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Indices extend rally for 4th day; Nifty ends above 17,500

Published on Oct 19, 2022 17:27

Domestic equity benchmarks ended with steady gains on Wednesday, rising for the fourth straight session. Healthy Q2 earnings and softer crude oil prices supported buying. Global cues were mixed as UK inflation jumped more than expected to 40-year high as food prices soar. Energy, FMCG and realty shares were in demand. While IT, metals and PSU banks corrected.

The barometer index, the S&P BSE Sensex, rose 146.59 points or 0.25% to 59,107.19. The Nifty 50 index gained 25.30 points or 0.14% to 17,512.25. In four consecutive sessions, the Sensex has jumped 3.27% while the Nifty has increased by 2.93%.

Nestle India (up 2.13%), ITC (up 2.03%), HDFC (up 1.94%), Reliance Industries (up 1.83%) and Axis Bank (up 1.81%) were top Nifty gainers today.

In the broader market, the S&P BSE Mid-Cap index rose 0.13% while the S&P BSE Small-Cap index shed 0.03%.

The market breadth was negative. On the BSE, 1,567 shares rose and 1,866 shares fell. A total of 138 shares were unchanged.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.32% to 7.450 as compared with 7.426 at close in the previous trading session.

In the foreign exchange market, the rupee hit a record low of 83.01 against the US dollar today. The partially convertible rupee settled at 82.40 in the previous trading session.

MCX Gold futures for 5 December 2022 settlement shed 0.56% to Rs 50,134.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.43% to 112.61.

The United States 10-year bond yield rose 1.72% to 4.067.

In the commodities market, Brent crude for December 2022 settlement rose $1.06 or 1.18% at $91.09 a barrel.

Global Markets:

Shares in Europe and Asia were mixed on Wednesday as traders assessed a solid start to the corporate-earnings season that helped extend a rally in US markets.

The U.K. reported a rise in the consumer price index to 10.1% in September, matching the 40-year high posted by the Office for National Statistics in July. Food, energy and transport prices drove the increase.

Wall Street stocks closed higher and Treasury yields dipped on Tuesday as upbeat earnings and better-than-expected factory data stoked a risk-on rally.

Production at US factories spiked in September. Manufacturing output rose 0.4% last month, keeping pace with an upwardly revised 0.4% gain in August, the Federal Reserve said on Tuesday. Output increased 4.7% from a year earlier.

Stocks in Spotlight:

UltraTech Cement rose 0.89%. The cement major`s consolidated net profit tumbled 42.47% to Rs 756 crore on 15.78% increase in net sales to Rs 13,596 crore in Q2 September 2022 over Q2 September 2021. Profit before tax (PBT) stood at Rs 1,103 crore in Q2 September 2022, down 43.35% year-on-year (YoY). EBITDA fell 29.49% YoY to Rs 2,013 crore in Q2 FY23. Energy cost increased 58% and raw material cost rose 18% YoY. UltraTech achieved capacity utilisation of 76% as against 71% during Q2FY22. Domestic sales volume grew 9.6% on year-on-year basis, despite heavy monsoons through the quarter.

Nestle India gained 2.13%. The FMCG major reported 8.3% rise in net profit to Rs 668.34 crore on 18.3% rise in revenue from operations to Rs 4,591 crore in Q3 CY22 over Q3 CY21. Total sales jumped 18.2% year on year to Rs 4,567 crore in Q3 CY22 against Q3 CY21. Domestic sales and export sales for the quarter ended September 2022 increased by 18.3% and 15.7% respectively. Domestic sales growth was broad based with a healthy balance of pricing and volume.

Meanwhile, the board declared second interim dividend of Rs 120 per equity share, which will be paid on and from 16 November 2022.

L&T Technology Services (LTTS) slipped 4.89% after the company reported 3% rise in consolidated net profit to Rs 282.4 crore on a 6.5% rise in revenue to Rs 1,995.1 crore in Q2 FY23 over Q1 FY23. As compared with Q2 FY22, the company`s net profit and revenue are higher by 22.8% and 24.1%, respectively. During the quarter, LTTS won $60 million plus deal and a deal with total contract value (TCV) of $10 million.

ICICI Lombard General Insurance Company declined 1.10%. The general insurance company`s net profit rose 32.2% to Rs 590.53 crore on 18.14% rise in total income to Rs 4,499.03 crore in Q2 FY23 over Q2 FY22. The insurance company reported capital gains (net of impairment on equity investment assets) of Rs 111 crore in Q2 FY23 as against Rs 144 crore in Q2 FY22. Gross Direct Premium Income (GDPI) of the company was at Rs 5,185 crore in Q2 FY23 as compared to Rs 4,424 crore in posted Q2 FY22, registering a growth of 17.2%. This growth was higher than the industry growth of 10%.

KPIT Technologies fell 1.63% after the IT company`s consolidated net profit fell 2.28% to Rs 83.48 crore despite of 8.62% increase in revenue from operations to Rs 744.83 crore in Q2 FY23 over Q1 FY23. On a year on year (YoY) basis, the company`s net profit surged 28.23% while revenue jumped 26.06% in Q2 FY23. With respect to outlook, KPIT Technologies said that it has increased CC revenue growth to 31%-32%. Reported $ growth will be impacted adversely due to cross currency headwinds.

Syngene International jumped 6.35% after the company reported 53% rise in consolidated net profit to Rs 102 crore on a 26% rise in revenue from operations to Rs 768 crore in Q2 FY23 over Q2 FY22. Reported EBITDA improved by 22% to Rs 232 crore in Q2 FY23 from Rs 190 crore in Q2 FY22. EBITDA margin was 29.6% in Q2 FY23 as against 30.5% in Q2 FY22.

HDFC Asset Management Company rose 1.34% after the AMC reported 6% rise in net profit to Rs 364.13 crore on a marginal rise in total income to Rs 648.93 crore in Q2 FY23 over Q2 FY22. Operating profit for the quarter ended 30 September 2022 was Rs 388.9 crore as compared to Rs 395.4 crore for the quarter ended 30 September 2021.

Network18 Media & Investments dropped 6.29% after the media company reported consolidated net loss of Rs 36.49 crore in Q2 September 2022 as against net profit of Rs 39.02 crore in Q2 September 2021. On a consolidated basis, net sales rose 11.65% to Rs 1548.89 crore in Q2 September 2022 over Q2 September 2021.

Mahindra CIE Automotive gained 2.02%. The comapny reported 3% rise in consolidated net profit to Rs 171.37 crore on 30.3% rise in revenue from operations to Rs 2,723.15 crore in Q3 calender year (CY) 2022 over Q3 CY 2021.

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