Stock market today: Major benchmark indices started the day on a shaky note amid unsupportive global signals on Thursday morning. At 09:16 IST, the Sensex rose 146.71 points or 0.27 percent to 53660.86, and the Nifty rose 48.50 points or 0.30 percent at 16015.20.
Top winners and losers
Sun Pharma, Bharti Airtel, Titan, Nestle, L&T, HUL, Power Grid and Dr Reddy’s were the top winners on the Sensex. Apollo Hospitals, Tata Consumer and Britannia were additional winners on the Nifty.
On the other hand, SBI, Axis Bank, ITC, Tata Steel and JSW Steel were among the handful of index losers.
The broader markets also opened in the green. The BSE MidCap and SmallCap indices were up 0.11%.
Convenient healthcare led to gains across sectors, up 1.2 percent. FMCG and consumer durables were other notable winners, up 0.5 percent each. While Nifty PSB fell the most, the IT package was also weak.
Tata Metaliks’ shares lost 6 percent after reporting a 99 percent drop in net profit. Margins fell to 3.5 percent from more than 25 percent a year ago.
Sanofi India rose more than 4 percent. The company will consider a special dividend on July 26.
Investors will be watching the macro data, the wholesale inflation data for the month of June, closely. That said, corporate earnings for the June 2022 quarter (Q1FY23) will continue to drive investor sentiment. ACC, L&T Infotech and Tata Elxsi will report Q1 numbers on Thursday, July 14.
dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “While the highly anticipated US CPI inflation data for June was 9.1 percent against an expectation of 8.8 percent, US markets fell only moderately, by less than 1%. It is important to note that core inflation (inflation minus food and energy) in the US is declining and therefore CPI inflation will also decline in the future as crude oil prices have been heavily adjusted. The US means the Fed will continue its aggressive short-term tightening with another 75 bp hike in July, perhaps even 100 bp, but US long-term bond yields point to a potential rate cut by March 2023. In short, this inflationary pressure of 9.1 percent is likely to be peak inflation.”
“FIIs have used the July rally to boost further large sales (Rs 2840 cr yesterday) after what appeared to be sales depletion in early July. This re-sale of FII may bolster bears, but DIIs and retail investors are likely to become strong buyers with any dip as India’s economic fundamentals are strong and importantly valuations are attractive, especially in segments/stocks where FIIs are selling said Vijaykumar.
Global clues
Asian stocks struggled on Thursday and the safe haven dollar was strong as US white-hot inflation data fueled fears that the Federal Reserve will raise interest rates even more aggressively to slow price increases, potentially sending the economy into recession.
Tokyo stocks opened lower on Thursday after moderate losses on Wall Street, even after new data indicated inflation in the United States remained at high levels. The benchmark Nikkei 225 index fell 0.58 percent or 152.95 points to 26,325.82 in early trading, while the broader Topix index lost 0.69 percent or 13.11 points to 1,875.74.
Wall Street stocks fell Wednesday after the latest report showing rising inflation heightened fears of a recession, intensifying debate over the Federal Reserve’s next steps to tame prices. US inflation rose to a new peak of 9.1 percent in June, partly due to significant increases in gasoline prices.
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