Sensex gains 263 pts, Nifty above 16,500 level

The headline equity indices continued to trade near the day`s high with modest gains in early afternoon trade. The Nifty traded a tad above the 16,500 mark. Barring the Nifty Auto index, all the sectoral indices on the NSE were in the green.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 263.61 points or 0.48% to 55,532.10. The Nifty 50 index gained 70.75 points or 0.43% to 16,554.60.

In the broader market, the S&P BSE Mid-Cap index gained 0.19% while the S&P BSE Small-Cap index rose 0.15%.

The market breadth was positive. On the BSE, 1,621 shares rose and 1,545 shares fell. A total of 153 shares were unchanged.

Economy:

The International Monetary Fund (IMF) on Tuesday cut the global growth outlook and warned that the world may soon be on the brink of a recession. Global economic expansion will likely slow to 3.2% this year, slower than the 3.6% forecast by the fund in April, the IMF said. The outlook for India has been revised down by 0.8% point, to 7.4%. For India, the revision reflects mainly less favourable external conditions and more rapid policy tightening, IMF stated. For emerging market and developing economies, the negative revisions to growth in 2022-23 reflect mainly the sharp slowdown of China`s economy and the moderation in India`s economic growth.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.99% to 18.35. The Nifty 28 July 2022 futures were trading at 16,561.60, at a premium of 7 points compared with the spot at 16,554.60.

The Nifty option chain for the 28 July 2022 expiry showed maximum Call OI of 107.2 lakh contracts at the 17,000 strike price. Maximum Put OI of 115.1 lakh contracts was seen at 16,500 strike price.

Buzzing Index:

The Nifty IT index rose 0.89% to 27,663.80. The index lost 2.83% in the past trading session.

Tata Consultancy Services (up 1.27%), Coforge (up 1.21%), HCL Technologies (up 1.06%), Larsen & Toubro Infotech (up 1%), Mindtree (up 0.97%), Infosys (up 0.74%), Mphasis (up 0.39%), Tech Mahindra (up 0.37%), L&T Technology Services (up 0.1%), edged higher.

Stocks in Spotlight:

Sanofi India declined 2.71% after the company`s net profit fell 32.5% to Rs 120.40 crore on 11.4% decrease in net sales to Rs 699.30 crore in Q2 CY22 over Q2 CY21.

Yes Bank rallied 4.59% after the bank said that its board will consider fund raising on Friday, 29 July 2022. The private lender plans raising fund by way of rights issue, preferential allotment, qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate, by way of issue of equity shares, convertibles and / or any other eligible securities.

United Spirits tumbled 6.59%. The spirits maker`s standalone net profit surged 204.2% to Rs 210 crore on 34.3% increase in net sales to Rs 2,169 crore in Q1 FY23 over Q1 FY22.

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