Indices gain for 5th straight day; Nifty ends above 16,600

The benchmark indices closed with decent gains on Thursday. The Nifty scaled above the 16,600 mark. Banks, media and oil & gas shares advanced while pharma and health care stocks corrected. Trading was volatile due to expiry of weekly index options on the NSE today. A reversal in foreign fund selling in the Indian market helped improve sentiment.

As per the provisional closing basis, the S&P BSE Sensex, was up 284.42 points or 0.51% to 55,681.95. The Nifty 50 index gained 84.40 points or 0.51% to 16,605.25.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.24% while the S&P BSE Small-Cap index added 0.90%.

 

The market breadth was strong. On the BSE, 2,016 shares rose and 1,325 shares fell. A total of 158 shares were unchanged.

Buzzing Index:

The Nifty Pharma index fell 0.42% to 28,335.50. The index rose 0.23% in the previous session.

Among the components of the Nifty Pharma index, Dr Reddys Laboratories (down 1.95%), Cipla (down 1.43%), Zydus Lifesciences (down 1.13%) and Lupin (down 1.04%) were the top losers.

Among the other losers were Strides Pharma Science (down 0.83%), Torrent Pharmaceuticals (down 0.79%), Aurobindo Pharma (down 0.72%), Glenmark Pharmaceuticals (down 0.69%) and Ipca Laboratories (down 0.67%).

On the other hand, Biocon (up 1.73%) ,Divis Laboratories (up 1.53%) and Natco Pharma (up 1.53%) edged higher.

Gland Pharma slipped 5.8% after the company's consolidated net profit tumbled 35% to Rs 229.2 crore on 26% decline in revenue from operations to Rs 856.9 crore in Q1 FY23 over Q1 FY22. The pharma company said that continued supply disruption, cost escalation and the company's decision to shut down two of its manufacturing lines for productivity improvement have affected the business for the quarter.

Earnings Impact:

AU Small Finance Bank rose 1.95% after the bank reported 31.8% rise in net profit to Rs 267.87 crore on a 26.3% increase in total income to Rs 1,979.35 crore in Q1 FY23 over Q1 FY22. Net Interest Income (NII) during the quarter jumped by 35% YoY to Rs 976 crore, aided by broadly stable spreads and AUM growth of 37% YoY. Net Interest Margin (NIM) stood at 5.9% in Q1 FY23.

Tata Communications spurted 10.04% after the Tata Group company reported 83.6% surge in consolidated net profit to Rs 543.76 crore on 5.1% increase in net sales to Rs 4,310.52 crore in Q1 FY23 over Q1 FY22. On a sequential basis, net profit grew 48.95% while net sales rose 1.11% in Q1 FY23 over Q4 FY22. Sequentially, growth in revenue followed upsides in the Data business, the company stated.

Havells India rose 2.83% after the company reported 3.5% rise in standalone net profit to Rs 242.43 crore on 62.8% surge in net sales to Rs 4,230.14 crore in Q1 FY23 over Q1 FY22. Profit before tax stood at Rs 326.55 crore in Q1 FY23, up 3.7% from Rs 314.77 crore posted in Q1 FY232. Total expenses spiked 70.46% to Rs 3,950.57 crore in Q1 FY23 over Q1 FY22. EBITDA increased by 2% to Rs 361 crore in Q1 FY23 from Rs 353 crore reported in the same period a year ago.

IndusInd Bank jumped 8.20% after the bank reported 64% rise in standalone net profit to Rs 1,603 crore on a 9% increase in total income to Rs 10,110 crore in Q1 FY23 over Q1 FY22. The bank's consolidated net profit increased by 61% YoY to Rs 1,631 crore on a 15% rise in total income to Rs 6,057 crore in the first quarter.

Mastek fell 1.03% after the IT company reported a 4.4% decline in consolidated net profit to Rs 84.4 on 1.9% decrease in revenue from operations to Rs 570.3 crore in Q1 FY23 over Q4 FY22. On a year on year (YoY) basis, Mastek's net profit rose 5.2% and revenue from operations grew 10.4%. Total EBITDA was Rs 135 crore in Q1 FY23, down 2.6% quarter on quarter (QoQ) and up 14.9% year on year (YoY). Total EBITDA margin stood at 22.6% in Q1 FY23 as against 23.1% in Q4 FY22 and 22.5% in Q1 FY22.

Kajaria Ceramics rallied 8.47% after the company's consolidated net profit surged to Rs 92.30 crore in Q1 FY23 as against Rs 43.06 crore in Q1 FY22. Net sales soared 80% to Rs 1,008.22 crore for the quarter ended 30 June 2022 compared with Rs 561.66 crore in the same period a year ago. The company reported profit before tax of Rs 125.71 crore in Q1 FY23, steeply higher than Rs 56.88 crore in Q1 FY22.

IDBI Bank gained 1.66% after the company reported 25% jump in net profit to Rs 756 crore despite a 13% fall in total income to Rs 5,781 crore in Q1 FY23 over Q1 FY22. Net Interest Income declined marginally to Rs 2,488 crore in Q1 FY23 from Rs 2,506 crore in Q1 FY22. Net Interest Margin (NIM) stood at 4.02% in Q1 FY23 as compared to 4.06% for Q1 FY22.

Global Markets:

Most European stocks declined on Thursday as the investors awaited the European Central Bank's latest monetary policy decision, in which it's widely expected to announce its first interest rate hike in years.

Asian stocks ended mixed on Thursday after the Bank of Japan kept rates on hold. The Bank of Japan stuck to its ultra-easy monetary policy as expected, while lowering its growth forecast for 2022 and raising its inflation predictions.

US stocks ended higher on Wednesday on positive earnings signals with a wary eye on inflation and more interest rate hikes by the Fed.

The US Federal Reserve will opt for another 75 basis point rate hike rather than a larger move at its meeting next week to quell stubbornly-high inflation as the likelihood of a recession over the next year rises to 40%, as per reports.

U.S. President Joe Biden said he expects to speak with Chinese President Xi Jinping by the end of the month, as per reports. He did not elaborate on reasons for the call or planned topics of discussion.

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