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On a sequential basis, RIL's net profit declined 8% while net sales fell 6.44% in Q1 FY22 over Q4 FY21.
Commenting on the results, Mukesh Ambani, chairman and MD of Reliance Industries said, “I am happy that our company has delivered robust growth despite facing a highly challenging operating environment caused by the second wave of the COVID pandemic. The results of the first quarter of FY2022 clearly demonstrate the resilience of Reliance's diversified portfolio of businesses that cater to large parts of the consumption basket. In our O2C business, we generated strong earnings through our integrated portfolio and superior product placement capabilities. Along with our partner bp, we commissioned the satellite cluster in KG D6 and continued to ramp up production, contributing to 20% of gas production in India. This will be a major contribution to our country's energy security. Jio has posted yet another record quarterly performance with industry leading operating metrics. I am thankful to Jio's family of loyal subscribers whose number has grown further during the quarter, consolidating its position as India's No. 1 provider of digital connectivity and services. They appreciate our continuing focus on raising the bar for superior service quality. COVID-related restrictions on store operations during the quarter impacted our Retail business operations and profitability. This is a temporary phenomenon. We remained focused on ensuring supplies of necessities, including food, grocery, health & hygiene products through a combination of online-offline channels. We stepped up our efforts in creating partnerships with small merchants and digital engagement with consumers. This is creating a newer and inclusive model of growth. I am confident that the retail business is poised to create exponential value and growth.'
The telecom arm of RIL, Reliance Jio, witnessed a 44.9% year-on-year (YoY) growth in the net profit at Rs 3,651 crore in Q1 FY22 over Q1 FY21. The consolidated revenue from operations grew by 9.8% to Rs 22,267 crore in Q1 FY22 over Q1 FY21. Jio posted a total average revenue per customer (ARPU) during the quarter of Rs 138.40 per subscriber per month while customer base as on 30 June 2021 stood at 440.6 million with a net addition of 42.3 million customers year on year. Jio's EBITDA rose 21.3% to Rs 8,892 crore Q1 FY22 over Q1 FY21. EBITDA margin improved by 440 basis points to 46.9% in Q1 FY22 from 42.5% in Q1 FY21, reflecting operational efficiency.
For Reliance Retail, net profit for the quarter was Rs 962 crore higher by 123% year on year. Gross Revenue stood at Rs 38,547 crore, rising by 21.9% year on year. EBITDA came at Rs 1,941 crore, up by 79.9% year on year. EBITDA margin improved to 5.8% in Q1 FY22 from 3.8% in Q1 FY21 but deteriorated from 8.8% registered in Q4 FY21.
Reliance Retail's store expansion was constrained during the quarter as the business opened 123 stores taking the total count to 12,803. RIL said that another 700 plus stores in the pipeline will be commissioned as curbs are lifted. The company further added that the focus on scaling up digital commerce and merchant partnerships helped partially alleviate the loss of business due to store closures as these streams contributed a sizable 20% of retail sales in the quarter.
On the operational front, Reliance Retail said the operating environment was challenging through the quarter as restrictions were enforced across several States due to the second wave of COVID-19 impacting operations, supply chain and mobility. Store operations were disrupted through the quarter starting from mid of April. After second week of June, there were sporadic signs of easing with continued restrictions varying across geographies. Operating efficiency was impacted due to the restrictions across the network as stores were operating for 70%, 25%, 38% of normal working hours during April, May and June respectively. Retail stores and digital commerce could sell only essentials for the most part of the quarter.
In the oil to chemicals (O2C) segment, segment revenues for Q1 FY22 increased by 75.2% year on year to Rs 103,212 crore ($ 13.9 billion) primarily on account of sharp increase in product prices on the back of higher crude prices. Segment EBITDA for Q1 FY22 improved by 49.8% year on year to Rs 12,231 crore primarily on account of rebound in transportation fuel cracks to 4-6 quarter highs. The segment's revenue increased by 75.2% year on year to Rs 103,212 crore in Q1 FY22 over Q1 FY21. Operational flexibility and responsiveness to market dynamics continue to play a significant role in Reliance's O2C performance. Total throughput increased from 17.8 MMT to 19.0 MMT on Y-o-Y basis. Cracker operating rates was at 95%, marginally lower on scheduled shutdown of ROGC. RIL said downstream margins continued to remain strong with product deltas near or above 5-year averages. Favorable light-feed cracking environment and increased domestic gas availability helped O2C optimize its costs. O2C maintained its market share in domestic markets. In addition, O2C continues to strategically place its products in export markets.
