Markets trend higher as FII flows reverse and top companies hit 52-week high

Markets trend higher as FII flows reverse and top companies hit 52-week high
  • Sensex and Nifty50 off to a flying start on healthy earnings growth reported by bellwether stocks .
  • On June 28, FPIs bought ₹1,638 crore in the Indian equity market.
  • The optimism of easing macro conditions have led Indian indices to a three month high.
  • Several stocks of valuable companies like ITC, Adani Group companies, TVS Motor, SBI Life are at their 52-week high.
The benchmark indices Sensex and Nifty 50 continued to trend upwards after the dovish monetary policy tightening by the US and healthy earnings growth reported by several index heavyweights. .

In fact, the optimism is showing with foreign investors having bought ₹1,638 crore worth of equities on June 28 as against the net selling for most days of the year.

While the US Federal Reserve raised interest rates by 75 basis points to 2.25-2.5%, the silver lining is investors' hope of a slowdown in rate hike hereafter.

The optimism of easing macro conditions have led Indian indices to a three month high. “The US Fed chairman did not shock the markets this time as they announced a rate hike of 75 bps which was very much in line with expectations. In fact, the dovish commentary lifted the overall sentiments in US markets, which had a favorable rub off effect in our markets at the opening yesterday…Eventually, the benchmark index Nifty managed to close at 3-month high by adding more than 1.70% to the previous close,” said Sameet Chavan, chief analyst-technical and derivatives at Angel One.

Apart from the supportive global cues, strong earnings results at home are also adding to market gains.


Sensex and Nifty 50 surged over 1% today rising by 651 points at 57,509 and 200 points at 17,128 respectively.

SBI Life Insurance was the top gainer on Nifty 50 as the company reported stellar quarter results of nearly 18% on year growth in net profit at ₹262 crore for the June quarter.

Next in line are Tata Steel and Bajaj Finserv that have continued to rally as investors have been cheering the news of stock split. The former will split its shares in a ratio of 10:1 and the latter will split in 1:5 ratio along with the issue of bonus shares.

Stocks at their 52-week high:
Companies 52-week high
SBI Life Insurance₹1,304.45
TVS Motor₹953.05
Adani Enterprises₹2,622
Adani Total Gas₹3,061
INOX Leisure₹590.40
Adding to the celebration, the Indian rupee has appreciated to nearly three week high at 79.40. Not to forget, the rupee has been extremely volatile this year and even touched its psychological level of 80 amid fear of interest rate hikes across central banks and the continuous outflow of liquidity from the markets.

Further, these are some of the companies that will report their June quarter earnings today -- HDFC, Sun Pharmaceutical Industries, Cipla, Indian Oil Corporation,NTPC, Ashok Leyland, Cholamandalam Investment and Finance Company, DLF, Exide Industries, GMR Infrastructure, Piramal Enterprises, Mahindra Logistics, Route Mobile, Star Health And Allied Insurance, Zee Media Corporation, Zydus Wellness among companies to report their quarterly results

$NIFTY50.NSE With the return of FII inflows, the indices are showing bullish signs finally on weekly timeframe. However, the area to be watched carefully would be 17500-17700. The bears pushed the prices down from the trendline on 3 previous occasions. Key takeaway: Do not over trade and follow proper risk management as always. Note: We are not SEBI registered. Please consult your financial advisor before taking any trade.

— (@FunTechAdda) July 29, 2022

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