Indices settle on flat note after volatile session

The benchmark indices ended on flat note after a volatile session of trade on Thursday. The Nifty closed below 15,800 level after hitting day`s high at 15,890 in the early trade. Trading was volatile due to expiry of weekly as well as monthly index options on the NSE.

The barometer index, the S&P BSE Sensex, was down 8.03 points or 0.02% to 53,018.94. The Nifty 50 index lost 18.85 points or 0.12% to 15,780.25.

In the broader market, the S&P BSE Mid-Cap index declined 0.74% while the S&P BSE Small-Cap index fell 0.54%.

The market breadth was negative. On the BSE, 1,369 shares rose and 1,907 shares fell. A total of 144 shares were unchanged.

Among the sectoral indices on the NSE, the Nifty Bank index (up 0.47%), the Nifty Financial Services index (up 0.42%) and the Nifty Private Bank index (up 0.15%) outperformed the Nifty50 index. Meanwhile, the Nifty Metal index (down 1.99%), the Nifty Auto index (down 1.26%) and the Nifty Realty index (down 1.19%) underperformed the Nifty50 index.

Economy:

The Finance Ministry announced that the government will raise taxes on certain goods and services to 18% from current 12%, after the two-day 47th GST Council Meeting that will be made effective from 18 July 2022.

The GST Council also deferred decision on levying a 28% tax on casinos, online gaming, horse racing and lottery pending more consultations with stakeholders, Union Finance Minister Nirmala Sitharaman said.

Politics:

Maharashtra today inducted a new government consisting of BJP led by Devendra Fadnavis and Shiv Sena`s rebel faction led by Eknath Shinde. Rebel Shiv Sena MLA Eknath Shinde will be sworn in as the next chief minister of Maharashtra, Devendra Fadnavis reportedly announced while addressing the press.

This comes a day after Uddhav Thackeray resigned as the chief minister, marking the end of Maha Vikas Aghadi government rule in the state.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper fell to 7.450 as compared with 7.459 at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 78.97, compared with its close of 79.03 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement fell 0.23% to Rs 50,610.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.16% to 105.28.

In the commodities market, Brent crude for August 2022 settlement fell 70 cents or 0.60% at $115.56 a barrel. The contract fell $1.72 or 1.46% to settle at $116.26 a barrel during the previous trading session.

Foreign Markets:

The Dow Jones index futures were down 371 points, indicating a negative opening in the US stocks today.

European shares slumped across the board whereas most of the Asian stocks declined on Thursday as investors weighed signs of gradual improvement in China`s economy and comments from central bank chiefs on tackling persistent price pressures.

European stocks edged lower as market sentiment remains gloomy, there`s no prospect of the war in Ukraine ending anytime soon and inflationary pressures continue to build. Aggressive rate hikes by central bank further dampened the investor sentiment, there are growing fears of a global slowdown.

Investors will be digesting the latest developments from the NATO summit in Madrid. NATO leaders have invited Sweden and Finland to join the alliance after Turkey withdrew its objections to the new members and the organization reiterated its support for Ukraine as well as outlined its plans to revamp its deterrence and defense strategy.

In economic news, China`s official manufacturing Purchasing Managers` Index for June was at 50.2.

Stock indexes on Wall Street ended mostly lower in the overnight session after another choppy day of trading.

On Wednesday, Federal Reserve Bank of Cleveland President Loretta Mester said she will advocate for a 75 basis point hike to interest rates at the central bank`s July meeting if economic conditions remain the same by then.

Stocks in Spotlight:

Infosys shed 0.17%. The company has agreed with The House Fund III, L.P., a venture capital (VC) fund based out of the US, committing to invest $10.0 million, subject to necessary closing conditions. The House Fund is a pre-seed and early-stage VC fund based out of Berkeley, California (US) investing in startups from the UCB`s ecosystem focused on AI.

Indian Oil Corporation (IOCL) gained 1.37%. The company`s board approved investment proposal for capacity expansion of Digboi Refinery, Assam.

ABB India fell 1.05%. The company said that it will deliver a digital solution to THINK Gas for maximizing the efficiency, availability, and reliability of its expansive city gas network that incorporates multiple remote terminals across distributed locations.

Manappuram Finance declined 1.05%. The NBFC on Thursday announced that the financial resources and management committee of the board approved fund raising upto Rs 770 crore via non-convertible debentures (NCDs), on a private placement basis.

MTAR Technologies advanced 1.78%. The company said that it had received an export order for $22.12 million (approximately Rs 174.6 crore) in clean energy segment.

ITD Cementation India slipped 1.62%. The civil construction company announced that it has secured a letter of acceptance worth over Rs 700 crore for construction of wharf and approach trestle works from Bharat Mumbai Container Terminals (BMCT) at Jawaharlal Nehru Port.

J.B. Chemicals & Pharmaceuticals rose 1.45%. The company said that its board has approved the acquisition of portfolio of brands, for use and exploitation within India, from Dr Reddy`s Laboratories.

Hikal tumbled 4.13%. Maharashtra Pollution Control Board`s (MPCB) granted permission to the company on 29 June 2022, to re-start manufacturing activities at its plant located at MIDC Taloja.

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