Nifty above the 16,200 level, profit booking in metal stocks



Major equity indices continued to trade in a tight range with modest gains early in the afternoon. The Nifty was trading a little above the 16,200 level. Metals stocks posted profits after gaining in the past three sessions.

As of 12:30 p.m. IST, the barometer index, the S&P BSE Sensex, was up 244.69 points or 0.45% at 54,423.15. The Nifty 50 index added 68.45 points or 0.42% to 16,201.35.

In the broader market, the S&P BSE Mid-Cap Index lost 0.12% while the S&P BSE Small-Cap Index gained 0.35%.

Market breadth was positive. On BSE, 1,838 stocks rose and 1,289 stocks fell. A total of 167 shares remained unchanged.

Derivatives:

The NSE’s Indian VIX, a gauge of near-term market volatility expectations, fell 1.93% to 18.83. Nifty futures for July 28, 2022 were trading at 16,197, at a discount of 4.35 points to the spot at 16,201.35.

The Nifty Options Chain for the 28th July 2022 expiry showed a Maximum Call OI of 23.8 lakh contracts at the strike price of 16,500. Maximum Put OI of 37.1 lakh contracts was seen at 15,000 exercise prices.

Zoom Index:

The Nifty Metal Index fell 0.50% to 4,817.90. The index posted profits after rising 3.61% over the past three trading sessions.

Jindal Steel & Power (-1.57%), Vedanta (-1.45%), Steel Authority of India (-1.44%), Tata Steel (-1.36%), Welspun Corp (-1.27 %), JSW Steel (-0.91%) , Jindal Stainless (down 0.77%), Hindustan Copper (down 0.71%), Ratnamani Metals & Tubes (down 0.65%) and Adani Enterprises (down 0.3%), were down slightly.

On the other hand, Hindustan Zinc (+1.83%), Hindalco Industries (+0.48%) and APL Apollo Tubes (+0.31%) are progressing.

Vedanta fell 1.45%. The mining company said it will acquire Athena Chhattisgarh Power located in Jhanjgir Champa, Chhattisgarh for Rs 564.67 crore. The acquisition is expected to be completed in fiscal 2023.

Actions in the spotlight:

Mahindra & Mahindra (M&M) rose 1.09% after the auto major said British International Investment (BII) would invest up to Rs 1,925 crore at a valuation of up to Rs 70,070 crore, in the new 4-wheel EV arm from M&M. BII will invest up to Rs 1,925 crore in the form of mandatory convertible instruments at a valuation of up to Rs 70,070 crore. This will result in a 2.75% to 4.76% stake for BII in EV Co. EV Co. will focus on four-wheel (4W) electric vehicles. BII’s first round of capital investment is expected to be completed no later than June 2023, once conditions precedent have been met and the balance after completion of certain milestones in FY24.

Tata Motors rose 0.59% after its subsidiary Jaguar Land Rover (JLR) reported a 37% decline in retail sales to 78,825 units in Q1 FY23 compared to Q1 FY22. Retail sales for the quarter remained broadly flat compared to the prior quarter ending March 31, 2022. Despite a record backlog, sales continue to be constrained by global chip shortages, compounded by exhaustion of the previous model Range Rover Sport, with deliveries just starting, and the impact of Covid lockdowns in China, the company said.

Jaguar reported retail sales of 15,207 units in Q1 FY23, down 48% from Q1 FY22 and recording a 4% increase from Q4 FY22. Land Rover reported a 33% drop in retail sales to 63,618 units in Q1 FY23 compared to Q1 FY22 and a 1% drop compared to Q4 FY22.

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