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Nifty hovers above 16,550; pvt banks rise for 5th day

Published on Jul 21, 2022 11:33

The frontline equity indices traded with minor gains near the day`s high in the mid-morning trade. The Nifty hovered above the 16,550 mark. Private banks advanced for the fifth day in a row. A reversal in foreign fund selling in the Indian market helped improve sentiment.

At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 189.16 points or 0.34% to 55,586.69. The Nifty 50 index gained 60.95 points or 0.37% to 16,581.80.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.95% while the S&P BSE Small-Cap index added 0.75%.

The market breadth was strong. On the BSE, 1,978 shares rose and 1,107 shares fell. A total of 174 shares were unchanged.

Buzzing Index:

The Nifty Private Bank index rose 1.03% to 18,328.05, continuing its gaining streak to the fifth day. The index advanced 5% in five trading sessions.

Among the components of the Nifty Private Bank index, IndusInd Bank (up 5.91%), RBL Bank (up 3.39%), IDFC First Bank (up 2.29%), Federal Bank (up 2%), City Union Bank (up 1.43%), Bandhan Bank (up 0.66%), Axis Bank (up 0.43%) and ICICI Bank (up 0.07%) were the gainers.

AU Small Finance Bank advanced 3.66% to Rs 597.85 after the bank reported 31.8% rise in net profit to Rs 267.87 crore on a 26.3% increase in total income to Rs 1,979.35 crore in Q1 FY23 over Q1 FY22. Net Interest Income (NII) during the quarter jumped by 35% YoY to Rs 976 crore, aided by broadly stable spreads and AUM growth of 37% YoY. Net Interest Margin (NIM) stood at 5.9% in Q1 FY23. Operating profit of the bank declined 18.1% YoY to Rs 394.07 crore in Q1 FY23.

On the other hand, Kotak Mahindra Bank (down 1.05%), HDFC Bank (down 0.23%) edged lower.

Stocks in Spotlight:

Tata Communications spurted 8.40% to Rs 1,062 after the Tata Group company reported 83.6% surge in consolidated net profit to Rs 543.76 crore on 5.1% increase in net sales to Rs 4,310.52 crore in Q1 FY23 over Q1 FY22. On a sequential basis, net profit grew 48.95% while net sales rose 1.11% in Q1 FY23 over Q4 FY22. Sequentially, growth in revenue followed upsides in the Data business, the company stated.

Gland Pharma slipped 5.15% to Rs 2,346 after the company`s consolidated net profit tumbled 35% to Rs 229.2 crore on 26% decline in revenue from operations to Rs 856.9 crore in Q1 FY23 over Q1 FY22. The pharma company said that continued supply disruption, cost escalation and the company`s decision to shut down two of its manufacturing lines for productivity improvement have affected the business for the quarter.

Global markets:

Asian stocks traded mixed on Thursday as investors look ahead to the Bank of Japan rate decision. The Bank of Japan is expected to keep rates at ultra-low levels Thursday, as per reports.

US stocks ended higher on Wednesday on positive earnings signals with a wary eye on inflation and more interest rate hikes by the Fed.

The US Federal Reserve will opt for another 75 basis point rate hike rather than a larger move at its meeting next week to quell stubbornly-high inflation as the likelihood of a recession over the next year rises to 40%, as per reports.

U.S. President Joe Biden said he expects to speak with Chinese President Xi Jinping by the end of the month, as per reports. He did not elaborate on reasons for the call or planned topics of discussion.

The European Central Bank policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday to tame record-high inflation, as per reports.

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