Benchmarks pare losses; European markets decline

The domestic equity benchmarks pared some losses in afternoon trade. The Nifty traded above the 16,150 mark. Markets in Europe and Asian witnessed some bit of selling pressure.

At 12:23 IST, the barometer index, the S&P BSE Sensex, was down 231.6 points or 0.43% to 54,250.24. The Nifty 50 index declined 49.85 points or 0.31% to 16,170.75.

ONGC (up 3.50%), JSW Steel (up 3.46%), Tata Steel (up 3.28%), Dr Reddy`s Lab (up 2.83%) and Mahindra & Mahindra (up 2.34%) were the top Nifty gainers.

Bharti Airtel (down 4.89%), HCL Tech (down 3.18%), Infosys (down 2.82%), BPCL (down 2.61%) and Wipro (down 1.91%) were the top Nifty losers.

In the broader market, the S&P BSE Mid-Cap index rose 0.28% while the S&P BSE Small-Cap index added 0.67%.

The market breadth was positive. On the BSE, 1881 shares rose and 1435 shares fell. A total of 169 shares were unchanged.

Stocks in Spotlight:

Tata Consultancy Services (TCS) declined 4.48%. TCS reported 4.5% fall in consolidated net profit to Rs 9,478 crore despite a 4.3% rise in revenue from operations to Rs 52,758 crore in Q1 FY23 over Q4 FY22.

Avenue Supermarts added 1.44%. On a consolidated basis, total revenue for the quarter ended 30 June 2022 stood at Rs 10,038 crore, as compared to Rs 5,183 crore in the same period last year. Net profit stood at Rs 643 crore for Q1FY23, as compared to Rs 95 crore in the corresponding quarter of last year.

Bandhan Bank gained 0.59%. The bank`s loans & advances increased by 20% YoY to Rs 96,649 crore as on 30 June 2022. Total deposits with the bank as on 30 June 2022 amounted to Rs 93,057 crore, which is higher by 20% as compared with the same period last year.

Hindustan Aeronautics (HAL) rose 0.27%. HAL and Safran Helicopter Engines signed a Memorandum of Understanding (MoU) to create a new joint venture intended to develop helicopter engines. Both the companies will establish a new aero-engine company in India, dedicated to the development, production, sales and support of helicopter engines.

Larsen & Toubro (L&T) fell 1.23%. The buildings & factories (B&F) business of L&T Construction has secured significant contracts from various clients. As per L&T`s classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.

Global Markets:

The US Dow Jones index futures were down 200 points, indicating a weak opening in the US stocks on Monday.

Shares in Europe and Asia declined on Monday as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season where profits could be under pressure.

Investors in the U.K. will be watching developments surrounding the political uncertainty in the country after Prime Minister Boris Johnson announced last week that he would be resigning as Conservative Party leader. Johnson said he would stay on in the post while a successor was found and a number of high-profile Conservatives have announced their leadership bids over the weekend.

Hong Kong`s Hang Seng index fell nearly 3% after reports that China has imposed fines on heavyweights Tencent and Alibaba. China imposed fines on several companies, including tech giants Alibaba and Tencent, for not complying with anti-monopoly rules on disclosure of transactions, as per reports.

However, Tokyo stocks are trading higher on Monday after Japan`s ruling bloc secured a strong win in Sunday`s upper house election, held just days after the assassination of former premier Shinzo Abe.

U.S. stocks closed mixed Friday, with the technology-heavy Nasdaq Composite ending higher as the Dow Jones Industrial Average and S&P 500 index slipped, after a stronger-than-expected June jobs report.

The U.S. saw stronger than expected job growth in June, as the economy added 372,000 jobs, according to data released by the Bureau of Labor Statistics on Friday. June`s gains marked a slight deceleration from the downwardly revised 384,000 in May. April`s count was revised down to 368,000. The unemployment rate was 3.6%, unchanged from May and in line with estimates.

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