Nifty re-claims 16,000 level, Auto stocks in demand

The headline equity indices traded with modest gains in the mid-afternoon trade. The Nifty regained the key 16,000 level after the hitting the day`s low of 15,927.30 in the early afternoon trade. Auto shares extended gains for the second consecutive trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was up 183.33 points or 0.35% to 53,604.48. The Nifty 50 index gained 64.70 points or 0.41% to 16,003.35

In the broader market, the S&P BSE Mid-Cap index gained 0.49% while the S&P BSE Small-Cap index rose 0.31%.

The market breadth was negative. On the BSE, 1,572 shares rose and 1,637 shares fell. A total of 170 shares were unchanged.

Investors worried that aggressive interest rate hikes by global central banks would stifle economic growth.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.418 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 79.87, compared with its close of 79.9975 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement declined 0.94 % to Rs 50,325.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, increased 0.08 % to 108.63.

In the commodities market, Brent crude for September 2022 settlement fell 33 cents or 0.33% at $98.77 a barrel.

Buzzing Index:

The Nifty Auto index gained 1.53% to 12,300.25 extending its winning run for the second trading session. The index added 1.66% in two trading sessions.

TVS Motor Company (up 2.58%), Bosch (up 1.98%), Escorts Kubota (up 1.96%), Mahindra & Mahindra (up 1.94%), Tata Motors (up 1.88%), Maruti Suzuki India (up 1.6%), Ashok Leyland (up 1.48%), MRF (up 1.25%), Eicher Motors (up 1.25%) and Bajaj Auto (up 0.91%) jumped.

On the other hand, Bharat Forge (down 2.31%) and Sona BLW Precision Forgings (down 1.05%) edged lower.

Stocks in Spotlight:

Life Insurance Corporation of India (LIC) declined 0.48%. 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.

Yes Bank shed 0.53% after private lender said that it has signed a binding term sheet with JCF ARC LLC and JC Flowers Asset Reconstruction for strategic partnership in relation to sale of identified stressed loans of the bank. "The said term sheet has now become effective as on July 15, 2022,� the private sector bank said in a statement. Accordingly, the bank has decided that the JC Flowers ARC will be base bidder for a proposed sale of an identified stressed loan portfolio of the bank aggregating to up to Rs 48,000 crore.

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