Indices open on firm note, breadth strong

The key equity indices are trading with modest gains in the early trade on buying demand in index pivotals. The Nifty traded above the 17,200 level. Auto, media and metal shares were in demand while realty, PSU bank and FMCG stocks declined.

At 09:29 IST, the barometer index, the S&P BSE Sensex, was up 242.74 points or 0.42% to 57,812.99. The Nifty 50 index gained 64.35 points or 0.38% to 17,222.60.

In the broader market, the S&P BSE Mid-Cap index rose 0.49% while the S&P BSE Small-Cap index gained 0.75%.

The market breadth was strong. On the BSE, 1,850 shares rose and 839 shares fell. A total of 108 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,046.32 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 0.91 crore in the Indian equity market on 29 July, provisional data showed.

Stocks in Spotlight:

Housing Development Finance Corporation (HDFC) declined 0.32%. HDFC said that it has entered into a share purchase agreement (SPA) with State Bank of India (SBI) for acquiring of 97,500 equity shares of HDFC Venture Capital (HVCL). The corporation holds 80.50% of the paid-up equity share capital of HVCL, a subsidiary of the corporation. The SPA is for the acquisition of 97,500 equity shares of HVCL representing 19.50% of its paid-up share equity capital at a per share price of Rs 10, aggregating to a total consideration of Rs 9.75 lakh.

Cipla rose 2.12%. The drug major's consolidated net profit slipped 4% to Rs 686.40 crore on 2.3% decline in total revenue from operations to Rs 5,375.19 crore in Q1 FY23 over Q1 FY22.

Dr. Reddy's Laboratories rose 0.77% after the pharma major said that it has entered into a licensing agreement with Slayback Pharma to obtain exclusive rights in the first-to-file ANDA for the private label version of Lumify in the U.S.

Bank of Baroda fell 1.59%. On standalone basis, Bank of Baroda's net profit surged 79.39% to Rs 2,168.13 crore on 1.02% rise in total income to Rs 20,119.52 crore in Q1 FY23 over Q1 FY22.

Torrent Pharmaceuticals added 1.07%. On consolidated basis, Torrent Pharmaceuticals' net profit rose 7% to Rs 354 crore on 10% increase in net revenue from operations to Rs 2,347 crore in Q1 FY23 over Q1 FY22.

Yes Bank gained 2.48% after the private lender on Friday (29 July 2022) announced raising equity capital of about $1.1 billion (~ Rs 8,900 crore) from funds affiliated with two global private equity investors - Carlyle and Advent International, with each investor potentially acquiring upto a 10% stake in Yes Bank. This will be raised through a combination of ~$640 million (~Rs 5,100 crore) in equity shares and ~$475 million (~Rs 3,800 crore) through equity share warrants.

Global Markets:

Asian stocks were trading mixed on Monday as disappointing Chinese economic data fed doubts last week's rally on Wall Street could be sustained in the face of determined policy tightening by global central banks.

China's factory activity actually contracted in July as fresh virus flare-ups weighed on demand. The official manufacturing purchasing managers' Index (PMI) fell to 49.0 in July, missing forecasts for 50.4.

The official non-manufacturing PMI in July fell to 53.8 from 54.7 in June. The official composite PMI, which includes manufacturing and services, fell to 52.5 from 54.1.

US stocks climbed for a third consecutive session on Friday as investors digested strong tech earnings and looked past concerns about high inflation and a recessionary environment.

On Friday, investors also got the final reading of the University of Michigan Consumer Sentiment Index, which came in at 51.5 for July. That's a slight improvement over the preliminary reading and up from the June all-time low of 50.

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