The key equity benchmarks ended almost flat on Friday, as investors booked profits at record high levels. Selling in IT and banks shares put pressure on indices. Shares of pharma and realty companies advanced in anticipation of strong Q1 earnings.
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.
The Sensex hit a record high of 53,290.81 and the Nifty hit a record high of 15,962.25 in morning trade today. The Sensex rose 1.5% in the past three consecutive sessions.
The broader markets outperformed the benchmark indices. The S&P BSE Mid-Cap index gained 0.45%. The S&P BSE Small-Cap index added 0.38%.
Buyers outpaced sellers. On the BSE, 1,778 shares rose and 1,421 shares fell. A total of 150 shares were unchanged.
COVID-19 Update:
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Total COVID-19 confirmed cases worldwide stood at 18,89,28,123 with 40,66,605 deaths. India reported 4,30,422 active cases of COVID-19 infection and 4,12,531 deaths while 3,01,83,876 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reported 38,949 cases, 542 deaths in last 24 hours. The recovery rate has increased to 97.28% while active cases now constitute 1.39% of total cases.
Economy:
India's overall exports in June 2021 are estimated to be $49.85 billion, exhibiting a positive growth of 31.87% over the same period last year. Overall imports in June this year are estimated to be $52.18 billion, exhibiting a positive growth of 73.65% over the same period last year.
India's overall exports in April to June this year are estimated to be $147.64 billion, exhibiting a positive growth of 50.24% over the same period last year. Overall imports in April to June this year are estimated to be $156.58 billion, exhibiting a positive growth of 80.75% over the same period last year.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 74.5725 compared with its previous closing of 74.5425.
MCX Gold futures for 5 August 2021 settlement shed 0.29% to Rs 48,259.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 92.67.
The yield on 10-year benchmark federal paper rose to 6.130% from its previous close of 6.117%.
In the commodities market, Brent crude for September 2021 settlement rose 6 cents to $73.53 a barrel. The contract had lost $1.29 or 1.73% to settle at $73.47 in the previous trading session.
Global Markets:
Most European shares declined while Asian stocks ended mixed on Friday as concerns about the economic growth outlook came to the fore.
The Bank of Japan held steady on monetary policy. Japan's central bank downgraded its real GDP forecast for 2021 to 3.8% growth, as compared with the 4% growth forecast made in April 2021. The Bank of Japan also kept its yield curve control target at -0.1% for short-term interest rates and 0% for 10-year Japanese government bond yields. Yield curve control is a policy to stimulate the country's economy, and entails keeping the 10-year Japanese government bond yield at zero.
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.
Buzzing Index:
The Nifty Pharma index rose 1.16% to 14,635.05. The index fell 0.27% in the previous session.
Divi's Laboratories (up 3.46%), Aurobindo Pharma (up 1.76%), Biocon (up 1.43%), Lupin (up 1.39%), Sun Pharmaceutical Industries (up 0.80%), Cadila Healthcare (up 0.66%), Alkem Laboratories (up 0.61%), Dr. Reddy's Laboratories (up 0.21%) and Cipla (up 0.14%) advanced.
Stocks in Spotlight:
HDFC Asset Management Company rose 0.07%. The HDFC AMC reported a 9.29% increase in net profit to Rs 345.45 crore on 0.83% rise in revenue from operations to Rs 507.08 crore in Q1 FY22 over Q4 FY21.
The HDFC group company posted 14.25% increase in net profit while revenue from operations grew 23.2% in Q1 FY22 over Q1 FY21. Profit before tax for the quarter rose 23% to Rs 466.1 crore compared with Rs 380.4 crore in the same period last year.
The company's operating profit from core asset management business increased by 21% to Rs 365.20 crore during Q1 FY22 from Rs 300.60 crore in the same period last year.
Wipro gained 0.33%. As per IFRS, the IT major's consolidated net income for Q1 June 2021 was Rs 3232.10 crore, an increase of 8.7% quarter-on-quarter (QoQ) and 35.2% year-on-year (YoY). Gross consolidated revenue was Rs 18252.40 crore in Q1 June 2021, an increase of 12.4% QoQ and 22.4% YoY.
IT services segment revenue was at $2,414.5 million, an increase of 12.2% QoQ and 25.7% YoY. IT services operating margin for the quarter was at 18.8%, a decrease of 29 bps YoY. Non-GAAP constant currency IT services segment revenue increased by 12% QoQ and 21.3% YoY.
Wipro said it expects revenue from its IT services business to be in the range of $2,535 million to $2,583 million. This translates to a sequential growth of 5.0% to 7.0%.
Larsen & Toubro Infotech (LTI) declined 2.93%. The IT firm reported a 8.96% fall in consolidated net profit to Rs 496.80 crore in Q1 June 2021 (Q1 FY22) as against Rs 545.70 crore in Q4 March 2021 (Q4 FY21). Consolidated revenues grew 5.91% to Rs 3,462.50 crore in Q1 June 2021 compared with Rs 3,269.40 crore in Q4 March 2021.
