Market rallies for 3rd day, Nifty ends above 17,150 mark

The domestic equity benchmarks surged on Friday, rising for the third straight session. Shares rallied on hope that global central banks may go slow on interest rate hikes. Softening commodity prices and net buying by foreign institutional investors (FIIs) in the past few sessions also boosted the sentiment. The Nifty settled above the 17,150 level. Metals, oil & gas and IT shares rallied. On the other hand, PSU banks stocks declined.

The barometer index, the S&P BSE Sensex, jumped 712.46 points or 1.25% to 57,570.25. The Nifty 50 index advanced 228.65 points or 1.35% to 17,158.25. Both the indices have climbed over 4% in three sessions.

Reliance Industries (up 2.10%), Infosys (up 2.12%), HDFC (up 1.85%) and HDFC Bank (up 1.24%) boosted the indices today.

In the broader market, the S&P BSE Mid-Cap index rose 1.01% while the S&P BSE Small-Cap index gained 1.38%.

The market breadth was strong. On the BSE, 2,100 shares rose and 1,227 shares fell. A total of 144 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 2.71% to 16.55.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.320 as compared with 7.332 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 79.26, compared with its close of 79.6925 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement shed 0.05% to Rs 51,277.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.35% to 105.97.

In the commodities market, Brent crude for September 2022 settlement rose $2.19 or 2.04% at $109.33 a barrel. The contract increased 52 cents or 0.49% to settle at $ 107.14 a barrel during the previous trading session.

Foreign Markets:

The Dow Jones index futures were up 91 points, indicating a positive opening in the US stocks today.

European shares advanced while Asian shares ended mixed on Friday.

Japan`s industrial output jumped 8.9% in June from the previous month, the ministry of economy, trade and industry said Friday. The print surprised to the upside after falling in May.

US stocks on Thursday rallied for a second day on Thursday, with all three major indices ending up more than 1%.

The US economy shrank from April through June for a second straight quarter. U.S. economic growth fell 0.9% in the second quarter, the Bureau of Economic Analysis reported Thursday. First-quarter GDP declined by 1.6%. The data fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.

President Joe Biden insisted Thursday that the US economy was "on the right path," with solid job growth, despite a second straight quarter of contraction that has deepened fears of a recession.

Buzzing Segment:

The Nifty Metal index climbed 3.86% to 5,485.80. The index jumped 6.45% in three consecutive sessions.

Tata Steel (up 7.22%), Welspun Corp (up 6.38%), Hindalco Industries (up 5.77%), Steel Authority of India (up 4.54%) and Jindal Stainless (up 3.89%), Vedanta (up 3.58%), APL Apollo Tubes (up 3.58%), Hindustan Copper (up 3.31%), National Aluminium Company (up 3.25%) and Jindal Steel & Power Ltd (up 3.14%) surged.

Earnings Impact:

Housing Development Finance Corporation added 1.85%. The corporation reported 22% YoY increase in net profit to Rs 3,669 crore in Q1 FY23. The net interest income (NII) for the quarter ended 30 June 2022 stood at Rs 4,447 crore compared to Rs 4,125 crore in the previous year. The reported NIM during the quarter ended 30 June 2022 was 3.4%.

Ashok Leyland rose 2.44%. The company reported a standalone net profit of Rs 68 crore in Q1 FY23 as against a net loss of Rs 282 crore in Q1 FY22. Revenue in the first quarter jumped to Rs 7,223 crore from Rs 2,951 crore recorded in the same period last year.

Sun Pharmaceutical Industries jumped 5.45%. The company 42.7% rise in consolidated net profit to Rs 2,060.9 crore on a 10.1% increase in gross sales to Rs 10,644 crore in Q1 FY23 over Q1 FY22. The drug maker said that excluding covid products sales for Q1 last year, overall sales are up about 14%.

Vedanta rose 3.46%. On consolidated basis, Vedanta`s net profit rose 6% to Rs 5,592 crore on 36% increase in net sales to Rs 38,251 crore in Q1 FY23 over Q1 FY22. The increase in revenue was supported by higher sales volume across businesses, commodity prices and strategic hedging gains.

Dr. Reddy`s Laboratories slipped 3.96%. On consolidated basis, Dr. Reddy`s Laboratories` net profit rose 108% to Rs 1188 crore on 6% increase in revenue to Rs 5215 crore in Q1 FY23 over Q1 FY22.

SBI Life Insurance Company gained 8.79%. The company`s net profit rose 17.8% to Rs 262.85 crore from Rs 223.16 crore in Q1 FY23 over Q1 FY22. The company reported a negative income from investment of Rs 6,405.66 crore in Q1 FY23 as against an income from investment of Rs 7,409.91 crore posted in Q1 FY22.

GMM Pfaudler surged 19.04%. The company`s consolidated net profit surged to Rs 44.51 crore in Q1 June 2022 as against Rs 2.59 crore in Q1 June 2021. Net sales rose 34% to Rs 739.24 crore in Q1 June 2022 over Q1 June 2021 on the back of strong execution.

TVS Motor Company gained 4.45%. The company reported a standalone net profit of Rs 321 crore in Q1 FY23 as against a net profit of Rs 53 crore in Q1 FY22. The company recorded operating revenue of Rs 6,009 crore for the quarter ended June 2022 as against Rs 3,934 crore reported in the quarter ended June 2021, up 52.7% YoY.

IIFL Securities tumbled 6.27%. On consolidated basis, the company`s net profit fell 39% to Rs 42.10 crore on 10% increase in total income to Rs 294.80 crore in Q1 FY23 over Q1 FY22.

NTPC rose 1.73%. The company`s consolidated net profit rose 15.5% to Rs 3,977.77 crore on a 44.5% rise in net sales to Rs 43,177.14 crore in Q1 FY23 over Q1 FY22. The Group`s total installed capacity increased to 69,114.20 MW as on 30 June 2022 from 66,085 MW posted on 30 June 2021. NTPC`s gross power generation for the quarter ended June 2022 was 86.883 billion units (BU) compared to 71.748 BU in quarter ended June 2021.

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