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Sensex, Nifty edge higher; strong market breadth

Published on Jul 06, 2022 09:25

The key equity indices edged higher in early trade as strong buying in index pivotals boosted the equity benchmarks. The Nifty hovered near the 15,900 level. Autos, banks and financials advanced while metals and oil & gas stocks lagged behind.

At 09:23 IST, the barometer index, the S&P BSE Sensex, was up 321.52 points or 0.61% to 53,455.87. The Nifty 50 index added 74.35 points or 0.47% to 15,885.20.

In the broader market, the S&P BSE Mid-Cap index rose 0.42% while the S&P BSE Small-Cap index gained 0.59%.

The market breadth was strong. On the BSE, 1,562 shares rose and 678 shares fell. A total of 111 shares were unchanged.

Some cooling off in global crude prices boosted domestic investor sentiment and raised expectations for some relief from surging local inflation. Weak crude price benefits India as it positively impacts growth, current account deficit (CAD), inflation and fiscal deficit.

Investors will closely monitor the release of the Federal Reserve`s minutes of meeting in June, to be out late on Wednesday.

Gainers & Losers:

Asian Paints (up 2.88%), BPCL (up 2%), Eicher Motors (up 1.36%), Axis Bank (up 1.03%) and IndusInd Bank (up 1.03%) were the top Nifty gainers.

ONGC (down 4.47%), Hindalco (down 3.42%), Tata Steel (down 1.40%), Coal India (down 1.26%) and JSW Steel (down 1.21%) were the top Nifty losers.

Stocks in Spotlight:

Bajaj Finance advanced 1.59%. The NBFC said new loans booked during Q1 FY23 were 7.4 million compared with 4.6 million in Q1 FY22. Customer franchise as of 30 June 2022 stood at 60.3 million as against 50.5 million as of 30 June 2021. The company said it recorded highest ever quarterly increase in its customer franchise of 2.7 million in Q1 FY23.

Marico shed 0.38%. India business volumes in Q1FY23 declined in mid-single digits, particularly dragged by a sharp drop in Saffola Oils, while Parachute coconut oil recorded a minor volume decline. Value added hair oils grew in low single digits in value terms despite weak consumption sentiment, especially in rural. The International business maintained its strong momentum, delivering high-teen constant currency growth. Consolidated revenue in the quarter ended June 2022 was marginally higher on a year-on-year basis.

Biocon gained 0.86%. The company`s subsidiary Biocon Biologics has received a EU GMP certificate from the Health Products Regulatory Authority (HPRA), Ireland, for its new monoclonal antibodies (mAbs) drug substance manufacturing facility (B3) at Biocon Park, Bengaluru, following a GMP inspection in April 2022.

Global markets:

Asian shares dropped on Wednesday despite Wall Street recovering most of its losses by the close.

In central bank news, Bank Negara Malaysia is expected to release its monetary policy statement today.

US stock indices initially fell sharply on Tuesday before rallying in the afternoon. Concerns about a possible recession in the US weighed on investor sentiment but lower interest rates appeared to boost the tech sector.

The Nasdaq Composite ended the session 1.75% higher at 11,322.24, while the S&P 500 was up 0.16% at 3,831.39. The Dow Jones Industrial Average, however, shed 129.44 points, or 0.4%.

New orders for US-manufactured goods increased more than expected in May. The Commerce Department said on Tuesday that factory orders rose 1.6% in May after advancing 0.7 percent in April.

Crude oil futures rose after plunging overnight. In the commodities market, Brent crude for September 2022 settlement was up $1.25 or 1.22% at $104.02 a barrel. The contract slumped 7.94% on Tuesday to settle at $102.77 a barrel.

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