Stock Market Today: Benchmark indices increased for a sixth straight day, despite volatility, as gains in Kotak Bank, State Bank of India (SBI), Hindustan Unilever (HUL), Asian Paints, and Bajaj Finance roughly offset losses in the HDFC twins, ICICI Bank, Infosys, L&T, and Bharti Airtel.
The S&P BSE Sensex rallied 583 points from the lows to reach a high of 58,328 during the day, after hovering around 250 points lower for the majority of the day. Ultimately, the 30-pack index rose 21 points or 0.04 percent to close at 58,136. In contrast, the Nifty50 rebounded from its low point of 17,216 to finish at 17,345, up 5 points or 0.03 percent.
The BSE MidCap and SmallCap indices saw gains of up to 0.5% in the overall market. In terms of sectors, the Nifty PSU Bank index increased by 2.7% while the Nifty Realty index decreased by 1.7%.
Shares of ITC, one of the individual stocks, reached a 52-week high of Rs 314 after the conglomerate reported a spike in consolidated net profit of 33.9% year over year (YoY) to Rs 4,389.7 crore in Q1FY23.
In addition, Zomato’s stock increased up to 5 per trade after the food aggregator’s consolidated loss decreased from Rs 359 crore in Q1FY22 to Rs 186 crore in Q1FY23.
The market is signaled by the US 10-year bond yield’s sharp decline from its recent high of 3.27 percent to 2.57 percent, according to Dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services: “The Fed is nearing the end of its tightening cycle with only one more large hike in September and small hikes thereafter taking the terminal rate to around 3.5 percent.”
India has emerged as one of the strongest performers thanks to this, which has facilitated the rally in international markets. There is general agreement that India will have the largest and fastest-growing economies in the world this year and the following year, with the least vulnerability to a slowdown in global growth. This, together with the dollar index falling from its most recent high of above 109 to below 106, has made it possible for FIIs to return and turn into regular purchasers. The market has entered overbought territory due to soaring valuations and the 2,100-point recovery in the Nifty since its lows in June. Shortly, markets are likely to consolidate. The PV and CV segments (capital goods and cars) are doing well, he continued.
Global Cues
The US dollar fell against the yen and other currencies on Tuesday as investors fretted about the possibility of a worldwide recession, while Asian markets followed Wall Street’s trend of loss and US long-term Treasury yields dropped to a four-month low.
Following slight losses on Wall Street, where shares of companies connected to the petroleum industry fell, Tokyo markets opened lower on Tuesday. The broad Topix index slid 0.64 percent, or 12.55 points, to 1,947.56, while the benchmark Nikkei 225 index was down 0.62 percent, or 174.40 points, to 27,818.95 at the outset.
On Monday, Wall Street’s three-day winning run came to an end, and crude prices plummeted as economic data from the US, Europe, and China showed that demand was weakening due to inflationary pressures, and the prospect of a recession reduced risk-taking.
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