The benchmark indices traded with modest gains during mid-morning trade. Auto, IT and oil & gas scrips were in demand. The Nifty marched towards 17,100 level.
At 11:30 IST, the barometer index, S&P BSE Sensex rallied 412.68 points or 0.73% at 56,875.83. The Nifty 50 index rose 123.05 points or 0.73% at 17,081.70.
The S&P BSE Mid-Cap index gained 0.51%. The S&P BSE Small-Cap index added 0.50%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,807 shares rose while 1,417 shares fell. A total of 135 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 5,871.69 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,980.81 crore in the Indian equity market on 19 April 2022, provisional data showed.
COVID-19 Update:
India today reported 2,067 new COVID-19 cases, recording a 65% jump from yesterday. According to the Union Ministry of Health and Family Welfare, the country's active caseload stood at 12,340. The number of deaths reported in the last 24 hours reached 40.
Economy:
The International Monetary Fund (IMF) has cut its growth forecast for India for FY23 by 80 basis points to 8.2%, warning that Russia's invasion of Ukraine would hurt consumption and hence, growth, by way of higher prices.
"Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand - as higher oil prices are expected to weigh on private consumption and investment - and a drag from lower net exports," the IMF said in its World Economic Report, released on 19 April 2022.
Buzzing Index:
The Nifty IT rose 1.22% to 32,191.95. The index slumped 12.78% in the past eight trading sessions.
Among the components of the Nifty IT index, Tata Consultancy Services (up 2.46%), Mphasis (up 2.36%), Mindtree (up 1.85%), Infosys (up 1.66%) and Wipro (up 1.46%) were the top gainers.
Among the other gainers were HCL Technologies (up 0.86%) and Tech Mahindra (up 0.68%).
Meanwhile, L&T Technology Services (down 0.04%), Coforge (down 0.45%) and Larsen & Toubro Infotech (down 4.34%) moved lower.
Larsen & Toubro Infotech (LTI) dropped 4.77%. The technology consulting and digital solutions company reported 4.1% rise in consolidated net profit to Rs 637.50 crore on 4% increase in revenue to Rs 4301.60 crore in Q4 March 2022 over Q3 December 2021. As compared to Q4 March 2021, the company's consolidated net profit and revenue increased by 16.8% and 31.6%, respectively.
EBITDA rose 1.8% quarter-on-quarter (QoQ) and 18.3% year-on-year (YoY) to Rs 846.40 crore in Q4 FY22. EBITDA margin was at 19.7% as in Q4 FY22 as against 20.1% in Q3 FY22 and 21.9% in Q4 FY21. In dollar terms, Larsen & Toubro Infotech (LTI) registered 3.1% increase in consolidated revenue to $570.4 million in Q4 FY22 over Q3 FY22. Constant currency revenue growth was 3.6% QoQ and 29.0% YoY.
Stocks in Spotlight:
Sona BLW Precision Forgings advanced 2.20%. The company will make Enedym's SRM drive motors, controllers, and drive trains for the target applications exclusively in India with serial production expected to start in 2023. Sona BLW Precision Forgings ("Sona Comstar") has formed a strategic partnership with Canada-based Enedym Inc. Enedym Inc. develops next generation switched reluctance motors (SRMs), electric propulsion, and electrified powertrains. Enedym's patented SRM drive technology requires no permanent magnets or other rare earth metals and offers high performance, power density, and efficiency.
Tata Steel Long Products tumbled 5.94%. The company reported 82.5% drop in net profit to Rs 59.62 crore in Q4 FY22 from Rs 339.85 crore in Q4 FY21. Net sales during the quarter increased by 16.3% YoY to Rs 1,799.40 crore. Total expenditure increased by 55.9% to Rs 1,635.06 crore in Q4 FY22 over Q4 FY21, due to higher raw material costs (up 68.5% YoY) and higher other expenses (up 28.6% YoY). Profit before tax in Q4 FY22 stood at Rs 85.43 crore, down by 77.7% from Rs 383.17 crore in Q4 FY21. The company wrote back taxes aggregating to Rs 6.42 crore during the period under review.
Global Markets:
Most Asian stocks advanced on Wednesday as China defied expectations by keeping its benchmark lending rate unchanged. China on Wednesday kept its one-year loan prime rate unchanged at 3.7%, while also holding steady on the five-year LPR at 4.6%.
US stocks surged on Tuesday on the back of stronger-than-expected corporate earnings, but bleak forecasts on global economic growth pushed bond yields up and drove oil down.
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