Market rises for 6th day; Nifty settles above 16,700

The key equity indices closed with modest gains on Friday, 22 July 2022. The Nifty ended above the 16,700 level after hitting a day's low of 16,610.90 in the mid-morning trade. Financial services, banks and FMCG shares were in demand while IT, healthcare and pharma stocks corrected.

As per closing provisional closing basis, the barometer index, the S&P BSE Sensex, gained 390.28 points or 0.70% to 56,072.23. The Nifty 50 index added 114.20 points or 0.69% to 16,719.45.

In the broader market, the S&P BSE Mid-Cap index fell 0.17% while the S&P BSE Small-Cap index added 0.21%.

The market breadth was positive. On the BSE, 1,781 shares rose and 1,542 shares fell. A total of 146 shares were unchanged.

 

The BSE Sensex added 4.92% while the Nifty 50 index advanced 4.90% in six consecutive sessions.

Economy:

The Reserve Bank of India (RBI) on 21 July 2022 said that the rate setting Monetary Policy Committee's (MPC) meeting next month is rescheduled due to administrative exigencies. The MPC will now meet on August 3-5, from previously scheduled August 2-4.

Politics:

National Democratic Alliance (NDA) candidate Droupadi Murmu was elected the 15th President of India. She was declared elected on Thursday after four rounds of counting, posting an unassailable lead over her rival and the Opposition's candidate Yashwant Sinha, who conceded the election thereafter. The President-elect will take oath on July 25.

Earnings Impact:

HDFC Asset Management Company fell 1.36% after the company reported 9% fall in net profit to Rs 314.19 crore on a 12.4% decline in total income to Rs 532.90 crore in Q1 FY23 over Q1 FY22. HDFC AMC informed that Prashant Jain, chief investment officer (CIO) of the company after 19 years, has decided to move on and has tendered his resignation to the company. The board has approved the appointment of Chirag Setalvad as head-Equities and Shobhit Mehrotra as head-Fixed income.

UltraTech Cement rose 5.35%. On consolidated basis, the cement major reported a 6.99% decline in net profit to Rs 1,584 crore in Q1 FY23 as against Rs 1,703 crore recorded in Q1 FY22. Net sales surged 28.29% to Rs 15,007 crore in quarter ended 30 June 2022 as against Rs 11,698 crore posted in the same quarter a year ago.

JSW Energy advanced 1.54% after the company's consolidated net profit surged 178.7% to Rs 560.43 crore in Q1 FY23, as against Rs 201.10 crore in Q1 FY22. Net sales climbed 75.2% to Rs 3,026.27 crore in Q1 FY23 as against Rs 1,727.54 crore recorded in the corresponding quarter previous year. The company's profit before tax surged 194.9% to Rs 752.78 crore in Q1 FY23 compared with Rs 255.24 crore posted in Q1 FY22.

Happiest Minds Technologies gained 3.05% after the company's net profit rose 8.1% to Rs 56.34 crore while net sales gained 9.4% to Rs 328.92 crore in Q1 FY23 over Q4 FY22. Profit before tax stood at Rs 75.58 crore in Q1 June 2022, up by 8.2% from Rs 69.88 crore in Q4 FY22. The EBITDA rose 7.6% QoQ and 32.7% YoY to Rs 87.75 crore in Q1 FY23.

Persistent Systems rose 1.97% after the company's consolidated net profit rose 5.3% to Rs 211.61 crore on 14.7% increase in revenue to Rs 1878.11 crore in Q1 June 2022 over Q4 March 2022. The IT solution provider's consolidated net profit rose 39.9% and revenue increased 52.7% in Q1 June 2022 over Q1 June 2021. The company's EBITDA stood at Rs 333.29 crore during the quarter, up 18.5% quarter-on-quarter (QoQ) and up 65.4% year-on-year (YoY).

CRISIL rose 0.16% after the company reported 35.8% increase in consolidated net profit to Rs 136.9 crore in Q2 2022, compared with Rs 100.8 crore in the corresponding quarter of the previous year. Consolidated income from operations rose 26.5% to Rs 668.5 crore in Q2 2022, compared with Rs 528.5 crore in the corresponding quarter of the previous year.

SRF fell 2.39%. The company's consolidated net profit climbed 53.8% to Rs 608 crore on 43.8% surge in net sales to Rs 3,852.22 crore in Q1 FY23 over Q1 FY22. The company's profit before tax stood soared 57.3% to Rs 841.59 crore in Q1 FY23 compared with Rs 534.91 crore recorded in same period a year ago. Earnings before Interest and Tax (EBIT) increased 58% to Rs 938 crore in Q1 FY23 as against Rs 595 crore posted in corresponding period last year (CPLY).

Gujarat State Fertilizers & Chemicals (GSFC) surged 13.81% after the company's consolidated net profit soared to Rs 345.81 crore in Q1 FY23 as against Rs 136.11 crore in Q1 FY22. Net sales soared 63.1% to Rs 3,018.15 crore in the quarter ended 30 June 2022 as against Rs 1,850.91 crore in the corresponding quarter previous year.

Coforge rose 2.94%. The IT firm's consolidated net profit declined 27.9% to Rs 149.7 crore despite a 5% increase in gross revenues to Rs 1,829.4 crore in Q1 FY23 over Q4 FY22. As compared with Q1 FY22, the company's net profit and gross revenues are higher by 21.1% and 25.2%, respectively.

Cyient declined 2.34% to Rs 777 after the IT company consolidated net profit slipped 24.71% to Rs 116.10 crore while net sales rose 5.83% to Rs 1,250.10 crore in Q1 FY23 over Q4 FY22. On year on year (YoY) basis, the company's consolidated net profit rose 1% while revenue from operations surged 18.1% in Q1 FY23 over Q1 FY22.

Global Markets:

Shares in Europe advanced across the board while Asian stocks ended mixed on Friday.

The European Central Bank on Thursday announced a 50 basis point hike to interest rates, its first for 11 years, as concerns about runaway inflation outweighed fears of slowing growth.

Euro zone business activity unexpectedly shrank in July. The composite PMI, which encompasses both manufacturing and services, came in at 49.4, below the 50 mark that separates growth in activity from contraction.

Investors also digested Japan's inflation data. Official data released Friday showed that prices in Japan rose 2.2% in June compared to a year ago. It followed rises of 2.1% in May and April.

The Asian Development Bank has cut the growth forecast for China due to concerns over the country's zero-Covid approach and strict lockdowns, which have also impacted its troubled property market. Gross domestic product growth for the world's second largest economy is expected to be at 4% in 2022, down from an earlier estimate of 5%, ADB said in a report published Thursday.

Wall Street's main indices rose on Thursday boosted by a late-afternoon rally and gains in heavyweight growth stocks, including Tesla.

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