Indian equities remained range-bound for the second straight session on July 16 as escalating Middle East tensions, persistent rupee weakness, and elevated crude oil prices kept investor sentiment cautious. According to reports from Live Mint, the Indian rupee hovered around 96.2 per US dollar, remaining under pressure after slipping to an eight-week low amid rising crude oil prices. The domestic currency has weakened about 1.7% so far this month, moving closer to the record low it touched in May. While inflation concerns weighed on financials and realty, the chemicals space emerged as a bright spot, supported by the reinstatement of import duties on select petrochemicals, alongside strong earnings traction. The subdued market performance reflects investor caution amid current global uncertainties.
ABB India emerged as the biggest gainer in BSE's 'A' group, surging 10% to ₹7,924.50 on July 16, reaching its highest level in nearly two-and-a-half years after parent company ABB reported strong June-quarter results and announced its $5.5 billion acquisition of British industrial automation company Rotork. The stock was trading 7% higher at ₹7,697 apiece at 2:12 pm, significantly outperforming its previous performance. Chennai Petroleum Corporation Ltd surged 7.2% to ₹1,257.95, securing the second position among 'A' group gainers, with 4.56 lakh shares traded against the average daily volume of 72,600 shares. Himadri Speciality Chemical Ltd advanced 6% to ₹722.25 and SRF gained 4.1%.
ABB India's surge was driven by its parent company's robust quarterly performance, with ABB reporting an 8% year-on-year increase in income from operations to $1.59 billion for the quarter ended June. Total revenue rose 14% to $9.48 billion, while orders reached a record $12.04 billion, increasing 30% from a year earlier. Operational EBITA rose 20% to $1.93 billion, with the operational EBITA margin improving by 90 basis points to 20.2%. For the six months ended June 30, attributable net income increased to $2.56 billion from $2.25 billion in the year-ago period, with revenue standing at $18.21 billion compared with $15.68 billion previously. The strong performance supported ABB India's domestic trading momentum alongside the major acquisition announcement.
ABB announced its largest-ever acquisition, purchasing U.K.-based Rotork for $5.5 billion, with the deal expected to be funded partly through around $4.8 billion in cash following the divestment of ABB's stake in ABB Robotics. Rotork manufactures equipment used to automatically open, close and control valves regulating the movement of liquids and gases, serving industries including oil and gas, water and wastewater, power generation, chemicals, marine and mining. The company generated revenue of around $1 billion in 2025 and has been growing at approximately 8% annually. ABB expects the acquisition to add around 3% to its revenue and immediately contribute to its operational earnings before interest, taxes, depreciation and amortisation margin. The deal is expected to be earnings per share accretive in the second year after integration, with ABB CEO Morten Wierod noting the acquisition will support growth while retaining Rotork's entrepreneurial approach.
Both stocks are recommended based on strong technical breakouts, supported by rising volumes, bullish price structures and trading above key moving averages, indicating sustained upside potential. As reported by The Economic Times, these recommendations come from Virat Jagad, Sr Technical Research Analyst at Bonanza Portfolio, who emphasizes the importance of multiple technical indicators supporting the bullish outlook for both securities. The recommendations are provided by Virat Jagad, Sr Technical Research Analyst at Bonanza Portfolio, with the disclaimer that these views are their own and do not represent the views of The Economic Times.