In the oil and gas (exploration & production) business, segment revenue for Q1 FY22 increased by 153.2% year on year to Rs 1,281 crore. EBITDA for the quarter increased sharply to Rs 797 crore ($ 107 million). This was primarily due to smooth ramp up of gas production from R-Cluster and commencement of production from SatCluster field in KG D6 block. Price realization for CBM gas for the Quarter was higher by 16% at $ 6.01/mmbtu (GCV). Realizations in the US Shale business improved to $ 4.95/MCFe on the back of higher gas and condensate prices.
In the media business, revenue from operations rose 50% year on year to Rs 1,214 crore during Q1 FY22. EBITDA jumped up six times year on year to Rs 188 crore. Operating margin clocked at 15.5%, was the highest ever in first quarter, despite second wave impact. Viewership share of TV entertainment rose further to 11%, up sharply from a low of 9.2% in Q1 FY21. On the back of a full roster of compelling content, the portfolio was able to re-scale adrevenue to the same levels as in 1Q FY20. News advertising remained resilient despite the second wave, led by a rise in news consumption and digital events replacing physical ones.
Shares of RIL were trading 0.44% lower at Rs 2,096 on BSE.
RIL is the largest private sector corporation in India. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
SGX Nifty:
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 83 points at the opening bell.
Global markets:
Overseas, Asian stocks are trading mixed on Wednesday, a private survey showed accelerating Chinese services activity growth in July.
The Caixin/Markit services Purchasing Managers' Index for July came in at 54.9 on Wednesday, up from June's reading of 50.3.
U.S. stocks moved higher on Tuesday and the S&P 500 set a new record high as broad market strength outweighed the travel names held back by Covid fears.
Domestic markets:
Back home, the benchmark indices closed at all-time high level on Tuesday amid broad based buying. The barometer index, the S&P BSE Sensex, surged 872.73 points or 1.65% at 53,823.36. The Nifty 50 index jumped 245.6 points or 1.55% to 16,130.75.
Foreign portfolio investors (FPIs) bought shares worth Rs 2,116.60 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 298.54 crore in the Indian equity market on 3 August, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 44 points at the opening bell.
On the macro front, India's merchandise exports grew 47.19% to $35.17 billion in July on account of a healthy growth in the shipment of petroleum, engineering goods and gems and jewellery, according to provisional data of the commerce ministry. Imports during the month also rose 59.38% to $46.40 billion, leaving a trade deficit of $11.23 billion.
Overseas, Asian stocks are trading mixed on Tuesday as the Delta coronavirus variant spread in key markets in the region and put Chinese authorities on high alert, rattling investor confidence.
U.S. stocks gave up early gains and turned negative for the session on Monday as concerns about Covid variants and peaking economic growth weighed against strong earnings results.
Back home, benchmark indices closed with strong gains on first trading day of the week on positive global cues. The barometer index, the S&P BSE Sensex, was up 363.79 points or 0.69% at 52,950.63. The Nifty 50 index surged 122.1 points or 0.77% at 15,885.15.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,539.88 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,505.82 crore in the Indian equity market on 2 August, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 118 points at the opening bell.
Overseas, Asian stocks are trading mixed on Monday, as data showed Chinese manufacturing activity growth slowed in July.
The Caixin/Markit manufacturing Purchasing Managers' Index for July released Monday came in at 50. The Caixin manufacturing PMI figure had come in at 51.3 in June.
China's official manufacturing PMI released over the weekend also showed factory activity growth slowing in July, with the figure for the month coming in at 50.4 versus June's reading of 50.9.
The Covid situation in the region may also weigh on investor sentiment. More areas in Japan entered a Covid-19 state of emergency on Monday due to a spike in virus cases, as per reports.
U.S. stock indexes closed lower Friday, with renewed concerns about a rise of cases of the delta variant COVID-19 and disappointing results from Amazon.com partly blamed for the slump.
Data on Friday showed the core personal consumption expenditures price index rose 3.5% in June year over year.
