Sensex jumps 427 pts, Nifty ends at 16,132.90; L&T climbs 3.5%

The key equity benchmarks ended near the day`s high with strong gains on Thursday. The Nifty settled above the 16,100 mark after hovering above the 16,000 mark throughout the session. Trading was volatile due to expiry of weekly index options on the NSE today. Barring the Nifty FMCG index, all the sectoral indices on the NSE ended in the green. Metals, PSU banks and consumer durables stocks were in demand.

The barometer index, the S&P BSE Sensex advanced 427.49 points or 0.80% to 54,178.46. The Nifty 50 index added 143.10 points or 0.89% to 16,132.90.

Larsen & Toubro (up 3.52%), ICICI Bank (up 2.19%) and HDFC Bank (up 1.79%) boosted the indices.

The broader market outperformed the domestic equity benchmarks. The S&P BSE Mid-Cap index rose 1.19% while the S&P BSE Small-Cap index gained 1.30%.

Buyers outnumbered sellers. On the BSE, 2,266 shares rose and 1,022 shares fell. A total of 150 shares were unchanged.

Investors assessed the minutes from the US Fed`s June meeting which showed the central bank`s determination to tackle inflation. Concerns of a potential global recession raised fears of a sharp decline in global oil demand.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper fell to 7.356 as compared with 7.294 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 79.1350, compared with its close of 78.94 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement rose 0.22% to Rs 50,610.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, declined 0.26% to 106.82.

In the commodities market, Brent crude for September 2022 settlement rose 86 cents or 0.85% at $101.55 a barrel. The contract fell $2.08 or 2.02% to settle at $100.69 a barrel during the previous trading session.

Foreign Markets:

The Dow Jones index futures were up 126 points, indicating a positive start to equities on Wall Street today.

Shares in Europe and Asia rose across the board on Thursday as investors digested the minutes from the Federal Reserve`s June 14-15 monetary policy meeting.

The European Central Bank will be publishing the minutes of its last meeting on Thursday while the Group of 20′s foreign ministers meet in Bali.

U.S. stocks moved slightly higher on Wednesday. Federal Reserve officials recognized that a "more restrictive stance" in policy could be suitable if inflation doesn`t ease, even if it slows the economy, the meeting minutes said. Fed officials also said a hike of 50 or 75 basis points would be likely at the July meeting.

"Participants recognized that policy firming could slow the pace of economic growth for a time, but they saw the return of inflation to 2 percent as critical to achieving maximum employment on a sustained basis," the document said.

Markit Economics said the S&P Global US Composite PMI was revised higher to 52.3 in June from a preliminary reading of 51.2, down from 53.6 in May. The S&P Global US Services PMI was revised higher to 52.7 in June from a preliminary score of 51.6, and down from 53.4 in May.

Buzzing Index:

The Nifty Metal index jumped 3.79% to 4,842.20. The index has added 4.13% in three sessions.

Hindalco Industries (up 6.88%), Vedanta (up 6.32%), Nalco (up 5.67%), Tata Steel (up 5.63%), SAIL (up 5.6%), Jindal Steel and Power (up 5.47%), Hindustan Copper (up 5.05%), NMDC (up 4.47%), Hindustan Zinc (up 3.91%), JSL (up 3.21%), APL Apollo Tubes (up 3.05%), Welspun Corp (up 1.95%), Ratnamani Metals & Tubes (up 0.32%) and Adani Enterprises (up 0.09%) surged.

JSW Steel advanced 3.96%. The Mumbai-based steel making company said that the Group`s combined crude steel production for Q1 FY23 was 5.88 million tonnes, registering a growth of 16% YoY.

JSW Ispat Special Products rose 4.63%. The company reported 25% YoY decline in crude steel production to 0.11 million tonnes (MT) in Q1 FY23 as against 0.14 MT recorded in Q1 FY22.

Stocks in Spotlight:

Titan Company rallied 5.69%. The firm said that its jewellery sales in Q1 FY23 soared 205% year on year (YoY) on a low base and clocked 3-year CAGR of 20.5% over Q1 FY20. Titan said that the store expansions (net) continued with commissioning of 6 new domestic stores in Tanishq and 13 in Mia. The watches & wearables segment achieved highest ever quarterly revenue in Q1 FY23 growing 158% YoY. The eyecare division witnessed a jump of 176% YoY.

Kalyan Jewellers India rose 3.92%. The company said that it achieved consolidated revenue growth of over 105% in Q1 FY23 as compared to the same period in the previous financial year.

Escorts Kubota rose 1.13%. The company said that its agri machinery division will increase the prices of its tractors with effect from Sunday, 10 July 2022.

Equitas Small Finance Bank added 1.78%. The bank said its gross advances rose 22% to Rs 21,699 crore as on 30 June 2022 as against Rs 17,837 crore as on 30 June 2021. Total deposits grew 19% YoY and 8% QoQ to Rs 20,386 crore in Q1 FY23.

Sobha surged 9.71%. The company said it had achieved quarterly sales volume of 1.36 million sft in Q1 FY23, up by 51.7% year-on-year (YoY). Total sales value was at Rs 1,145.5 crore in Q1 FY23, up 67.7% YoY.

G M Breweries rose 0.20%. The company said its net profit jumped 38.8% to Rs 16.16 crore on 103.8% increase in revenue to Rs 142.02 crore in Q1 FY23 over Q1 FY22.

City Union Bank advanced 2.59%. The bank`s board approved raising further capital through QIP route to the tune of Rs 500 crore (including premium).

Deep Industries surged 5.18%. The company has received letter of awards from ONGC for charter hiring of two 1000 HP mobile drilling rigs for Ahmedabad Asset for a period of three years. The total estimated value of the said awards is approximately Rs 150.24 crore.

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