Market opens on firm note, breadth strong
Published on Aug 04, 2022 09:30
The key equity indices are trading with modest gains in the early trade on buying demand in index pivotals. Positive Asian stocks boosted the sentiment. The Nifty traded above the 17,460 mark. IT, metal and healthcare shares were in demand while realty, PSU bank and FMCG stocks corrected.
At 09:26 IST, the barometer index, the S&P BSE Sensex, was up 311.19 points or 0.53% to 58,661.72. The Nifty 50 index gained 85 points or 0.49% to 17,473.15.
In the broader market, the S&P BSE Mid-Cap index rose 0.49% while the S&P BSE Small-Cap index gained 0.76%.
The market breadth was strong. On the BSE, 1,802 shares rose and 633 shares fell. A total of 108 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 765.17 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 518.42 crore in the Indian equity market on 3 August, provisional data showed.
The Reserve Bank of India`s rate-setting panel on Wednesday began its three-day deliberations on the next bi-monthly monetary policy. The Monetary Policy Committee is scheduled to announce its decision on August 5. 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:
InterGlobe Aviation declined 0.24% after the company posted net loss at Rs 1064.3 crore in Q1 FY23, lower than net loss of Rs 3174.2 crore in Q1FY22. Total income for the quarter ended June 2022 was Rs 13018.8 crore, an increase of 310.7% over the same period last year.
Adani Wilmar fell 2.10%. Adani Wilmar`s consolidated net profit rose 10% to Rs 194 crore on 30% jump in revenue to Rs 14784 crore in Q1 FY23 over Q1 FY22.
Vodafone Idea slipped 2.74% after The telecom operator posted net loss of Rs 7,296.7 crore for the quarter ended June 2022, higher than net loss of Rs 6,563.1 crore in the previous quarter. Revenue from operations rose to Rs 10,410.10 crore from Rs 10239.5 crore.
Redington (India) gained 2.89% after the company reported a 33% rise in net profit to Rs 315.8 crore on 25% growth in revenue to Rs 16828.3 crore in Q1 FY23 over Q1 FY22.
AU Small Finance Bank advanced 2.85% after the board of directors of the bank approved the allotment of 500 Tier II Bonds of face value of Rs. one crore each, for cash, at par aggregating to Rs. 500 crore at a coupon rate of 9.30% p.a. on a private placement basis.
Asian stocks are trading higher on Thursday following the rally on Wall Street. Investors move on from the tensions over U.S. House Speaker Nancy Pelosi`s controversial visit to Taiwan. Pelosi met with Taiwan President Tsai Ing-wen on Wednesday amid warnings from Beijing. Pelosi has since left the self-ruled island that China views as a runaway province to continue with her Asia tour.
Wall Street ended sharply higher on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment. A better-than-expected services PMI reading for July gave investors confidence amid concerns about a U.S. recession.
The US services industry unexpectedly picked up in July as new orders grew solidly. The ISM`s non-manufacturing PMI rebounded to a reading of 56.7 last month from 55.3 in June, ending three straight monthly declines.
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