Major stock indexes ended near the flat line with minor declines on Thursday. Oil & Gas, Pharmaceuticals and Consumer Durables stocks advanced while PSU Banks, IT and Media stocks corrected. After hitting the day’s high at 16,070.85 in morning trading, the index slid lower as the session progressed and hit the day’s low at 15,858.20 in the mid-afternoon discussions.
According to preliminary closing data, the barometric index, the S&P BSE Sensex, fell 98 points or 0.18% to 53,416.15. The Nifty 50 index fell 28 points or 0.18% to 15,938.65.
The Sensex fell 1.96% while the Nifty fell 1.74% in four consecutive sessions.
In the broader market, the S&P BSE Mid-Cap Index fell 0.40% while the S&P BSE Small-Cap Index fell 0.56%.
The breadth of the market was negative. On BSE, 1,386 shares rose and 1,934 shares fell. A total of 142 stocks remained unchanged.
Domestic equities mirrored weakness in their global peers after U.S. consumer inflation hit a four-decade high of 9.1% in June, adding pressure on the Federal Reserve to adopt a more aggressive monetary policy to control galloping inflation.
India’s inflation based on the Wholesale Price Index (WPI) stood at 15.18% in June 2022 from 12.07% in June 2021.
“The high inflation rate in June 2022 is mainly due to higher prices for mineral oils, food items, crude oil and natural gas, base metals, chemical and chemical products, foodstuffs, etc. .compared to the corresponding month of the previous year,” the Department of Trade and Industry said in a statement today.
The WPI rose 15.88% in May 2022, while the April figure was 15.38%. WPI for the month of July 2022 will be released on August 16, 2022.
Meanwhile, the Maharashtra government has cut petrol and diesel prices by Rs5 per liter and Rs3 per liter respectively, the state’s chief minister, Eknath Shinde, said on Thursday, July 13. 2022.
The price of gasoline in Mumbai was Rs 111.35. It will now cost 106.35. The price of diesel was Rs 97.28. It will now cost Rs 94.28.
The Nifty Oil & Gas index rose 1.80% to 7,460.85, ending its two-day losing streak. The index fell 1.65% in two trading sessions.
Petronet LNG (+3.68%), Adani Total Gas (+3.23%), Hindustan Petroleum Corporation (+2.43%), Oil & Natural Gas Corpn (+2.29%) and Gujarat State Petronet (+ 1.96%), GAIL (India) (+1.31%), Reliance Industries (+0.83%), Aegis Logistics (+0.58%), Indian Oil Corporation (+0.5%) and Indraprastha Gas (+0.29%).
On the other hand, Oil India (-4.02%), Bharat Petroleum Corporation (-1.4%) and Castrol India (-0.84%) fell.
Actions in the spotlight:
MindTree fell 3.77% after the company reported a 0.3% decline in net profit to Rs 471.6 crore despite a 7.7% increase in revenue to Rs 3,121.1 crore in first quarter of FY23 compared to the fourth quarter of FY22. Compared to the first quarter of FY22, the company’s net profit and revenue were 37.3% and 36.2% higher , respectively. Employee benefits expense in the first quarter of FY23 was Rs 1,853.6 crore, up 5.9% quarter-on-quarter and 35.6% year-on-year. The company had a strong backlog of $570 million, up 13.1% in the first quarter of FY23.
Tata Metaliks gained 3.08% after the company’s net profit fell 98.7% to Rs 1.22 crore on a 10.5% increase in net sales to Rs 666.37 crore in Q1 FY23 per compared to Q1 FY22.
Hindustan Zinc rose 4.45% after the company’s board approved an interim dividend of Rs 21 per share, or 1050% on par value of Rs 2 per share for the financial year 2022-23 , amounting to Rs 8873.17 crore. The record date for payment of installments is July 21, 2022.
Tata Power Company added 0.20%. TP Saurya, a wholly owned subsidiary of Tata Power Company, has been awarded Letter of Award (LoA) from Solar Energy Corporation of India (SECI) for the establishment of a 600 megawatt (MW) hybrid power project ) in Karnataka. The letter was awarded by competitive bidding based on rates followed by an electronic reverse auction. The hybrid power project (wind and solar) will be commissioned within 24 months from the date of execution of the power purchase agreement (PPA).
JSW Energy gained 1.91% after the company announced that its wholly-owned subsidiary, JSW Neo Energy, had received a letter of award (LoA) for a total wind capacity of 300 MW from Solar Energy Corporation. of India (SECI). JSW Neo has won the contract following a tariff call for tenders launched by SECI for the implementation of 1200 MW wind projects connected to the ISTS (Tranche – XII).
Tata Chemicals (TCL) rose 0.27%. TCL said CARE Ratings has reaffirmed the ratings given to the company’s banking facilities. The rating of the long-term bank facilities was reaffirmed at ‘CARE AA+; Stable’ while the rating of the short-term bank facilities has been reaffirmed at ‘CARE A1+’.
Welspun Corp lost 0.47%. The associate company of East Pipes Integrated Company for Industry (EPIC), Kingdom of Saudi Arabia (KSA), has won a contract from SWCC for the manufacture and supply of steel pipes.
Dow Jones futures fell 286 points, indicating a negative open in the US stock market today.
European stocks fell while Asian stocks were mixed on Thursday as global markets digest the latest US inflation data.
Singapore’s central bank tightened monetary policy on Thursday, in an off-cycle move, saying the move would curb inflation as the city-state joins other countries stepping up their battle against rising price pressures.
U.S. stocks closed slightly lower on Wednesday as warmer-than-expected U.S. inflation data raised concerns that the Federal Reserve could raise interest rates even more aggressively to slow rising prices, which could plunge the economy into recession.
US inflation accelerated in June more than expected. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the biggest rise since late 1981, Labor Department data showed Wednesday. The widely watched inflation gauge rose 1.3% from the previous month, the highest since 2005, reflecting rising costs for gas, housing and food.
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