Stock Market Today(28 July): Sensex surges 1,041 factors, Nifty settles above 16,900-mark led by Bajaj twins

Today’s Market Today(28 July, 2022): The benchmark fairness indices on the BSE and National Stock Exchange (NSE) continued their successful momentum for the second straight day and rallied over 1.5 per cent on Thursday amid rally in monetary, banking and data know-how (IT) shares amid constructive cues within the international market which had been up following the end result of the US Federal Reserve’s coverage.

The S&P BSE Sensex settled at 56,857.79, up 1,041.47 factors (1.87 per cent) whereas the Nifty 50 surged 287.80 factors (1.73 per cent) to finish at 16,929.60. Both the indices had opened round 1 per cent larger earlier within the day and prolonged beneficial properties because the session progressed with the Sensex hitting a excessive of 56,914.22 and the broader Nifty touching 16,947.65 in the course of the intraday commerce.

On the Sensex pack, Bajaj twins – Bajaj Finance and Bajaj Finserv rallied over 10 per cent in the back of strong Q1 outcomes. They had been adopted by Tata Steel, Kotak Mahindra Bank, IndusInd Bank, Infosys, Tech Mahindra, Nestle India and Asian Paints.

All sectoral indices on the NSE ended larger on Thursday. The Nifty IT surged 2.81 per cent, Nifty Financial Services rallied 2.37 per cent and the Bank Nifty climbed 1.62 per cent.

In the broader market, the S&P BSE MidCap index ended at 23,811.48, up 221.34 factors (0.94 per cent) whereas the S&P BSE SmallCap settled at 26,689.31, up 171.51 factors (0.65 per cent). On NSE, the volatility index or India VIX declined 6.16 per cent to 17.01.

“US Fed hiked the policy rates by 75 bps which was on expected lines and largely factored in by the market. Moreover the tone of Fed’s chairman was less hawkish compared to previous statement which receded some fears and uplifted the sentiments. Going ahead, the rate hikes would be more data driven and would be determined by the behaviour of inflation. Fed chairman ruled out US recession possibility also at this juncture. We expect it to have positive rub off on the RBI MPC where the latter might slow down its aggression and hike rates by 25 bps in its next MPC,” stated Siddhartha Khemka, Head-Retail Research at Motilal Oswal Financial Services.

Vinod Nair, Head of Research at Geojit Financial Services stated, “Positive cues from global markets following the Fed policy outcome, as well as domestic large caps’ upbeat earnings, drove the market rally. The Fed’s decision was as expected, while their positive comment dismissing the possibility of a recession and hinting at a slower pace of rate hikes in the coming months boosted global sentiments. As a result, the Indian rupee strengthened, potentially attracting foreign funds into the domestic market. Domestic investors are now bracing for the RBI’s MPC meet next week expecting a rate hike by 25-50 bps.”

Global Markets (from Reuters)

World shares consolidated a 6-week excessive on Thursday as traders scented a attainable slowdown within the tempo of US charge hikes that had comforted bond markets and despatched the greenback to a three-week low on the yen. Europe made an upbeat begin as record-busting $11.5 billion income from oil big Shell despatched commodities shares hovering, though momentum shortly pale forward of what was anticipated to be some shaky euro zone confidence information later.

Just the trace of a much less aggressive Fed although had been sufficient to ship MSCI’s 47-country index of world shares up 0.4 per cent, placing it firmly heading in the right direction for its first back-to-back run of weekly beneficial properties since March. With Europe now going through a gasoline disaster, and more and more doubtless a recession based on economists, the STOXX 600 stalled after rising as a lot as 0.5 per cent. The FTSE and DAX each slipped into the pink though Italy’s FTSE MIB remained 1 per cent larger.

In Asia, Japan’s Nikkei had added 0.4 per cent regardless of a bounce from the yen. South Korea climbed 0.8 per cent though Chinese blue chips misplaced traction late on having been brightened earlier within the session by experiences Beijing was planning extra help for a hard-hit property sector.

Wall Street additionally regarded set to take a post-Fed breather, with S&P 500 futures 0.2 per cent decrease and Nasdaq futures down 0.5 per cent, after the tech-heavy index had loved its greatest each day acquire since April 2020 on Wednesday.