Tata Elxsi slumped 4.12%. The company's net profit soared 64.63% to Rs 113.38 crore on 39.41% surge in revenue from operations to Rs 558.32 crore in Q1 June 2021 over Q1 June 2020. On a sequential basis, net profit fell 1.55% while revenue from operations increased 7.70% in Q1 June 2021 over Q4 March 2021.
The company's growth was driven by both its key businesses, with Embedded Product Design (EPD), the company's largest division growing by 7.5% Q-o-Q (quarter-on-quarter) and 31.4% Y-o-Y (year-on-year) and Industrial Design & Visualization (IDV) posting a smart growth of 13.9% Q-o-Q and 132.1% Y-o-Y.
The growth was led by Americas with 17.5% Q-o-Q and 69.3% Y-o-Y growth. Europe grew by 5.4% Q-o-Q and 30.1% Y-o-Y. India grew by 2.8% Q-o-Q and 47.6% Y-o-Y.
Cyient jumped 12.06%. The IT firm reported a 11.54% rise in consolidated net profit to Rs 115 crore in Q1 June 2021 as against Rs 103.10 crore in Q4 March 2021. Revenues declined 3.19% to Rs 1,058.20 crore in Q1 June 2021 compared with Rs 1,093.10 crore in Q4 March 2021. The company's consolidated net profit soared 41.3% while net sales advanced 6.7% in Q1 June 2021 over Q1 June 2020.
Xelpmoc Design and Tech gained 2.63%. The company said that its board has approved raising of funds by issuing up to 7,20,000 equity shares of the company at an issue price of Rs 375 per share aggregating upto Rs 27 crore on a preferential allotment basis. The equity shares are proposed to be allotted to Newport Asia Advisors Fund, Newport Asia Growth & Income Fund, Newport Asia Institutional Fund and Newport Asia Partners Fund.
Angel Broking hit an upper circuit of 20% at Rs 1274.45. The stock broker recorded a 19% increase in consolidated net profit to Rs 121.37 crore on 13.23% rise in revenue from operations to Rs 462.67 crore in Q1 FY22 over Q4 FY21. The stock broker's consolidated net profit increased 156.6% while revenue from operations jumped 94% in Q1 FY22 over Q1 FY21.
Total income stood at Rs 474.5 crore in Q1 FY22 as against Rs 418.9 crore in Q4 FY21, a growth of 13% QoQ. The company said income growth was aided by strong growth in client base and high client activity.
Sona BLW Precision Forgings added 1.8%. The company said that it has joined hands with Israel's IRP Nexus Group (IRP) to create a revolutionary magnet-less e-motor technology for the global electric vehicles market. Under the agreement, IRP will license its technology to Sona Comstar for manufacturing of the system exclusively in India, expecting to start mass production in 2023.
Bandhan Bank fell 3%. The bank's total deposits have increased by 28% to Rs 60,610 crore, loans & advances have risen by 8% to Rs 74,331 crore in Q1 FY22 over Q1 FY21. Sequentially, the bank's total deposits and advances have, however, declined by 1% and 8%, respectively. The bank's collection efficiency for the month of June 2021 was approximately 80%. Liquidity coverage ratio (LCR) as on June 30, 2021 at approximately 138%.
Tata Steel Long Products shed 0.12%. On a consolidated basis, Tata Steel Long Products posted a 2.4% decline in net profit to Rs 331.6 crore on 9% rise in net sales to Rs 1687.64 crore in Q1 FY22 over Q4 FY21. The steel maker posted a net loss of Rs 131.3 crore in Q1 FY21. Net sales soared 158% in Q1 FY22 over Q1 FY21.
JMC Projects (India) climbed 4.26%. The EPC company said it has secured new orders worth Rs 1,624 crore. The company received orders of Rs 496 crore in Q1 FY22 and Rs 1,128 crores in Q2 FY22 till date. The orders consist of road project in Ghana worth Rs 1,128 crore and building project order worth Rs 496 crore in India.
Zomato IPO:
The initial public offer of online food delivery platform Zomato received bids for 2751.16 crore shares as against 71.92 crore shares on offer on Friday (16 July 2021), according to stock exchange data at 16:45 IST. The issue was subscribed 38.25 times.
The issue opened for bidding on Wednesday (14 July 2021) and it will close on Friday (16 July 2021). The price band of the IPO is fixed at Rs 72-76 per share. An investor can bid for a minimum of 195 shares and in multiples thereof.
Tatva Chintan Pharma Chem IPO:
The initial public offer of specialty chemicals manufacturing company Tatva Chintan Pharma Chem received bids for 1.45 crore shares as against 32.61 lakh shares on offer on Friday (16 July 2021), according to stock exchange data at 16:45 IST. The issue was subscribed 4.46 times.
The issue opened for bidding on Friday (16 July 2021) and it will close on Tuesday (20 July 2021). The price band of the IPO is fixed at Rs 1073-1083 per share. An investor can bid for a minimum of 13 shares and in multiples thereof.
Ahead of the IPO, Tatva Chintan Pharma Chem on 15 July 2021 allotted 13,85,040 equity shares to 22 anchor investors, at Rs 1,083 per equity share, aggregating to Rs 149.99 crore.
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