The domestic equity benchmarks continued to trade with moderate gains in the mid-morning trade. The Nifty traded above the 17,450 mark. IT shares extended gains for the third consecutive trading session.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 287.61 points or 0.49% to 58,586.41. The Nifty 50 index gained 78.30 points or 0.45% to 17,460.30.

In the broader market, the S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index added 0.78%.

The market breadth was strong. On the BSE, 2,021 shares rose and 1,118 shares fell. A total of 144 shares were unchanged.

Economy:

On the basis of an assessment of the current and evolving macroeconomic situation, 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 also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. These decisions are in consonance with the objective of achieving the medium term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

Buzzing Index:

The Nifty IT index rose 0.78% to 30,016.10, extending its winning run for the third consecutive session. The index advanced 3.42% in three trading sessions.

Wipro (up 1.46%), Infosys (up 1.26%), L&T Technology Services (up 1.22%), Coforge (up 0.99%), Mphasis (up 0.95%), Tech Mahindra (up 0.7%), Mindtree (up 0.6%), Larsen & Toubro Infotech (up 0.39%), HCL Technologies (up 0.35%) and Tata Consultancy Services (up 0.34%) jumped.

Stocks in Spotlight:

Berger Paints India rose 0.54% 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.

Thomas Cook (India) jumped 6.05% after the company's consolidated net loss narrowed to Rs 5.87 crore in Q1 June 2022 as against net loss of Rs 83.43 crore in Q1 June 2021. Net sales surged 238.9% year-on-year to Rs 976.17 crore in Q1 June 2022. Net sales jumped 86.98% compared with Q4 FY22 (QoQ).

Global Markets:

Most Asian stocks are trading higher on Friday as investors look ahead to the 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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