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Markets edge higher on better-than-expected earnings; Sensex back at 60,000

By Reuters

  • 17 Aug 2022
Markets edge higher on better-than-expected earnings; Sensex back at 60,000
Credit: Reuters

Indian shares gained on Wednesday, with Sensex hitting its highest level since April 5, as easing pace of inflation and strong earnings drove gains.

Nifty rose 0.5% to around 17,920 in early trade while Sensex was trading 0.5% higher at around 60,150.

A softening inflation print has given rise to expectation the Reserve Bank of India might slow down pace and quantum of rate hikes in the coming months.

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"There is comfort that aggressive rate hike cycle might just get over with one or two more cycles," said Siddharth Khemka, head of retail research at Motilal Oswal Financial Services.

"The stance (by global central banks) may become softer gradually, and market is hoping for a softer landing, which is boosting sentiment across the world."

Strong corporate June-quarter results, softening commodity prices and easing of consumer inflation has helped domestic mood, particularly in consumer and auto stocks, Khemka added.

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Nifty FMCG rose to a record high, with Hindustan Unilever up 1.8%.

Nifty Media jumped 2.4% while the IT index was up 0.9%.

Foreign institutional investors have also been pumping money into Indian equities, having bought $2.83 billion worth of shares this month until 12 August, compared with an inflow of $618 million all through July, data showed.

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Asian shares tracked solid Wall Street performance as strong overnight earnings for US retail giants pointed to further scope for the Federal Reserve to tackle inflation with rate hikes.

Meanwhile, in domestic markets, shares of Mahanagar Gas Ltd fell as much as 3.8% after the company reduced prices of compressed natural gas and domestic piped natural gas in and around Mumbai.

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