The U.S. Federal Reserve’s 0.75 percentage point hike in interest rates, and Fed Chair Jerome Powell’s comments dismissing chances of a recession gave markets some relief.
Bajaj Finance surged 5.8% to its highest in nearly three months, topping gains on the Nifty 50, after the non-bank lender reported stronger-than-expected first-quarter results.
Tata Motors slid 2.8% in its biggest intraday drop in over a month after the automaker reported a bigger loss, hit by a jump in costs.
SpiceJet dived 9.3% to a March 2020 low after India’s aviation regulator on Wednesday halved the budget carrier’s capacity citing recent safety snags.
Nifty 50 components Dr Reddy’s Laboratories, Bajaj Finserv and SBI Life Insurance are scheduled to report results later in the day.
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S&P 500 rises slightly even after GDP contracts for a second quarter
Wall Street’s main indexes rose slightly on Thursday after gloomy forecasts from Meta and Qualcomm and an early reading that showed the U.S. economy contracted again in the second quarter.The Dow Jones Industrial Average added 83 points, or 0.3%. The S&P 500 climbed 0.3% and the Nasdaq Composite rose 0.2%. All of the major averages are on pace for a winning week and their best month of 2022.
US economy contracts in second quarter, deepening recession fears
The US economy contracted for a second straight quarter between April and June, government data showed Thursday, fueling recession fears just months before key midterm elections in a blow for President Joe Biden.Gross domestic product declined at an annual rate of 0.9 percent in the second quarter, following a bigger drop in the first three months of the year, according to the Commerce Department.Two quarters of negative growth is commonly viewed as a strong signal that a recession is underway, and a downturn in the world’s largest economy would have global consequences, as well as domestic political costs.
SBI LIFE Q1 RESULTS
SBI Life on Thursday reported a 17.78 per cent year-on-year (YoY) rise in net profit at Rs 262.85 crore for the June quarter compared with Rs 223.16 crore in the corresponding quarter last year.Gross written premium (GWP) for the quarter rose 35 per cent YoY to roughly Rs 11,350 crore in the June quarter, mainly due to 83 per cent growth in first-year premium (FYP) and 14 per cent growth in renewal premium.An ET NOW poll of analysts had anticipated the profit figure at Rs 260 crore.
Gold jumps Rs 592; silver rallies Rs 1,335
Gold in the national capital on Thursday jumped Rs 592 to Rs 51,750 per 10 grams, amid a rally in international precious metal prices, according to HDFC Securities. In the previous trade, the yellow metal finished at Rs 51,158 per 10 grams.Silver also surged by Rs 1,335 to Rs 56,937 per kg from Rs 55,602 per kg in the previous trade.
Rupee rises 26 paise to close at 79.65 against US dollar
The rupee appreciated 26 paise to close at 79.65 (provisional) against the US dollar on Thursday, tracking a firm trend in the domestic equities. At the interbank forex market, the local unit opened at 79.80 against the greenback and finally settled at 79.65 (provisional), registering a rise of 26 paise over its previous close.During the session, the local unit witnessed an intra-day high of 79.64 and a low of 79.85 against the American currency.On Wednesday, the rupee declined 13 paise to close at 79.91 against the US dollar.
Q1 EARNINGS: VEDANTA
#EarningsWithETNOW | Vedanta Q1FY23 – PAT at Rs 5,592 cr vs Rs 5,431 cr YoY – Revenue from ops at Rs 38,251 cr vs… https://t.co/J6PZMeqmVH
— ET NOW (@ETNOWlive) 1659003659000
The Bank Nifty index continued its upward momentum and surpassed the immediate hurdle of 37,000. The index remains in a buy mode with immediate support at the 37,000-36,800 zone. The next hurdle is placed at 38,000 where a significant amount of call writing has been witnessed. The RSI remains in a buy zone as long as it is trading above the level of 60.