A final reading of the University of Michigan's consumer-sentiment index fell to 81.2 in July from a reading of 85.5 in June, though it exceeded the initial July figure of 80.8.
Back home, key equity indices closed lower on Friday, erasing intraday gains. The barometer index, the S&P BSE Sensex, fell 66.23 points or 0.13% to 52,586.84. The Nifty 50 index lost 15.40 points or 0.1% to 15,763.05.
Foreign portfolio investors (FPIs) sold shares worth Rs 3,848.31 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,956.68 crore in the Indian equity market on 30 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 76 points at the opening bell.
Overseas, Asian stocks were trading mostly lower on Friday amid escalating coronavirus concerns.
The surge in the covid infections worldwide has been relentless, with spiking cases in the US and Japan so much so that the world's third-largest economy is set to expand the state of emergency on Friday to Tokyo's three neighboring prefectures of Osaka, Saitama, Chiba and Kanagawa.
Japan's industrial output jumped 6.2% in June, sharply rising from a 6.5% drop in May. June retail sales rose 0.1% from a year earlier.
U.S. stocks rose to record levels on Thursday as investors shrugged off economic data pointing slower-than-expected growth.
The US economy expanded 6.5% annualized in the second quarter, according to government data released Thursday. The number of Americans collecting unemployment benefits slid last week. Jobless claims dropped by 24,000 to 400,000 last week, the Labor Department reported Thursday.
Back home, the domestic equity benchmarks ended with modest gains after a volatile session on Thursday. The barometer index, the S&P BSE Sensex, advanced 209.36 points or 0.4% to 52,653.07. The Nifty 50 index added 69.05 points or 0.44% to 15,778.45.
Foreign portfolio investors (FPIs) sold shares worth Rs 866.26 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,046.96 crore in the Indian equity market on 29 July, provisional data showed.
Trading could be volatile in the forthcoming week as traders roll over positions in the F&O segment from the near month July series to August series. The July 2021 F&O contracts will expire today, 29 July 2021.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 16 points at the opening bell.
Overseas, Asian stocks are trading higher on Thursday after the U.S. Federal Reserve left its benchmark interest rate near zero. Meanwhile, shares in Hong Kong continued to see a rebound from a two-day slump earlier in the week.
U.S. stocks slipped on Wednesday in listless trade after the Federal Reserve gave no clue about when it might start reducing its purchases of government bonds, even as it said the economic recovery is on track.
The Federal Open Committee ended its two-day meeting by keeping interest rates in a target range between zero and 0.25%. Fed Chairman Jerome Powell said the U.S. central bank is nowhere near considering a rate hike despite the optimism over the U.S. economy.
Back home, the domestic equity indices ended with small losses after a volatile trading session. The S&P BSE Sensex, fell 135.05 points or 0.26% to 52,443.71. The Nifty 50 index lost 37.05 points or 0.24% to 15,709.40.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,274.77 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 921.45 crore in the Indian equity market on 28 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 27 points at the opening bell.
Overseas, Asian stocks are trading lower on Wednesday, with stocks in Hong Kong struggling to recover from a two-day rout.
U.S. stocks fell for the first time in six days on Tuesday ahead of quarterly earnings reports from several megacap technology companies.
Investors are awaiting the Federal Reserve's update on its monetary policy as the central bank's two-day meeting began. The Federal Open Market Committee will release a statement when the meeting concludes Wednesday, followed by Chairman Jerome Powell's news conference.
The International Monetary Fund warned Tuesday that there's a risk inflation will prove to be more than just transitory, pushing central banks to take pre-emptive action.
Meanwhile, the International Monetary Fund (IMF), on July 27, cut India's gross domestic product (GDP) growth forecast to 9.5% for fiscal year 2021-22, from the previous forecast of 12.5%, citing the hit on economic activity and demand due to the deadly 'second wave' of the COVID-19 pandemic. For fiscal year 2022-23, however, IMF expects economic growth of 8.5%, larger than the 6.9% it had projected in April.
"Growth prospects in India have been downgraded following the severe second COVID wave during March–May and expected slow recovery in confidence from that setback," the multilateral institution said in its latest World Economic Outlook report.
