5 Reasons Why Sensex Rallied 1,041 Points Today
Closing

5 Reasons Why Sensex Rallied 1,041 Points Today

Indian share markets ended on a strong note today as index heavyweight stocks rallied and Jerome Powell's comments on recession provided investors some relief.

At the closing bell, the BSE Sensex stood higher by 1,041 points (up 1.9%).

Meanwhile, the NSE Nifty closed higher by 288 points (up 1.7%).

Bajaj Finance, Bajaj Finserv, and Tata Steel were among the top gainers today.

Bharti Airtel, UltraTech Cement, and Dr Reddy's Lab, on the other hand, were among the top losers today.

Tata Power share price ended on a flat note after falling in early trade today. Despite reporting good results, Tata Power share price is falling.

The SGX Nifty was trading at 16,947, up by 290 points, at the time of writing.

The broader markets ended on a positive note. The BSE MidCap climbed 0.9% and the BSE SmallCap index ended higher by 0.7%.

Barring telecom sector, all sectoral indices ended on a firm note today with stocks in the finance sector, IT sector, and metal sector witnessing most of the buying.

Shares of Timken India and Adani Total Gas hit their 52-week highs today.

Since you're interested in high flying stocks, check out our guide on how to pick the best multibagger stocks in 2022.

Also, check out the 5 stocks paying out big dividends in August 2022.

Tata Steel and Bajaj Finance were amongst the most active shares on the BSE today.

If you're interested in knowing which shares to trade, read our guide on the best intraday stocks for today.

The rupee is trading at 79.61 against the US$.

As the rupee depreciates, check out these five companies which stand to gain big from a weakening rupee.

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Gold prices for the latest contract on MCX are trading up by 0.6% at Rs 51,043 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading up by 2.4% at Rs 56,127 per 1 kg.

Of late, gold price is falling while silver isn't far behind. Silver price is also falling as industrial demand for silver is under pressure while a stronger US dollar is adding to worries.

But the past two days data suggest that both these metals have started to recover.

So when will gold and silver prices recover?

Once the Fed signals an end to the rate hikes (or hints at it) and when investors are confident the US economy will emerge from the recession, that's when we see gold and silver prices recovering.

Here are four reasons why Indian share markets rallied today.

#1 Fed Rate Hike Outcome

Yesterday, the US Fed raised interest rate by 75 basis points to bring it to 2.25-2.5%. This was already expected.

The policy rate is now close to the Fed's estimate of the long-run or neutral rate 2.5%.

#2 Recession Fears Ease

Fed Chair Jerome Powell's comments dismissing chances of a recession and gave investors some relief.

Here's an excerpt of what he said,

  • I do not think the US is currently in a recession. And the reason is, there are just too many areas of the economy, performing too well.

#3 Strong Results from Index Heavyweights

Bajaj twins - Bajaj Finance and Bajaj Finserv both rallied over 9% today as they posted stellar set of earnings.

Bajaj Finance reported its highest ever quarterly profit while Bajaj Finserv approved bonus issue and stock split plan.

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#4 Rupee Factor

The rupee has been falling for quite some time now. But today, it appreciated. The rupee appreciated by 14 paise to 79.77 against the dollar, tracking overnight weakness in the greenback.

Rupee's appreciation often attracts FIIs as it adds to the return for foreign investors. Which brings us to our final reason.

#5 FII Flow

This month's FII outflows have been very less at Rs 13.7 bn compared with Rs 502 bn of outflows in June 2022 and Rs 399.9 bn outflows in May 2022.

With this short recovery, investors' nerves have calmed. But it remains to be seen when the stock market will fully recover.

In news from the steel sector, Tata Steel was among the top buzzing stocks today.

Share price of Tata Steel surged more than 5% today after the stock turned ex-date for subdivision of shares in a ratio of 1:10.

Tata Steel's board of directors had approved a proposal of sub-division of the equity shares. The rationale behind Tata Steel stock split was to enhance the liquidity in the capital market, and to widen shareholder base.

