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Barometers trade with strong gains; IT stocks in demand

Published on Jul 29, 2022 11:25

The key equity barometers traded with strong gains in mid-morning trade. The Nifty traded above the 17,050 mark. IT shares rose for fourth day in a row.

At 11:23 IST, the barometer index, the S&P BSE Sensex, was up 467.41 points or 0.82% to 57,325.20. The Nifty 50 index added 152.05 points or 0.9% to 17,081.65.

In the broader market, the S&P BSE Mid-Cap index rose 0.76% while the S&P BSE Small-Cap index gained 1.02%.

The market breadth was strong. On the BSE, 1996 shares rose and 1119 shares fell. A total of 165 shares were unchanged.

Investors cheered after data released on Thursday showed that the US economy shrinking for the second consecutive quarter, fuelling speculations that the Fed may not undertake aggressive interest rate hikes. The data also raised the possibility of the US economy approaching a recession.

Buzzing Index:

The Nifty IT index advanced 1.94% to 29,220.50. The index has added 6.57% in four sessions.

L&T Technology Services (up 3.15%), Mindtree (up 2.56%), Tech Mahindra (up 2.34%), Coforge (up 2.26%) and Infosys (up 2.12%) were the top gainers.

Among the other gainers were Mphasis (up 1.96%), Larsen & Toubro Infotech (up 1.65%), Wipro (up 1.38%), HCL Technologies (up 1.12%) and Tata Consultancy Services (up 1.12%).

Stocks in Spotlight:

IIFL Securities tumbled 4.41%. On consolidated basis, the company`s net profit fell 39% to Rs 42.10 crore on 10% increase in total income to Rs 294.80 crore in Q1 FY23 over Q1 FY22.

Jubilant FoodWorks shed 0.59%. The company has entered into Share Subscription Agreement, Shareholders` Agreement and Share Purchase Agreement to acquire 40% stake (fully diluted basis) in Roadcast Tech Solutions. This investment reflects the company`s intent of making strategic investments in promising start-ups and emerging businesses and is in line with the stated goal of building a multi-brand and multi-country food business powered by technology.

Chalet Hotels fell 2.83%. The company has executed acceptance of the letter of intent to award by the Delhi International Airport (DIAL) with regard to designing, developing, financing, operating, managing and maintaining of a terminal hotel at a site opposite to Terminal 3, at the IGI Airport, New Delhi. The project shall be developed on a land parcel spread over 2.65 acres.

Global Markets:

Asian stocks are mostly higher on Friday after a rally on Wall Street. That followed a negative US gross domestic product report, which suggests the Fed would be less aggressive in its tightening cycle.

Japan`s industrial output jumped 8.9% in June from the previous month, the ministry of economy, trade and industry said Friday. The print surprised to the upside after falling in May.

US stocks on Thursday rallied for a second day, with all three major indices ending up more than 1% as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.

The US economy shrank from April through June for a second straight quarter. U.S. economic growth fell 0.9% in the second quarter, the Bureau of Economic Analysis reported Thursday. First-quarter GDP declined by 1.6%.

President Joe Biden insisted Thursday that the US economy was "on the right path," with solid job growth, despite a second straight quarter of contraction that has deepened fears of a recession.

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