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India Stocks Review: End up for third day as Fed rate hike fear ebbs

Informist, Friday, Jul 29, 2022

 

By Vaibhavi

 

NEW DELHI – Benchmark indices ended higher for a third straight session today on hope of less aggressive rate-hike trajectory by the US Federal Reserve after data showed that the world’s largest economy contracted in Apr-Jun.

 

Strong earnings from a few heavyweight stocks also helped the Nifty 50 to sustain its momentum and lifted it above 17150 points. 

 

Data from the US Department of Commerce showed a contraction of 0.9% in US GDP during Apr-Jun. This marked the second straight quarter of contraction for the world’s largest economy after it fell 1.6% in Jan-Mar.

 

As the data hinted at the US economy being on the edge of slipping into a recession, it fuelled hope among investors that it will prompt the Fed to slow down the pace of its rate hikes. As a result, markets across the globe moved higher.

 

Today, the Nifty 50 opened higher and tested a high of 17172.80 points before closing 1.4% higher at 17158.25 points. Similarly, Sensex also rose 1.3% to end at 57570.25 points after hitting an intraday high of 57619.27 points earlier today.

 

Both the indices closed at their highest levels in over three months. The benchmark indices also ended the week with nearly 3% gains.

 

The positive momentum for Nifty 50 is likely to see it move towards 17400-17500 points, said Ajit Mishra, vice-president–research at Religare Broking.

 

Corporate earnings continued to dictate stock-specific moves, with the most notable one being SBI Life Insurance Co.

 

Shares of SBI Life Insurance stole the limelight today as the stock tested a lifetime high of 1,304.70 rupees on its strong Apr-Jun earnings show and positive growth prospects. The scrip ended 8.6% higher at 1,294 rupees on the National Stock Exchange.

 

Shares of Sun Pharmaceutical Industries recovered from its early lows following better-than-expected earnings for the June quarter. The scrip eventually ended 5.4% higher at 943.20 rupees on the NSE.

 

On the other side, Dr Reddy’s Laboratories fell 4% on concerns over persistent growth headwinds to its US business. The company reported weak sales from the US market in the reporting quarter as high competition led to price erosion. 

 

In the small and mid-cap space, Asahi India, Zydus Wellness, Route Mobile, Sundram Fasteners, Emami, Exide Industries and Great Eastern Shipping Co reacted positively to their Apr-Jun earnings.

 

TVS Motor Co also hit a lifetime high of 953.20 rupees as the company’s robust performance in Apr-Jun prompted positive growth outlook from brokerages. The stock ended nearly 4% higher.

 

Piramal Enterprises and Ashok Leyland witnessed negative reactions to their weak quarterly numbers.

 

Other than these, strong buying interest was seen across financial, metal and information technology stocks.

 

A rise in base metal prices coupled with expectation that the government will provide relief on export of steel products lifted the sentiment for metal companies. 

 

Shares of Tata Steel, JSW Steel, and Hindalco Industries jumped 2-7%, which lifted the Nifty Metal index to end nearly 4% higher.

 

Better-than-expected earnings from US major and the world’s second-largest steelmaker, ArcelorMittal, also fuelled hopes of domestic metal companies reporting a similar show, which further supported sentiment.

 

The broader market also remained buoyant as all small and mid-cap indices on the NSE ended in tandum with the Nifty 50.

 

Market breadth also remained positive with nearly two stocks gaining for each one that fell.

 

* Among Nifty 50 stocks, 43 rose and 7 fell 

* Among Sensex stocks, 25 rose and 5 fell

* On the BSE, 2,100 stocks rose, 1,227 fell, and 144 were unchanged

* Nifty IT: Up 1.7%; Nifty Metal: Up 3.9%; Nifty Commodities: Up 2.7%

BSE                                                 National Stock Exchange
Sensex: 57570.25 points, up 712.46 pts (1.3%)     Nifty 50: 17158.25, up 2228.65 pts (1.4%)

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 62245.43 (Oct 19, 2021)           : Lifetime High: 18604.45 (Oct 19, 2021)
Record Close High: 61765.59 (Oct 18, 2021)       : Record Close High: 18477.05 (Oct 18, 2021)

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

 

Edited by Tanima Banerjee

 

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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