Share Market Highlights: Sensex ends 284 pts higher, Nifty above 16600; Infosys, Bajaj Finance lead gains

Indian rupee ended marginally higher at 79.95 per dollar against previous close of 79.98.

Benchmark indices end in green for 5th straight day. Sensex rises 284 pts, Nifty settles above 16,600.

“Nifty has conquered a critical medium term level and is expected to witness increased volatility going ahead. It trades with a positive  for the July series. Immediate support is seen at 16490 – breach of the same on closing basis can invite selling pressure. Infra, Banking and FMCG trade with a positive bias. Selective participation expected in the midcap space.”

~Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

Benchmark indices were trading higher with Nifty above 16550. The Sensex was up 147.56 points or 0.27% at 55545.09, and the Nifty was up 42.60 points or 0.26% at 16563.40.

Rakesh Jhunjhunwala portfolio stock Rallis India soared 4 per cent on Thursday despite the company reporting 18.3% fall in net profit to Rs 67 crore on Tuesday. The Tata Group firm’s revenue, however, rose 16.5% to Rs 863 crore in the quarter ending 30 June 2022, driven by 11.6% price growth and 5% of volume growth. So far this year, Rallis India share price has fallen 22 per cent. Analysts’ views remain mixed on the stock amid short-term challenges including shift in cropping patterns; greater use of illegal cotton seed and less contract-manufacturing demand. Rallis India shares were quoting at Rs 214, up 4.7% on NSE intraday.

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State Bank of India has approved raising of capital by way of issuance of Basel III compliant debt instrument in USD/INR and/or any other convertible currency, during FY23. The bank will raising fresh additional Tier 1 (AT1) capital of Rs 7,000 crore, and fresh Tier 2 capital of Rs 4,000 crore. State Bank of India was quoting at Rs 511.95, up Rs 3.35, or 0.66 percent on the BSE.

Delhivery's, market capitalisation (market-cap) crossed Rs 50,000 crore-mark on Thursday as the stock hit a new high of Rs 707.65, up 5 per cent on the BSE in the intra-day trade. With this, the company has joined the most-valued listed firms' club. At 01:58 om, Delhivery commanded a market-cap of Rs 50,382 crore, and ranked 45th in the overall m-cap ranking list, BSE data shows. In the past five weeks, the stock has zoomed 44 per cent as compared an 8-per cent rise in the S&P BSE Sensex.

Hindustan Zin net profit rose 55.9% at Rs 3,092 crore against Rs 1,983 crore (YoY)

Revenue rose 43.7% at Rs 9,387 crore against Rs 6,531 crore(YoY).

EBITDA gained 44.4% at Rs 5,137 crore against Rs 3,558 crore (YoY)

EBITDA margin came in at 54.7% against 54.4 % (YoY).

In our view, strong growth in IT revenues over the past few quarters has led to record hiring as well as rise in attrition rates. This has shifted the balance of power in favor of employees, who are able to bargain the terms of working conditions and accordingly push back a return to office. Kotak Institutional Equities

Gland reported a dismal Q1FY23 performance due to continued supply disruptions and elevated costs. Gland, being a B2B generic player, caters to the relatively lower end of the global injectable market, thereby aggravating the supply challenges. While these pressures will largely ease out in H2FY23, they have unveiled higher vulnerability in its CDMO model versus peers. Long-term concerns on margins stay. We cut FY23-25E EPS by 11-13% to factor in lower sales (particularly in ROW), lower profit share in the US and higher costs. We also lower our target multiple from 28X Mar-24 EPS to 25X Jun-24 EPS to account for higher vulnerability of Gland’s B2B generic model to supply disruptions compared to other CDMO peers, as evidenced over the past few months. We retain our REDUCE rating with revised FV of Rs2,325 (Rs2,800 earlier). Purvi Shah DVP (Fundamental Research) – Pharma Analyst, Kotak Securities

Shares of Adani Enterprises hit a new high of Rs 2,498.80, up 2 per cent on the National Stock Exchange (NSE) in intra-day trade on expectation of entry into the Nifty 50 index. The stock traded higher for the sixth straight day and gained 6 per cent during the period. In the past one month, it has rallied 15 per cent as compared to 6 per cent rise in the Nifty 50 index. Further, in the past six months, it surged 36 per cent as against 6 per cent decline in the benchmark index.

Shares of Tata Communications spiked over 6 percent after the company said its net profits for the quarter ended June shot up 84 percent year-on-year (YoY). The company in its release said its consolidated revenue stood at Rs 4,311 crore; increasing 5.1 percent YoY. Sequentially, growth in revenue followed upsides in the data business. Consolidated net profits stood at Rs 544 crore for the quarter, up from Rs 296 crore in the same quarter last year, registering a growth of 83.6 percent YoY.

BSE Sensex and NSE Nifty 50 were trading flat to positive on Thursday, a day of weekly F&O expiry. Stocks of index heavyweights such IndusInd Bank, Infosys, ICICI Bank, Housing Development Finance Corporation (HDFC), and Axis Bank capped the losses in S&P BSE Sensex. So far in the trade, BSE Sensex rose to day’s high of 55,626.45, while NSE Nifty hit 16,592.10 as day’s high. In today’s trade, ITC hit a fresh 52-week high, while no stock fell to a new 52-week low on S&P BSE Sensex. Read full story

BSE Midcap index gained 1 percent supported by the Tata Communications, RBL Bank, Yes Bank

AU Small Finance Bank reported a 32% on-year growth in profit at Rs 268 crore for the quarter ended June 2022, with trading losses of Rs 55 crore (MTM and realized) weighing on profitability.  Disbursements (fund-based) for Q1FY23 grew by 345% YoY to Rs 8,445 crore due to low base, with assets under management growing 37% YoY to Rs 50,161 crore during the quarter.