– Kunal Shah, Senior Technical Analyst at LKP Securities
Positive cues from global markets following the Fed policy outcome, as well as domestic large caps’ upbeat earnings, drove the market rally. The Fed’s decision was as expected, while their positive comment dismissing the possibility of a recession and hinting at a slower pace of rate hikes in the coming months boosted global sentiments. As a result, the Indian rupee strengthened, potentially attracting foreign funds into the domestic market. Domestic investors are now bracing for the RBI’s MPC meet next week expecting a rate hike by 25-50 basis points.
– Vinod Nair, Head of Research at Geojit Financial Services
Top Sensex gainers & losers in trade today
Closing Bell: Sensex zooms 1,041 pts; Nifty ends above 16,900; Bajaj twins soar 10% each, Tata Steel 4%
Billionaire Adani’s shadow bank plans IPO as soon as 2024
A non-bank lender backed by Gautam Adani, Asia’s richest person, is planning to raise at least 15 billion rupees ($188 million) in an initial public offering in Mumbai that could take place as early as 2024. Adani Capital’s first-time share sale will offer about a 10% stake in the shadow bank and target a valuation of around $2 billion, Managing Director and Chief Executive Officer Gaurav Gupta said.
Price as on 28 Jul, 2022 03:25 PM, Click on company names for their live prices.
GLOBAL MARKET CHECK
- The Stoxx Europe 600 rose 0.2% as of 10:05 a.m. London time
- Futures on the S&P 500 fell 0.4%
- Futures on the Nasdaq 100 fell 0.9%
- Futures on the Dow Jones Industrial Average fell 0.2%
- The MSCI Asia Pacific Index fell 0.2%
- The MSCI Emerging Markets Index was little changed
Top 5 gainers in the tourism & hospitality space
Price as on 28 Jul, 2022 02:34 PM, Click on company names for their live prices.
Q1 EARNINGS: DB CORP
#EarningsWithETNOW | DB Corp Q1: -Cons PAT at Rs 31 cr vs loss of Rs 22.5 cr YoY -Cons revenue at Rs 494 cr vs Rs… https://t.co/XJcoBMGRwG
— ET NOW (@ETNOWlive) 1658991432000
Nestle’s India unit says seeing early signs of easing costs
Consumer goods conglomerate Nestle India Ltd said it was seeing early signs of softening of prices in commodities such as edible oil and packaging materials, against the backdrop of surging inflation. Nestle, which sells the popular Maggi instant noodles, KitKat chocolates and Nescafe coffee in the country, said on Thursday profit for the quarter ended June 30 slipped 4.3% to 5.15 billion rupees, hurt by expenses, which rose 21%.
DIPAM mulling buybacks in defence PSUs including HAL
#ETNOWExclusive | Sources say ▶️DIPAM mulling buybacks in defence PSUs including HAL ▶️To shortly review timelines… https://t.co/pVc6IAv2GN
— ET NOW (@ETNOWlive) 1658991692000
India’s Q2 gold demand rises 43 pc to 170.7 tonnes: WGC
India’s gold demand went up by 43 per cent during April-June quarter, but going ahead factors like inflation, Rupee-USD rates and policy measures among others are likely to influence consumer sentiments, says a report. According to a World Gold Council (WGC) report, India’s April-June quarter gold demand stood at 170.7 tonnes, higher from 119.6 tonnes during the corresponding quarter in 2021.
NIFTY RECLAIMS 16,900!
Market LIVE Updates: Sensex surges over 900 points
Q1 EARNINGS: Jubilant Foods PAT at Rs 101 cr vs ET NOW poll of Rs 121 cr
Price as on 28 Jul, 2022 12:28 PM, Click on company names for their live prices.
