Sensex jumps 303 pts, Nifty ends above 16,200; L&T jumps 4.7%

The key equity benchmarks ended with modest gains after a volatile session on Friday. The Nifty closed above 16,200 level. Banks, financials, FMCG and pharma shares advanced while metal corrected after a three-day streak.

The barometer index, the S&P BSE Sensex, gained 303.38 points or 0.56% to 54,481.84. The Nifty 50 index rose 87.70 points or 0.54% to 16,220.60.

Larsen & Toubro (up 4.72%), Power Grid Corporation of India (up 2.94%) and NTPC (up 2.21%) boosted the indices.

The domestic equity barometers rose for the third straight day. In three sessions, the Sensex has added 2.54% while the Nifty has gained 2.59%.

In the broader market, the S&P BSE Mid-Cap index rose 0.20% while the S&P BSE Small-Cap index gained 0.28%.

The market breadth was positive. On the BSE, 1,897 shares rose and 1,378 shares fell. A total of 165 shares were unchanged.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose to 7.418 as compared with 7.354 at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 79.2175, compared with its close of 79.1350 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement increased 0.17% to Rs 50,705.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.13 % to 107.27.

In the commodities market, Brent crude for September 2022 settlement rose 30 cents or 0.29% at $ 104.95 a barrel. The contract rose $3.96 or 3.93% to settle at $104.65 a barrel during the previous trading session.

Foreign Markets:

European shares fell across the board while most Asian stocks advanced. The yen rose on news that former Japan prime minister Shinzo Abe died on Friday after being shot while campaigning for a parliamentary election. Police have arrested a 41-year-old man suspected of carrying out the shooting and is conducting raids at his home.

The Nikkei 225 advanced 0.10% and the Topix index rose 0.27%. Both indexes were more than 1% higher earlier in the session, but pared gains after reports that Abe was shot during campaigning.

Wall Street benchmarks ended up on Thursday as traders leaned in to US equities after the Federal Reserve hinted at a more tempered program of interest rate hikes.

Two of the Federal Reserve`s most vocal hawks on Thursday said they would support another 75 basis-point interest rate increase later this month but a downshift to a slower pace afterward, even as both downplayed the risk of higher borrowing costs pushing the US into recession.

The Labor Department`s monthly jobs report is due out on Friday, and the employment data could warrant extra scrutiny as investors try to gauge the health of the U.S. economy.

Buzzing Index:

The Nifty Bank index rose 0.58% to 35,124.05. The index has added 3.87% in three sessions.

ICICI Bank (up 1.92%), Axis Bank (up 1.88%), Kotak Mahindra Bank (up 0.52%), SBI (up 0.35%), Bank of Baroda (up 0.33%) and Federal Bank (up 0.21%) climbed.

Stocks in Spotlight:

Tata Consultancy Services lost 0.67%. The IT major will declare its Q1 June 2023 result today, 8 July 2022.

Mahindra & Mahindra (M&M) shed 0.06%. The auto major said that British International Investment (BII) will invest upto Rs 1,925 crore at a valuation of up to Rs 70,070 crore, into M&M`s new 4 wheel passenger EV arm. BII to invest up to Rs 1,925 crore in the form of compulsory convertible instruments at a valuation of up to Rs 70,070 crore.

This will result in 2.75% to 4.76% ownership for BII in the EV Co. The EV Co. will focus on four-wheel (4W) passenger electric vehicles. It is expected that the first round of BII`s capital investment will be completed not later than June 2023 on fulfilment of conditions precedent and the balance post completion of certain milestones in FY24.

Tata Motors rose 2.51%. Tata Motors` unit Jaguar Land Rover (JLR) reported sales volumes for the three month period to 30 June 2022. Retail sales for the quarter ending 30 June 2022 were 78,825 vehicles, broadly flat (183 units lower) compared with the previous quarter ending 31 March 2022 and down 37% (46k units) from the quarter a year ago ending 30 June 2021.

Tata Motors Group global wholesales in Q1 FY23, including Jaguar Land Rover (JLR) stood at 3,16,443 units, higher by 48%, as compared with Q1 FY22.

Dr Reddy`s Laboratories gained 1.50%. The U.S. Food and Drug Administration (USFDA) issued Form 483 with two observations after an inspection at Dr. Reddy`s Laboratories` formulation manufacturing facility FTO 11 in Srikakulam, Andhra Pradesh.

Vedanta fell 1.65%. The company said that it will acquire Athena Chhattisgarh Power located in Jhanjgir Champa, Chhattisgarh for Rs 564.67 crore.

Adani Ports & Special Economic Zone rose 1.82%. The company`s board on Thursday (7 July 2022) approved the appointment of D Muthukumaran as the chief financial officer and key managerial personnel of the company with effect from 25 July 2022.

Oberoi Realty rose 1.52%. The realtor said its sales booking value zoomed 342.35% to Rs 752 crore in Q1 FY23 as against Rs 170 crore in the year-ago period. In terms of volume, it sold nearly 4.01 lakh square feet area in the first quarter compared with over 0.92 lakh sq. ft. area in the corresponding period of the previous year.

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