The key equity barometers ended with strong gains on Monday, rising for the third day in a row. Global stock markets jumped amid cooling commodity prices. The Nifty settled above the 15,800 level after hitting the day's high of 15,926.20 in the morning trade. All the sectoral indices on the NSE ended in the green. IT, metals and auto shares were in demand.
The barometer index, the S&P BSE Sensex, up 433.30 points or 0.82% to 53,161.28. The Nifty 50 index gained 132.80 points or 0.85% to 15,832.05. The Nifty has risen 2.72% in the three sessions.
Larsen & Toubro (up 2.69%), Bharti Airtel (up 2%) and ITC (up 1.5%) boosted the indices.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.87% while the S&P BSE Small-Cap index gained 1.57%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,386 shares rose and 1,038 shares fell. A total of 151 shares were unchanged.
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The yield on India's 10-year benchmark federal paper fell to 7.409 as compared with 7.444 at close in the previous trading session.
In the foreign exchange market, the rupee advanced against the dollar. The partially convertible rupee was hovering at 78.37, compared with its close of 78.33 during the previous trading session.
MCX Gold futures for 5 August 2022 settlement advanced 0.58% to Rs 50,918.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.17% to 104.01.
In the commodities market, Brent crude for August 2022 settlement rose 49 cents or 0.43% at $113.61 a barrel.
Global Markets:
The Dow Jones index futures were up 90 points, indicating a positive opening in the US stocks today.
Shares in Europe and Asia advanced on Monday amid improved risk sentiment after Wall Street rebounded strongly on Friday as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening.
Investors will be looking for more updates from the summit of the Group of Seven leaders. U.S. President Joe Biden joined the leaders of the world's wealthiest democracies, including Canada, the U.K., Germany, France, Italy and Japan, for the three-day summit beginning Sunday at which Ukraine and the global economy are topping the agenda.
Meanwhile, Russia defaulted on foreign-currency sovereign debt for the first time in more than 100 years, as per reports. The country's central bank foreign reserves remain frozen.
Wall Street rebounded strongly on Friday as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening.
Buzzing Segment:
The Nifty IT index rose 2.05% to 28,345.95. The index fell 0.89% in the previous trading session.
Mindtree (up 4.52%), Coforge (up 3.91%), Mphasis (up 3.78%), Larsen & Toubro Infotech (up 3.08%), HCL Technologies (up 2.7%), Tech Mahindra (up 2.48%), Infosys (up 2.47%), L&T Technology Services (up 2.33%), Wipro (up 1.48%) and TCS (up 0.63%) advanced.
Stocks in Spotlight:
Bajaj Auto rose 1.29% to Rs 3862.05. The board of the auto major on Monday approved a share buyback of upto Rs 2,500 crore at a price not exceeding Rs 4,600 per share through open market. The maximum buyback price of Rs 4,600 per equity share represents a 20.65% premium to Friday's closing price of Rs 3,812.80 on the BSE.
Adani Enterprises (AEL) rose 0.92%. The consortium of banks has sanctioned and signed agreement for the entire debt requirement of Rs 6071 crore for the Phase 1 of the Kutch Copper (KCL) project. KCL, a subsidiary of AEL, is setting up a greenfield copper refinery project for production of refined copper with 1 MTPA (million tons per annum) in two phases. For the phase 1 capacity of 0.5 MTPA, KCL has achieved financial closure through a syndicated club loan for the greenfield copper refinery project at Mundra, Gujarat, with the execution of financing documents with the consortium of banks led by State Bank of India (SBI). The other consortium members are Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra.
Welspun Corp gained 4.67% after the company said it has secured various orders worth about Rs 600 crore to be executed from India and the USA across the oil & gas and water sector of about 47,000 MT. The company received an order for the supply of onshore coated pipes and bends for a pipeline project in Australia. This order entails manufacturing and supplying 19,700 million tonne of pipes and 180 bends for transportation of gas.
Zomato slumped 6.40%. The company said that its board of directors had considered and approved a proposal for the acquisition of quick commerce company Blinkit for Rs 4,447 crore in a share-swap deal. Blink Commerce runs the online quick commerce service under the Blinkit brand. It was formerly known as Grofers. The company's turnover as at 31 March 2022 was Rs 236.32 crore. Zomato will acquire up to 33,018 equity shares of Blink Commerce from its shareholders at a price of Rs 13,46,986.01 per equity share, for a total purchase consideration of Rs 4447,47,84,078.
Dish TV India added 3.49% after the company said that basis the votes casted by the shareholders at the EGM, Jawahar Lal Goel has vacated the office of the managing director of the company. He will continue as the non-executive director of the company, in terms of the applicable regulatory provisions. The company's extraordinary general meeting (EGM) was held on 24 June 2022.
Dr. Reddy's Laboratories rose 0.19% after the drug maker said it acquired a portfolio of branded and generic injectable products from US-based Eton Pharmaceuticals, Inc. The portfolio includes the Biorphen (phenylephrine hydrocholoride) injection and Rezipres (ephedrine hydrochloride) injection NDAs with nine separate combinations of strengths and presentations and one first-to-file approved ANDA for Cysteine Hydrochloride for the U.S. one strength each of Biorphen and Rezipres are currently commercially available in the U.S. The acquisition will complement Dr. Reddy's U.S. institutional business with limited competition injectable products.
Aurobindo Pharma declined 0.97% after the drug maker received a warning letter from the Securities Exchange Board of India (SEBI). The letter is in regards to certain disclosures made by the company on the ongoing US FDA audit of company's unit-1 and observations made by the US FDA between the period 2019 to 2022. The SEBI warning letter observes that the company had disclosed very limited and restricted information and that the company did not disclose the detailed reasons and also did not consider-the observations of US FDA as serious.
Hindustan Copper rose 2.17% after the state owned miner said that its board will consider raising funds on Thursday, 30 June 2022. The board of Hindustan Copper will consider a qualified institutional placement (QIP) of 9,69,76,680 equity shares of face value of Rs 5 each of the company in one or more tranches. Further, the company's board will also consider to offer, issue and allot secured or unsecured non-convertible debentures (NCDs) or bonds on private placement basis up to Rs 500 crore.
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