Back home, the key benchmark indices ended lower for the second consecutive session yesterday, 27 July 2021, dragged by the weak global stocks. The barometer index, the S&P BSE Sensex, fell 273.51 points or 0.52% to 52,578.27. The Nifty 50 index lost 78 points or 0.49% to 15,746.45.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,459.08 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 729.96 crore in the Indian equity market on 27 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 12 points at the opening bell.
Overseas, Asian stocks are trading higher on Tuesday even as several major Chinese tech stocks in Hong Kong remained under pressure following a Monday tumble.
All three major US stock indexes eked out record closing highs for a second straight session on Monday as investors were optimistic heading into a slew of earnings from heavyweight technology and internet names this week, while caution ahead of a Federal Reserve policy meeting kept the market in check.
Investors will be watching the Federal Reserve's two-day policy meeting, beginning Tuesday. The Federal Open Market Committee and the Board of Governors are expected to issue a statement on the stance of monetary policy Wednesday. On Thursday, the Commerce Department will report second-quarter gross domestic product data.
Meanwhile, on the data front, sales of new U.S. single-family homes dropped unexpectedly in June, falling 6.6% to a seasonally adjusted annual rate of 676,000 units, the Commerce Department said on Monday.
Back home, the domestic equity barometers ended a volatile session with modest losses on Monday. The barometer index, the S&P BSE Sensex, fell 123.53 points or 0.23% to 52,852.27. The Nifty 50 index lost 31.60 points or 0.20% to 15,824.45.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,376.79 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,551.27 crore in the Indian equity market on 26 July, provisional data showed.
Indian indices are likely to open lower today. Shares of index heavyweights RIL, ITC and ICICI Bank will react to their results.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 89 points at the opening bell.
Overseas, Asian stocks are trading mixed on Monday, as Chinese tech stocks in Hong Kong plunged. China's antitrust regulator ordered Tencent to give up its exclusive music licensing rights and slapped a fine on it for anti-competitive behavior, marking yet another development in Beijing's ongoing crackdown on its domestic internet titans.
Investors likely continued to monitor the Covid situation in Asia as it weighs on sentiment. In South Korea, the second highest level of virus restrictions will be reportedly applied to non-capital areas starting Tuesday. Indonesia on Sunday also reportedly extended its Covid restrictions by a week.
U.S. equities rose Friday with the the major averages hitting new records as they overcame concerns about economic growth from earlier in the week. The Dow closed above 35,000 for the first time ever. The blue chip average rose 238.20 points, or 0.68%, to 35,061.55. The S&P 500 gained 1.01% to 4,411.79 and the Nasdaq Composite climbed 1.04% to 14,836.99, both new closing highs for the benchmarks.
Back home, benchmark indices ended a volatile session with decent gains on Friday. The barometer index, the S&P BSE Sensex, added 138.59 points or 0.26% at 52,975.80. The Nifty 50 index advanced 32 points, or 0.2% at 15,856.05.
Foreign portfolio investors (FPIs) sold shares worth Rs 163.31 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,187.80 crore in the Indian equity market on 23 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 8 points at the opening bell.
Overseas, Asian stocks are trading mixed on Friday as investors monitored Chinese tech stocks in Hong Kong after regulatory concerns resurfaced. Markets in Japan are closed on Friday for a holiday.
As per reports, Beijing is considering harsh penalties on ride-hailing giant Didi. The penalties being planned range from a fine likely bigger than the record $2.8 billion Alibaba paid earlier this year to even a forced delisting after Didi's IPO last month.
Tech shares led U.S. stocks higher Thursday, despite an unexpected jump in jobless claims that resurfaced some concerns about the economy and sent bond yields lower. Investors jumped back into their favorite tech stocks as optimism about the sector grows ahead of big earnings reports next week for some of the largest names in the space.
Stocks were under pressure earlier in the day after jobless claims unexpectedly rose to 419,000, more than the upwardly revised 368,000 from the previous period.
Meanwhile, the European Central Bank on Thursday said interest rates would stay at their current record low levels until it sees inflation "durably" reaching the bank's new target of 2%. The 25-member governing council "expects the key ECB interest rates to remain at their present or lower levels until it sees inflation reaching 2% well ahead of the end of its projection horizon and durably for the rest of the projection horizon," the bank said in a statement, adding that "this may also imply a transitory period in which inflation is moderately above target".