Did you know, Tata Steel is among the top dividend paying companies in India?

The Tata group's steel arm has distributed a hefty dividend of Rs 51 per share, resulting in a dividend yield of 4.7% in the financial year 2021-22. This number was higher than its 5-year average dividend yield of 2.5%.

The financial year 2022 was remarkable for the steel industry, where the entire sector reported its best financial performance. All of this was led by an upswing in the steel cycle, allowing steel companies to scale their businesses.

But now, the tables have turned, and metal stocks have taken a knock in recent months.

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Moving on to news from the electric vehicles sector, as per reports, the government is looking at floating its largest ever tender for procuring nearly 8,000 electric buses for state transport undertakings (STUs) across the country.

This is the second such tender which the government has announced. This is done to encourage STUs to replace ageing, polluting diesel buses with electric ones.

Earlier this year, Convergence Energy Services (CESL), the state-run company handling the acquisition of EVs for central and state government departments, floated a tender to procure 5,580 electric buses. The tender was valued at about Rs 55 bn.

Tata Motors won the majority of the contracts to supply about 5,000 buses under the scheme.

Note that the electric vehicle (EV) megatrend is a once in a century revolution, happening right in front of us.

The revolution has taken the auto sector by storm. All segments of the sector are ripe for disruption and India's top EV stocks are set to benefit from this shift.

Take a look at the chart below which shows the massive opportunity in the two-wheeler EVs.

chart

Here's what lead Smallcap Analyst at Equitymaster, Richa Agarwal wrote about this in one of the editions of Profit Hunter:

  • In the last five years, two-wheeler sales in India were around 2 crore units per year. Now the sector is cyclical and has been in the downturn for some time. So let's consider a moderate 5% growth for the next 10 years.

    By 2030, we are looking at 2-wheeler sales of 3 crore units. Even if one third of this is EV sales, that's 1 crore electric 2-wheelers per year.

    In the last 2 years, average electric 2-wheeler sales were 1.5 lakh units. From 1.5 lakh to 1 crore, that's a 66x opportunity in 2-wheeler EVs.

    This is an annual growth rate of 52% over next 10 years. It's an almost vertical growth opportunity.

As per Richa, this is like a gold rush. But like in any gold rush, the winners will just be a few.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Zooms 1,000 Points; IT, Metal & Finance Stocks Surge
01:30 pm

Sensex Zooms 1,000 Points; IT, Metal & Finance Stocks Surge

Share markets in India have extended early gains and are presently trading on a strong note.

Benchmark indices firmed up in afternoon deals and surged to two-month highs as Bajaj Finance posted stellar results and rallied 9%.

Another factor behind today's rally is the interest rate hike. The US Federal Reserve hiked rates on expected lines yesterday.

The US Fed's 0.75 percentage point hike in interest rates, and Fed Chair Jerome Powell's comments dismissing chances of a recession gave investors some relief.

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Global markets are also in an upbeat mood. Asian share markets opened higher after the Fed's indication on pace of interest rate hikes. While US markets had rallied overnight with Dow Jones rallying 1.4% and the Nasdaq surging over 4%.

A weaker rupee further added to gains. The rupee was falling but today, it appreciated 14 paise to 79.77 against the dollar in early trade.

Currently, the BSE Sensex is trading up by 913 points, up 1.7%, at 56,700 levels.

Meanwhile, the NSE Nifty rose above the 16,850-mark and is presently trading up by 248 points.

Bajaj Finance is leading with gains post stellar Q1 results.

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Bajaj Finserv also surged 9% after it reported results and its board approved bonus issue and stock split plan.

Tata Motors share price slipped 3% before recovering as the EV company's Q1 loss widened.

In his latest video, Chartist Brijesh Bhatia talks about cement stocks and explains why it could be the best sector for long term investment.

More details to follow in the upcoming commentary.


Sensex Zooms 750 Points, Nifty Above 16,850; Bajaj Twins Rally 9%
10:30 am

Sensex Zooms 750 Points, Nifty Above 16,850; Bajaj Twins Rally 9%

Asian share markets opened higher today, after the Federal Reserve indicated the bank's pace of interest rate hikes could begin to slow down.

