Indian share markets witnessed positive trading activity throughout the day today and ended higher.
Benchmark indices snapped their three-day losing run and closed over 1% higher today, as signs of a strong corporate earnings season and expectations that the central banks will stick to a dovish stance, at least in the near-term, lifted demand for risky equities.
At the closing bell, the BSE Sensex stood higher by 639 points (up 1.2%).
Meanwhile, the NSE Nifty closed higher by 192 points (up 1.2%).
JSW Steel and Tech Mahindra were among the top gainers today.
Hindustan Unilever and Asian Paints, on the other hand, were among the top losers today.
The SGX Nifty was trading at 15,820, up by 210 points, at the time of writing.
Shares of Apollo Hospitals and Tech Mahindra hit their respective 52-week highs today.
The rupee is trading at 74.47 against the US$.
Gold prices for the latest contract on MCX are trading down by 0.3% at Rs 47,410 per 10 grams.
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Here are 4 Factors That Helped the Market Rally
Positive Global Cues: Major global markets rose today and the positive sentiment spilled to the Indian bourses too.
Asian stocks climbed today after solid company earnings boosted Wall Street, easing concerns about peak economic growth and coronavirus flareups.
The Hang Seng and the Shanghai Composite ended the day up by 1.8% and 0.3%, respectively.
The Nikkei ended up by 0.6% in today’s session.
US stock futures are trading higher today indicating a positive opening for Wall Street indices with Dow Futures trading up by 85 points (up 0.3%).
Bond Yields: Yields climbed partly due to positive corporate earnings, as investors largely overlooked apprehension about the Delta coronavirus variant and inflation and bought risky assets.
June Quarter Earnings in Line: The June quarter earnings are broadly in line with analysts’ estimates.
Asian Paints excellent numbers indicate that there are pockets of business coming out with flying colours in these pandemic times.
The country’s largest fast-moving consumer goods company Hindustan Unilever (HUL) today reported 9.6% growth on its net profit at Rs 20.6 bn for the April-June quarter on a year on year (YoY) basis.
Sectoral Gains: Market participants bought shares across the board with metal, telecom and banking- all indices witnessing strong gains today.
We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!
Speaking of stock markets, India’s #1 trader Vijay Bhambwani explains why natural gas prices will follow crude oil downwards, in his latest video for Fast Profits Daily.
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Bajaj Auto’s April to June quarter standalone net profit jumped 101.2% year on year (YoY) to Rs 10.6 bn in the first quarter of 2022, on the back of healthy exports and low base of last year.
It had clocked a net profit of Rs 5.3 bn in the previous year period.
Sequentially, the profit slumped 20.3% from Rs 13.3 bn reported in fourth quarter of 2021 as the quarter saw limited economic activity and fewer sales dispatches domestically due to state-specific lockdowns amid the second wave of Covid-19.
On a consolidated basis, the profit after tax (PAT) grew to Rs 11.7 bn from Rs 4 bn YoY but down from Rs 15.5 bn logged in the last quarter of 2021
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Separately, the company announced formation of a wholly-owned subsidiary to venture into electric mobility segment.
The company’s board of directors at its meeting held today, has approved the incorporation of a wholly owned subsidiary of the company.
The wholly owned subsidiary will leverage the growth opportunities in the evolving mobility space and will help the company venture into the manufacturing of electric and hybrid vehicles in the 2-wheeler, 3-wheeler and light 4-wheeler categories.
Bajaj Auto share price ended the day down by 1.2% on the BSE.
Speaking of electric vehicles, note that the power ministry has approved setting up 2,636 electric vehicle charging stations across 62 cities in 24 states.
Here’s what co-head of Research at Equitymaster, Tanushree Banerjee wrote about electric vehicles in one of her editions of Profit Hunter:
- ‘106 public and private entities have approached the government for permissions to set up about 7,000 EV charging stations.
