Barometers trade near flat line, breadth positive

The domestic equity benchmarks pared gains and traded near the flat line in the mid-morning trade. The Nifty traded a tad above the 16,950 level. Bank shares extended losses for the fourth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 30.68 points or 0.06% to 53,446.83. The Nifty 50 index gained 22.25 points or 0.14% to 15,960.90

In the broader market, the S&P BSE Mid-Cap index gained 0.35% while the S&P BSE Small-Cap index rose 0.07%.

The market breadth was positive. On the BSE, 1,523 shares rose and 1,511 shares fell. A total of 164 shares were unchanged.

Investors worried that aggressive interest rate hikes by global central banks would stifle economic growth.

Economy:

India`s merchandise exports in June 2022 were $40.13 billion, as compared to $32.49 billion in June 2021, exhibiting a positive growth of 23.52%. Merchandise imports in June 2022 were $66.31 billion, which is an increase of 57.55% over imports of $42.09 billion in June 2021.The merchandise trade deficit in June 2022 was estimated at $26.18 billion as against $9.60 billion in June 2021, which is an increase of 172.72%.

Buzzing Index:

The Nifty Bank index declined 0.42% to 34,504.80, extending its losing run to fourth trading session. The index slipped 2.72% in four trading sessions.

AU Small Finance Bank (down 2.58%), Bank of Baroda (down 1.19%), IDFC First Bank (down 1.18%), Axis Bank (down 0.89%), ICICI Bank (down 0.82%), Punjab National Bank (down 0.82%), IndusInd Bank (down 0.48%), Bandhan Bank (down 0.44%) and State Bank of India (down 0.35%) declined.

On the other hand, HDFC Bank (up 0.24%), Federal Bank (up 0.05%) and Kotak Mahindra Bank (up 0.04%) advanced.

Stocks in Spotlight:

Adani Ports and Special Economic Zone rose 0.65% after media reports suggested that the company`s joint venture with Israel`s Gadot Chemical Tankers has won an Israel government`s tender to buy the Haifa port. As per reports, the company has won the tender to buy the Haifa port for 4.1 billion shekel ($1.2 billion). Adani will have a majority 70% stake and Gadot will hold the remaining 30%, media reports stated.

GTPL Hathway slipped 4.72% after the company reported 9% YoY fall in consolidated net profit to Rs 43.3 crore despite a 10% YoY rise in total income to Rs 645.4 crore in Q1 FY23. On the segmental front, subscription revenue rose by 3% to Rs 272.7 crore while the broadband revenue increased by 24% to Rs 113.9 crore in the first quarter as compared with the same period last year.

Global Markets:

Asian stocks were mixed as a fresh slew of rate hikes around the world deepened worry about the outlook for global economic growth.

China`s second-quarter GDP missed expectations. China`s GDP grew 0.4% in the second quarter, compared with 4.8% in the first quarter. The second-quarter report is China`s weakest GDP print since the first quarter of 2020 when the Covid pandemic first hit.

Wall Street indexes fell after weaker-than-expected earnings from JPMorgan Chase & Co and Morgan Stanley fanned fears of a sharp economic downturn.

Fed Governor Christopher Waller and St. Louis Fed President James Bullard on Thursday said they favored another 75-basis-point interest rate increase at the U.S. central bank`s policy meeting this month.

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