Informist, Friday, Jul 22, 2022

By Joe Milton

MUMBAI – Domestic equities defied the broad expectations of profit booking and gained for the sixth consecutive session today. The positive momentum also aided the Nifty 50 to close above 16700 points. 

Amid a marginally higher opening today and with the Nifty 50 in overbought territory, analysts widely expected profit booking to kick in. 

However, strong gains in financial stocks helped benchmark indices to inch higher further and close at over a two-month high. 

The 50-stock index closed 0.7% higher at 16719.45 points after touching an intraday high of 16752.25 points. Correspondingly, Sensex ended at 56072.23 points, up 0.7%, after hitting the day's high of 56186.05 points. 

Both the indices ended the week over 4% higher. If the momentum sustains, analysts expect the Nifty 50 to hit 17000 points in the near term. 

About two-thirds of the gains in benchmark indices came from financial stocks. Shares of HDFC Bank, Axis Bank, Housing Development Finance Corp, and HDFC Life Insurance Co gained 1-3%.

Shares of ICICI Bank and Kotak Mahindra Bank, too, gained more than 1% each ahead of their June quarter earnings over the weekend. Analysts expect both these banks to report strong profit aided by healthy loan growth. 

Strong gains in the banking space helped Nifty Bank gain 1.5% and close at 36738.95 points.

Foreign institutional investors have been net buyers of Indian equities for the last four sessions. Today, strong gains in some financial stocks, where FIIs hold a significant stake, hinted that they might have continued the buying streak.

Shares of automobile companies also gained traction on improved earnings prospects. 

Nifty Auto index has surged 8% in July to its lifetime high of 12690 points today on account of good progress in the monsoon, expectations of revival in rural demand, and improvement in chip supply, said Siddhartha Khemka, head, retail research, Motilal Oswal Financial Services.

Among specific stocks, shares of UltraTech Cement and its parent Grasim Industries gained 5.4% and 3.9%, respectively, after the former reported strong Apr-Jun earnings. 

Shares of Reliance Industries ended 0.7% higher at 2,503.10 rupees ahead of its June quarter earnings later today. 

Infosys was the worst hit among Nifty 50 stocks, down 1.7% ahead of its Apr-Jun earnings on Sunday. 

On the earnings front, Greenpanel Industries, Tinplate Company of India, Atul Ltd, Gokaldas Exports, and Vardhman Textiles gained on strong June quarter numbers.  

The broader market indices underperformed the benchmarks due to profit booking, with all the small- and mid-cap indices on the National Stock Exchange ending about 0.2% higher. 

* Among Nifty 50 stocks, 32 rose and 18 fell

* Among Sensex stocks, 18 rose and 12 fell

* On the BSE, 1,781 stocks rose, 1,541 fell and 147 were unchanged

* Nifty FMCG: Up 0.52%; Nifty IT: Down 0.62%; Nifty Realty: Up 0.34%

BSE                                                 National Stock Exchange
Sensex: 56072.23 points, up 390.28 pts (0.70%)      Nifty 50: 16719.45, up 114.20 pts (0.69%)

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 62245.43 (Oct 19)                 : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18)             : Record Close High: 18477.05 (Oct 18)

2022 1st day close: 59183.22 (Jan 3)             : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17)             : 2022 Closing High: 18308.10 (Jan 17) 
2022 Closing Low: 51360.42 (Jun 17)              : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17)          : 2022 High (intraday): 18321.55 (Jan 17)

2022 Low (intraday): 50921.22 (Jun 17)           : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)             : 2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)              : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)          : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)           : 2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)             : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)              : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)          : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)           : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)          : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)           : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))          : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)            : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)          : 2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Namrata Rao

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