Barring auto and media index, buying demand was seen across the board with banking, financial, IT and metal stocks moving the most. The Nifty has rallied 3.9% in last six trading days while the BSE Sensex added 3.59% in the same period.
As per the provisional closing data, the barometer index, the S&P BSE Sensex, rallied 568.9 points or 0.94% to 61,305.17. The Nifty 50 index added 173.9 points or 0.96% to 18,335.25.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index was up 0.54% while the S&P BSE Small-Cap index gained 0.46%. The BSE Mid Cap index has gained 5.22% while the BSE Small Cap index rallied 4.18% in last six trading days.
The market breadth was positive. On the BSE, 1722 shares rose and 1631 shares fell. A total of 143 shares were unchanged.
Economy:
India's inflation based on wholesale price index (WPI) rose 10.66% in September 2021 compared with 1.32% in September 2020.
"The high rate of inflation in September 2021 is primarily due to rise in prices of mineral oils, basic metals, non-food articles, food products, crude petroleum & natural gas, chemicals and chemical products, etc. compared with the corresponding month of the previous year," the Ministry of Commerce & Industry said in a statement today.
WPI grew 11.39% in August 2021, while the figure for July was 11.57%.
Earnings Impact:
Mindtree surged 7.47% after the company reported 16.2% rise in consolidated net profit to Rs 398.9 crore on a 12.9% increase in revenue to Rs 2,586.2 crore in Q2 FY22 over Q1 FY22. As compared to Q2 FY21, the company's net profit and revenue have increased by 57.2% and 34.3%, respectively. EBITDA improved by 14.3% to Rs 530.7 crore in Q2 FY22 from Rs 464.5 crore in Q1 FY22. EBITDA margin was at 20.5% as on 30 September 2021 as against 20.3% as on 30 June 2021. The company's free cash flow increased to Rs 279.1 crore in Q2 FY22 from Rs 97.3 crore in Q1 FY22. In dollar terms, Mindtree registered 16% increase in consolidated net profit to $54 million on a 12.7% rise in revenue to $350.1 million in Q2 FY22 over Q1 FY22.
Wipro climbed 5.32% after the IT major reported 9.6% fall in consolidated net profit to Rs 2,930.7 crore in Q2 FY22 from Rs 3,242.6 crore in Q1 FY22. Revenue from operations increased by 7.8% Q-o-Q to Rs 19,667.4 crore during the quarter. As compared to Q2 FY21, the IT firm's net profit and revenue from operations in Q2 FY22 have risen by 18.9% and 30.1%, respectively. Profit before tax in Q2 FY22 stood at Rs 3,756.5 crore, down by 3% from Rs 3,873.3 crore in Q1 FY22. In dollar terms, Wipro's gross revenue was $2.7 billion in the second quarter. The IT Services segment revenue was at $2,580 million, an increase of 6.9% Q-o-Q and 29.5% Y-o-Y. The Non-GAAP constant currency IT Services segment revenue increased by 8.1% Q-o-Q and 28.8% Y-o-Y. The IT Services operating margin for the quarter was at 17.8%, down 104 bps on a sequential basis.
Infosys gained 0.38%. The IT bellwether said its consolidated net profit rose 4.4% to Rs 5,421 crore on 6.1% increase in revenues to Rs 29,602 crore in Q2 FY22 over Q1 FY22. On a year-on-year basis, Infosys' net profit and revenue in Q2 FY22 increased 11.9% and 20.5%, respectively. Revenues in constant currency terms grew by 19.4% YoY and 6.3% QoQ. Operating margin for the quarter stood at 23.6%, a decline of 1.8% YoY and 0.1% QoQ. Infosys said its revenue guidance for FY22 is revised upwards to 16.5%-17.5%. Margin guidance is retained at 22%-24%.
Century Textiles & Industries jumped 2.37% to Rs 957.7 after the company reported a consolidated net profit of Rs 44.71 crore in Q2 FY22 as against a net loss of Rs 14.13 crore in Q2 FY21. Sales increased by 67.5% YoY to Rs 997.98 crore in Q2 FY22 over Q2 FY21. On the segmental front, revenue from Textiles was Rs 273.89 crore (up 99.6% YoY), Pulp and Paper revenue was Rs 685.97 crore (up 63.7% YoY), revenue from Real Estate was Rs 35.41 crore (down 0.4% YoY) and Other revenue was Rs 2.89 crore (down 27% YoY) during the period under review.
GTPL Hathway fell 2.97% after the company reported 4.5% fall in consolidated net profit to Rs 43.08 crore on a 3.5% rise in revenue from operations to Rs 595.94 crore in Q2 FY22 over Q2 FY21.
Stocks in Spotlight:
Dish TV India declined 2% after the board of satellite service provider rejected Yes Bank's demand to hold an extraordinary general meeting (EGM) to consider resolutions. The board of Dish TV India on Wednesday (13 October 2021) expressed its inability to convene EGM as requisitioned by Yes Bank, citing various regulatory and procedural hurdles. According to the company, Yes Bank's shareholding in Dish TV was due to invocation of pledges, and this prevented placing the resolutions before its shareholders. The board took the decision after considering the factual background, legal advice and opinions received from various legal experts. Yes Bank which holds 25.63% in Dish TV India has sought an EGM for the appointment of new independent directors and the removal of MD and director Jawahar Lal Goel.
Westlife Development jumped 2.88% after the company said it will add 150-200 stores and invest Rs 800-1,000 crore across the business over the next 3-4 years. This investment will go towards increasing the footprint, menu innovations, strengthening the company's supply chain, increasing its omnichannel presence and elevating consumer experience.
Apollo Pipes rose 1.63% after the company said that its board will consider bonus share issue on Friday, 22 October 2021.
Escorts fell 0.13%. The company said that Sanjeev Bajaj will be heading the construction equipment business for India as a chief executive from 1 December 2021. He will lead the growth agenda for this business. Bajaj has been with the company for last seven years and has prior experience in construction industry, Escorts said in a statement.
Global Markets:
European stocks rose across the board while most Asian stocks edged higher on Thursday with investors around the world reflecting on the latest inflation data and earnings out of the US. Investors also reacted to the release of China's inflation data for September. Markets in Hong Kong are closed on Thursday for a holiday.
China's producer price index for September soared 10.7% as compared with a year ago. China's consumer price index also rose 0.7% in September as compared with a year ago. Singapore's central bank unexpectedly tightened monetary policy on Thursday. Official advance estimates also showed on Thursday that Singapore's economy grew 6.5% year-on-year in the third quarter of 2021.
In US, the S&P 500 and Nasdaq ended higher on Wednesday, led by gains in shares of big growth names like Amazon.com and Microsoft, but JPMorgan shares fell along with other bank shares and weighed on the market.
Minutes released Wednesday afternoon from the Federal Open Market Committee's September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.
Consumer prices rose 0.4% last month, slightly higher than August's gain and pushing annual inflation back to the highest increase in 13 years. The consumer price index rose 5.4% in September from a year ago, the Labor Department said Wednesday, up slightly from August's gain of 5.3%. Excluding the volatile food and energy categories, core inflation rose 0.2% in September and 4% compared with a year ago. Core prices hit a three-decade high of 4.5% in June.
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