Market jumps in opening trade; Nifty above 16,800 mark

The domestic equity benchmarks jumped in early trade amid positive global cues. US stocks rallied overnight after the US Federal Reserve's latest policy decision was on expected lines, averting concerns of larger-than-expected hikes. The Nifty was trading above 16,800 mark. Barring the Nifty FMCG index, all the sectoral indices on the NSE edged higher.

At 9:22 IST, the barometer index, S&P BSE Sensex was up 379.12 points or 0.68% to 56,048.15. The Nifty 50 index rose 123.85 points or 0.74% to 16,801.45.

Tata Steel (up 2.65%), SBI (up 1.88%) and Infosys (up 1.83%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.85% while the S&P BSE Small-Cap index gained 0.82%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1858 shares rose while 597 shares fell. A total of 73 shares were unchanged.

Global markets:

Overseas, Asian stocks advanced on Thursday, tracking overnight rally in the US market after the U.S. central bank on Wednesday raised interest rates by 50 basis points but sounded a less hawkish tone than some had feared. Markets in Japan and South Korea are closed on Thursday.

China's services sector activity shrunk further in April, a private sector survey showed Thursday. The Caixin services Purchasing Managers' Index (PMI) declined to 36.2 for April, lower than March's reading of 42.

The US Fed delivered the first 50 bps interest rate hike since 2000. Investors were worried that Fed might shock markets with a 75 bps hike.

Fed Chairman Jerome Powell said half-point rises remain on the table for the next couple of meetings. Powell talked about a strong economy, but also the pain consumers have been feeling at the grocery store and gas pump, in afternoon news conference, saying higher interest rates are the cure.

The Fed also outlined plans to reduce its near $9 trillion balance sheet, first by $47.5 billion a month starting in June, but ramping up to $95 billion a month. This will result in a nearly $3 trillion reduction in its record size over the next three years.

Meanwhile, US private payrolls climbed by 247,000 in April, according to the ADP National Employment Report released Wednesday.

The U.S. trade deficit jumped 22.3% to record $109.8 billion in March, the U.S. Census Bureau and the U.S. Bureau of Economic Analysis said Wednesday. U.S. imports climbed 10.3% to $351.5 billion, while U.S. exports increased 5.6% to $241.7 billion in March.

In addition, the Institute for Supply Management services index showed weaker new-orders growth and employment, with the number dropping to 57.1% in April from 58.3%.

Stocks in Spotlight:

Adani Total Gas fell 1.05%. The company reported consolidated net profit of Rs 76 crore in Q4 FY22 from Rs 145 crore in Q4 FY21. Revenue rose to Rs 1065 crore from Rs 614 crore.

Havells India fell 0.43%. The company reported 17% rise in standalone net profit to Rs 353 crore in Q4 FY22 from Rs 302 crore in Q4 FY21. Net revenue rose 33% to Rs 4417 crore from Rs 3331 crore.

Tata Consumer Products fell 1.08%. The company reported 117% rise in consolidated net profit to Rs 289 crore in Q4 FY22 from Rs 133 crore in Q4 FY21. Revenue rose 5% to Rs 3175 crore from Rs 3037 crore.

ABB India jumped 6.75%. The company reported standalone net profit of Rs 370 crore in Q1 FY22 from Rs 151 crore in Q4 FY21. Net revenue rose to Rs 1968 crore from Rs 1629 crore.

Sona BLW Precision Forgings (Sona Comstar) rose 0.43%. The company has partnered with US-based C-Motive Technologies ("C-Motive") to develop electrostatic drive motors for electric vehicle (EV) applications.

SJVN rose 1.43%. The company bagged the full quoted capacity of 1000 MW and was issued Letter of Award ('LoA') from IREDA. The company issued the Letter of Award for EPC Contract to Tata Power Solar Systems for the development of 1000 MW (AC) of ground mounted Solar Project in Bikaner, Rajasthan.

Hind Rectifiers climbed 5.90%. The company has secured orders of Rs 57.79 crore in the month of April 2022. The company is having all-time pending orders in hand of Rs 384.02 crore as of 30 April 2022.

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