The headline equity indices pared early losses and ended with tiny gains on Tuesday. After hitting the day's low of 15,710.15 in early trade, the Nifty 50 index marched higher and hit the day's high of 15,892.10 in late trade. Oil & gas, auto and metal stocks advanced while consumer durables, private banks and financial services stocks corrected.
The barometer index, the S&P BSE Sensex, rose 16.17 points or 0.03% to 53,177.45. The Nifty 50 index gained 18.15 points or 0.11% to 15,850.20.
Mahindra & Mahindra (up 2.78%), Reliance Industries (up 1.49%), Dr Reddy Laboratories (up 1.41%), Tech Mahindra (up 1.40%) and Tata Steel (up 1.34%) boosted the indices.
In the broader market, the S&P BSE Mid-Cap index rose 0.18% while the S&P BSE Small-Cap index added 0.24%.
The market breadth was positive. On the BSE, 1,793 shares rose and 1,486 shares fell. A total of 137 shares were unchanged.
The NSE's VIX index, a gauge of market's expectation of volatility over the near term, rose 2.11% to 21.45.
The Sensex and the Nifty have gained 2.61% and 2.83%, respectively, in four consecutive sessions.
Economy:
The 47th meeting of the GST Council will take place in Chandigarh on Tuesday (28 June) and Wednesday (29 June). The meeting will be chaired by Union Finance Minister Nirmala Sitharaman. The two-day meeting of the GST Council will be attended by Minister of State for Finance Pankaj Chaudhary, Finance Ministers of States and Union Territories and Senior officers from Union Government and States.
Last GST Council's meeting which was held in New Delhi had recommended to defer the decision to change the rates on textiles. The GST council had decided to retain the status quo on GST rate on textile to 5%. The Council will also likely take up the issue of imposing 28% GST on online gaming, casinos and horse racing.
Meanwhile, India's export of petroleum products slipped 1% in May over the year after rising 22% in April as summer demand in the domestic market boosted local purchases, according to the oil ministry data. India exported 5.7 million metric tonnes (MMT) of petroleum products in May, 6% higher than in April but 1% lower than in May 2021. Imports rose 14% to 3.2 MMT in May over the year, compared to 3.8 MMT in April. Net export fell 0.4 MMT during the month over the year.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.458 as compared with 7.407 at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 78.7575, compared with its close of 78.37 during the previous trading session.
MCX Gold futures for 5 August 2022 settlement advanced 0.50% to Rs 50,900.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.05% to 103.88.
In the commodities market, Brent crude for August 2022 settlement rose $1.48 cents or 1.29% at $116.57 a barrel.
Global Markets:
The Dow Jones index futures were up 197 points, indicating a positive opening in the US stocks today.
Shares in Europe and Asia advanced on Tuesday. Global risk sentiment received a brief boost on Tuesday after China halved the quarantine period to seven days, with a further three days spent at home.
Profits at China's industrial firms shrank at a slower pace in May following a sharp fall in April. Profits fell 6.5% from a year earlier, less than the 8.5% decline in April, according to data released by the National Bureau of Statistics (NBS).
The GfK German consumer confidence survey showed Tuesday that consumer sentiment in Europe's largest economy is projected to slide to a new record low in July.
US stocks closed lower on Monday on heightened inflation worries and tightening Fed policy. The major averages struggled as investors weighed whether stocks have reached a bottom or are instead briefly rebounding from oversold conditions.
Meanwhile, the media reported that Ukraine's President Volodymyr Zelenskyy has addressed the leaders of the G-7 nations who are gathered in Munich, Germany, pressing them for more heavy weaponry and help to end the war before winter sets in. Zelenskyy has requested anti-aircraft defense systems to help protect Ukraine and has said he wants the war to end before the end of the year. The G-7, in turn, has promised to support Ukraine for as long as it takes.
Buzzing Segment:
The Nifty Oil & Gas index rose 2.27% to 7,544.05. The index jumped 4.11% in three sessions.
Oil India (up 6.64%), ONGC (up 5.16%), Adani Total Gas (up 4.73%), Petronet LNG (up 3.68%), Gujarat Gas (up 2.21%), GAIL (India) (up 1.82%), Reliance Industries (up 1.50%), BPCL (up 1.19%), Castrol India (up 0.92%), Indraprastha Gas (up 0.71%) and Mahanagar Gas (up 0.02%) jumped.
Stocks in Spotlight:
Glenmark Pharmaceuticals rose 0.26%. The pharma major said that its fully owned subsidiary Glenmark Pharmaceuticals Inc., USA, has acquired the approved ANDAs of four over-the-counter (OTC) drugs from Wockhardt. The acquired abbreviated new drug applications (ANDAs) are Famotidine Tablets USP, 10 mg and 20 mg (OTC), Cetirizine Hydrochloride Tablets USP, 5 mg and 10 mg (OTC), Lansoprazole Delayed-Release Capsules USP, 15 mg (OTC) and Olopatadine Hydrochloride Ophthalmic Solution USP, 0.1% (OTC).
Tata Motors rose 0.60%. The auto major on Tuesday announced an impending price hike of its commercial vehicle (CV) range. An increase in price in the range of 1.5-2.5%, will come into effect from 1 July 2022 across the range, depending upon individual model and variant, the automobile major stated. The commercial vehicle manufacturer said, "While the company takes extensive measures to absorb a significant portion of the increased input costs, at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on a residual proportion via a minimised price hike."
Infosys rose 0.39%. The IT giant said that it has been selected by Australian express logistics business, Global Express, to separate the technology landscape following divestment from Toll Holdings. Building on its strategic collaboration with Global Express to drive hybrid cloud-powered innovation, Infosys will leverage the established blueprints and tools from Infosys Cobalt, a set of services, solutions and platforms for enterprises to accelerate their cloud journey.
Bank of Baroda rose 1.50% after the bank said that its board has approved raising upto Rs 5,000 crore by issuing long term bonds in single or multiple tranches during the financial year 2022-23. The funds will be utilized for financing of infrastructure and affordable housing. These bonds shall be senior, unsecured and will not form part of capital of the bank.
Hindustan Aeronautics (HAL) fell 0.39%. The company said that its board has recommended a final dividend of Rs 10 per equity share or the financial year 2021-22. "Information in this regard including record date etc. shall be submitted with the concerned stock exchanges in due course," the company said in a statement. The announcement was made during market hours today.
JSW Steel advanced 1.17%. Moody's Investors Service has upgraded JSW Steel's corporate family rating (CFR) to Ba1 from Ba2. Moody's has also upgraded to Ba1 from Ba2 JSW's senior unsecured notes rating, the guaranteed backed senior unsecured rating on Periama Holdings LLC, and the $40 million guaranteed senior unsecured revenue bonds issued by Jefferson County Port Authority. At the same time, Moody's has changed the ratings outlook on JSW Steel and Periama Holdings LLC to 'stable' from 'positive'.
Manappuram Finance fell 1.57%. The NBFC on Monday announced that a special committee of the board will meet on 30 June 2022 to consider and approve the issuance of secured, rated redeemable non-convertible debentures of upto $100 million, in INR equivalent.
Brigade Enterprises gained 1.32% after the company announced that the Brigade group has signed a joint development agreement (JDA) to develop around 2.1 million square feet of residential apartments in Chennai.
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