Sumary of 4 reasons why Sensex ended 639 points higher today:
- Benchmark indices snapped their three-day losing run and closed over 1% higher as signs of strong corporate earnings season and expectations that the central banks will stick to a dovish stance, at least in the near-term, lifted demand for risky equities.
- Hindustan Unilever and Asian Paints, on the other hand, were among the top losers today.
- Asian stocks climbed today after solid company earnings boosted Wall Street, easing concerns about peak economic growth and coronavirus flareups.
- US stock futures are trading higher today indicating a positive opening for Wall Street indices with Dow Futures trading up by 85 points (up 0.3%).
- Bond Yields: Yields climbed partly due to positive corporate earnings, as investors largely overlooked apprehension about the Delta coronavirus variant and inflation and bought risky assets.
- June Quarter Earnings in Line: The June quarter earnings are broadly in line with analysts’ estimates.
- The country’s largest fast-moving consumer goods company Hindustan Unilever (HUL) today reported 9.6% growth on its net profit at ₹20.6 bn for the April-June quarter on a year on year (YoY) basis.
- Bajaj Auto and UltraTech Cement delivered strong set of numbers for the first quarter of the financial year 2022. Sectoral Gains: Market participants bought shares across the board with metal, telecom and banking- all indices witnessing strong gains today.