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Nifty reclaims 16,850 level; IT shares in demand

Published on Jul 28, 2022 11:24

The domestic equity barometers clocked fresh intraday high in mid-morning trade. The Nifty traded above the 16,850 mark. IT stocks rose for second day in a row.

In the broader market, the S&P BSE Mid-Cap index rose 0.89% while the S&P BSE Small-Cap index added 0.79%.

The market breadth was strong. On the BSE, 2016 shares rose and 1070 shares fell. A total of 169 shares were unchanged.

Investors cheered after the US Fed hinted at slowing down rate hikes going forward and rejected the speculation that the US economy is in recession.

Buzzing Index:

The Nifty IT index rose 2.37% to 28,539.60. The index has gained 4.09% in two sessions.

Mindtree (up 4.24%), Larsen & Toubro Infotech (up 3.97%), L&T Technology Services (up 3.12%), Infosys (up 2.48%) and Tech Mahindra (up 2.35%) were the top index gainers.

Among the other gainers were Wipro (up 2.23%), Tata Consultancy Services (up 1.79%), HCL Technologies (up 1.77%), Mphasis (up 1%) and Coforge (up 0.79%).

Stocks in Spotlight:

Dixon Technologies (India) fell 2.32%. The company reported a 151.7% surge in consolidated net profit to Rs 45.70 crore on 52.9% jump in net sales to Rs 2,855.07crore in Q1 FY23 over Q1 FY22.

United Breweries rose 0.26%. The company`s consolidated net profit surged 424.7% to Rs 162.09 crore on 117.8% increase in net sales to Rs 2,438.71 crore in Q1 FY23 over Q1 FY22.

Schaeffler India gained 1.58%. The company`s net profit jumped 76.19% to Rs 225.75 crore on 41.85% rise in net sales to Rs 1748.83 crore in Q2 June 2022 over Q2 June 2021.

Global Markets:

Asian stocks are mostly higher on Thursday following the U.S. Federal Reserve`s decision to raise rates by 75 basis points to fight inflation, a move that was widely expected.

US stocks rallied Wednesday after the Federal Reserve announced its much anticipated rate increase to fight inflation, but hinted that it could slow the pace of its hiking campaign at some point.

The Federal Reserve on Wednesday enacted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25%-2.5%. The increase takes the funds rate to its highest level since December 2018.

Powell said in a press conference that the Fed could hike by 0.75 percentage point again in September, but that it would be dependent on the data.

�As the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation,� he said.

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