The benchmark indices ended near the day's high after a strong session on Thursday. The Nifty closed above the 16,900 mark. Shares across sectors advanced, with financials, IT and bank stocks gaining the most.

As per provisional closing data, the barometer index, the S&P BSE Sensex, jumped 1041.47 points or 1.87% to 56,857.79. The Nifty 50 index surged 287.80 points or 1.73% to 16,929.60.

In the broader market, the S&P BSE Mid-Cap index rose 0.94% while the S&P BSE Small-Cap index added 0.65%.

The market breadth was strong. On the BSE, 1,910 shares rose and 1,429 shares fell. A total of 140 shares were unchanged.

Investors cheered after the US Fed hinted at slowing down rate hikes going forward and rejected the speculation that the US economy is in recession.

Economy:

Union Cabinet has approved revival package of over Rs 1.64 Lakh crore for Bharat Sanchar Nigam (BSNL). It has also approved the merger of Bharat Broadband Network and BSNL.

Revival measures focus on infusing fresh capital for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fiber network by merging Bharat Broadband Nigam Limited (BBNL) with BSNL.

With these measures, BSNL will be able to improve the quality of existing services, roll out 4G services and become financially viable. It is expected that with the implementation of this revival plan, BSNL will turn-around and earn profit in FY 2026-27.

Earnings Impact:

Bajaj Finserv surged 10.46% after the company's consolidated net profit rose 57% to Rs 1,309 crore on a 14% rise in total income to Rs 15,888 crore in Q1 FY23 over Q1 FY22.

The board of Bajaj Finserv has approved 5-for-1 stock split and 1:1 bonus issue of shares. The company will split each equity share of face value Rs 5 each into Rs 1 each. Later it will issue one fully paid bonus equity share of the face value of Rs 1 each against one equity share of the face value of Rs 1 each. This is subject to shareholders' approval.

Tata Motors fell 0.15%. The auto major reported consolidated net loss of Rs 5,006.60 crore in Q1 FY23 as against a net loss of Rs 4,450.92 crore in Q1 FY22. Revenue from operations increased 8.3% YoY to Rs 71,935 crore during the quarter ended 30 June 2022.

Nestle India added 3.05%. The FMCG major reported a 4.32% decline in net profit to Rs 515.34 crore on 16.1% rise in revenue from operations to Rs 4,036.57 crore in Q2 CY22 over Q2 CY21. Total sales jumped 15.7% year on year to Rs 4,007 crore in Q2 CY22 against Q2 CY21.

Bajaj Finance zoomed 10.44% after the NFBC's consolidated net profit surged 158.99% to Rs 2,596.25 crore on 37.66% jump in total income to Rs 9,282.71 crore in Q1 FY23 over Q1 FY22.

Biocon tumbled 5.05%. On a consolidated basis, Biocon's net profit jumped 71% to Rs 144 crore on 23% increase in revenue to Rs 2217 crore in Q1 FY23 over Q1 FY22.

Home First Finance Company India advanced 3.18%. On a consolidated basis, the company's net profit jumped 46% to Rs 51 crore on 19.4% increase in total income to Rs 169 crore in Q1 FY23 over Q1 FY22.

Poonawalla Fincorp shed 0.90%. The company reported consolidated net profit of Rs 141 crore in Q1 FY23 as against a net profit of Rs 65 crore in Q1 FY22. Net interest income rose to Rs 398 crore in Q1 FY23 from Rs 284 crore in Q1 FY22.

Jubilant FoodWorks gained 1.26%. The QSR chain operator's standalone net profit soared 61.41% to Rs 100.96 crore on 41.1% surge in revenue from operations to Rs 1,240.27 crore in Q1 FY23 over Q1 FY22.

Dr. Lal PathLabs fell 1.81%. The company reported 56.8% drop in consolidated net profit to Rs 57.7 crore on a 17.1% fall in revenue from operations to Rs 502.7 crore in Q1 FY23 over Q1 FY22.

Dixon Technologies (India) fell 3.35%. The company reported a 151.7% surge in consolidated net profit to Rs 45.70 crore on 52.9% jump in net sales to Rs 2,855.07crore in Q1 FY23 over Q1 FY22.

United Breweries slipped 0.42%. The company's consolidated net profit surged 424.7% to Rs 162.09 crore on 117.8% increase in net sales to Rs 2,438.71 crore in Q1 FY23 over Q1 FY22.

Schaeffler India gained 3.72%. The company's net profit jumped 76.19% to Rs 225.75 crore on 41.85% rise in net sales to Rs 1748.83 crore in Q2 June 2022 over Q2 June 2021.

Global Markets:

Shares in Europe and Asia were trading higher on Thursday following the U.S. Federal Reserve's decision to raise rates by 75 basis points to fight inflation, a move that was widely expected.

US stocks rallied Wednesday after the Federal Reserve announced its much anticipated rate increase to fight inflation, but hinted that it could slow the pace of its hiking campaign at some point.

The Federal Reserve on Wednesday enacted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25%-2.5%. The increase takes the funds rate to its highest level since December 2018.

Powell said in a press conference that the Fed could hike by 0.75 percentage point again in September, but that it would be dependent on the data.

“As the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation,” he said.

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