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Nifty reclaims 17,000 level; strong market breadth

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Capital Market
Last Updated : Jul 29 2022 | 10:04 AM IST

The key equity indices traded with strong gains in early trade, amid heavy buying in index pivotals. The Nifty traded above the 17,000 mark. Barring pharma and PSU banks, shares across sectors recorded significant buying demand with metals, IT and autos gaining the most.

SBI Life (up 7.50%), Bajaj Finserv (up 3.29%), Eicher Motors (up 2.47%), Tata Steel (up 2.44%) and Bajaj Auto (up 2.34%) were the top Nifty gainers.

Cipla (down 1.23%), Sun Pharma (down 0.60%) and Divi's Lab (down 0.43%) were the only laggards in the Nifty 50 pack.

In the broader market, the S&P BSE Mid-Cap index rose 1.09% while the S&P BSE Small-Cap index gained 0.97%.

The market breadth was strong. On the BSE, 1,862 shares rose and 571 shares fell. A total of 107 shares were unchanged.

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Vedanta rose 0.12%. On consolidated basis, Vedanta's net profit rose 6% to Rs 5,592 crore on 36% increase in net sales to Rs 38,251 crore in Q1 FY23 over Q1 FY22. The mining company said that the increase in revenue was supported by higher sales volume across businesses, commodity prices and strategic hedging gains.

Dr. Reddy's Laboratories slipped 3.97%. On consolidated basis, Dr. Reddy's Laboratories' net profit rose 108% to Rs 1188 crore on 6% increase in revenue to Rs 5215 crore in Q1 FY23 over Q1 FY22.

TVS Motor Company jumped 8.21%. The company reported a standalone net profit of Rs 321 crore in Q1 FY23 as against a net profit of Rs 53 crore in Q1 FY22. The company recorded operating revenue of Rs 6,009 crore for the quarter ended June 2022 as against Rs 3,934 crore reported in the quarter ended June 2021, up 52.7% YoY.

Global Markets:

Asian stocks are mostly higher on Friday after a rally on Wall Street. That followed a negative US gross domestic product report, which suggests the Fed would be less aggressive in its tightening cycle.

Japan's industrial output jumped 8.9% in June from the previous month, the ministry of economy, trade and industry said Friday. The print surprised to the upside after falling in May.

US stocks on Thursday rallied for a second day, with all three major indices ending up more than 1% as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.

The US economy shrank from April through June for a second straight quarter. U.S. economic growth fell 0.9% in the second quarter, the Bureau of Economic Analysis reported Thursday. First-quarter GDP declined by 1.6%.

President Joe Biden insisted Thursday that the US economy was "on the right path," with solid job growth, despite a second straight quarter of contraction that has deepened fears of a recession.

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First Published: Jul 29 2022 | 9:27 AM IST

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