PremiumFinancials and auto firms helped Indian shares end higher on Friday, with the blue-chip indexes registering their first weekly gain in three, as a slide in commodity prices offered some respite from broadening inflationary pressures. Shares were higher in Europe and Asia on Friday despite data suggesting some economies are slowing. Shares rose in Japan, Australia, Hong Kong, Shanghai, and South Korea.
Indian indices on Friday closed higher, led by good buying support in telecom, financial and auto stocks.
The Sensex gained 462.26 points, or 0.88%, to close at 52,727.98, while Nifty50 added 142.60 points to end at 15,699.25. Sectorally, telecom, bank, auto, and financial stocks performed well, while IT stocks dragged.
On the 30-stock index, M&M, Bajaj Finance, IndusInd Bank, and HUL were the top performers, while TechM, Infosys, TCS, and HCL were among the biggest losers.
On the Nifty50 index, M&M, Hero MotoCorp, and IndusInd Bank registered the biggest gains, while TechM, Infosys, and Apollo Hospitals were the biggest laggards.
The US dollar slipped on Friday and headed for its first weekly decline of June as traders dialled down bets on where interest rates might peak and brought forward the timing of rate cuts to counter a possible recession.
A significant shift this week has been the fall in oil and commodity prices, which has eased inflation fears and allowed equity markets to rebound. This has eroded the safe-haven bid that's been boosting the greenback against major currencies.
Crude oil futures on Friday declined by 0.54 per cent to ₹8,178 per barrel as participants trimmed their positions on low demand.
On the Multi Commodity Exchange, crude oil for July delivery fell by ₹44 or 0.54 per cent to ₹8,178 per barrel with a business volume of 3,881 lots.
Globally, West Texas Intermediate crude oil was trading 0.09 per cent lower at USD 104.36 per barrel and Brent crude was 0.04 per cent down at USD 110.09 per barrel in New York.
Gold prices on Friday fell by ₹46 to ₹50,548 per 10 grams in futures trade as speculators reduced their positions.
On the Multi Commodity Exchange, gold contracts for August delivery traded lower by ₹46 or 0.09 per cent at ₹50,548 per 10 grams in a business turnover of 12,159 lots.
Analysts attributed the fall in gold prices to the trimming of positions by participants.
Globally, gold was trading 0.32 per cent lower at USD 1,823.90 per ounce in New York.
Cottonseed oil cake prices on Friday declined by ₹3 to ₹2,597 per quintal in futures trade as participants reduced their bets tracking a weak trend in spot market.
On the National Commodity and Derivatives Exchange, cottonseed oil cake for July delivery fell by ₹3 or 0.12 per cent to ₹2,597 per quintal with an open interest of 78,700 lots.
Analysts said sell-off by participants at existing levels amid subdued trend in market mainly weighed on cottonseed oil cake prices.
Copper futures on Friday fell by ₹4.85 to ₹693.40 per kilogram as participants cut their positions amid muted demand in domestic market.
On the Multi Commodity Exchange, copper contracts for July delivery eased by ₹4.85 or 0.69 per cent to ₹693.40 per kg in a business turnover of 5,507 lots.
Analysts said trimming of positions by speculators amid muted demand in spot market mainly dragged down copper prices in the futures trade.
Shares were higher in Europe and Asia on Friday despite data suggesting some economies are slowing.
U.S. futures also advanced after a rally Thursday on Wall Street, where the market is headed for its first weekly gain after three weeks of punishing losses.
Market players are looking ahead to U.S. inflation data due next week and hoping that the moderation in prices of oil and some other commodities this week is a sign inflation might be abating.
Rating: BUY | CMP: Rs354 | TP: Rs435
LIC Housing Finance (LICHF) saw a good quarter with a positive surprise on PAT led by beat on all fronts barring loan growth, that was a miss as volumes were impacted due to third covid wave. The company guided that disbursals could grow by 15% in FY23 and builder loans could see an uptick that might contribute 5-10% to credit flow. NII was ahead due to higher NIM driven by lower funding cost. Benefit of borrowing cost could continue, that might cushion NIM considering that fixed rate liabilities contribute 53% and interest rates could harden. Asset quality improved with GNPA/NNPA reducing QoQ by 40bps each led by better recoveries. LICHF performed well in H2FY22 while valuation at 0.8x is attractive. We maintain multiple at 1.0x FY24 ABV but slightly raise TP to Rs435. Upgrade from ACCUMULATE to BUY.