Back home, the equity benchmark indices ended with robust gains on Thursday. The barometer index, the S&P BSE Sensex, soared 638.70 points or 1.22% at 52,837.21. The Nifty 50 index added 191.95 points or 1.23% at 15,824.05.
Foreign portfolio investors (FPIs) sold shares worth Rs 247.59 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 942.55 crore in the Indian equity market on 22 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 148 points at the opening bell.
Overseas, Asian stocks are trading higher on Thursday after solid company earnings boosted Wall Street, easing concerns about peak economic growth and coronavirus flareups. Markets in Japan are closed on Thursday for a holiday.
Wall Street stocks posted their second straight daily gain on Wednesday, with robust corporate earnings and renewed optimism about the U.S. economic recovery fueling a risk-on rally.
Back home, the stocks markets were shut on Wednesday, 21 July 2021 for Bakri-Id. Domestic equity indices tumbled on Tuesday, 20 July 2021 tracking weak cues from other Asian stock markets.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,834.96 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 873.14 crore in the Indian equity market on 20 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 12 points at the opening bell.
Overseas, Asian stocks are trading lower on Tuesday following an overnight tumble for stocks on Wall Street and concerns about the spread of the delta coronavirus variant. Markets in Indonesia, Malaysia and Singapore are closed on Tuesday for holidays.
On Tuesday, China kept unchanged its benchmark lending rate for corporate and household loans — the one-year Loan Prime Rate (LPR) held steady at 3.85% while the five-year LPR was also left at 4.65%.
Geopolitical jitters also resurfaced on Monday after the U.S., the U.K. and their allies said the Chinese government has been the mastermind behind a series of malicious ransomware, data theft and cyber-espionage attacks against public and private entities -- including the sprawling Microsoft Exchange hack earlier this year.
U.S. stocks dropped sharply on Monday on concern a rebound in Covid cases would slow global economic growth. Covid cases have rebounded in the U.S. this month, with the delta variant spreading among the unvaccinated. Cases were already flaring up around the world because of the delta variant.
Back home, key equity indices ended with sharp losses on Monday, tracking weak global cues. The S&P BSE Sensex, dropped 586.66 points or 1.10% at 52,553.40. The Nifty 50 index slipped 171 points or 1.07% at 15,752.40.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,198.71 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,047.66 crore in the Indian equity market on 19 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 211 points at the opening bell.
Overseas, Asian stocks are trading lower on Monday on concerns about the impact of elevated inflation and Covid-19 outbreaks on economic prospects.
OPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022. Coordinated increases in oil supply from the group - collectively known as OPEC+ will start in August, OPEC said in a statement. The development came as Brent surged more than 40% so far in 2021, with demand for crude rising as the global economy recovers from the pandemic.
U.S. stocks fell on Friday weighed down by declines in Amazon, Apple and other heavyweight technology stocks, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant.
A preliminary reading of the University of Michigan's index of consumer sentiment fell to 80.8 in July from a final reading of 85.5 in June, notching the measure's lowest level since February.
Separately, the Commerce Department released a report showing retail sales climbed by 0.6% in June after plunging by a revised 1.7% in May. Excluding a steep drop in sales by motor vehicle and parts dealers, retail sales jumped by an even stronger 1.3% in June following a revised 0.9% decrease in May.
Back home, the key equity benchmarks ended almost flat on Friday, as investors booked profits at record high levels. The barometer index, the S&P BSE Sensex, slipped 18.79 points or 0.04% to 53,140.06. The Nifty 50 index lost 0.80 points or 0.01% to 15,923.40.
Foreign portfolio investors (FPIs) sold shares worth Rs 466.30 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 666.07 crore in the Indian equity market on 16 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 36 points at the opening bell.
Overseas, Asian stocks are trading mixed on Friday as concerns about the economic growth outlook came to the fore. Investors await the Bank of Japan's monetary policy statement.
US stocks indexes fell on Thursday as energy and technology stocks declined.
Federal Reserve Chair Jerome Powell on Thursday maintained the central bank will continue to evaluate the economic recovery before changing its accommodating monetary policies. The Fed chair spoke before the Senate banking panel in a second day of testimony before Congress.
