Investors’ focus will be on macro data, which includes India’s retail inflation reading due later in the day, as well as the consumer price index from the United States on Wednesday.
A spike in inflation would keep central banks on the path of aggressive rate hikes.
Meanwhile, the Reserve Bank of India (RBI) said on Monday it was putting in place a mechanism for international trade settlements in rupees, which banks will need a prior approval to use.
The RBI’s move comes as the Indian rupee touches all-time lows amid continued foreign portfolio outflows from domestic stock markets and a broadly stronger greenback.
“The dominant factor influencing markets – equity, bond, currency and many commodities – is the sustained rise in the dollar which has gained momentum during the last one month. Dollar has appreciated 5 percent since early June and 13 percent so far in 2022. If this trend sustains, it is bad news for EM equity. But now it appears that this ‘flight to dollar safety’ is a bit overdone and due for some correction.” says Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In India, after TCS’ Q1 results indicating margin pressure for the industry, IT index has turned weak but valuations for the segment are now fair, he says. “The most resilient segment in the market now is Bank Nifty and the leading stock is ICICI Bank. This resilience of the banking segment is likely to continue. Autos, capital goods and some segments of FMCG also are on strong wicket,” he adds.
Highlights from trade:
- Rupee slides to new record low
- HFCL gains 8% on order win
- Spandana Sphoorty tanks over 8% after muted performance in Q4
- Bosch to invest over Rs 200 cr in next 5 years in India
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Bajaj Consumer Care and Varun Beverage surge even as rest of FMCG stocks decline
Price as on 12 Jul, 2022 01:57 PM, Click on company names for their live prices.
Market LIVE Updates: Shares of Eureka Forbes jumped over 14 per cent in Tuesday’s early trade after the company named Pratik Pota as CEO and MD of the company. In a filing to the exchanges, the company said, in the meeting held on July 11, 2022, the board has approved the appointment of Pratik Pota as Managing Director and Chief Executive Officer of the company, for a term of 5 years with effect from August 16, 2022, subject to the approval of shareholders.
Price as on 12 Jul, 2022 01:53 PM, Click on company names for their live prices.
Debt mutual funds see Rs 92,248-cr outflow in June on uncertain macro environment
- Mutual funds focused on investing in fixed-income securities witnessed a heavy outflow of Rs 92,248 crore in June on uncertain macro environment, driven by expectations around an increasing rate cycle, higher commodity prices and slowdown in growth.
- This comes following a net outflow of Rs 32,722 crore in May and an inflow of Rs 54,756 crore in April, data available with Association of Mutual Funds in India (Amfi) showed.
- Out of the 16 fixed-income or debt fund categories, 14 witnessed net outflows during the month under review. The heavy withdrawal was seen from segments, such as overnight, liquid and ultrashort-term duration funds.
We expect a subdued 1QFY23 for pharma companies, owing to continued US generic price erosion, high Covid-led domestic base for most companies, RM inflation and higher freight costs. To compensate for the above factors, INR depreciation will provide some relief. In the US, there have not been any meaningful new launches this quarter. Ex-Covid, we expect domestic growth for the sector to be 10-12% yoy.We expect a sequentially improved performance of India hospitals business, led by higher domestic and international footfalls, post a slightly subdued 4QFY22 due to Omicron impact. However we note that IP and OP volumes are yet to completely revert to pre-Covid levels. We note that Q1FY23 performance is unlikely to be as strong as Q3FY22, which benefitted from a superior case mix, as well as higher footfalls, due to pent-up demand. For the diagnostic companies, we expect sequential recovery of non-Covid volumes, given Covid sales will slip qoq. We expect non-Covid realizations per patient to be largely flattish qoq. For DLPL and METROHL, we expect partial benefit of accrual of synergies from the Suburban and Hitech acquisitions, respectively.”
– Purvi Shah, DVP (Fundamental Research), Kotak Securities
Gamestop Launches NFT Marketplace
MRPL board meeting on July 15. The meeting of the Board of Directors of Mangalore Refinery and Petrochemicals has been scheduled for Friday, 15th July, 2022 to discuss/decide way forward for complying with minimum public shareholding requirements by issue of further public offer, preferential issue, qualified institutions placement etc.
Price as on 12 Jul, 2022 01:14 PM, Click on company names for their live prices.