Global equity investors may be excited to see green on their screens this week but stock gains seem to be a function of a stronger shift toward defensives rather than a full-throated risk-on roar.
A Goldman Sachs Group Inc. index of defensive stocks including megacap tech and healthcare names has climbed to more than an 18-month high relative to the MSCI AC World Index, as fears of a global recession outweigh concern over sky-high inflation. The gauge has jumped over 4% this week, double the rise in the global stocks benchmark -- itself on track for its first weekly gain in four.
Investors are beginning to consider the consequences of a Federal Reserve that seems willing to hike the world’s largest economy into recession to defeat inflation. Chair Jerome Powell has called his commitment to curbing price rises “unconditional," giving a boost to havens like Treasuries this week and providing a fresh impetus for defensives to outperform.
India's retail inflation is likely to breach the mandated inflation target band of 2-6% for three straight quarters but is showing indications of peaking, the Reserve Bank of India (RBI) deputy governor Michael Patra said on Friday.
A day after the central government revised its fiscal deficit target for FY2023 and stated it will limit it to the current year's numbers Senior Congress leader P Chidambaram criticised the government over the state of the Indian economy, asking if it was in the "pink of health" over high fiscal deficit, inflation, and the depreciating value of the rupee.
Reserve Bank Deputy Governor Michael D Patra on Friday said the Central Bank will not allow "jerky movements" of Rupee and stressed that the Indian currency has witnessed least depreciation in recent times.
Once seen as an attractive inflation hedge due to its limited supply, the ongoing turmoil in cryptocurrencies is likely to make investors sceptical about it.
Multibagger stocks: Adani Green Energy shares have delivered stellar 6,200 per cent return in last 10 years
Stocks rose in Asia on Friday following another rally on Wall Street as investors try to process central bank moves to fight soaring inflation and the growing possibility that those measures will induce a recession.
Global markets have been thrown into turmoil for months by a perfect storm of crises that have left observers predicting a sharp contraction, including the Ukraine war, China's lockdown-induced economic troubles, supply chain snarls and spiking energy costs.
Expectations that the Federal Reserve and other central banks will have to keep lifting rates have left many traders fretting that the pain could go on for some time, with sovereign bond yields -- key gauges to future rates -- continuing to climb.
Oil prices edged higher amid a volatile trading session on Friday, as supply uncertainty outweighed fears of slower demand from cooling U.S. economic activity.
Brent crude futures climbed 31 cents, or 0.3%, at $110.36 a barrel by 0630 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 59 cents, or 0.6%, at $104.86 a barrel.
European stocks rebounded at the open Friday following another week of heavy losses for markets, including oil, on heightened fears of a global recession.
London's benchmark FTSE 100 index gained 0.4 percent to 7,047.11 points, with investors brushing aside bruising defeats for Britain's ruling Conservatives in by-elections Thursday.
The pound was little changed against the dollar and euro, also despite data showing a drop in UK retail sales volumes as inflation soars.
In the eurozone, Frankfurt's DAX index won 0.3 percent to 12,947.75 points and the Paris CAC 40 gained 0.7 percent to 5,922.45.
The Central government is reportedly going to become the biggest shareholder of debt-ridden Vodafone Idea Limited, according to CNBT-TV18. The Centre may hold 33% around in the company and become the single largest shareholder in the third-largest telco in the country, as per the business news channel.
Jet Airways began its operational hiring and asked its former cabin crew members to rejoin the airline.
As surging inflation and the end of global easy-money policies send Indian stocks spiraling down from all-time highs, three charts show the pain is unlikely to end anytime soon.. The selloff comes as climbing costs and a record plunge in the rupee have forced the nation’s central bank to join global peers in raising interest rates.
The US dollar slipped against its major peers on Friday, on course for its first weekly decline this month as investors continue to assess the path for Federal Reserve policy and whether aggressive rate hikes would trigger a recession.
The safe-haven currency also lost support amid improved market sentiment, which saw regional stock markets rise and buoyed riskier currencies like the Australian and New Zealand dollars.
The dollar index, which measures the greenback against six rivals, sank 0.2% to 104.19 in Asia. That undid the previous day's 0.19% rise, which was driven mostly by a decline in the euro after weak European factory data reduced bets for European Central Bank tightening.