July 2022 auto sales preview: Upturn to persist in CVs, PVs and 2Ws; Tractors to be weak
Emkay Global Financial Services conducted a channel check to gauge the volumes’ estimate for the month of July. The channel checks indicate a positive momentum growth in sales for the commercial vehicles, passenger vehicles’ volumes should be higher, 2-wheelers’ sales likely to be better due to the ramp-up in production and upcoming festive season. However, Tractor volumes are likely to decline due to a high base and uneven spread of the monsoons. The brokerage firm has retained the positive view on the auto sector. Among OEMs pack, they are positive on M&M, Tata Motors, Maruti Suzuki, Ashok Leyland and Escorts.
- Bajaj Finserv on Thursday said its consolidated profit after tax soared 57 per cent year-on-year (YoY) to Rs 1,309 crore for the June quarter compared with Rs 833 crore in the same quarter last year.
- The profit figure included Rs 283 crore in unrealised MTM losses of insurance subsidiaries compared with MTM gain of Rs 25 crore in the year-ago quarter.
- Consolidated total income for the quarter rose 14 per cent YoY to Rs 15,888 crore compared with Rs 13,949 crore in the same quarter last year.
Bajaj Finserv announces stock split
#StocksToWatch | @Bajaj_Finserv to split each share into 5 #BajajFinserv #MarketsWithETNOW #EarningsWithETNOW https://t.co/1shTX0N9ks
— ET NOW (@ETNOWlive) 1658989761000
Airtel Africa June quarter earnings
#EarningsWithETNOW | Airtel Africa Q1 -Adjusted EBITDA at $614 mn vs ET NOW poll of $618 mn -Revenue at $1.26 bn v… https://t.co/gDUJgUmfuY
— ET NOW (@ETNOWlive) 1658989323000
Bajaj Finance zooms 10% on strong show in June quarter
Shares of Bajaj Finance zoomed over 10 per cent in Thursday’s early trade after the company reported a massive 156 per cent Year-on-Year (YoY) rise in consolidated net profit to Rs 2,596 crore and performed strong in the quarter ended June 2022.The company had registered a net profit of Rs 1,002 crore in the corresponding period last fiscal, said Bajaj Finance in a BSE filing.
Market LIVE Updates: IT stocks bounce back sharply; Mindtree top performer
Price as on 28 Jul, 2022 11:30 AM, Click on company names for their live prices.
The profit figure missed the Rs 571 crore figure that analysts anticipated in an ET NOW poll.
Revenue for the quarter rose 15.68 per cent YoY to Rs 4,055.94 crore from Rs 3506.17 crore in the same quarter last year.
Nestle India Q2 earnings
- PAT at Rs 515 crore vs ET NOW poll of Rs 571 cr
Valuation Guru Guru Aswath Damodaran has a new fair value for Zomato, that suggests more pain ahead for the new-age stock. Just over a year after Damodaran pegged Zomato’s value at Rs 41 on July 21, 2021, he now sees the stock at Rs 35.32. Allowing for the wide ranges of estimates that one can have on the total market for food (restaurant and grocery) delivery in India in 2032 and the uncertainties about Zomato’s share of that market and its operating margins, one gets a range of values.
Sensex rises 750 points
Pharma stocks in poor health, slide up to 5%
Price as on 28 Jul, 2022 10:24 AM, Click on company names for their live prices.
Buzzing Stocks: Bajaj twins rally up to 8%
Price as on 28 Jul, 2022 10:04 AM, Click on company names for their live prices.
Market LIVE Updates: Fire incident occurred yesterday night at the Neemrana plant of Havells; no human loss/injury reported
Price as on 28 Jul, 2022 09:41 AM, Click on company names for their live prices.
STOCK IN FOCUS: TATA STEEL
#StocksInNews | Tata Steel has announced to split its stock in the ratio of 1:10 and the EX Date for the corporate… https://t.co/NUEkNSFvRW
— ET NOW (@ETNOWlive) 1658980234000
SpiceJet falls over 9% after aviation regulator halves capacity
Shares of India’s SpiceJet fell as much as 9.3% on Thursday, a day after the country’s aviation regulator ordered the budget carrier to slash its approved fleet to 50% this summer for eight weeks, citing multiple safety snags. The Director General of Civil Aviation also said on Wednesday the domestic airline will be subjected to “enhanced surveillance”.
