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Indices pare some gains; IT stocks rise for 2nd day

Published on Sep 08, 2022 11:29

The domestic equity benchmarks pared some of the early gains in mid-morning trade. The Nifty traded below the 17,750 mark. IT shares advanced for second consecutive session. Gains in domestic equity benchmarks mirrored the uptick in their Asian peers.

At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 386.05 points or 0.65% to 59,414.96. The Nifty 50 index added 101.80 points or 0.58% to 17,726.20.

In the broader market, the S&P BSE Mid-Cap index rose 0.25% while the S&P BSE Small-Cap index advanced 0.63%.

The market breadth was strong. On the BSE, 2190 shares rose and 1114 shares fell. A total of 123 shares were unchanged.

Buzzing Index:

The Nifty IT index added 0.79% to 28,053.60. The index has advanced 1.12% in two sessions.

Tech Mahindra (up 1.98%), Wipro (up 1.42%), Infosys (up 1.01%), Mindtree (up 0.71%) and Tata Consultancy Services (up 0.66%) advanced.

Further, Mphasis (up 0.64%), Larsen & Toubro Infotech (up 0.43%), L&T Technology Services (up 0.35%), HCL Technologies (up 0.31%) and Coforge (up 0.14%) edged higher.

Stocks in Spotlight:

Indian Railway Catering and Tourism Corporation advanced 1.73%. IRCTC has emerged as a successful bidder in the e-auction held on 6 September 2022 for the sale of commercial built-up space in New Delhi.

Dr. Reddy`s Laboratories rose 0.42%. The drug maker has announced the launch, in the U.S. market, of Lenalidomide Capsules, a therapeutic equivalent generic version of REVLIMID (lenalidomide) Capsules approved by U. S. Food and Drug Administration (US FDA). With this volume-limited launch, Dr. Reddy`s is eligible for first-to market, 180 days of generic drug exclusivity for Lenalidomide Capsules in 2.5 mg and 20 mg strengths. Lenalidomide is used in the treatment of multiple myeloma and lepra reaction.

Global markets:

Asian stocks are trading mixed following Wall Street`s solid rebound rally overnight.

Japan`s economy grew more than initially reported in the second quarter, as the lifting of local Covid-19 restrictions boosted consumer and business spending. Gross domestic product (GDP) in the world`s third-largest economy expanded an annualised 3.5% in the second quarter, stronger than the preliminary estimate of annualised 2.2% growth, government data showed Thursday.

US stock indexes climbed the most in roughly a month as bond yields eased, with investors shrugging off hawkish remarks made by Federal Reserve officials on Wednesday.

Stocks rallied as Fed Vice Chair Lael Brainard reaffirmed that the central bank would do what it takes to stifle inflation, while also noting the risks of going too far.

On Wednesday, the Federal Reserve gave its summary on current economic conditions, known as the Beige Book. The report showed that economic activity was little changed in many regions across the U.S., and that growth outlooks remain weak.

Investors will also be closely watching Federal Reserve Chair Jerome Powell`s speech Thursday as markets brace for another 75 basis-point hike later this month.

Meanwhile, the European Central Bank is expected to make its next move on interest rates on Thursday. The ECB is expected to deliver its first-ever 75 basis point interest rate increase, as per reports.

Oil prices settled sharply lower on Wednesday, slumping below levels seen prior to Russia`s invasion of Ukraine as downbeat Chinese trade data fed investor worries about recession risks. Brent crude futures settled down $4.83 to $88 a barrel, falling below $90 a barrel for the first since February 8.

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