Nifty above 17,600 level, bank stocks advance

The benchmark indices traded with decent gains in the mid-morning trade. The Nifty traded above 17,600 level after hitting the day`s low of 17,499.25 in the morning trade. Realty, media and bank stocks were in demand while consumer durables, IT and pharma stocks corrected.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 76.24 points or 0.13% to 59,107.54. The Nifty 50 index added 28.55 points or 0.16% to 17,606.05.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.34% while the S&P BSE Small-Cap index gained 0.82%.

The market breadth was strong. On the BSE, 2,153 shares rose and 1,040 shares fell. A total of 151 shares were unchanged.

Economy:

India`s GDP growth in the first quarter of the current fiscal will reach double digits to 13% due to a low base and a strong recovery in the contact-intensive sectors as a result of the expanding vaccination coverage, according to an ICRA report. ICRA anticipates that the services sector will lead sectoral growth in the first quarter of FY23 (+17-19%), followed by the industry (+9-11%). Due to the negative effects of the heat wave in numerous regions of the country, which reduced wheat yield, GVA growth in agriculture, forestry, and fishery is predicted to fall to 1.0% in the first quarter of FY23 from 4.1% in the fourth quarter of FY22.

Meanwhile, India`s crude oil production during July 2022 was 2453.19 thousand metric tonnes (TMT), which is 5.57% lower than target for the month and 3.76% lower than the production of July 2021. Cumulative crude oil production during April-July, 2022 was 9912.42 TMT, which is 2.17% lower than target for the period and 0.50% lower than production during corresponding period of last year respectively. Natural gas production during July 2022 was 2882.54 million metric standard cubic meters (MMSCM), which is 3.33% lower than the monthly target and 0.40% lower than production of July 2021. Cumulative natural gas production during April-July 2022 was 11436.19 MMSCM, which is 2.80% lower when compared with target for the period but 3.38% higher than production during corresponding period of last year.

Buzzing Index:

The Nifty Bank index rose 0.57% to 38,917.70. The index rose 1.62% in two trading sessions.

IDFC First Bank (up 3.26%), Bandhan Bank (up 2.78%), IndusInd Bank (up 2.28%), Federal Bank (up 1.23%), Punjab National Bank (up 1.21%), ICICI Bank (up 0.72%), AU Small Finance Bank (up 0.7%), Kotak Mahindra Bank (up 0.38%), Bank of Baroda (up 0.28%) and Axis Bank (up 0.25%) advanced.

Stocks in Spotlight:

DLF rose 1.13%. The company said that the credit rating agency ICRA has reaffirmed its rating and revised outlook to `positive` from `stable` on the instruments and bank facilities of the company. The agency has reaffirmed the rating of non-convertible debentures, fund-based-term loans, fund-based-working capital facilities and non-fund based-working capital facilities/bank guarantee of the company at "[ICRA] AA-" while revising the outlook on the same to `positive`. It has reaffirmed the rating of DLF`s commercial paper at "[ICRA] A1+".

Monarch Networth Capital rallied 6.09% after the company said that it has raised Rs 252 crore through Monarch Alternative Investment Fund (AIF) in its second category-3 AIF. Monarch Networth Capital is the investment manager and sponsor of Monarch AIF. The entire amount was raised from a set of ultra-high net worth individuals, corporates, and family offices. The first fund was launched in October 2020. The company is planning to foray into the mutual fund business.

Global Markets:

Asian stocks traded mixed on Wednesday as investors assessed whether an escalating economic slowdown will lead the Federal Reserve to temper the pace of monetary tightening.

Wall Street ended down on Tuesday as investors focused on data showing a slowing economy ahead of a US Federal Reserve gathering later this week in Jackson Hole, Wyoming.

Data Tuesday showed sales of new US homes fell for the sixth time this year to the slowest pace since early 2016, while business activity contracted for a second straight month.

Investors are awaiting Fed Chair Jerome Powell`s speech at the Jackson Hole symposium on Friday for a sense of how hawkish the US central bank will be in the face of mounting economic challenges

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