Stock Market Today: Benchmark indices rose for a fifth straight day, albeit amid volatility, as losses in HDFC twins, ICICI Bank, Infosys, L&T, and Bharti Airtel nearly balanced gains in Kotak Bank, State Bank of India (SBI), Hindustan Unilever (HUL), Asian Paints, and Bajaj Finance.
After staying around 250 points lower for better part of the day, the S&P BSE Sensex bounced 583 points from the lows to hit a high of 58,328 during the day. The 30-pack index eventually closed at 58,136, up 21 points or 0.04 per cent. The Nifty50, on its part, recovered from the lows of 17,216 to end at 17,345, up 5 points or 0.03 per cent.
In the broader market, the BSE MidCap and SmallCap indices advanced up to 0.5 per cent. Sectorally, the Nifty PSU Bank index surged 2.7 per cent, while the Nifty Realty index fell 1.7 per cent.
Among individual stocks, shares of ITC hit a 52-week high at Rs 314 per share after the conglomerate saw a 33.9 per cent year-on-year (YoY) jump in consolidated net profit to Rs 4,389.7 crore in Q1FY23.
Besides, shares of Zomato surged up to 5 per trade after the food aggregator’s consolidated loss contracted to Rs 186 crore in Q1FY23 from Rs 359 crore in Q1FY22.
Dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The market message from the sharp decline in the US 10-year bond yield to 2.57 per cent from the recent high of 3.27 per cent is that 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 per cent.”
“This has facilitated the rally in global markets with India emerging as one of the best performers. There is a consensus that India will be the fastest growing large economy in the world this year and next with the least vulnerability to a global growth slowdown. This, and the dollar index dipping to below 106 from the recent high of above 109, have paved the way for the return of FIIs who have turned consistent buyers now. The 2,100-point rally in Nifty from the June lows has pushed the market into overbought territory with rising valuations. Markets are likely to consolidate in the near term. Capital goods and autos (the PV and CV segments) are on a strong wicket,” he added.
Global Cues
Asia stocks continued a decline from Wall Street on Tuesday, and US long-term Treasury yields sank to a four-month low, pulling the US dollar down against the yen and other currencies as investors worried about the risk of global recession.
Tokyo shares opened lower on Tuesday following modest losses on Wall Street, where petroleum-linked shares retreated. The benchmark Nikkei 225 index fell 0.62 per cent, or 174.40 points, to 27,818.95 at the open, while the broader Topix index dropped 0.64 per cent, or 12.55 points, to 1,947.56.
Wall Street ended a three-day winning streak and crude prices plunged on Monday as economic data from the US, Europe, and China showed demand weakening under inflation pressures, while the looming possibility of recession curbed risk appetite.
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