Markets open higher on strong corporate earnings despite weak global cues

• Sensex was up 280 points to 59,483 while Nifty50 gained 74 points to 17,636.
• Sharp gains in shares of Axis Bank, Kotak Mahindra Bank, Hindustan Unilever, Apollo Hospitals, Titan and HDFC Life Insurance pulled up the indices.
• Axis Bank’s stock went up nearly 6% in early trade after it reported better than expected profit growth.
• Meanwhile, global markets remained under pressure fearing prospects of aggressive interest rate hikes by the US Fed along with recession risks.

Benchmark indices open higher, following strong second quarter company results, despite weak cues from Asian and the US market.

Sensex was up 280 points to 59,483 while Nifty50 gained 74 points to 17,636.

Sharp gains in shares of Axis Bank, Kotak Mahindra Bank, Hindustan Unilever, Apollo Hospitals, Titan and HDFC Life Insurance pulled up the indices.

Shares of Axis Bank surged nearly 6% in early trade after it reported better than expected profit growth with consolidated net profit growing 70% on year at ₹5,330 crore for the second quarter. Its net interest income (NII) grew 31% on year to ₹10,360 crore from ₹7,901 crore in the same quarter last year.

FMCG major Hindustan Unilever was another top gainer on the 50-stock exchange as the stock rose ahead of its second quarter earnings today.

Nifty50 heavyweight Reliance Industries was also trading slightly higher ahead of its quarterly earnings. Mukesh Ambani’s oil-to-telecom conglomerate is expected to post good results aided by Reliance Jio telecom’s business and strong retail sales.

Meanwhile, global markets remained under pressure fearing aggressive interest rate hikes by the US Fed along with recession risks.

Reliance Industries, Hindustan Unilever, Bajaj Finserv, JSW Steel, SBI Life Insurance Company, Hindustan Zinc, SBI Life, HDFC Life and DLF are among companies that will announce their quarterly earnings today.

Shares of ITC were also in early trade after the cigarette-to-hotel conglomerate reported a 24% growth in its consolidated net profit at ₹4,619 crore.

$ITC.NSE looks like a very strong stock in this phase of the bull run. I've shared the dividends adjusted stock as this stock gives heavy dividends and to study the chart properly it is important to adjust the chart for the same. 305 will be the stop loss for long term investors in this one. Short term traders can go for a stop loss in the vicinity of 320-325.Disclaimer: ITC is one the largest positions for us and for our clients currently.

— (@thebullofdalalstreet) October 20, 2022

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