Sensex gains 237 pts, snapping 6-day losing streak; broader indices slump

The key equity indices closed with decent gains on Monday, breaching six-day losing streak. FMCG, financial services and IT scrips supported the indices while metal, oil & gas and media stocks dragged. The Nifty managed to close above 15,300 level, rising from intraday low of 15,191.10 hit in the morning trade.

The barometer index, the S&P BSE Sensex, rose 237.42 points or 0.46% to 51,597.84. The Nifty 50 index rose 56.65 points or 0.37% to 15,350.15. The headline indices corrected over 7% in the past six trading sessions.

HDFC (up 3.97%), Asian Paints (up 2.96%), HDFC Bank (up 2.47%) and Infosys (up 1.95%) supported the indices today.

The broader market declined sharply. The S&P BSE Mid-Cap index slipped 1.39% while the S&P BSE Small-Cap index lost 2.95%.

Sellers outnumbered buyers. On the BSE, 689 shares rose and 2725 shares fell. A total of 164 shares were unchanged.

COVID-19 Update:

India`s active Covid-19 caseload currently stands at 76,700. In the last 24 hours, 12,781 new cases and 8,537 recoveries have been recorded. The daily positivity rate is 4.32%. The recovery rate currently is at 98.61%. Under Nationwide Vaccination Drive, 196.18 cr vaccine doses have been administered so far.

Economy:

India`s direct tax collections for the Financial Year 2022-23, as on 16 June 2022, showed net collections at Rs 3,39,225 crore compared with Rs 2,33,651 crore in the corresponding period of the preceding year, representing an increase of 45% .The advance tax collections for the first quarter of the FY 2022-23 stand at Rs 1,01,017 crore against Rs 75,783 crore for the corresponding period, showing a growth of more than 33%.

Meanwhile, FICCI`s latest quarterly survey on Manufacturing sector reveals that momentum of growth continued in subsequent quarters of Q-4 (Jan-Mar 2021-22) and Q-1 April-June (2022-23) and there seems to be an improvement in hiring/employment outlook after a long gap.

The survey noted that 54.8% respondents reported higher production levels in Q-1 (April- June 2022-23), with an average expectation of increase in production by over 10%. The survey reports improvement in employment creation by the sector as 53% of the respondents are now looking at hiring additional workforce in the next three months. The existing average capacity utilization for Q4 2021-22 in manufacturing is 77%, a little higher than 75% in the previous quarter, which reflects increased economic activity in the sector.

The outlook for exports seems to be positive as 53.4% of the respondents expect an average increase of 15.2% in exports in Q-1 2022-23 as compared to the first quarter of last year. The cost of production as a percentage of sales for manufacturers in the survey has risen for 91% respondents in Q-4 2021-22.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell to 7.444 as compared with 7.546 at close in the previous trading session.

In the foreign exchange market, the rupee advanced against the dollar. The partially convertible rupee was hovering at 77.985, compared with its close of 78.05 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement fell 0.06% to Rs 50,806.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, decreased 0.3% to 104.38.

In the commodities market, Brent crude for August 2022 settlement fell 2 cents or 0.02% at $113.10 a barrel.

Global Markets:

The Dow Jones index futures were up 138 points, indicating a strong opening in the US stocks today.

Most European shares advanced while most Asian shares declined on Monday.

China stood pat on its benchmark lending rates for corporate and household loans, as expected, on Monday. The one-year loan prime rate (LPR) was kept at 3.70%, and the five-year was unchanged at 4.45%.

German producer prices soared by 33.6% year-on-year in May, their largest increase on record, according to new official statistics published Monday.

Markets in the U.S. are closed on Monday for a holiday. The Wall Street ended mixed Friday as the S&P 500 and the Nasdaq Composite bounced, but the Dow Jones Industrial Average erased gains late in the session. Investors grew increasingly worried about a potential economic slowdown.

In the latest Fed commentary, Governor Christopher Waller said he would support another 75-basis-point rate increase at the central bank`s July meeting should economic data come in as he expects.

Production at US factories unexpectedly fell in May. Manufacturing output dipped 0.1% last month, the first decline since January, after increasing 0.8% in April, the Fed said.

Buzzing Index:

The Nifty FMCG index rose 1.80% to 36,915.75. The index lost 3.14% in the past six trading sessions.

Godrej Consumer Products (up 4.47%), Hindustan Unilever (up 3.80%), Dabur India (up 3.52%), Britannia Industries (up 3.13%), Marico (up 2.87%), Nestle India (up 1.64%) and United Breweries (up 1.26%) were the top gainers.

Stocks in Spotlight:

Cipla rose 1.14% after the drug major on Friday announced that it has signed definitive agreements for acquiring 21.05% stake (on a fully diluted basis) in Bengaluru-based Achira Labs for a cash consideration of Rs 25 crore. The investment will enable Cipla to enter into the business domain of designing, developing and manufacturing microfluidics-based PoC immunoassay and molecular assay technologies. Post-acquisition, Achira will become an associate of Cipla.

Shree Cement advacned 2.51% after the company`s board approved setting up of integrated cement plant at Dachepalli, Tehsil Pedagarlapadu in Guntur district of Andhra Pradesh having clinker capacity of 1.5 million ton per annum (MTPA) and cement capacity of 3.0 MTPA. The project will require a total investment of Rs 2,500 crore, which will be financed through internal accruals and debt. The capacity is expected to be added by the quarter ending December 2024.

Coforge fell 0.30% after the digital services and solutions provider announced a partnership with Estes Express Lines (Estes), the largest privately held freight carrier in North America. With this partnership, Coforge will bring agile, next-generation solutions to the transportation & logistics industry. The go-to-market launch will initially focus on a platform-powered application specifically created to address multi-dimension pricing plans required to generate the optimal freight rates for shippers and brokers who depend on carriers like Estes to move freight of all kinds around the world.

Vodafone Idea slipped 3.29% after the telco on Sunday, 19 June 2022, announced that its board will meet on 22 June 2022, to consider a proposal to raise upto Rs 500 crore via preferential issue of equity shares and / or convertible warrants to one or more entities belonging to Vodafone group, one of the promoters of the company.

Alkem Laboratories rose 1.04% after the pharma company on Saturday announced that its manufacturing facility located at St. Louis, USA received Form 483 with three observations from the US drug regulator. The inspection was carried on from 6 June 2022 to 17 June 2022. The company said that it shall submit to U.S. Food and Drug Administration (USFDA) within the stipulated timeline, a detailed response to close out all the observations associated with this inspection.

Aurobindo Pharma fell 1.13%. The drug maker on Saturday announced that its board has approved acquisition of 51% stake in Hyderabad-based GLS Pharma for a cash consideration of Rs 28.05 crore. Aurobindo Pharma said that the investment is undertaken to expand the foothold of the company in oncology business in the domestic market and for inorganic addition to capacity and revenues in oncology business.

Greenlam Industries gained 0.92% after the company`s board approved preferential issue of equity shares worth upto Rs 195 crore to Smiti Holding and Trading Company. The company will issue 63,10,680 equity shares, constituting 4.97% of the share capital, at Rs 309 each, aggregating to Rs 195 crore. Greenlam will hold an extra-ordinary general meeting (EGM) on 16 July 2022, to seek shareholders approval for the proposed allotment.

Powered by Capital Market - Live News