Market closes higher, sugar stocks trade in the green
Trendlyne Analysis
Nifty 50 closed in the green with the volatility index, Nifty VIX, falling below 18.5%. Indian indices are up for three straight sessions. European indices traded mixed as investors look ahead to a speech by European Central Bank's President Christine Lagarde.
Major Asian indices closed in the green, tracking the US indices, which closed sharply higher on Thursday. US stocks rose as investors assess the measures taken by the US Federal Reserve to tackle high inflation without causing a recession. The tech-heavy index, NASDAQ 100 rose 2.2% while the Dow Jones closed 1.1% higher. Brent crude oil futures fell marginally after rising 4.5% on Thursday. Tight crude oil supply due to the geopolitical crisis, and fears of slow economic growth remain the key factors affecting the crude oil price.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Energy and Nifty Pharma closed higher than Thursday’s levels. Nifty IT closed in the green, tracking the NASDAQ 100, which rose 2.2% on Thursday.
Nifty 50 closed at 16,220.60 (87.7, 0.5%), BSE Sensex closed at 54,481.84 (303.4, 0.6%) while the broader Nifty 500 closed at 13,828.25 (62.7, 0.5%)
Market breadth is in the green. Of the 1,877 stocks traded today, 968 were gainers and 835 were losers.
Brightcom Group, Blue Star, Alkem Laboratories, and Sudarshan Chemical Industries are trading with higher volumes as compared to Thursday.
SRF sees a long build-up in its July 28 future series as its open interest rises 6.6% with put to call ratio of 0.74.
Brokerage Jefferies downgrades IT stocks as it expects a US recession to impact their revenues. Its top pick in Infosys among Indian listed IT companies.
Stocks like Cummins India, Ceat, Endurance Technologies, and Siemens are in the overbought zone according to the technical indicator relative strength index or RSI.
Power stocks like Power Grid, Tata Power, NTPC among others are rising. The broader BSE Power index trades in the green.
Dr Reddy's Laboratories gets a form 483 from the US FDA with two observations. The observations pertain to a pre-approval inspection at the company's Srikakulam manufacturing unit.
Varun Beverages and Siemens touch a life high of Rs 849.5 and Rs 2,692.7 respectively. Varun Beverages rises for two consecutive sessions while Siemens rises for three.
CLSA expects the risk-reward on Hindalco to be favourable as it believes that the stock’s underperformance is overplayed given the strong earnings of the company, according to reports. Hindalco’s foreign subsidiary Novelis’s performance remains stable even though the growth in the cans segment fell globally. The brokerage sees lower risk here, assuming there is an increase in Novelis’s profitability and volumes. It revises its target price to Rs 525 from Rs 580.
Capital goods stocks like Larsen & Toubro, Finolex Cables, Bharat Forge, Suzlon Energy, and ABB India, among others, are rising in trade. The broader sectoral index BSE Cap Goods is also trading in the green.
Krishna Institute of Medical Sciences is trading with more than six times its weekly average trading volume. Kalpataru Power Transmissions, Solara Active Pharma Sciences, India Cements and Vaibhav Global are trading at more than five times their weekly average trading volumes.
Craftsman Automation rises as the company expects business performance to improve driven by the recovery in offtake from the automobile sector over the medium term, according to the FY22 annual report.
Sugar stocks like Shree Renuka Sugars, EID Parry (India), Balrampur Chini Mills, Dalmia Bharat Sugar and Industries, Dwarikesh Sugar Industries, among others, are rising by more than 2% in trade, as the Centre extends the deadline for the export of sugar by two weeks to July 20.