At 13:24 IST, the barometer index, the S&P BSE Sensex, was up 87.27 points or 0.15% to 58,386.07. The Nifty 50 index gained 23.55 points or 0.14% to 17,405.55.
In the broader market, the S&P BSE Mid-Cap index rose 0.19% while the S&P BSE Small-Cap index added 0.49%.
The market breadth was strong. On the BSE, 1,915 shares rose and 1,328 shares fell. A total of 171 shares were unchanged.
Economy:
On the basis of an assessment of the current and evolving macroeconomic situation, the RBI's Monetary Policy Committee (MPC) at its meeting today (5 August 2022) decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.40% with immediate effect.
Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.15% and the marginal standing facility (MSF) rate and the Bank Rate to 5.65%.
The MPC has retained the real GDP growth projection for the ongoing financial year 2022-23 at 7.2% and the quarterly growth forecast figures in its policy outcome on Friday.
The committee has also maintained its retail inflation projection for the current financial year at 6.7%, which was revised from 5.7% in the preceding monetary policy review in June.
The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.
RBI Governor Shaktikanta Das, while delivering the outcome of the bi-monthly policy meet, said, "Headline inflation has recently flattened and the supply outlook is improving, helped by some easing of global supply constraints.
Gainers & Losers:
Ultratech Cement (up 2.55%), ICICI Bank (up 1.69%), Shree Cements (up 1.60%), Bharti Airtel (up 1.34%) and UPL (up 1.33%) were major Nifty gainers.
Hindalco Industries (down 1.67%), Maruti Suzuki (down 1.41%), Eicher Motors (down 1.32%), Britannia Industries (down 1.24%) and Reliance Industries (down 1.13%) were majority Nifty losers.
Stocks in Spotlight:
Britannia Industries fell 1.24%. The company's consolidated net profit declined 13.4% to Rs 337.44 crore despite of a 9% increase in net sales to Rs 3,653.80 crore in Q1 FY23 over Q1 FY22. Total expenditure during the quarter was Rs 3,293.15 crore, which is higher by 12.28% as compared with the same period last year.
Adani Enterprises fell 0.46%. The company's consolidated net profit surged 72.9% to Rs 469.46 crore in Q1 FY23 over Q1 FY22. The company reported net sales of Rs 40,844.25 crore in Q1 FY23, steeply higher than 12,578.77crore recorded in Q1 FY22.
Separately, Adani Enterprises has signed a Share Purchase Agreement with MAIF Investments India PTE Limited and MAIF Investments India 3 PTE Limited (collectively as "MAIF") in connection with its proposed acquisition of 100% stake in Swarna Tollway Private Limited and 56.8% stake in Gujarat Road and Infrastructure Company.
BEML declined 1.30% after the company reported a consolidated net loss of Rs 82.36 crore in Q1 FY23 as against a net loss of Rs 94.01 crore in Q1 FY22. Net sales during the quarter jumped 48.4% YoY to Rs 669.18 crore. The company's order book stood at Rs 9,100 crore as on 30 June 2022.
Berger Paints India rose 0.77% after the company's consolidated net profit increased by 80.60% to Rs 253.71 crore in Q1 FY23 from Rs 140.48 crore recorded in Q1 FY22. Revenue from operations for the quarter ended 30 June 2022 was Rs 2,759.70 crore as against Rs 1,798.49 crore in the corresponding quarter of the last year, representing an increase of 53.44% over the corresponding quarter of last year.
Global Markets:
Most of the European and Asian stocks advanced on Friday as investors look ahead to the U.S. jobs report.
Wall Street stocks ended mixed, with gains for high-growth stocks offset by the drag from energy shares, as a key US jobs report loomed on Friday.
The Bank of England (BoE) has hiked UK interest rates by 50 basis points to 1.75% as it looks to combat runaway inflation. The move was widely expected by economists and financial markets, and comes amid mounting pressure to pick up the pace of interest rate rises.
The BoE raised interest rates by the most in 27 years, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%. Reeling from a surge in energy prices caused by Russia's invasion of Ukraine, the BoE's Monetary Policy Committee voted 8-1 for a half percentage point rise in Bank Rate to 1.75% - its highest level since late 2008 - from 1.25%.
The MPC now projects that the U.K. will enter recession from the fourth quarter of 2022, and that the recession will last five quarters as real household post-tax income falls sharply in 2022 and 2023 and consumption begins to contract.
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