Moneycontrol launches Analysts’ Call Tracker. A monthly special page that tells you which way analysts are leaning; the stock they are most bullish or bearish on, what they are upgrading or downgrades, and where they are betting against the market. Ignore this at your own risk!
Tata Power will add up to 2.5 GW renewable energy capacity every year, divest non-core assets: CEO
Praveer Sinha expects global coal prices to remain elevated for at least two years but sees some relief going ahead on the domestic front as Coal India and others scale up production.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Even after the 75 bp consecutive rate hike by the Fed and indication that “another unusually large increase would be appropriate in the next meeting” the US markets staged a smart bounce back with S&P 500 and Nasdaq rising by 2.62% and 4.06% respectively. The market seems to be taking cue from the Fed chief’s observation that, “I don’t think we are in a recession now, the labour market continues to be tight.”
Data – unemployment at 50-year lows and job vacancies at historical highs – seem to support the Fed chief’s confidence about the US economy.
The July rally in the domestic market which has taken the Nifty up around 1500 points from the June lows seems to be intact for the very short-term.
IT stocks after the recent correction may rebound taking cues from the Nasdaq rally and the continuing strength of the US economy. Financials will continue to be resilient.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened on strong note on July 28 with Nifty above 16700.
At 09:16 IST, the Sensex was up 519.99 points or 0.93% at 56336.31, and the Nifty was up 139.80 points or 0.84% at 16781.60. About 1387 shares have advanced, 385 shares declined, and 72 shares are unchanged.
Bajaj Finserv, Bajaj Finance, IndusInd Bank, SBI and Tech Mahindra were among major gainers on the Nifty, while losers were Tata Motors, Sun Pharma, Dr Reddys Labs, UltraTech Cement and Nestle India.
Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities:
Local stocks are likely to begin on a firm note, much in sync with an upsurge in global markets after the US Fed rate hike of 75 bps came on expected lines. That is roughly the level that is considered neutral, where interest rates can neither stimulate nor restrict economic activity. But the fourth consecutive rate hike will push the borrowing costs to the highest level since 2019.
The US Fed chairman’s statement that it’s very hard to say with any confidence what the US economy will be like in 6-12 months will continue to keep global markets on caution mode. On the domestic front, the monthly F&O expiry today could keep the markets volatile.
Bond Yields Updates:
Jerome Powell signals more Fed hikes coming, leaves out details this time
Jerome Powell said the Federal Reserve will press on with the steepest tightening in a generation to curb inflation while giving officials more flexibility on coming moves amid signs of a broadening economic slowdown.
Policy makers raised the benchmark lending rate 75 basis points on Wednesday to a range of 2.25% to 2.5% and said they anticipate “ongoing increases” will be appropriate. Just how much depends on the data, the central bank chief said, stepping away from the specific guidance he gave at the June meeting, though he didn’t take another similar-sized move off the table.
“While another unusually large increase could be appropriate at our next meeting, that is a decision that will depend on the data,” Powell said. “The labor market is extremely tight, and inflation is much too high.”
Rupee Opens:
Indian rupee opened 12 paise higher at 79.78 per dollar on Thursday against previous close of 79.90.
Market at pre-open: Benchmark indices are trading higher in the pre-opening session.
At 09:02 IST, the Sensex was up 370.42 points or 0.66% at 56186.74, and the Nifty was up 87.40 points or 0.53% at 16729.20.
Massive fire engulfs Alwar’s Havells factory, no casualties so far: Report
A massive fire broke out late last night at a Havells factory at Neemrana in Rajasthan’s Alwar district, according to a report by India Today. Fire fighters were rushed to the spot and no casualties have been reported so far.
In the previous trading session, the share closed at Rs 1,215.05, down Rs 7.20, or 0.59 percent.
Fed raises rates by 75 basis points to double down on inflation
Federal Reserve officials raised interest rates by 75 basis points for the second straight month, delivering the most aggressive tightening in more than a generation to curb surging inflation — but risking a sharp blow to the economy.
Policy makers, facing the hottest price pressures in 40 years, lifted the target range for the federal funds rate on Wednesday to 2.25% to 2.5%. That takes the cumulative June-July increase to 150 basis points — the steepest rise since the price-fighting era of Paul Volcker in the early 1980s.
The Federal Open Market Committee “is strongly committed to returning inflation to its 2% objective,” it said in a statement released in Washington, repeating previous language that it’s “highly attentive to inflation risks.”
