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Indices edge higher, breadth strong

Published on Aug 05, 2022 09:33

The key equity barometers are trading with modest gains in the early trade, tracking positive Asian stocks. The Nifty traded above the 17,440 mark. Metal PSU bank and FMCG shares were in demand while auto, consumer durables and oil & gas stocks corrected.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 216.47 points or 0.37% to 58,515.27. The Nifty 50 index gained 67.50 points or 0.39% to 17,449.50.

In the broader market, the S&P BSE Mid-Cap index rose 0.21% while the S&P BSE Small-Cap index gained 0.61%.

The market breadth was strong. On the BSE, 1,756 shares rose and 784 shares fell. A total of 107 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,474.77 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 46.79 crore in the Indian equity market on 4 August, provisional data showed.


The Reserve Bank of India`s rate-setting panel on Wednesday (3 August) began its three-day deliberations on the next bi-monthly monetary policy. The Monetary Policy Committee is scheduled to announce its decision today, 5 August 2022. While a 25 bps hike is ruled out, market opinions are reportedly split between a 35 bps hike and a 50 bps hike.

Stocks in Spotlight:

Axis Bank rose 0.26%. The private lender had informed regarding entering into a Share Purchase Agreement with OpenPayd Holdings Limited, for sale of 100% stake in Axis Bank UK Limited, a subsidiary of the bank. Both the parties have mutually decided not to go ahead with this transaction and accordingly have terminated the above Share Purchase Agreement. The Bank will now initiate the winding up process of Axis Bank UK Limited.

Adani Enterprises added 0.19% after the company`s consolidated net profit surged 72.9% to Rs 469.46 crore in Q1 FY23 over Q1 FY22. The company reported net sales of Rs 40,844.25 crore in Q1 FY23, steeply higher than 12,578.77crore recorded in Q1 FY22.

Separately, Adani Enterprises has signed a Share Purchase Agreement with MAIF Investments India PTE Limited and MAIF Investments India 3 PTE Limited (collectively as "MAIF") in connection with its proposed acquisition of 100% stake in Swarna Tollway Private Limited and 56.8% stake in Gujarat Road and Infrastructure Company.

Adani Ports and Special Economic Zone (APSEZ) rose 0.88%. AD Ports Group, the leading facilitator of global trade, logistics, and industry, has signed a Memorandum of Understanding (MoU) with APSEZ, for strategic joint investments in end-to-end logistics infrastructure and solutions, which include rail, maritime services, port operations, digital services, an industrial zone and the establishment of maritime academies in Tanzania.

BEML declined 1.39% after the company reported a consolidated net loss of Rs 82.36 crore in Q1 FY23 as against a net loss of Rs 94.01 crore in Q1 FY22. Net sales during the quarter jumped 48.4% YoY to Rs 669.18 crore. The company`s order book stood at Rs 9,100 crore as on 30 June 2022.

Global Markets:

Asian stocks are trading higher Friday as investors look ahead to the Reserve Bank of India`s interest rate decision and the U.S. jobs report.

Wall Street stocks ended mixed, with gains for high-growth stocks offset by the drag from energy shares, as a key US jobs report loomed on Friday.

The Bank of England (BoE) has hiked UK interest rates by 50 basis points to 1.75% as it looks to combat runaway inflation. The move was widely expected by economists and financial markets, and comes amid mounting pressure to pick up the pace of interest rate rises.

The BoE raised interest rates by the most in 27 years, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%. Reeling from a surge in energy prices caused by Russia`s invasion of Ukraine, the BoE`s Monetary Policy Committee voted 8-1 for a half percentage point rise in Bank Rate to 1.75% - its highest level since late 2008 - from 1.25%.

The MPC now projects that the U.K. will enter recession from the fourth quarter of 2022, and that the recession will last five quarters as real household post-tax income falls sharply in 2022 and 2023 and consumption begins to contract.

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