BSE midcap outperforms Sensex
Rupee settlement will help India trade with Russia, Iran and S.Asian neighbours: Experts
On Monday, the Reserve Bank of India said it had put in place a mechanism for international trade settlements in Indian rupees (INR) with immediate effect.
The RBI said that “in order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR.” (Source: Reuters)
Stocks at 52-week high at this hour in NSE 500
Market LIVE Updates: HCL Tech at 52-week low ahead of results
Price as on 12 Jul, 2022 12:18 PM, Click on company names for their live prices.
As per DoT, Vodafone Idea, Bharti Airtel, Adani and Reliance Jio applied to take part in the spectrum auction
As per @DoT_India, Vodafone Idea, Bharti Airtel, Adani and Reliance Jio applied to take part in the spectrum auctio… https://t.co/EJrnrAMHY5
— ET NOW (@ETNOWlive) 1657607958000
Tier 1 IT companies are expected to report strong revenue growth on a yoy basis and range from 2-4.5%. On the other hand, mid-tier category IT companies can report revenue growth in the range of 3-5% (covered by us). Infosys will lead the way with growth of 4.5% in constant currency (c/c). On the flip side, we believe seasonal weakness will impact growth of TechM (2.6% in c/c), Wipro (2.8% in c/c, 2.1% organic) and HCLT (2.4% in c/c). Due to a likely decline in BPO business linked to mortgage origination and refinancing, we expect Mphasis to report a weak quarter. LTI will report modest 3.1% growth due to lower pass-through revenues. However, Mindtree will lead the way on growth among mid-tier companies.
– Sumit Pokharna, Vice President – Fundamental Research, Kotak Securities
Realty firm Macrotech Developers will invest USD 500 million (about Rs 3,950 crore) over the next 5-7 years on sustainability initiatives across all projects as it aims to be a net-zero carbon company by 2035, a top company official has said.
Price as on 12 Jul, 2022 11:40 AM, Click on company names for their live prices.
Shares of Mishtann Foods rose 3 per cent during the early trading hours on Tuesday, after the company’s bottomline more than trebled in the June 2022 quarter. The packaged foods company reported about 217 per cent rise in the net profit to Rs 11.03 crore in the quarter ended June 30, 2022 as against a net profit of 3.49 crore in the same period previous year.
Price as on 12 Jul, 2022 11:34 AM, Click on company names for their live prices.
Market LIVE Updates: Telecom gear maker HFCL spikes over 6% on bagging orders worth Rs 59.22 crore for rollout of fibre network from one of the leading private telecom operators of the country for providing services to roll out their fibre-to-the-home network and long-distance fibre network in various telecom circles.
Price as on 12 Jul, 2022 11:30 AM, Click on company names for their live prices.
Market LIVE Updates: Global financial services firm Nomura Singapore purchased 12.5 lakh shares of technology services provider BLS International Services through an open market transaction at an average price of Rs 214 apiece, aggregating to Rs 26.75 crore.
Price as on 12 Jul, 2022 11:11 AM, Click on company names for their live prices.
Hetal Gandhi of CRISIL Limited says: – Double digit growth will continue for IT sector – Telecom sector will see a strong recovery in Q1FY23 – Margins to cool for construction companies after a quarter
#EarningsWithETNOW | @HetalGandhi3 of @CRISILLimited says – Double digit growth will continue for I.T. sector -… https://t.co/aLighsJKCz
— ET NOW (@ETNOWlive) 1657603579000
Nifty50 Top Gainers at 11 AM
London copper rebounds on China stimulus hopes
Copper prices in London rose on Tuesday, supported by hopes that Chinese stimulus measures would support economic growth in the world’s biggest consumer of the metal. Three-month copper on the London Metal Exchange rose 0.3% to $7,610 a tonne by 0249 GMT, reversing losses in the previous two sessions.
Market LIVE Updates: How the IT stocks are faring now
Price as on 12 Jul, 2022 10:54 AM, Click on company names for their live prices.
ITC breaks into the elite top-10 club
ITC, the cigarette-to-hotels stock has now regained old glory to re-enter the elite top-10 club on Indian stock exchanges. Going by the market capitalisation of all listed companies on BSE, ‘meme stock’ ITC is now India’s 10th largest company, leaving behind giants and Dalal Street…
Read More: sensex today: Stock Market Live Updates: Sensex around 54,000 points, Nifty near 16,100;