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Sensex up 563 pts, at day`s high; Nifty above 15,970

Published on Jul 06, 2022 13:33

The benchmark indices traded with major gains near the day`s high in the afternoon trade. The Nifty was trading above the 15,950 level. Auto, consumer durables and FMCG stocks gained while metal, oil & gas stocks declined.

At 13:28 IST, the barometer index, the S&P BSE Sensex, was up 562.7 points or 1.06% to 53,697.05. The Nifty 50 index added 163.40 points or 1.03% to 15,974.25.

In the broader market, the S&P BSE Mid-Cap index rose 1.11% while the S&P BSE Small-Cap index gained 0.58%.

The market breadth was positive. On the BSE, 1,716 shares rose and 1,453 shares fell. A total of 157 shares were unchanged.

Some cooling off in global crude prices overnight boosted domestic investors sentiment. Weak crude price benefits India as it positively impacts growth, current account deficit (CAD), inflation and fiscal deficit.

Investors will closely monitor the release of the Federal Reserve`s minutes of meeting in June, to be out late on Wednesday.

Gainers & Losers:

Bajaj Finance (up 4.35%), Britannia Industries (up 3.59%), Asian Paints (up 3.30%), Hero MotoCorp (up 3.24%) and Eicher Motors (up 3.24%) were major Nifty gainers.

ONGC (down 4.36%), NTPC (down 1.99%), Hindalco (down 1.75%), Power Grid Corporation of India (down 1.56%) and Reliance (down 1.12%) were majority Nifty losers.

Q1 Update Impact:

Bajaj Finance rose 4.35% to Rs 5907.60 after the NBFC registered 60.9% jump in new loans booked to 74 lakh during Q1 FY23 as against 46 lakh in Q1 FY22. Customer franchise as of 30 June 2022 stood at 6.03 crore as compared to 5.05 crore as of 30 June 2021, climbing 19.4% YoY. The NBFC said that it has recorded highest ever quarterly increase in its customer franchise of 27 lakh in Q1 FY23. Core assets under management (AuM) stood approximately at Rs 2,04,000 crore as of 30 June 2022 as against Rs 1,56,115 crore as of 30 June 2021, jumping 31% YoY. Core AUM addition in Q1 FY23 was approximately of Rs 11,900 crore.

Macrotech Developers gained 4.93% to Rs 1,091.60 after the realty major`s pre-sales for Q1 FY23 stood at Rs 2,814 crores in India, jumping 194% from Rs 957 crore posted in Q1 FY22. This was the best-ever Q1 performance. The realtor said that Q1 is typically the second weakest quarter of the financial year for sales due to holidays and the onset of the monsoon, Q2 tends to the weakest due to monsoon and inauspicious period. The realtor expects a growth of Rs 2500 crore on a year on year basis in the financial year ending 31 March 2022.

Godrej Consumer Products advanced 4.41% to Rs 868.80 after the company said that in India, it expects to deliver early double-digit sales growth in Q1 FY23 on a high base. In its quarterly update, the company said that some of its short-term challenges such as continued unprecedented global commodity inflation and the performance of its Indonesia business, as highlighted in the previous quarter, continued to play out in this quarter as well, impacting consumption and margins.

Dabur India rose 1.66% to Rs 539 after the FMCG major said that its India business is expected to report high single digit revenue growth as compared to a very high base of 35.4% revenue growth in Q1 FY22. The growth in India business is backed by mid-single digit volume growth. Food & Beverages vertical has seen strong double-digit growth in the quarter on the back of improving out of home consumption, innovation, and intense summer season, Home and Personal Care portfolio is expected to record high single to low double-digit growth on a high base of 26.1% growth in Q1 FY22.

Global markets:

European stocks rose across the board while Asian shares slumped on Wednesday.

In central bank news, Bank Negara Malaysia is expected to release its monetary policy statement today.

US stock indices initially fell sharply on Tuesday before rallying in the afternoon. Concerns about a possible recession in the US weighed on investor sentiment but lower interest rates appeared to boost the tech sector.

The Nasdaq Composite ended the session 1.75% higher at 11,322.24, while the S&P 500 was up 0.16% at 3,831.39. The Dow Jones Industrial Average, however, shed 129.44 points, or 0.42%.

New orders for US-manufactured goods increased more than expected in May. The Commerce Department said on Tuesday that factory orders rose 1.6% in May after advancing 0.7 percent in April.

Crude oil futures rose after plunging overnight. In the commodities market, Brent crude for September 2022 settlement was up $1.98 or 1.93% at $104.75 a barrel. The contract slumped 7.94% on Tuesday to settle at $102.77 a barrel.

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