Shares of Nazara Technologies rallied about 20% to ₹623 apiece on the BSE in Friday's trading session as the stock started trading ex-bonus ahead of its record date for the bonus shares issue. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.
Dividend paying stock REC Ltd is going to consider issuance of bonus shares on 30th June 2022. In its meeting on 30th June 2022, board of directors of REC Limited will consider the proposal for issue of bonus shares to the equity shareholders of the company. The board is expected to decide ratio of bonus shares in this meeting as well. Bonus shares, if approved, will be another good news for shareholders as the company has already given interim dividend of ₹6 per equity share for the financial year 2022.
The selling in Nifty has shown signs of slowing down this week, with the index consolidating within a 500-point range since Monday. In doing so, Nifty is now forming an inverse Head and Shoulder pattern on the hourly chart, which is a bullish pattern. The neckline of this pattern is placed near 15630-15650 levels. If the index sustains above this zone, the recovery could extend towards 15900-16170 in the next few sessions. On the downside, 15400-15370 now becomes the immediate support zone for Nifty.
Gold and silver prices in India struggled today amid weak global cues. On MCX, gold futures declined to near two-week lows of ₹50,510 per 10 gram. Silver futures were marginally higher at ₹59,510 per kg. In global markets, gold rates were flat at $1,824.72 per ounce and remained on course for their second straight weekly decline. So far this week, gold prices have dropped about 0.9%, on worries of aggressive rate hikes by global central banks to counter runaway inflation. Among other precious metals, spot silver rose 0.4% to $21.02 per ounce but is set for weekly loss.
In cryptocurrencies, Bitcoin price today rose above $21,000 mark. The world's largest and most popular cryptocurrency rose more than 4% and was trading at $21,083. The global cryptocurrency market cap today was below the $1 trillion, and was up over 4% in the last 24 hours to $977 billion, as per CoinGecko.
As the saying goes, there is no easy money in this world, you must make effort to make money. In real estate investments too, it is possible to make money via smart tools and instruments.
Recovering from its record low, the rupee opened 12 paise up at 78.20 against the US dollar on Friday, tracking a pullback in crude oil prices.
At the interbank foreign exchange, the rupee opened at 78.20 against the American dollar. In initial trade, the local currency witnessed a high of 78.19 and a low of 78.24 against the US dollar.
The rupee on Thursday had closed at its all-time low of 78.32 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.16 per cent lower at 104.26.
Global oil benchmark Brent crude futures fell 0.21 per cent to USD 109.82 per barrel.
Financial stocks led Indian shares higher early on Friday, setting the blue-chip indexes on course for their first week of gains in three, as a slide in commodity prices tempered inflation fears.
The NSE Nifty 50 index rose 0.85% to 15,689.65, while the S&P BSE Sensex climbed 0.77% to 52,668.26. If gains hold, the blue-chip indexes are set to post weekly gains of over 2.5% each.
The Nifty Bank index rose as much as 1.7%, led by a 3.7% jump in private-sector lender IndusInd Bank.
Oil explorer ONGC climbed up to 4.6% after it said its unit made a new oil discovery in Colombia.
Global brokerage Jefferies is bullish on Nykaa shares (FSN E-Commerce Ventures Ltd) as it believes the company's outlook is strong across verticals, with focus on growth alongside financial discipline.
Stocks to buy today: After breakout in BSE Auto index last week, most of the auto majors are ascending at a faster rate this week. In last 5 sessions, Tata Motors share price has ascended over 6 per cent whereas shares of Maruti Suzuki has surged over 8 per cent in this period. M&M share price has shot up more than 4 per cent in last 5 sessions while TVS Motor share price appreciated to the tune of near 4.50 per cent in this time horizon.
Dividend paying small-cap company Salasar Techno Engineering Limited is going to turn ex-split stock next week. The board of directors of the company has fixed 28th June 2022 as record date for stock subdivision. The company board has already recommended stock split in 10:1 ratio after which its existing face value will change from ₹10 per equity share to Re 1 per equity share. The board of directors of the company has also approved raising of fund to the tune of ₹200 crore by way of a preferential allotment and/or through QIP, FCCB, ADRs. In May 2022, company board has recommended 10 per cent dividend for shareholders payable for financial year 2021-22.