This clearly shows the vehicle manufacturers have enough incentive to capture this latent demand.
The tax benefit in terms of a lower GST rate (at 5%) is a further shot in the arm of the EV industry.’
As per Tanushree, electric vehicles are very much on their way to invading Indian roads. The threat of disruption in this era is something you cannot ignore.
Moving on to news from the finance sector…
U GRO Capital Ties with Bank of Baroda for Rs 10 Bn MSME Co-lending
U GRO Capital has announced the launch of a co-lending partnership for micro, small and medium enterprises (MSME) with Bank of Baroda, one of the largest banks in India.
Termed as ‘Pratham’, the loan disbursements have commenced on the occasion of Bank of Baroda’s 114th Foundation Day.
The program has been launched under Reserve Bank of India’s revised co-lending guidelines.
‘Pratham’, a Rs 10 bn co-lending program will allow the MSMEs to avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time.
The loan amount ranges from Rs 5 m to Rs 25 m to be offered at an interest rate starting from 8% with a maximum tenure of 120 months.
Speaking on this partnership, Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said,
- It gives us immense pleasure to launch one of our most significant programs ‘Pratham’ and sign the co-lending agreement with Bank of Baroda under RBI’s revised guidelines.
It is a reiteration of the value and trust that the bank places on our ability to leverage sectoral expertise and technology to solve the unsolved credit need of the MSMEs.
We look forward to nurturing this essential relationship in our bid to support more MSMEs in the remotest locations, to help them revive and grow.
The program is accessible to MSMEs across 200+ channel touch points around nine locations – Delhi, Jaipur, Ahmedabad, Pune, Mumbai, Bangalore, Chennai, Hyderabad and Kolkata.
U GRO Capital share price ended the day up by 5.3% on the BSE.
How this pans out remains to be seen. Meanwhile, we will keep you updated on the latest news from this space.
To know what’s moving the Indian stock markets today, check out the most recent share market updates here.
For information on how to pick stocks that have the potential to deliver big returns,
What else is happening in the markets today? Dig in…
Stock Market Updates
Jul 22, 2021 12:30 pm
BSE Sensex is trading up by 616 points, while the NSE Nifty is up by 181 points.
Sensex Gains 450 Points, Nifty Above 15,750; Bajaj Finance & Tata Steel Top Gainers (Today’s Market)
Jul 22, 2021 09:30 am
Indian share markets open strong. The BSE Sensex opened up by 425 points, while the Nifty is trading higher by 129 points.
Jul 22, 2021 09:44 AM
ECLERX SERVICES share price has hit a 52-week high. It is presently trading at Rs 2,314. BSE 500 Index is up by 0.9% at 21,674. Within the BSE 500, ECLERX SERVICES (up 0.4%) and IDFC (up 17.8%) are among the top gainers, while top losers are DHFL and ADANI TRANSMISSION.
Jul 22, 2021 09:38 AM
MPHASIS share price has hit an all time high at Rs 2,440 (up 0.9%). The BSE IT Index is up by 1.0%. Among the top gainers in the BSE IT Index today are MPHASIS (up 0.9%) and COFORGE (up 0.5%). The top losers include HEXAWARE TECHNOLOGIES and HCL TECHNOLOGIES (down 0.3%).
Jul 22, 2021 09:38 AM
JSW ENERGY share price has hit an all time high at Rs 207 (up 2.0%). The BSE POWER Index is down by 0.6%. Among the top gainers in the BSE POWER Index today are JSW ENERGY (up 2.0%) and SIEMENS (up 0.9%). The top losers include RELIANCE INFRA (down 0.5%) and TORRENT POWER (down 0.7%).
Jul 22, 2021 09:34 AM
INDIABULLS REAL EST share price is trading up by 6% and its current market price is Rs 164. The BSE REALTY is up by 2.0%. The top gainers in the BSE REALTY Index is INDIABULLS REAL EST (up 6.1%).