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Tata Metaliks Q1 Earnings:Tata Metaliks recorded a 98.7% year-on-year decline in profit at Rs 1.22 crore for the quarter ended June 2022, but revenue grew by 10.5 percent to Rs 666.4 crore.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Even though the keenly awaited US CPI inflation data for June came at 9.1% against expectation of 8.8%, US markets declined only moderately, by less than 1%. It is important to note that core inflation ( inflation minus food and energy ) in the US is declining and, therefore, CPI inflation too will decline, going forward, since crude prices have corrected sharply.
The higher than expected US inflation means the Fed will continue its aggressive tightening in the near-term with another 75bp hike in July, perhaps even by 100bp. But the long-term bond yields in the US indicate a possible rate cut by March 2023. In brief, this 9.1% inflation print is likely to be the peak inflation.
FIIs have used the July rally to press further big selling ( Rs 2840 crore yesterday) after what appeared as selling exhaustion in early July. This renewed FII selling may strengthen the bears but DIIs and retail investors are likely to turn strong buyers at every dip since India’s economic fundamentals are strong and, more importantly, valuations are attractive particularly in segments/ stocks where FIIs are selling.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened on positive note on July 14 with Nifty above 16000.
At 09:16 IST, the Sensex was up 146.71 points or 0.27% at 53660.86, and the Nifty was up 48.50 points or 0.30% at 16015.20. About 1268 shares have advanced, 474 shares declined, and 83 shares are unchanged.
Apollo Hospitals, Britannia Industries, Sun Pharma, Tata Consumer Products and Titan Company were among major gainers on the Nifty, while losers were JSW Steel, SBI, Tata Steel, Hindalco Industries and ITC.
The dollar resumed its relentless rise on Thursday, driven by both expectations for faster Federal Reserve policy tightening and safe-haven flows amid growing fears of a recession.
The greenback charted new 24-year highs above 128 yen and edged back toward parity with the euro, after briefly breaching the level overnight.
Meanwhile, Singapore’s dollar and the Philippine peso surged against their U.S. peer after their respective monetary authorities surprised by tightening policy in off-cycle moves.
Prashanth Tapse, Vice President (Research), Mehta Equities:
Risk aversion is quite likely to be the preferred theme for the day and investors can expect a bumpy ride intra-day amid a steady fall in Asian indices and overnight fall in the US markets. The US CPI inflation numbers, which jumped to a 41-year high of 9.1% in June, certainly raises the prospects of a more hawkish stance by the US Fed in its next policy meet, which could further fuel volatility in equities & other asset classes.
With FPI outflows showing no signs of a pullback, one could expect volatility in the currency markets too. On the technical front, markets may gain strength only if the Nifty holds above 15851 mark with interweek perspective, while hurdle is seen at 16500.
Indian markets are likely to open on a negative note today tracking weak global cues as an unexpectedly high inflation number in the US rattled investors worldwide.
US markets ended lower amid release of macroeconomic data.
Indian rupee opened at fresh record low on July 14. The domestic currency hit 79.73 per dollar in the opening trade against previous close of 79.63.
Market at pre-open: Benchmark indices are trading mixed in the pre-opening session.
At 09:02 IST, the Sensex was up 157.32 points or 0.29% at 53671.47, and the Nifty was down 15.30 points or 0.10% at 15951.40.
Hot inflation fuels bets on supersized Fed rate hike
The US Federal Reserve is seen ramping up its battle with 40-year high inflation with a supersized 100 basis points rate hike this month after a grim inflation report showed price pressures accelerating.
Traders of futures tied to the Fed’s policy rate are betting they already have. They are now pricing in a nearly 80% probability of a full percentage-point rise at the coming meeting, according to an analysis of the contracts by CME Group.
Mindtree Q1 results | Order book remains strong; cautiously optimistic, says CEO
The company’s net headcount went up by 2,384 from last quarter, with attrition coming in at 24.5 percent.