The key equity benchmarks continued to trade with decent gains, amid bouts of volatility, in early afternoon trade. The Nifty traded tad above the 17,450 mark. FMCG shares rose for second consecutive session.
At 12:23 IST, the barometer index, the S&P BSE Sensex, was up 279.58 points or 0.48% to 58,578.38. The Nifty 50 index gained 73.90 points or 0.43% to 17,455.90.
In the broader market, the S&P BSE Mid-Cap index rose 0.39% while the S&P BSE Small-Cap index added 0.72%.
The market breadth was strong. On the BSE, 2,010 shares rose and 1,209 shares fell. A total of 148 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.”
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 1.77% to 18.92. The Nifty 25 August 2022 futures were trading at 17,478.50, at a premium of 22.6 points as compared with the spot at 17,455.90.
The Nifty option chain for the 25 August 2022 expiry showed maximum Call OI of 22.7 lakh contracts at the 18,000 strike price. Maximum Put OI of 24 lakh contracts were seen at 16,500 strike price.
Buzzing Index:
The Nifty FMCG index rose 0.53% to 43,058.25. The index has added 1.01% in two sessions.
Varun Beverages (up 3.6%), Godrej Consumer Products (up 2.88%), Emami (up 1.38%), Colgate-Palmolive (India) (up 0.94%) and United Spirits (up 0.78%) were the top gainers.
Among the other gainers were Procter & Gamble Hygiene and Health Care (up 0.69%), Hindustan Unilever (up 0.56%), Dabur India (up 0.53%), ITC (up 0.36%) and United Breweries (up 0.34%).
On the other hand, Marico (down 2.12%), Britannia Industries (down 0.67%) and Tata Consumer Products (down 0.25%) turned lower.
Stocks in Spotlight:
Manappuram Finance's consolidated net profit tumbled 35.4% to Rs 282.08 crore on 4.5% decline in total income to Rs 1,502.73 crore in Q1 FY23 over Q1 FY22.
Balkrishna Industries tumbled 6.37% to Rs 2172.05 after the company reported 3% fall in standalone net profit to Rs 320 crore despite a 21% increase in revenue from operations to Rs 2,646 crore in Q1 FY23 over Q1 FY22.
Adani Enterprises' consolidated net profit jumped 72.9% to Rs 469.46 crore in Q1 FY23 as against Rs 271.46 crore in Q1 FY22. Net sales in the first quarter stood at Rs 40,844.25 crore, surged 224.7% from Rs 12,578.77 crore reported in the same period last year.
Bayer CropScience jumped 3.87% to Rs 5485.05 after the company's net profit rose 19.3% to Rs 302.60 crore on 17.8% rise in net sales to Rs 1667.40 crore in Q1 June 2022 over Q1 June 2021.
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