Indices open lower, breadth strong

The domestic equity benchmarks are trading with minor cuts in the early trade. Negative Asian stocks impacted the sentiment. The Nifty traded a tad below the 17,310 mark. FMCG, consumer durables and PSU bank shares advanced while metal, realty and auto stocks corrected.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 9.27 points or 0.02% to 58,106.23. The Nifty 50 index declined 31.60 points or 0.18% to 17,308.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.16% while the S&P BSE Small-Cap index gained 0.22%.

The market breadth was strong. On the BSE, 1,570 shares rose and 956 shares fell. A total of 115 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,320.61 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 822.23 crore in the Indian equity market on 1 August, provisional data showed.

Economy:

Finance Minister Nirmala Sitharaman said on Monday that India is still the fastest growing economy whose financial situation is much better than most other countries. Speaking during a debate on the issue of price hike in the Lok Sabha, Sitharaman said the global agencies have ranked India`s economy higher than most countries and there is no sign of recession in the country. Sitharaman added that the government is making efforts to bring down retail inflation below 7%.

Stocks in Spotlight:

ITC rose 2.06% after the company`s consolidated net profit surged 38.4% to Rs 4,169 crore on 41% jump in gross revenue to Rs 18164 crore in Q1 FY23 over Q1 FY22.

TVS Motor Company shed 0.05%. TVS Motor Company registered a growth of 13% in July 2022 with sales of 314,639 units as against 278,855 units in the month of July 2021.

Eicher Motors fell 2.92% The company sold 5,982 units in the commercial vehicle segment in July 2022, up 40.1% compared to 4,271 units sold in same month last year. Eicher Motors` total motorcycles (Royal Enfield) sales soared 26% to 55,555 units in July 2022 as against 44,038 units sold in the same period last year.

Pfizer rose 0.76% after the company said that it has received the purchase consideration of Rs 180.48 crore from Mylan and the Company has transferred its Upjohn Business comprising of six brands which included Lyrica, Viagra, Celebrex, Amlogard, Daxid and Dilantin along with related business assets and liabilities to Mylan, effective 1 August 2022.

Bharat Electronics added 0.51% after the board of the state-run company will consider bonus issue of shares on 4 August 2022.

Escorts Kubota slipped 5.09% after the company`s consolidated net profit dropped 21.1% to Rs 140.64 crore on 19% jump in net sales to Rs 2,032.06 crore in Q1 FY23 over Q1 FY22.

Global Markets:

Asian stocks slumped across the board on Tuesday as South Korea`s inflation rose and investors look ahead to the Reserve Bank of Australia`s interest rate decision. The Reserve Bank of Australia is reportedly expected to hike by 50 basis points after official data showed prices in Australia rose 6.1% in the second quarter compared with a year ago.

Consumer prices in South Korea rose 6.3% in July compared with the same period in 2021, official data showed on Tuesday.

Wall Street ended a three-day winning streak and crude prices plunged on Monday as economic data from the US, Europe and China showed demand weakening under inflation pressures, while the looming possibility of recession curbed risk appetite.

Powered by Capital Market - Live News