Sensex jumps 462 pts, Nifty ends near 15,700; M&M jumps over 4%

The key equity barometers settled with strong gains on Friday, rising for the second straight day. Global stock markets jumped amid cooling commodity prices. The lower commodity prices are expected to help the manufacturing sector by easing their input costs. It will also help control overall inflation. The Nifty closed near 15,700 level after hitting the day`s low of 15,619.45 in early afternoon trade. Barring the Nifty IT index, all the other sectoral indices on the NSE traded in the green. Banks and auto shares were in demand.

The barometer index, the S&P BSE Sensex, up 462.26 points or 0.88% to 52,727.98. The Nifty 50 index gained 142.60 points or 0.92% to 15,699.25.

Mahindra & Mahindra (up 4.28%), Bajaj Finance (up 2.58%) and Hindustan Unilever (up 2.30%) supported the indices.

The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 1.53% while the S&P BSE Small-Cap index gained 1.60%.

The market breadth was strong. On the BSE, 2,401 shares rose and 906 shares fell. A total of 141 shares were unchanged.

Weather Update:

The India Meteorological Department (IMD) on Thursday, 23 June 2022, said that the Southwest Monsoon is likely to cover the entire country by 6 July 2022 as against the normal date of 8 July 2022.

As on date, the Northern Limit of Monsoon (NLM) continues to pass through Porbandar and Vadodara in Gujarat, Shivpuri and Rewa in Madhya Pradesh and Churk in Uttar Pradesh.

"Southwest monsoon is likely to cover remaining parts of Gujarat, Madhya Pradesh, entire Bihar and some parts of northwest India towards the end of the week," IMD said in a statement.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.445 as compared with 7.419 at close in the previous trading session.

In the foreign exchange market, the rupee was lower higher the dollar. The partially convertible rupee was hovering at 78.33, compared with its close of 78.32 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement rose 0.17% to Rs 50,681.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.24% to 104.19.

In the commodities market, Brent crude for August 2022 settlement rose $1.33 or 1.21% at $111.38 a barrel.

Global Markets:

The Dow Jones index futures were up 234 points, indicating a positive opening in the US stocks today.

Shares in Europe and Asia rose across the board on Friday, as investors are now hopeful that rising consumer prices will be brought under control as commodities prices pulled back sharply.

U.K. retail sales fell 0.5% month-on-month in May, while April`s monthly rise in sales was revised down sharply from 1.4% to 0.4%.

Core consumer prices in Japan rose 2.1% for the month of May compared to a year earlier, in line with estimates. That`s above the Bank of Japan`s target of 2% inflation.

Wall Street`s main indexes posted solid gains on Thursday, fuelled by strong performance from defensive and tech shares that outweighed declines for economically sensitive groups as worries persisted about a potential recession.

Federal Reserve Chair Jerome Powell on Thursday reiterated that the central bank is "strongly committed" to bringing down inflation, as he spoke on monetary policy for a second day before Congress. He also noted that a recession is a "possibility," a fear that has continued to weigh on Wall Street.

The largest US banks on Thursday easily cleared the Federal Reserve`s annual health check. The results of the Fed`s annual "stress test" exercise showed the banks have enough capital to weather a severe economic downturn and paves the way for them to issue share buybacks and pay dividends.

On Thursday, the Labor Department said U.S. weekly jobless claims fell 2,000 to a seasonally adjusted 229,000 for the week ended June 18, showing the labor market remains tight.

Buzzing Segment:

The Nifty Bank index rose 1.49% to 33,627.45. The index has risen 2.38% in two sessions.

IDFC First Bank (up 4.03%), Bank of Baroda (up 3.37%), Bandhan Bank (up 2.84%), Federal Bank (up 2.82%), IndusInd Bank (up 2.75%), ICICI Bank (up 2.16%), HDFC Bank (up 1.49%), Punjab National Bank (up 1.03%), Kotak Mahindra Bank (up 1%), AU Small Finance Bank (up 0.99%), Axis Bank (up 0.74%) and SBI (up 0.7%) surged.

Stocks in Spotlight:

Dr Reddy`s Laboratories rose 0.27%. The company has entered into a settlement agreement with Indivior Inc. and Indivior UK, and Aquestive Therapeutics, Inc. Pursuant to the agreement, the company will receive payments totalling $72 million by 31 March 2024. The said agreement resolves all claims between the parties relating to the company`s generic buprenorphine and naloxone sublingual film, 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg dosages, including Indivior`s and Aquestive`s patent infringement allegations and the company`s antitrust counterclaims. As part of the settlement, the underlying litigation will be dismissed.

Separately, the drug maker announced that it has acquired a portfolio of branded and generic injectable products from Deer Park, Illinois, based Eton Pharmaceuticals, Inc. Under the terms of the agreement, Dr. Reddy`s acquired the Eton portfolio for an upfront payment of approximately $5 million in cash, plus contingent payments of up to $45 million. The value of total addressable market for these products in the U.S. is approximately $174 million for the calendar year ending in April 2022 according to IQVIA.

Tata Motors rose 0.49%. On Thursday, 23 June 2022 a video went viral showing one of the company`s electric cars caught fire. The video showed firefighters trying to extinguish the fire in a Nexon electric vehicle (EV) in a suburb of Mumbai. As per the media reports, the Central Government on Thursday ordered a probe into a fire incident involving a Tata Motors electric vehicle. According to reports, the government`s Defence Research and Development Organisation would lead the probe.

Responding to the incident, the largest manufacturer of electric cars said in a statement, "A detailed investigation is currently being conducted to ascertain the facts of the recent isolated thermal incident that is doing the rounds on social media. We will share a detailed response after our complete investigation. We remain committed to the safety of our vehicles and their users. This is a first incident after more than 30,000 EVs have cumulatively covered over 100 million km across the country in nearly 4 years."

Hero MotoCorp advanced 2.74%. The two-wheeler major will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from 1 July 2022. The price revision will be up to Rs. 3000. The exact quantum of increase will be subject to the specific model and market. The price revision has been necessitated to partially offset the steadily growing overall cost inflation, including commodity prices.

ONGC gained 1.78% after ONGC Videsh (OVL), the wholly owned subsidiary and overseas arm of ONGC, has made an oil discovery in the recently drilled well, Urraca-IX, in CPO-5 block, Llanos Basin, Colombia. ONGC Videsh holds 70% participating interest (PI) in the block along with operatorship, remaining 30% is held by partner Geopark.

Dwarikesh Sugar Industries jumped 9.35% after the company announced the commissioning of 175 kilo litre per day distillery at its Faridpur unit in Bareilly district in Uttar Pradesh. The plant was commissioned on 24 June 2022 and will use cane juice syrup and `B` heavy molasses as feedstock to produce ethanol. The company`s total distillery capacity now stands at 337.5 kilo litre per day. It will result in recalibration of its revenue stream. While ethanol production will be doubled, sugar production will be moderated, the company said.

Aurionpro Solutions gained 2.72% after the company said it won an order from the Government of Rajasthan to further expand the 3D City platform in the City of Jaipur.

Suven Life Sciences fell 0.65%. The compnay`s board approved raising upto Rs 400 crore by issuing equity shares on right basis.

Strides Pharma Science rallied 9.20% after the company`s subsidiary Biolexis and Akston Biosciences announce encouraging top-line results from phase II/III trial of their thermostable 2nd gen COVID-19 vaccine.

Imagicaaworld Entertainment hit an upper circuit limit of 10% at Rs 15.88 after the Maharashtra based Malpani Group acquired 66.25% stake in Imagicaaworld Entertainment by way of preferential allotment of equity shares worth Rs 415 crore.

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