The Nikkei traded flat, while the Hang Seng was down by 0.1%. The Shanghai Composite is trading higher by 0.5%.

Technology companies led a broad rally for stocks on Wall Street Wednesday as investors welcomed another interest rate hike by the Federal Reserve as sign the central bank is ratcheting up its campaign to fight surging inflation.

In a widely expected move, the central bank raised its key interest rate by three-quarters of a point (75 bps).

The Dow Jones rose by 1.4% while the tech heavy Nasdaq was up 4.1%

Back home, Indian share markets are trading on a strong note.

Benchmark indices opened higher today following the trend on SGX Nifty. Soon as the session progressed, gains were extended.

At present, the BSE Sensex is trading higher by 741 points. Meanwhile, the NSE Nifty is trading up by 204 points.

Bajaj Finance and Bajaj Finserv are among the top gainers today.

Sun Pharma and Ultratech Cement are among the top losers today.

Bajaj twins rallied up to 10% today after Bajaj Finance posted stellar results and Bajaj Finserv announced stock split recently.

Tanla share price is in focus after it announced its Q1 results. Tanla share price is falling dramatically on the bourses post the result announcement.

Meanwhile, Zomato share price, after falling for the past couple of days, is trading in green today.

Broader markets are trading on a positive note. The BSE Mid Cap index is up by 0.6% while the BSE Small Cap index is trading higher by 0.6%.

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Sectoral indices are trading on a positive note with the exception of health care sector.

Stocks in the finance and IT sector witness most of the buying.

Chartist Brijesh Bhatia believes it's a good time to buy the dip in IT stocks.

Blue Dart Express and Page Industries hit their 52-week highs today.

Since you're interested in high flying stocks, check out our guide on how to pick the best multibagger stocks in 2022.

In the commodity markets, gold prices rally. Today, gold prices are up by Rs 197 trading at Rs 50,917 per 10 grams.

Note that gold prices have fallen and have taken quite a knock in recent weeks.

Meanwhile, silver prices are trading higher at Rs 56,042 per kg. Silver price too have fallen a lot in recent days.

Lately, gold prices have been knocked off. There are a lot of reasons as to why gold price is falling. Some of the reasons are higher interest rates, easing inflation, etc.

Gold is back down to the prices of May - June 2020. Let us take a look at how gold has performed since January 2020.

 

The falling trend begs the question is time to buy gold?

The rupee is trading at 79.76 against the US dollar.

The rupee fell and closed at 79.84 against the US$ yesterday.

As the rupee depreciates, check out these five companies which stand to gain big from a weakening rupee.

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After getting a bird's eye view of the market, do you want to get a full analysis on how the markets will perform today? You know how the market started but do you want to know how the markets will close today?

In the below video, Brijesh Bhatia does a complete analysis of today's market.

Tune in to the below video to know more.

In news from the auto sector, Tata Motors posted its Q1 results.

On Wednesday, auto major Tata Motors reported a consolidated net loss of Rs 50.1 bn for the April-June quarter. It reported consolidated net loss of Rs 44.5 bn in the year-ago period.

The passenger vehicle giant's consolidated revenue jumps 8% to Rs 7.2 bn as against Rs 6.6 bn from a year-ago period.

Analysts had expected the auto major to report a consolidated net loss of Rs 12.6 bn during the June quarter.

The EBIT margin has decreased to 4.4%, reflecting lower wholesales, and weaker product mix.

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British arm JLR saw a 11.3% YoY drop in sales at 4,406 m pounds. The company said that retail sales for JLR in the quarter under review were 78,825 vehicles, broadly flat compared with March quarter and down 37% compared with the year-ago period.

Sequentially, JLR revenues were down 7.6%, impacted by supply challenges including semiconductor shortages, slower than expected ramp-up of the New Range Rover and New Range Rover Sport production and China lockdowns.

