Sensex gains 360 pts, auto stocks in demand
Published on Jun 24, 2022 11:31
The headline equity indices continued to trade with modest gains in the mid-morning trade. Positive Asian stocks boosted the sentiment. The Nifty traded above the 15,650 mark. Auto shares extended gains for the second session.
At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 360.21 points or 0.69% to 52,625.93. The Nifty 50 index gained 111.15 points or 0.71% to 15,667.80.
In the broader market, the S&P BSE Mid-Cap index rose 1.03% while the S&P BSE Small-Cap index gained 1.18%.
The market breadth was strong. On the BSE, 2,332 shares rose and 744 shares fell. A total of 121 shares were unchanged.
The Nifty Auto index rose 1.42% to 11,521.15. The index added 5.88% in two trading sessions.
Tube Investments of India (up 4.1%), Sona BLW Precision Forgings (up 3.21%), TVS Motor Company (up 3.12%), Hero MotoCorp (up 3.12%), Mahindra & Mahindra (up 2.86%), Eicher Motors (up 2.41%), Ashok Leyland (up 1.54%), MRF (up 1.37%), Bosch (up 1.28%) and Bharat Forge (up 1.09%).
Tata Motors rose 0.44%. On Thursday, 23 June 2022 a video went viral showing one of the company`s electric cars caught fire. The video showed firefighters trying to extinguish the fire in a Nexon electric vehicle (EV) in a suburb of Mumbai. As per the media reports, the Central Government on Thursday ordered a probe into a fire incident involving a Tata Motors electric vehicle. According to reports, the government`s Defence Research and Development Organisation would lead the probe.
Responding to the incident, the largest manufacturer of electric cars said in a statement, "A detailed investigation is currently being conducted to ascertain the facts of the recent isolated thermal incident that is doing the rounds on social media. We will share a detailed response after our complete investigation. We remain committed to the safety of our vehicles and their users. This is a first incident after more than 30,000 EVs have cumulatively covered over 100 million km across the country in nearly 4 years."
Hero MotoCorp advanced 3.06%. The two-wheeler major will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from 1 July 2022. The price revision will be up to Rs. 3000. The exact quantum of increase will be subject to the specific model and market. The price revision has been necessitated to partially offset the steadily growing overall cost inflation, including commodity prices.
Asian stocks advanced on Friday as investors weigh recession fears.
Core consumer prices in Japan rose 2.1% for the month of May compared to a year earlier, in line with estimates. That`s above the Bank of Japan`s target of 2% inflation.
Wall Street`s main indexes posted solid gains on Thursday, fuelled by strong performance from defensive and tech shares that outweighed declines for economically sensitive groups as worries persisted about a potential recession.
Federal Reserve Chair Jerome Powell on Thursday reiterated that the central bank is �strongly committed� to bringing down inflation, as he spoke on monetary policy for a second day before Congress. He also noted that a recession is a �possibility,� a fear that has continued to weigh on Wall Street.
The largest US banks on Thursday easily cleared the Federal Reserve`s annual health check. The results of the Fed`s annual "stress test" exercise showed the banks have enough capital to weather a severe economic downturn and paves the way for them to issue share buybacks and pay dividends.
On Thursday, the Labor Department said U.S. weekly jobless claims fell 2,000 to a seasonally adjusted 229,000 for the week ended June 18, showing the labor market remains tight.
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