Market Watch: Market Watch: Will India Inc earnings take a hit from rising rate cycle? | The Economic Times Podcast

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Bhaskar Dutta and here are the top headlines at this hour.

-India’s unemployment rate drops in May
-Presidential election on July 18
-Monsoon on track, says IMD
-Shanghai to lock down and test 2.7 million
-OECD cuts FY23 India forecast to 6.9%
-Coal India issues 2.42 million tonne imported coal tender

Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets scripted a late turnaround on Thursday to snap four days of losses as firm buying in telecom, energy and select heavyweight stocks lifted headline indexes.

Reliance Industries was among the top gainers from the Sensex pack, rising 2.73 per cent and giving a 227-point lift-off to the index.

Markets started off on a weak note as risk appetite was low ahead of the European Central Bank’s policy statement late Thursday and the release of US inflation data on Friday.

Investors remain concerned about soaring inflation worldwide prompting major central banks to raise interest rates at an aggressive clip, a process which could exacerbate record overseas outflows from Indian equities.

The RBI’s 50-basis point rate hike on Wednesday along with its signals of more hikes in coming months also deepened worries over tighter domestic financial conditions.

After shuffling between gains and losses, the benchmark staged an 813-point rebound in late afternoon trade.

The 30-share pack Sensex added 427.79 points or 0.78 per cent to end the session at the day’s high at 55,320.28. Its broader peer, Nifty50, rose 121.85 points or 0.74 per cent to reclaim the 16,450 mark.

Broader markets underperformed, with the BSE Midcap and Smallcap indexes gaining 0.46 and 0.24 per cent, respectively. Fear gauge India VIX fell 3.51 per cent to end at 19.14.

20 stocks on the Sensex ended higher, with Dr Reddy’s gaining 3 per cent followed by Reliance Industries. Bharti Airtel rose 2 per cent, while Sun Pharmaceuticals gained 1.4 per cent. Tata Steel lost 3.8 per cent, while NTPC shed 1.2 per cent. Ultratech and Bajaj Finance both lost 0.9 per cent.

17 stocks hit upper circuits while1 tested its lower circuit limit. 18 stocks tested their 52-week highs, whereas 44 tested their 52-week lows.

We have Vinod Nair from Geojit Financial Services to share his views on the day’s action and the road ahead:

Welcome to the show sir:
1. Markets have witnessed some volatility since the RBI’s policy. Do corporate earnings stand to take a hit from the cycle of rising interest rates?
2. From a margin perspective, the banking sector could see gains from higher rates. What is your outlook on banking stocks?

We also caught up with Sameet Chavan of Angel One to decode the technical charts for you.
1. The Nifty50 settled above the 16,450 level. What do the technical charts suggest about it?
2. Bank Nifty underperformed the headline index today. What is your outlook on the sector?

Asian stocks mostly settled with losses for the day. European markets too were trading with cuts. Meanwhile, US stock futures were up, signalling a firm start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

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