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Indices ends near flat line, Nifty settles below 15,950

Published on Jul 14, 2022 15:51

The headline equity indices ended near the flat line with minor cuts on Thursday. Oil & Gas, pharma and consumer durables shares advanced while PSU bank, IT and media stocks corrected.

After hitting the day`s high of 16,070.85 in morning trade, the index slipped lower as the session progressed and hit the day`s low of 15,858.20 in mid-afternoon trade and settled below the 15,950 level.

As per provisional closing data, the barometer index, the S&P BSE Sensex, down 98 points or 0.18% to 53,416.15 . The Nifty 50 index fell 28 points or 0.18% to 15,938.65.

The domestic equity barometers extended their downtrend for fourth day in a row. In four sessions, the Sensex has declined 1.96% while the Nifty fell 1.74%.

In the broader market, the S&P BSE Mid-Cap index declined 0.40% while the S&P BSE Small-Cap index fell 0.56%.

The market breadth was negative. On the BSE, 1,386 shares rose and 1,934 shares fell. A total of 142 shares were unchanged.

Domestic equities mirrored the weakness in their global peers after the US consumer inflation leapt to a four-decade high of 9.1% in June, adding pressure on the Federal Reserve to adopt a more aggressive monetary policy to tame the red-hot inflation.

Economy:

India`s inflation based on wholesale price index (WPI) stood at 15.18% in June 2022 compared with 12.07% in June 2021.

"The high rate of inflation in June, 2022 is primarily due to rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, food products etc. as compared to the corresponding month of the previous year," the Ministry of Commerce & Industry said in a statement today.

The WPI grew 15.88% in May 2022, while the figure for April was 15.38%. WPI for the month of July 2022 will release on 16 August 2022.

Meanwhile, The Maharashtra government has reduced the prices of petrol and diesel by Rs 5 per litre and Rs 3 per litre respectively, the state`s chief minister Eknath Shinde said on Thursday, 13 July 2022.

The price of petrol in Mumbai was at Rs 111.35. It will now cost 106.35. Diesel price was at Rs 97.28. It will now cost Rs 94.28.

Buzzing Index:

The Nifty Oil & Gas index rose 1.80% to 7,460.85, snapping its two days losing streak. The index declined 1.65% in two trading sessions.

Petronet LNG (up 3.68%), Adani Total Gas (up 3.23%), Hindustan Petroleum Corporation (up 2.43%), Oil & Natural Gas Corpn (up 2.29%) and Gujarat State Petronet (up 1.96%), GAIL (India) (up 1.31%), Reliance Industries (up 0.83%), Aegis Logistics (up 0.58%), Indian Oil Corporation (up 0.5%) and Indraprastha Gas (up 0.29%).

On the other hand, Oil India (down 4.02%), Bharat Petroleum Corporation (down 1.4%) and Castrol India (down 0.84%) moved lower.

Stocks in Spotlight:

MindTree fell 3.77% after the company reported 0.3% decline in net profit to Rs 471.6 crore despite a 7.7% rise in revenue to Rs 3,121.1 crore in Q1 FY23 over Q4 FY22. As compared with Q1 FY22, the company`s net profit and revenue are higher by 37.3% and 36.2%, respectively. Employee benefits expense in Q1 FY23 was Rs 1,853.6 crore, up 5.9% QoQ and up 35.6% YoY. The company had a healthy order book of $570 million, up 13.1% in Q1 FY23.

Tata Metaliks gained 3.08% after the company`s net profit dropped 98.7% to Rs 1.22 crore on 10.5% increase in net sales to Rs 666.37 crore in Q1 FY23 over Q1 FY22.

Hindustan Zinc rallied 4.45% after the board of directors of the company has approved interim dividend of Rs 21 per equity share i.e. 1050% on face value of Rs 2 per share for the Financial Year 2022-23 amounting to Rs 8873.17 crore. The record date for the purpose of payment of interim is 21 July 2022.

Tata Power Company added 0.20%. TP Saurya, a wholly owned subsidiary of Tata Power Company received the Letter of Award (LoA) from Solar Energy Corporation of India (SECI) for setting up a 600 megawatt (MW) hybrid power project in Karnataka. The letter was awarded through tariff-based competitive bidding followed by an e-Reverse auction. The hybrid (wind and solar) power project will be commissioned within 24 months from the power purchase agreement (PPA) execution date.

JSW Energy gained 1.91% after the company said that its wholly owned subsidiary, JSW Neo Energy has received Letter of Award (LoA) for a total wind capacity of 300 MW from Solar Energy Corporation of India (SECI). JSW Neo has won the contract against the tariff-based competitive bid invited by SECI for the setting up of 1200 MW ISTS-connected wind power projects (Tranche - XII).

Tata Chemicals (TCL) rose 0.27%. TCL said that CARE Ratings has reaffirmed the ratings assigned to the bank facilities of the company. The rating on the long-term bank facilities has been reaffirmed at `CARE AA+; Stable` while the rating on the short-term bank facilities has been reaffirmed at `CARE A1+`.

Welspun Corp shed 0.47%. The company`s associate firm East Pipes Integrated Company for Industry (EPIC), in the Kingdom of Saudi Arabia (KSA), has been awarded with a contract by SWCC for manufacture and supply of steel pipes.

Global Markets:

The Dow Jones futures were down 286 points, indicating a negative opening in the US stock market today.

Markets in Europe declined while Asian traded in a mixed fashion on Thursday as global markets digest the latest U.S. inflation data.

Singapore`s central bank tightened its monetary policy on Thursday, in an off-cycle move, saying the action would slow inflation as the city-state joins other countries ramping up their battle against mounting price pressures.

US stocks closed modestly lower on Wednesday as hotter-than-expected US inflation data drove fear the Federal Reserve will raise interest rates even more aggressively to slow price increases, potentially sending the economy into recession.

US inflation accelerated in June by more than forecast. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday. The widely followed inflation gauge increased 1.3% from a month earlier, the most since 2005, reflecting higher gasoline, shelter and food costs.

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