Important Information For July 20 Stock Trading Strategy

The benchmark indices are likely to open in green on Wednesday as trends on SGX Nifty indicate a positive start for the broader index in India.

Nifty futures on the Singapore Exchange traded 135.5 points, or 0.83 per cent, higher at 16,473, signaling that Dalal Street was headed for a positive start on Wednesday.

On Tuesday, The 30-share pack Sensex advanced 246.47 points to close at 54,768. Its broader peer, Nifty50, managed to settle comfortably above the 16,300 mark. 60 per cent of the Nifty constituents settled in the black.

Rupee recovers 6 paise to close at 79.92 vs dollar

The rupee recovered from its all-time low of 80.05 to close 6 paise higher at 79.92 against the US dollar on Tuesday following forex inflows and suspected RBI intervention. A positive trend in domestic equities and losses in the US dollar in overseas markets also boosted the local unit while a rise in crude oil prices restricted gains.

Asian shares 

Asian shares extended a global rally on Wednesday as strong U.S. corporate earnings and the expected resumption of Russian gas supply to Europe helped lift sentiment and ease fears of a recession, while the dollar was mired near two-week lows.

Oil falls 

Oil prices fell slightly in early Asian trade on Wednesday, pressured by global central bank efforts to tame inflation and ahead of expected builds in U.S. crude inventories as product demand weakens. Brent crude prices fell 39 cents or 0.5% to $106.96 a barrel by 0045 GMT, while U.S. West Texas Intermediate (WTI) crude fell 62 cents to $103.60 per barrel.

Wall Street closes sharply higher 

U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline.

FII and DII data

Foreign institutional investors (FIIs) have net bought shares worth Rs 976.40 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 100.73 crore on July 19, as per provisional data available on the NSE.

Stocks in Focus Today

Hindustan Unilever

Hindustan Unilever on July 19 reported a 13.85 percent year-on-year (YoY) rise in consolidated net profit at Rs 2,391 crore for the quarter ended June, which was above analysts' estimate of Rs 2,191.3 crore. Standalone net profit was at Rs 2,289 crore, up 11 percent YoY.

Ambuja Cements

The cement maker registered a 25.5 per cent year-on-year decline in consolidated profit at Rs 865.44 crore for the quarter ended June 2022 (Q2CY22), impacted by higher power & fuel cost, and freight & forwarding expenses. However, revenue increased 15.1 per cent YoY to Rs 8,033 crore for the quarter.

Vedanta

The company said the board has approved second interim dividend of Rs 19.50 per equity share on face value of Re 1 per share for the financial year 2022-23. The dividend is amounting to Rs 7,250 crore. The record date for payment of dividend is July 27, 2022.

Grasim Industries

The company said the board has approved a foray into B2B e-commerce platform for the building materials segment with an investment of Rs 2,000 crore over the next 5 years. This investment adds a new high-growth engine with clear adjacencies within Grasim’s standalone businesses as also that of its subsidiaries and associate companies.