Market snaps 4-day losing run; Nifty regains 16,000 mark

The main stock indices ended near the day`s high with modest gains on Friday. The Nifty reclaimed the key 16,000 level after the hitting the day`s low of 15,927.30 in the early afternoon trade. Autos, FMCG and consumer durables stocks were in demand. On the other hand, metals, PSU banks and IT shares declined.

The barometer index, the S&P BSE Sensex, was up 344.63 points or 0.65% to 53,760.78. The Nifty 50 index gained 110.55 points or 0.69% to 16,049.20. In the past four sessions, the Sensex declined 1.96% while the Nifty fell 1.74%.

Hindustan Unilever (up 2.87%), Titan Company (up 2.84%), M&M (up 2.71%), Maruti Suzuki India (up 2.55%) and Larsen & Toubro (up 2.34%) boosted the indices today.

In the broader market, the S&P BSE Mid-Cap index rose 0.84% while the S&P BSE Small-Cap index added 0.52%.

The market breadth was positive. On the BSE, 1,789 shares rose and 1,497 shares fell. A total of 148 shares were unchanged.

Economy:

India`s merchandise exports in June 2022 were $40.13 billion, as compared to $32.49 billion in June 2021, exhibiting a positive growth of 23.52%. Merchandise imports in June 2022 were $66.31 billion, which is an increase of 57.55% over imports of $42.09 billion in June 2021.The merchandise trade deficit in June 2022 was estimated at $26.18 billion as against $9.60 billion in June 2021, which is an increase of 172.72%.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.409 as compared with 7.384 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 79.9050, compared with its close of 79.9975 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement declined 0.45 % to Rs 50,004.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.10 % to 108.44.

In the commodities market, Brent crude for September 2022 settlement rose 53 cents or 0.53% at $99.63 a barrel. The contract declined 47 cents or 0.47% to settle at $99.10 a barrel during the previous trading session.

Global Markets:

European shares rose across the board while Asian stocks were mixed.

China`s second-quarter GDP missed expectations. China`s GDP grew 0.4% in the second quarter, compared with 4.8% in the first quarter. The second-quarter report is China`s weakest GDP print since the first quarter of 2020 when the Covid pandemic first hit.

A fresh slew of rate hikes around the world deepened worry among investors about the outlook for global economic growth.

This comes after a number of central banks raised interest rates this week to tackle soaring inflation. The Bank of Canada surprised markets with a full percentage point rate hike, while central banks in South Korea, New Zealand, Singapore and the Philippines all took action to tighten monetary policy.

The U.S. Federal Reserve is also seen stepping up its monetary policy action after an unexpectedly hot inflation print.

Wall Street indexes fell after weaker-than-expected earnings from JPMorgan Chase & Co and Morgan Stanley fanned fears of a sharp economic downturn.

Buzzing Segment:

The NIfty Auto index jumped 2.03% to 12,361.65. The index rose 2.17% in two sessions.

TVS Motor Company (up 4.2%), Bosch (up 2.75%), Tata Motors (up 2.51%), MRF (up 2.71%), Eicher Motors (up 2.23%), Mahindra & Mahindra (up 2.17%), Escorts Kubota (up 2.58%), Maruti Suzuki India (up 2.37%), Ashok Leyland (up 2.4%) and Bajaj Auto (up 1.21%) jumped.

Stocks in Spotlight:

ACC declined 0.73% after the cement maker reported 60% fall in consolidated net profit to Rs 227 crore despite a 15% rise in net sales to Rs 4,393 crore in Q2 June 2022 as compared with Q2 June 2021. Cement sales volume stood at 7.56 million tonnes (up 10.5% YoY) while the sales volume of Ready Mix Concrete was 0.83 million cubic meters (up 43.1% YoY) in the Apr-Jun 2022 quarter.

Larsen & Toubro Infotech (LTI) gained 2.62%. LTI recorded 0.5% fall in consolidated net profit to Rs 634.4 crore on a 5.1% rise in revenue to Rs 4,522.8 crore in Q1 FY23 over Q4 FY22. As compared with Q1 FY22, the company`s net income and revenue have increased by 27.7% and 30.6%, respectively.

Tata Elxsi rallied 3.31% after the company reported 15.4% rise in net profit to Rs 184.70 crore on a 6.5% rise in revenue from operations to Rs 725.90 crore in Q1 FY23 over Q4 FY22. EBITDA in Q1 FY23 grew 7.6% QoQ and 58.8% YoY to Rs 238.2 crore. EBITDA margin stood at 32.8% in Q1 FY23.

Angel One fell 2.14%. On a consolidated basis, total revenue for the quarter ended 30 June 2022 rose to Rs 669.80 crore, as against Rs 462.70 crore in the same period last year. Net profit surged to Rs 181.60 crore for Q1FY23, compared with Rs 121.40 crore in the corresponding quarter of last year.

Federal Bank rose 1.54% after the private bank posted a 63.5% rise in standalone net profit to Rs 600.66 crore in Q1 FY23 from Rs 367.29 crore in Q1 FY22. The bank`s total income grew 1.94% to Rs 4081.48 crore in Q1 FY23 compared with Rs 4003.97 crore in Q1 FY22. Net interest income stood at Rs 1,605 crore in Q1 FY23, up 13% over Rs 1,418 crore in the same quarter last year. Net interest margin improved marginally to 3.22% in Q1 FY23 from 3.15% in Q1 FY22.

Life Insurance Corporation of India (LIC) declined 0.51%. LIC has reported its Indian Embedded Value (IEV) at Rs 5,41,492 crore as of 31 March 2022, compared with Rs 95,605 crore recorded in the same period a year ago. As on 30 September 2021, the company`s IEV stood at Rs 5,39,686 crore. The IEV as of 30 September 2021 was significantly higher than the IEV of March 2021 due to the bifurcation of fund that was carried out by LIC pursuant to changes in the LIC Act during the FY 2021-22, the company stated.

The Value of New Business (VNB) for year ended 31 March 2022 has been determined to be Rs 7,619 crore from Rs 4,167 crore for the year ended 31 March 2021. Also, the VNB for the six-month period ended 30 September 2021 was Rs 1,583 crore. The VNB margin improved to 15.1% as of 31 March 2022 as against 9.9% posted in the year ago.

GTPL Hathway slipped 2.91% after the company reported 9% YoY fall in consolidated net profit to Rs 43.3 crore despite a 10% YoY rise in total income to Rs 645.4 crore in Q1 FY23. On the segmental front, subscription revenue rose by 3% to Rs 272.7 crore while the broadband revenue increased by 24% to Rs 113.9 crore in the first quarter as compared with the same period last year.

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