Indian equity markets are likely to open on a tepid note on Tuesday, hinted SGX Nifty. Nifty futures traded 27 points, or 0.16% lower at 16,591.5 on the Singapore Exchange signaling that Dalal Street was headed for a negative start. In the previous session, Sensex snapped 6-day rally to end 306 points lower at 55,766.22, while Nifty 50, slipped below16,650. “We could see further price or time correction for next couple of sessions ahead of the Fed. Policy meet. The outcome of the event is likely to have significant impact on the global markets and hence, our markets too will then have more clarity on the next directional move. Hence, traders should look for stock specific opportunities for next couple of sessions and be vigilant on the market movement post the event,” said Ruchit Jain, Lead Research, 5paisa.com.
Stocks in focus on 26 July, Tuesday
Tata Steel: The steel giant has reported nearly 13% on-year decline in consolidated profit at Rs 7,765 crore for the quarter ended June 2022, impacted by higher input cost and tax expenses. Revenue during the quarter increased by 18.6% on-year to Rs 63,430 crore during the quarter. Consolidated EBITDA stood at Rs 15,047 crore, despite the sharp rise in input costs especially cooking coal and gas prices in Europe, down by 7% on-year.
Tech Mahindra: The IT major reported a 24.8% sequential decline in profit at 1,132 crore for the quarter ended June 2022 due to pressure in margin performance amid wage hikes and increase in travel and visa costs. Company’s profit in the March-ended quarter stood at Rs 1,506 crore. The company’s profit dipped 16.4% on-year basis from Rs 1,353 crore achieved during the corresponding quarter of last financial year Consolidated revenue for the June quarter came in at Rs 12,708 crore, a 4.9% growth from Rs 12,116 crore in the January – March 2022 period.
Axis Bank: The lender reported a 91% on-year rise in net profit to Rs 4,125 crore for the quarter ended June, topping analysts’ expectations. Despite robust net profit growth, the bank’s operating profit fell 5% from a year ago owing to operating expenses growth of 34% and treasury losses. The bank suffered a mark-to-market hit of Rs 1,200 crore that resulted in a trading loss of Rs 667 crore, the management said in a media call. “This is mainly from our corporate bond book. Here, the securities are rated A(-) and above. We do not expect any economic loss on this book,” said Rajiv Anand, deputy managing director at the bank.
Sun Pharma: Life Insurance Corporation said that it has reduced shareholding in Sun Pharmaceuticals by selling 2% stake in the company. The shares were sold through open market transactions during the period from May 17, 2021 to July 22, 2022, according to a regulatory filing. “This is to inform that corporation’s shareholding in Sun Pharamceuticals has diluted from 16,85,66,486 to 12,05,24,944 equity shares, decreasing its shareholding from 7.026 per cent of the paid-up capital of the said company,” it said. The shares were sold at an average price of Rs 808.02 apiece, valuing the transactions at a total of Rs 3,881.85 crore.
Bajaj Finserv: Bajaj Finserv board of directors will on Thursday consider the proposal for a stock split of company’s equity shares. Through stock split, a company increases its number of outstanding shares while reducing the price of each share without affecting the firm’s overall market capitalisation. The proposal will be taken for approval by the board of directors for sub-division of equity shares of the company of face value of Rs 5 each on July 28, 2022. Besides, it will also consider the proposal of issue of fully-paid bonus equity shares to the shareholders.
Telecom stocks: The much-awaited 5G spectrum auction will begin on Tuesday, July 26. This auction will see 72 gigahertz (GHz) of the spectrum – with about 72,000 MHz under nine bands with a validity period of 20 years – worth Rs 4.3 trillion go to sale. According to the Department of Telecom, Gautam Adani-led Adani Data Networks, Mukesh Ambani’s Reliance Jio, Bharti Airtel; and Vodafone Idea have applied to participate in the upcoming 5G auction. Jio has deposited Rs 14,000 crore, which is 140 times that of Adani Data Networks, 6.3 times of Vodafone Idea and 2.5 times that of Bharti Airtel. Vodafone Idea has put in an EMD of Rs 2,200 crore, while Bharti Airtel has put in Rs 5,500 crore.
Q1 results today: Larsen & Toubro (L&T), Asian Paints, Baid Finserv, Bajaj Auto, Tata Power Company, Union Bank of India, Aditya Birla Sun Life AMC, United Spirits, Ujjivan Small Finance Bank, UTI Asset Management Company, Greenlam Industries, Ramco Systems, Symphony, Sanofi India, Shoppers Stop, Apollo Pipes, EIH Associated Hotels, EPL, Ethos, KEI Industries, Mahindra EPC Irrigation, PNB Gilts, SIS, South Indian Bank, and TTK Healthcare will declare their June quarter earnings today.