The BSE Sensex and the NSE Nifty are set to open higher on Thursday, following firm cues from global peers. Shares in the Asia-Pacific region were trading higher, tracking a positive closing on Wall Street overnight after the Federal Reserve raised the interest rate by 0.75%, which was in line with market expectations. Back home, the firm trends on SGX Nifty also indicated a strong opening for the domestic bourses, with SGX Nifty futures trading 113 points, or 0.68%, higher at 16,760 levels on the Singapore Stock Exchange at 8:20 AM. The market may see some volatility as investors will roll over their position ahead of the expiry of futures and options (F&O) contracts today.
Investors will keep a close eye on earnings reports by Dr Reddy's Labs, Vedanta, Nestle India, SBI Life Insurance Company, Bajaj Finserv, Jubilant FoodWorks, PNB, among others, while rupee movement and trends in the crude market will be also on the radar. On the global front, the focus will be on the U.S. GDP data which is set to be announced later tonight.
On Wednesday, the Indian benchmarks ended higher, snapping a two-session gaining streak, with Sensex and Nifty rising over 1%, following firm cues from the European market. The BSE Sensex gained 548 points, or 0.99%, to settle at 55,816, while the broader NSE Nifty advanced 158 points, or 0.96%, to 16,642. Sun Pharma was the top gainer in the Sensex pack, followed by State Bank of India, Larsen & Toubro, Asian Paints, TCS, UltraTech Cement, Bajaj Finance, and IndusInd Bank. On the losing side, Bharti Airtel, Kotak Mahindra Bank, NTPC, Bajaj Finserv, and Reliance Industries were the top laggards.
Stocks to watch
Tata Motors: The auto major reported a consolidated net loss of ₹5,007 crore for the quarter ended June, compared with ₹4,450.92 crore in the year-ago period as sales of Jaguar Land Rover got impacted due to chip shortages and Covid-19 lockdowns in China. Revenue of the automaker rose 8% to ₹71,935 crore during the April-June period compared with ₹66,406 crore in the year-ago quarter.
Maruti Suzuki India: The auto major’s net profit zoomed 130% year-on-year to ₹1,012.80 crore in the April-June quarter compared with ₹440.80 crore in the corresponding period last year. The net sales stood at ₹25,286.3 crore in the April-June period, an increase of 50.52% compared to the year-ago quarter.
Biocon: The pharma company saw its consolidated profit rising by 54.4% YoY to ₹167.40 crore for the quarter ended June 2022, supported by higher revenue and other income. Revenue surged by 21.5% to ₹2,139.50 crore during the same period.
Exide Industries: The company’s subsidiary, Exide Energy Solutions (EESL), has executed the lease cum sale agreement for procuring a land parcel measuring 80 acres in Bengaluru with Karnataka Industrial Areas Development Board (KIADB).
Hindustan Aeronautics: The state-owned defence company has bagged a contract worth over $100 million to supply and manufacture 88 TPE331-12B engines/kits along with maintenance and support services to power the Hindustan Trainer Aircraft (HTT-40).
Poonawalla Fincorp: The company posted 118% YoY jump in consolidated profit to ₹141 crore in Q1FY23. Assets under Management (AUM) increased to ₹17,660 crore, recording a growth of 22.4% YoY, while disbursements stood at ₹3,436 crore, up 98.3% on yearly basis.
Here are the key things investors should know before the market opens today:
Wall Street surges despite Fed rate hike
In the overnight trade, U.S. stocks ended higher after the U.S. Federal Reserve raised the interest rate by 75 basis points for the second time to curb raging inflation. Investors now shifted focus to the U.S. GDP data tonight, which will bring more clarity about the health of the world’s largest economy. The Dow Jones Industrial Average gained 1.4%, the S&P 500 surged 2.6%, and the tech-heavy Nasdaq Composite rallied 4.1%.
Asian shares follow Wall Street higher
Shares in the Asia-Pacific region were trading mostly higher in early trade on Thursday, tracking strong cues from Wall Street amid hopes that the Federal Reserve would slow interest rate hikes following the recent aggressive policy stance.
Regional heavyweight Japan’s Nikkei 225 rose 0.3%, South Korea’s Kospi jumped 1%, and the Straits Times in Singapore was up 0.1%.
Similarly, the Hang Seng index in Hong Kong gained 0.2%, Australia’s ASX 200 surged 0.65% and the Jakarta Composite in Indonesia rose 0.5%.
Markets in mainland China were also trading higher, with the Shanghai Composite and the Shenzhen Component rising 0.6% and 1%, respectively.
The major companies that will release their June quarter earnings include Dr Reddy's Labs, Vedanta, Jubilant FoodWorks, Punjab National Bank, Nestle India, SBI Life Insurance Company, Shree Cement, and Bajaj Finserv. Among others, Mahindra & Mahindra Financial Services, PNB Housing Finance, SBI Cards and Payment Services, TVS Motor Company, Shriram Transport Finance, Chalet Hotels, Equitas Small Finance Bank, CMS Info Systems, GHCL, AAVAS Financiers, Intellect Design Arena, Dr Lal PathLabs, Motilal Oswal Financial Services, Nippon Life India Asset Management, NIIT, NOCIL, RITES, Sona BLW Precision Forgings, TTK Prestige, and Westlife Development will also be in focus today.