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Market rises for 3rd day; Nifty ends above 16,300

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Last Updated : Jul 19 2022 | 4:17 PM IST
The benchmark indices closed a volatile session with decent gains on Tuesday. The Nifty closed above the 16,300 mark after hitting day's low of 16,187.05 in the early trade. Realty and banks stocks advanced while pharma, oil & gas and media shares declined.

As per the provisional closing basis, the barometer index, the S&P BSE Sensex, was up 246.47 points or 0.45% to 54,767.62. The Nifty 50 index added 62.05 points or 0.38% to 16,340.55.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.68% while the S&P BSE Small-Cap index added 0.88%.

The market breadth was strong. On the BSE, 2,025 shares rose and 1,282 shares fell. A total of 147 shares were unchanged.

The domestic equity barometers extended their uptrend for third day in a row. In three sessions, the Sensex has rose 2.53% while the Nifty advanced 2.52%.

Rupee v/s Dollar:

The Indian rupee slumped for the seventh consecutive session, plunging to a record low, breaching the key psychological level of 80 against the US dollar on Tuesday after closing at a new low in the previous session.

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In the foreign exchange market, the partially convertible rupee was hovering at 79.9350, compared with its close of 79.98 during the previous trading session. It had hit a low of 80.0550 in trade today.

Meanwhile, the US Dollar index (DXY) was down 0.71% to 106.61.

Stocks in Spotlight:

Nelco was locked in an upper circuit of 5% at Rs 654.85 after the company's consolidated net profit rose 7.8% to Rs 4.72 crore on 48.2% increase in net sales to Rs 81.68 crore in Q1 FY23 over Q1 FY22. Profit before tax stood at Rs 6.67 crore in Q1 FY23, up by 9% from Rs 6.12 crore reported in Q1 FY22. The company's total expenses spiked 55.08% to Rs 66.64 crore in Q1 FY23 over Q1 FY22.

DCM Shriram fell 1.19%. On a consolidated basis, DCM Shriram reported 61.24% jump in net profit to Rs 253.96 crore on 46% increase in net revenue from operations to Rs 2,851 crore in Q1 FY23 over Q1 FY22. Profit before tax surged 79.25% to Rs 386.65 crore in Q1 FY23 as against Rs 215.70 crore in Q1 FY22. Total expense rose 44.42% to Rs 2,613.25 crore and cost of materials consumed was up 41.55% to Rs 767.08 crore in Q1 FY23 over Q1 FY22.

Polycab India advanced 4.50% to Rs 2250.90 after the company's consolidated net profit surged to Rs 222.5 crore in Q1 FY23 from Rs 75.3 crore in Q1 FY22. Revenue from operations increased 48% YoY to Rs 2,736.6 crore during the quarter. EBITDA zoomed 135% to Rs 309.8 crore in Q1 FY23 from Rs 132.1 crore in Q1 FY22. EBITDA margin was 11.3% in Q1 FY22 as against 7.1% in Q1 FY23, led by calibrated price hikes and better operating leverage.

Steel Strips Wheels (SSWL) fell 2.44% to Rs 823 after the company's net profit dropped 13.61% to Rs 44.13 crore in Q1 FY23 compared with 51.08 crore in Q1 FY22. Revenue from operations climbed 49.84% to Rs 1016.09 crore in Q1 June 2022 as against Rs 678.13 crore in the corresponding quarter previous year. Profit before tax stood at Rs 71.04 crore in Q1 FY23, up 13.23% as against Rs 62.74 crore reported in Q1 FY22.

Mindtree advanced 2.64% to Rs 3,044.35 after the IT company announced that it has partnered with Rubrik, the zero trust data security company, to launch a unified cyber-recovery platform named 'MINDTREE VAULT'. Rubrik is a cloud data management company based in Palo Alto, California, United States founded in December 2013.

Nucleus Software Exports gained 5.31% to Rs 430.60 after the company and CMC-TS entered into an agreement with Vietnam Public Joint-stock Commercial Bank (PVcomBank) to digitally transform the bank's lending origination operations. With Nucleus Software's lending platform FinnOne Neo, PVcomBank plans to launch innovative products and services in the market with great speed. Through this partnership, PVcomBank is expecting to double its consumer loans within the next 4 to 5 years.

Arvind rose 2.03% to Rs 87.75 after Shiprocket acquired the company's omnichannel technology business 'Omuni' for Rs 200 crore in stock and cash deal. Shiprocket announced acquisition of Arvind's omnichannel technology business - Omuni. The transaction will be carried out as a combination of stock and cash for total consideration of Rs 200 crore. The combination of both entities will facilitate quick, efficient deliveries of shipments from the nearest store or warehouse, significantly reducing delivery timelines and enhancing customer experience.

Tube Investments of India rallied 11.81% to Rs 2,247.85 after the company said its wholly owned subsidiary, TI Clean Mobility (TICMPL), has entered into definitive agreements for acquisition of 65.2% in the equity share capital of IPL Tech Electric. The acquisition would be through a combination of primary and secondary purchase of shares for a total cash consideration of about Rs 246 crore, the company stated.

Global Markets:

The Dow Jones futures were up 181 points, indicating a positive opening in the US stock market today.

Shares in Europe and Asia were mixed on Tuesday. Investors eyed the European Central Bank's policy meeting in Frankfurt on Thursday, with policymakers having given advance notice of a first hike in 11 years but facing a backdrop of slowing growth amid the war in Ukraine and subsequent threats to energy supplies.

The Reserve Bank of Australia released its meeting minutes on Tuesday, which showed that the board saw current rates as being "well below" the neutral rate, suggesting that further increases will be needed to return inflation to the target over time. The RBA raised rates by 50 basis points earlier this month.

Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple shares fell on a report saying the company plans to slow hiring and spending growth next year.

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First Published: Jul 19 2022 | 3:44 PM IST

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