What moved market at opening tick?
Data – unemployment at 50-year lows and job vacancies at historical highs – seem to support the Fed chief’s confidence about the US economy.
The July rally in the domestic market which has taken the Nifty up around 1500 points from the June lows seems to be intact for the very short-term.
IT stocks after the recent correction may rebound taking cues from the Nasdaq rally and the continuing strength of the US economy. Financials will continue to be resilient.
— Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Tata Steel, YES Bank, SAIL among most active stocks on NSE
Price as on 28 Jul, 2022 09:30 AM, Click on company names for their live prices.
OPENING BELL: Sensex rises 500 pts, Nifty above 16,750; MTNL surges 11%, SpiceJet plunges 8%
FED through its commentary has made markets believe that this interest rate upcycle may not last long contrary to what was estimated before. This may have positive implications on equities globally.
– Siddarth Bhamre, Head of Research, Religare Broking
Stocks in F&O ban
Two stocks – Delta Corp and Indiabulls Housing Finance – are under the F&O ban for Thursday, July 28. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.
US Fed raises rate by 75 bps
Federal Reserve officials raised interest rates by 75 basis points for the second straight month, delivering the most aggressive tightening in more than a generation to curb surging inflation — but risking a sharp blow to the economy. Policymakers, facing the hottest price pressures in 40 years, lifted the target range for the federal funds rate on Wednesday to 2.25 per cent to 2.5 per cent. That takes the cumulative June-July increase to 150 basis points – the steepest rise since the price-fighting era of Paul Volcker in the early 1980s.
Asian shares trade higher
Asian shares made cautious gains on Thursday as investors scented a possible slowdown in the pace of U.S. rate hikes, lowering bond yields and restraining the dollar.As expected, the U.S. Federal Reserve raised rates 75 basis points to 2.25-2.5% but did note some softening in recent data.
Quarterly earnings today
Bajaj Finserv, Nestle India, SBI Life Insurance Company, Vedanta, SBI Cards, Shree Cement, Dr. Reddy’s Laboratories, Punjab National Bank, Mahindra & Mahindra Financial Services and Jubilant FoodWorks are among companies that will announce their quarterly earnings today.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 99 points, or 0.59 per cent, higher at 16,782.50, signaling that Dalal Street was headed for a positive start on Thursday.
Tech View: Nifty50 forms bullish candle, can test recent high
The bullish candle engulfed the previous negative candle completely, signalling a formation of a bullish Piercing Line type candle pattern, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Oil prices edge up on low inventories, high gasoline demand in US
Oil prices edged up on Thursday, extending gains from the previous session, buoyed by lower crude inventories and higher gasoline demand in the United States. Brent crude futures for September rose 40 cents, or 0.4%, to $107.02 a barrel by 0010 GMT, after gaining $2.22 on Wednesday.
Tokyo stocks open higher extending US gains
Tokyo stocks opened higher on Thursday, extending rallies on Wall Street after the US Federal Reserve announced a large interest rate hike. The benchmark Nikkei 225 index was up 0.75 percent, or 209.14 points, at 27,924.89 in early trade, while the broader Topix index advanced 0.42 percent, or 8.24 points, to 1,953.99.
US stocks rally, dollar falls on bets for rate hike slowdown
US equities rose sharply and the dollar lost ground as investors bet the Federal Reserve would slow interest rate hikes following its announcement on Wednesday of an increase in rates in line with expectations.
Rupee slips to 79.91 against US dollar
The rupee declined 13 paise to close at 79.91 against the US dollar on Wednesday, following risk-off sentiment among investors ahead of the outcome of the US Federal Reserve meeting.
Sensex, Nifty on Wednesday
The 30-share pack Sensex advanced 548 points or nearly 1 per cent to close at 55,816. Its broader peer, Nifty50, added 158 points to close above the 16,600 mark.