A list of four stocks have been put under the ban for trade on Friday, June 23, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Rakesh Jhunjhunwala portfolio: After hitting new 52-week low, Tata Communications shares have bounced back and sustained above ₹880 support base. Tata Communications share price today is ₹905 on NSE, which is around 5 per cent higher from its 52-week low of ₹856 apiece levels. However, the stock is still 37 per cent down in YTD time that may attract positional investors scanning quality stocks available at discounted price.
Day trading guide for Friday: Despite fears of rising interest rates and recession across the globe, Indian stock market recovered from the early afternoon selloff on Thursday. Volumes on the NSE were in line with the recent average. Advance decline ratio jumped up to much above 1:1. Nifty 50 index ended 143 points higher at 15,556 whereas BSE Sensex surged 443 points and closed at 52,265 levels. Nifty Bank index shot up 289 points and closed at 33,135 levels.
World's biggest cryptocurrency exchange by trading volumes Binance, on Thursday said that it has signed a partnership with footballer Cristiano Ronaldo for the promotion of non-fungible tokens (NFTs).
Petrol, diesel prices today: Petrol and diesel prices continued to remain unchanged on Friday across major cities in the country. Oil marketing companies (OMCs) have kept fuel prices unchanged for over a month now. The government had earlier announced a reduction in excise duty on petrol and diesel by ₹8 and ₹6 per liter respectively, so that the price of petrol and diesel will be at least ₹9.5 and upto ₹7 cheaper. Since then no fluctuations have occurred and oil prices have remained steady for over a month.
Gold prices were steady on Friday, headed for their second straight weekly decline, with worries over major central banks potentially implementing big interest rate hikes to target runaway inflation weighing on appetite for bullion. Spot gold was flat at $1,823.20 per ounce by 0113 GMT, after hitting a one-week low of $1,820.99 earlier in the session. US gold futures fell 0.3% to $1,823.80. * Gold prices have dropped about 0.9% this week.
Oil prices rose slightly in early Asian trade on Friday as nations seek to address global crude oil and fuel supply tightness.
Brent crude futures rose 39 cents, or 0.4%, to $110.44 a barrel at 0012 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 37 cents, or 0.4%, to $104.31 a barrel.
OPEC and allied producing countries including Russia will likely stick to a plan for accelerated output increases in August in hopes of easing crude prices and inflation as U.S. President Joe Biden plans to visit Saudi Arabia, sources said.
The euro retreated against the dollar Thursday as economic data pointed to increased prospects of recession in Europe, while Wall Street stocks finished higher following another volatile session.
Tokyo's key Nikkei index was trading higher early Friday after Wall Street rallies, as investors weighed global inflation and recession risks.
The benchmark Nikkei 225 index was up 0.36 percent, or 94.03 points, at 26,265.28 about 20 minutes after the opening bell after floating between positive and negative territory.
The broader Topix index was down less than 0.0 percent, or 0.04 points, at 1,851.70.
Hong Kong stocks opened with more gains Friday morning, tracking a rally on Wall Street and putting the market on course for a healthy end to a broadly positive week.
The Hang Seng Index rose 0.83 percent, or 176.81 points, to 21,450.68.
The Shanghai Composite Index edged up 0.13 percent, or 4.24 points, to 3,324.39, while the Shenzhen Composite Index on China's second exchange added 0.15 percent, or 3.17 points, to 2,167.17.
Stocks shook off a midday slump and ended higher Thursday, keeping the market on track for its first weekly gain after three weeks of punishing losses.
Trading was wobbly throughout the day as investors remained focused on another round of testimony before Congress by Federal Reserve Chair Jerome Powell. Speaking before a House committee, Powell again stressed that the Fed hopes to rein in the worst inflation in four decades without knocking the economy into a recession, but acknowledged “that path has gotten more and more challenging."
The S&P 500 ended 1% higher after having been down as much as 0.4%. The Dow Jones Industrial Average rose 0.6% and the Nasdaq gained 1.6%.
Technology and health care stocks drove much of the rally, outweighing losses in energy and financial companies. Bond yields mostly fell. Oil prices also fell.
Trading has been turbulent in recent weeks as investors try to determine whether a recession is looming. The benchmark S&P 500 is currently in a bear market. That means it has dropped more than 20% from its most recent high, which was in January. The index has fallen for 10 of the last 11 weeks.
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