Tata Motors has been in the news for making the most of the EV opportunity. EVs are the next big thing in the auto sector and Tata Group is making sure that the make the most of the opportunity. An investor should be aware of how the Tata Group is riding India's EV revolution.

Further in news from the FMCG sector, Colgate-Palmolive India posted its Q1 results.

Oral care company Colgate Palmolive (India) on July 27 clocked a profit after tax of Rs 2.1 bn for the quarter ended June 2022, down 10.1% YoY with rural slowdown and inflationary pressures hitting the performance. Profit in the year-ago quarter stood at Rs 2.3 bn.

The company's revenue for the June quarter came in at Rs 11.9 bn, up 2.6% from Rs 11.7 bn in the corresponding period of the last fiscal.

The company reported exceptional expenses of Rs 93.4 m in the June quarter with respect to certain organisational structure changes.

At the operating level, EBITDA declined 8.3% YoY to Rs 32.6 m for the quarter ended June 2022 and the margin contracted to 27.2% against 30.5% in the year-ago period. The gross margin fell 291 bps YoY to 70.6%.

The financial statements portray a bad picture right now, but do you know that Colgate is one of the 5 ROE companies?

In news from the IT sector, Tata Consultancy Services (TCS) has big news for its investors.

TCS rose 1.2% to Rs 3,153.9 after the company said that it had helped Marks and Spencer (M&S) digitally transform its HR function and align its future business goals and HR strategies.

M&S was looking to adopt innovative technology solutions to enable simpler and harmonised business operations and HR processes, and offer world-class employee experiences.

As part of the programme, TCS migrated 27 million records of M&S employees working across 1,450 locations in the UK, and enabled seamless, secure data connects across the landscape.

In 2022, all IT stocks were falling and so was TCS. TCS share price was falling until now but this news has finally brought good news for investors.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Up 120 Points, Tata Motors Q1 Results, Zomato's Share Allotment amid the Selloff, and Top Buzzing Stocks Today
Pre-Open

Tata Motors Q1 Results, Zomatos Share Allotment amid the Selloff, and Top Buzzing Stocks Today

On Wednesday, Indian share markets ended on a strong note even as caution prevailed in other Asian peers ahead of the US Federal Reserve's policy statement.

Benchmark indices ended higher in yesterday's volatile session as heavyweight technology stocks gained.

At the closing bell on Wednesday, the BSE Sensex stood higher by 548 points (up 1%).

Meanwhile, the NSE Nifty closed higher by 158 points (up 1%).

Sun Pharma, SBI, and L&T were among the top gainers.

Bharti Airtel, Kotak Mahindra Bank, and NTPC, on the other hand, were among the top losers.

Vedanta share price fell in early trade yesterday on the growing concerns about a possible recession in parts of the world.

The broader markets ended on a strong note. The BSE MidCap climbed higher by 0.9% and the BSE SmallCap index ended higher by 0.4%.

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Barring telecom sector, all sectoral indices ended on a firm note yesterday with stocks in the IT sector, healthcare sector, banking sector, and capital goods sector witnessing most of the buying.

At 8:10 AM today, the SGX Nifty was trading up by 120 points or 0.8% higher at 16,760 levels.

Indian share markets are headed for a firm opening today following the trend on SGX Nifty.

Shares of ITC and Adani Enterprises hit their 52-week highs.

Since you're interested in high flying stocks, check out our guide on how to pick the best multibagger stocks in 2022.

Also, check out the 5 stocks paying out big dividends in August 2022.

Reliance Industries, Infosys, and Maruti Suzuki were amongst the most active shares on the BSE yesterday.

If you're interested in knowing which shares to trade, read our guide on the best intraday stocks for today.

Restricting the fall in rupee, it was trading at 79.87 against the US$, at the time of Indian market closing hours yesterday.

As the rupee depreciates, check out these five companies which stand to gain big from a weakening rupee.

Gold prices for the latest contract on MCX were trading up by 0.2% at Rs 50,667 per 10 grams, at the time of Indian market closing hours yesterday.