Meanwhile, Organization of the Petroleum Exporting Countries (OPEC) stuck to its forecast for a strong recovery in world oil demand in the rest of 2021 and predicted oil use would rise further in 2022 similar to pre-pandemic rates, led by growth in China and India.
"In 2022, healthy expectations for global economic growth in addition to improved containment of COVID-19 through the acceleration of vaccination programmes, effective treatment and natural immunisation, particularly in emerging and developing countries, along with frequent testing procedures, are assumed to spur consumption of oil next year to comparable pre-pandemic levels," OPEC said in the report.
Back home, the key equity indices ended with strong gains on Thursday. The barometer index, the S&P BSE Sensex, advanced 254.80 points or 0.48% to 53,158.85. The Nifty 50 index added 70.25 points or 0.44% to 15,924.20. Both the indices attained record closing high levels.
Foreign portfolio investors (FPIs) sold shares worth Rs 264.77 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 439.41 crore in the Indian equity market on 15 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 20 points at the opening bell.
Overseas, Asian stocks are trading mixed on Thursday as China reported its second-quarter gross domestic product (GDP) jumped.
China's GDP rose 7.9% year-on-year in the second quarter, official data showed Thursday. Meanwhile, retail sales in June jumped 12.1% from a year earlier, data from the National Bureau of Statistics showed. Chinese industrial output rose 8.3% year-on-year in June.
China's central bank partially rolled over maturing medium-term loans on Thursday, the same day when a cut in the banks' reserve requirements takes effect.
The People's Bank of China (PBOC) said in a statement it was keeping the rate on 100 billion yuan ($15.46 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions steady at 2.95% from previous operations.
US stocks closed flat on Wednesday after U.S. Federal Reserve Chair Jerome Powell soothed investor angst by saying a recent inflation spike will fade, helping lift the S&P 500 to a fresh intraday record.
Federal Reserve Chairman Jerome Powell said the central bank will maintain its easy monetary policies. Powell said in his semiannual testimony before the House Committee on Financial Services Wednesday that the central bank can wait before it starts to ease its bond purchases despite surging inflation readings. The Fed chair said he still expects inflation to moderate.
“At our June meeting, the Committee discussed the economy's progress toward our goals since we adopted our asset purchase guidance last December. While reaching the standard of ‘substantial further progress' is still a ways off, participants expect that progress will continue,” Powell said.
Back home, the benchmark indices ended with decent gains on Wednesday, led by strength in IT shares. The barometer index, the S&P BSE Sensex, rose 134.32 points or 0.25% to 52,904.05. The Nifty 50 index added 41.60 points or 0.26% to 15,853.95.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,303.95 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,335.91 crore in the Indian equity market on 14 July, provisional data showed.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 51 points at the opening bell.
Overseas, Asian stocks mostly slipped on Wednesday following a hotter-than-expected U.S. inflation report for June overnight.
Singapore's economy grew 14.3% year-on-year in the second quarter, official advanced estimates showed Wednesday. Still, the economy contracted by 2% as compared with the previous quarter, Singapore's Ministry of Trade and Industry said.
US stocks slipped after posting new highs on Tuesday as the biggest hike in U.S. inflation in 13 years rattled investors.
Inflation rose at its fastest pace in nearly 13 years, the Labor Department reported Tuesday. The consumer price index increased 5.4% in June from a year ago. Core CPI, excluding food and energy, jumped 4.5%, the sharpest move for that measure since September 1991.
Federal Reserve Chairman Jerome Powell is scheduled to appear in front of Congress Wednesday and Thursday to provide an update on monetary policy.
Investors are also monitoring the spread of the more contagious delta variant of Covid-19, which is hampering the recovery from the pandemic in some parts of the world. The unfolding earnings season is key too, with global stocks close to record highs on optimism over the bounce back from the health crisis.
Back home, the key equity indices ended with strong gains on Tuesday, tracking positive cues from other Asian stock markets. The barometer index, the S&P BSE Sensex, advanced 397.04 points or 0.76% to 52,769.73. The Nifty 50 index added 119.75 points or 0.76% to 15,812.35.
Foreign portfolio investors (FPIs) bought shares worth Rs 113.83 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 344.19 crore in the Indian equity market on 13 July, provisional data showed.