees

 

Edited by Aditya Sakorkar

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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Source: Cogencis

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