Nifty nears 15,850; strong market breadth

The domestic equity benchmarks traded with strong gains in early trade amid some heavy buying in index pivotals. The Nifty hovered near the 15,850 level. Shares across sectors advanced with autos, banks, financials and IT stocks gaining the most.

At 09:24 IST, the barometer index, the S&P BSE Sensex, was up 448.76 points or 0.85% to 52,990.15. The Nifty 50 index added 150.40 points or 0.96% to 15,842.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.92% while the S&P BSE Small-Cap index added 1.11%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1974 shares rose and 385 shares fell. A total of 76 shares were unchanged.

Stocks in Spotlight:

Axis Bank rose 0.99%. Credit rating agency Fitch Ratings has on 15 June 2022, revised the rating outlook to stable from negative on the long-term issuer default ratings of the bank.

UPL gained 0.86%. The agrochemicals maker has incorporated a wholly owned subsidiary in the name of UPL Speciality Chemicals (USCL) which has acquired 100% holding in Kudos Chemie. Kudos manufactures speciality chemicals used as beverage and pharmaceutical ingredients and has manufacturing facility near Chandigarh. Kudos acquisition helps UPL to offer various value added products to its customers having synergy with its existing business.

Indian Overseas Bank added 1.80%. The bank's board has approved the capital plan of the bank for FY23. The bank will raise up to Rs 1,000 crore by issuing equity shares and another Rs 1,000 crore by issuing bonds, in FY23.

Global markets:

Asian stocks are trading higher on Thursday tracking U.S. stocks after the Federal Reserve raised benchmark interest rates 75 basis points in a move that equates to the most aggressive hike since 1994.

US stocks rallied on Wednesday after a policy announcement by the Federal Reserve that raised interest rates to market expectations as the central bank seeks to fight rising inflation without sparking a recession.

The Federal Reserve raised its benchmark interest rates three-quarters of a percentage point in its most aggressive hike since 1994. The Fed said in a statement it was committed to bringing down inflation to 2%. It also said it would continue to reduce holdings of Treasury securities and agency debt and agency mortgage-backed securities. Officials also significantly cut their outlook for 2022 economic growth, now anticipating just a 1.7% gain in GDP, down from 2.8% from March.

Fed Chairman Jerome Powell also said during his afternoon press conference that, either a 50 basis point or a 75 basis point increase seems most likely at our next meeting.

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