Meanwhile, silver prices for the latest contract were MCX are trading up by 0.4% at Rs 54,916 per 1 kg, at the time of Indian market closing hours yesterday.

Of late, gold price is falling while silver isn't far behind. Silver price is also falling as industrial demand for silver is under pressure while a stronger US dollar is adding to worries.

Speaking of stock markets, chartist Brijesh Bhatia does a complete analysis of today's market and what to expect today, in the video below

Top Buzzing Stocks Today

Zomato share price will be among the top buzzing stocks today.

The food delivery player has allotted 46.5 m equity shares from its ESOP (employee stock option plan) pool at an exercise price of 1 rupee.

Zomato rose yesterday, after two days of heavy declines. In the previous two sessions, Zomato share price fell big time as IPO lock-in period ended.

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Despite an exuberant listing last year, Zomato has underperformed peers on a year-to-date basis.

Read our recent editorial to know how 2021's most popular stocks have fared in 2022 so far.

Telecom services companies like Bharti Airtel and Vodafone Idea share price will also be in focus today.

The Union Cabinet has cleared the merger of Bharat Broadband Network Limited (BBNL) into the state-owned telecom operator Bharat Sanchar Nigam Limited (BSNL).

With the merger, BSNL will get an additional 0.57 m km of optical fibre which has been laid across 185,000 village panchayats in the country using the Universal Service Obligation Fund (USOF).

In addition, the Union Minister Ashwini Vaishnaw also announced a revival package of Rs 1.65 tn for BSNL.

Elements of the revival package include: advancement of services and its quality, destressing balance sheet of BSNL, and expanding BSNL optical fibre network

On the other hand, the government has raised Rs 1.49 tn so far from the auction of 5G spectrum which is continuing.

5G is here, here's how you can play it.

Market participants will also track shares of Bajaj Finserv, Dr Reddy's Laboratories, and Nestle India as these companies are set to announce their Q1 results later today.

Tata Motors Q1 results

Tata Motors reported a widening of consolidated net loss at Rs 50.1 bn for the June quarter compared with Rs 10.3 bn in March 2022 and Rs 44.5 bn in the year-ago June quarter.

This is even as consolidated revenue for the quarter rose 8.68% year-on-year (YoY) to Rs 712.3 bn from Rs 655.4 bn in the year-ago quarter.

British arm JLR reported a 11.3% YoY drop in sales at GBP 4,406 m.

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Tata Motors said retail sales for JLR in June quarter were 78,825 vehicles, broadly flat compared with March quarter and down 37% compared with the year-ago quarter.

JLR revenues were down 7.6% sequentially, impacted by supply challenges including semiconductor shortages, slower than expected ramp-up of new model production, and China lockdowns.

As far as the Tata's passenger vehicle segment is concerned, revenues came in at Rs 115.6 bn, up 122.5%. EBITDA for this segment came in at 6.1%.

To know more, check out Tata Motors' latest news and analysis.

Genesys International, Tech Mahindra partners with Google

Google Maps has launched Street View in India in collaboration with Tech Mahindra and Genesys International.

This is the first time that Street View services will be completely handled by local partners.

The service for a 360-degree view of streets, tourist spots, and landmarks could not be launched in India before because of regulatory hurdles.

Street View will be available on Google Maps with imagery licensed from the local partners and covering over 150,000 km across ten cities: Bengaluru, Chennai, Delhi, Mumbai, Hyderabad, Pune, Nashik, Vadodara, Ahmednagar, and Amritsar.

Google, Genesys International, a mapping and geospatial company, and Tech Mahindra plan to expand the service to more than 50 cities by the end of 2022.

Despite being a 'Digital India' stock, Tech Mahindra shares have fallen over 40% in 2022 so far.

Note that IT stocks are falling in 2022 due to recent global crisis and fears of a recession.

The IT index has corrected over 30% from its all-time high of 39,446, raising the question - is it time to buy the dip in IT stocks?

To know what's moving the Indian stock markets today, check out the most recent share market updates here.