The Asian Development Bank (ADB) on Thursday slashed its growth forecast for India to 7.2 per cent for FY23 from 7.5 per cent estimated earlier citing higher than anticipated inflation since April and subsequent monetary tightening by the central bank. The Manila-based multilateral development bank also raised its inflation forecast for India to 6.7 per cent for FY23 from 5.8 per cent projected earlier.

Benchmark indices extended the gains and were trading near the day's high level.

The Sensex was up 147.77 points or 0.27% at 55545.30, and the Nifty was up 46.20 points or 0.28% at 16567.

Cummins India share price hit an over six-year high of Rs 1,209.15, up 4 per cent on the BSE in Thursday’s intra-day trade on a healthy business outlook. In the past one month, the stock has rallied 25 per cent compared to a 6 per cent rise in the S&P BSE Sensex. It was trading close to its record high of Rs 1,247 touched on 7 August 2015. For the year ended March 31, 2022 (FY22), the company had reported record sales of Rs 6,026 crore, higher by 42 per cent compared to Rs 4,256 crore posted last year. Profit before tax and exceptional items grew 27 per cent on-year at Rs 1,027 crore.

The Indian rupee continued to weaken on Thursday and fell to a fresh record low of 80.06 against the US dollar, tracking losses in most other Asian peers; however, traders expect dollar-selling intervention by the Reserve Bank of India (RBI) to limit losses. The Indian rupee has been hitting fresh lows for the past few sessions, and fell to a low of 80 vs the USD for the first time on Tuesday. So far this year, the rupee has lost over 7% of its value. RBI is prepared to sell another $100 billion to defend the rupee from rapid falls, according to a Reuters report citing an unidentified source.

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ITC share price jumped 1.4 per cent to a 3-year high at Rs 302.20 apiece on BSE on Thursday. ITC stock has rallied 48 per cent in nearly one year from its 52-week high of Rs 204.50, touched last year in August. Chairman and MD Sanjiv Puri on Wednesday said that ITC is looking to ramp up exports of its value-added FMCG products to international markets. Technical analysts say that ITC has topped Rs 300 but the upside momentum seems to be decelerating and there are very high chances that it may take some breather and slip under consolidation. Read full story

Sonata Software said that the company board on July 25 may consider proposal for issue of bonus shares. The board will also consider standalone as well as consolidated unaudited financial results of the company for Q1FY23 on the same date.

IndusInd Bank share price soared 5% in early trade on Thursday after the company reported a 60.5% on-year rise in net profit at Rs 1,631.1 crore for the quarter ended June 30, 2022, which was above analysts’ expectation. The rise in net profit was helped by a 30 per cent on-year fall in provisions as well as a 16 per cent growth in net interest income (NII). Lender’s micro slippage fell to a seven-quarter low of 8.5%. IndusInd Bank shares were quoting at Rs 925, up 5.21% on NSE. So far this year, IndusInd Bank share price has risen merely 1.32%. However, analysts remain bullish on the stock and see up to 60% potential rally going forward.

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IndusInd Bank share price soared 5% in early trade Monday after the company reported a 60.5% on-year rise in net profit at Rs 1,631.1 crore for the quarter ended June 30, 2002, which was above analysts' expectation. The rise in net profit was helped by a 30 per cent on-year fall in provisions as well as a 16 per cent growth in net interest income (NII). Lender's micro slippage fell to a seven-quarter low of 8.5%. IndusInd Bank shares were quoting at Rs 925, up 5.21% on NSE.

Benchmark indices were trading with marginal gains in the volatile session.
The Sensex was up 117.63 points or 0.21% at 55515.16, and the Nifty was up 37.90 points or 0.23% at 16558.70.

Wipro Wipro share price fell around 2% on Thursday after company’s Q1 results failed to beat Street estimates. The information technology (IT) giant reported a 20.94% on-year decline in its consolidated net profit at Rs 2,563.6 crore for the quarter ended June 2022, down from Rs 3,242.6 crore reported in the same quarter last fiscal. On a sequential basis, the profit fell 16.96 per cent. The consolidated total revenue for Wipro, however, rose 15.51% on-year to Rs 22,001 crore. Wipro shares fell to an intraday low of Rs 409 on NSE, down around 2% from previous close. So far this year, Wipro stock has plunged 43%. Brokerages’ views remain mixed in the IT stock with some seeing up to 106% upside, other seeing downside of 5%.

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India tanked more than half a per cent on Thursday as the yellow metal hit a one-year low globally. On Multi Commodity Exchange, gold August futures were ruling Rs 265 or 0.53 per cent down at Rs 49,960 per 10 gram, nearly 3-month low level. Silver September futures were trading Rs 506 or 0.9 per cent down at Rs 55,113 per kg. Globally, yellow metal prices fell to their lowest in nearly a year, as an elevated U.S. dollar and prospects of more interest rate hikes by major central banks to combat soaring inflation weighed on bullion’s appeal. Read full story

IndusInd Bank, Hindalco Industries, Bajaj Auto, UPL and ITC were among major gainers on the Nifty, while losers were Tech Mahindra, L&T, Kotak Mahindra Bank, Wipro and HDFC Life.

IndusInd Bank, Sun Pharma, M&M, Maruti and Bharti Airtel were the top gainers on the Sensex, while Wipro, L&T, Kotak Bank, Infosys, TCS and Asian Paints slipped up to 1.8 per cent.

Indian indices opened flat with negative bias amid mixed global cues. The Sensex was down 102.97 points or 0.19% at 55,294.56, and the Nifty was down 31.90 points or 0.19% at 16,488.90.

Benchmark indices BSE Sensex, NSE Nifty 50 were trading marginally lower in pre-open session.