Broader markets underperform; auto shares decline

The key indices traded in a narrow range in mid-morning trade. The Nifty was trading a tad above the 16,200 level. Auto shares witnessed some bit of profit booking after advancing in the past two sessions.

At 11:21 IST, the barometer index, the S&P BSE Sensex, was up 252 points or 0.47% to 54,430.46. The Nifty 50 index added 69.30 points or 0.43% to 16,202.20.

In the broader market, the S&P BSE Mid-Cap index shed 0.04% while the S&P BSE Small-Cap index gained 0.38%.

The market breadth was strong. On the BSE, 1900 shares rose and 1117 shares fell. A total of 167 shares were unchanged.

Buzzing Index:

The Nifty Auto index shed 0.22% to 12,086.95. The index has added 3.99% in the past two sessions.

Tube Investments of India (up 1.37%), Hero MotoCorp (up 0.86%), Bharat Forge (up 0.77%) and Bajaj Auto (up 0.54%) were the top index gainers.

Among the other gainers were MRF (up 0.51%), TVS Motor Company (up 0.43%), Escorts Kubota (up 0.24%) and Bosch (up 0.14%).

On the other hand, Ashok Leyland (down 1.79%), Balkrishna Industries (down 1.15%) and Maruti Suzuki India (down 0.99%) moved lower.

Mahindra & Mahindra (M&M) rose 0.75%. British International Investment (BII), the UK`s Development Finance Institution and impact investor and M&M have executed a binding agreement to invest up to Rs 1,925 crore each into a wholly owned subsidiary of M&M that will be newly incorporated (EV Co.). The EV Co. will focus on four-wheel (4W) passenger electric vehicles.

Tata Motors added 0.19%. Tata Motors` unit Jaguar Land Rover (JLR) reported sales volumes for the three month period to 30 June 2022. Retail sales for the quarter ending 30 June 2022 were 78,825 vehicles, broadly flat (183 units lower) compared with the previous quarter ending 31 March 2022 and down 37% (46k units) from the quarter a year ago ending 30 June 2021.

Global markets:

Japan`s stocks gave up some gains and the yen rose on news that former Japanese Prime Minister Shinzo Abe was gravely injured in a shooting.

The Nikkei 225 was up 0.56% and the Topix index was 0.83% higher. Both indexes were more than 1% higher earlier in the session, but fell after reports that Abe was shot during campaigning.

The yen last traded at 135.60 per dollar. Earlier in the day, it was at 135.9 per dollar.

Japan`s Chief Cabinet Secretary Hirokazu Matsuno has reportedly confirmed that Abe was shot at around 11:30 am Japan time and said his condition was unknown.

Meanwhile, other Asian markets edged higher on Friday. However, concerns of rising prices and an economic slowdown continue to persist.

Wall Street benchmarks ended up on Thursday as traders leaned in to US equities after the Federal Reserve hinted at a more tempered program of interest rate hikes.

Two of the Federal Reserve`s most vocal hawks on Thursday said they would support another 75 basis-point interest rate increase later this month but a downshift to a slower pace afterward, even as both downplayed the risk of higher borrowing costs pushing the US into recession.

The Labor Department`s monthly jobs report is due out on Friday, and the employment data could warrant extra scrutiny as investors try to gauge the health of the U.S. economy.

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