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Market rises for 4th session; Nifty closes above 18,200

Published on Jan 12, 2022 17:12

Benchmark indices ended with strong gains on Wednesday, extending their winning run to fourth consecutive session. The Nifty closed above the crucial 18,200 mark. Pharma, healthcare and consumer durables stocks declined. On the other hand, banks, auto, metals and realty shares were in demand.

The barometer index, the S&P BSE Sensex, advanced 533.15 points or 0.88% at 61,150.04. The Nifty 50 index gained 156.60 points or 0.87% to close at 18,212.35.

In the broader market, the S&P BSE Mid-Cap index rallied 1.08% while the S&P BSE Small-Cap index added 0.7%.

The market breadth was positive. On the BSE, 1,810 shares rose and 1,644 shares fell. A total of 76 shares were unchanged.

Q3 Earnings Update:

Wipro fell 0.40%. On a consolidated basis, Wipro`s revenue stood at Rs 20,313 crore ($2.7 billion), an increase of 3.3% quarter-on-quarter (QoQ) and 29.6% YoY. Net consolidated income for the quarter was Rs 2,970 crore ($399.1 million), an increase of 1.3% QoQ.

In dollar terms, Wipro`s gross revenue was $2.7 billion in the third quarter of financial year ended 2022. The IT services segment revenue stood at $2,639.7 million, an increase of 2.3% QoQ and 27.5% YoY. IT services operating margin for the quarter was at 17.6%, a decrease of 19 basis points quarter on quarter.

Non-GAAP constant currency IT services segment revenue increased by 3% QoQ and 28.5% YoY.

Wipro said it expects revenue from its IT services business to be in the range of $2,692 million to $2,745 million. This translates to a sequential growth of 2% to 4%. Meanwhile, the company has declared an interim dividend of Re 1 per share.

Infosys rose 1.16%. The IT firm`s consolidated net profit rose 7.1% to Rs 5,809 crore on a 7.7% increase in revenues to Rs 31,867 crore in Q3 FY22 over Q2 FY22. On a year-on-year basis, Infosys` net profit and revenue in Q3 FY22 increased 11.8% and 22.9%, respectively.

In dollar terms, the company reported revenues of $4,250 million, registering a growth of 20.9% YoY for the quarter ended 31 December 2021. Revenues in constant currency terms grew by 21.5% YoY and 7% QoQ. Operating margin for the quarter stood at 23.5%, a decline of 1.9% YoY and 0.1% QoQ.

Infosys said growth remained broad-based and deal momentum robust, with digital transformation rapidly scaling across verticals and regions. Large deal wins accelerated with total contract value (TCV) of $2.53 billion in Q3.

Infosys has revised upwards its revenue guidance for FY22 to 19.5%-20%. Margin guidance is retained at 22%-24%.

Buzzing Segment:

The Nifty Realty index rose 1.91% to 507.45. The index has risen 4.49% in four sessions.

Oberoi Realty (up 4.09%), Sobha (up 2.27%), Godrej Properties (up 1.95%), Phoenix Mills (up 1.94%), DLF (up 1.85%), Prestige Estates Projects (up 1.41%), Indiabulls Real Estate (up 0.9%), Brigade Enterprises (up 0.82%) and Sunteck Realty (up 0.22%) advanced.

Stocks in Spotlight:

Larsen & Toubro (L&T) rose 0.47%. The EPC major said that a consortium led by L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of the company, has secured two offshore packages from an overseas client. The scope of work comprises EPC for new facilities and integration with existing installations. As per L&T`s classification, the value of the mega project is more than Rs 7,000 crore.

Bajaj Finance added 1.43% after the company said that its board will consider raising funds by debt issue/issue of non-convertible debentures. On the same day, the board will also consider the unaudited financial results for the quarter and nine months ended 31 December 2021.

Delta Corp rose 3.13% after the company reported consolidated net profit of Rs 70.38 crore in Q3 FY22 steeply higher than net profit of Rs 1.28 crore in Q3 FY21. Net sales surged 104.62% to Rs 247.22 crore in (Q3 FY22 over Q3 FY21. The income from casino gaming division surged 523.35% to Rs 249.65 crore in Q3 FY22 as against Rs 40.05 crore in Q2 FY22. The revenue from hospitality division fell 77.89% to Rs 22.29 crore from Rs 12.53 crore in the previous quarter. The income from online skill gaming division stood at Rs 35.71 crore in Q3 FY22, lower than Rs 40.45 crore in Q2 FY22 and Rs 42.33 crore in Q3 FY21.

Federal Bank surged 2.02% after the bank said it has decided to divest stake in wholly-owned subsidiary Fedbank Financial Services (Fedfina). The board of Fedbank Financial Services, a subsidiary of Federal Bank, at its meeting on 11 January 2022, approved initiating the process of an initial public offering by the way of fresh issue and offer for sale.

Welspun Corp rallied 3.16% after the company said its Saudi Arabia-based joint venture has launched its initial public offering in the region. Welspun Corp`s joint venture (JV) East Pipes Integrated Company (EPIC) has launched its initial public offering (IPO) on the Saudi stock exchange. The bidding and book-building period for participating investors is between 11th to 17th January 2022. The price band has been set at SAR (Saudi riyal) 72-80 per share. EPIC is offering 63 lakh shares, representing 30% of its share capital, by way of selling existing shares by the current shareholders.

Ugro Capital rose 1.86% after the company achieved Asset under Management (AuM) worth Rs 2,590 crore in December 2021 as against Rs 1,128 crore in December 2020, growing 129.60% Y-o-Y (year-on-year). Disbursements jumped 191.54% to Rs 414 crore in December 2021 as against Rs 142 crore in December 2020.

Tata Teleservices (Maharashtra) (TTML) hit a lower circuit limit of 5% at Rs 276.50 after the company said the Indian government will own almost 9.5% in the firm after conversion of dues into equity. TTML on Tuesday said it will opt for conversion of the interest amount on adjusted gross revenue (AGR) dues into equity. The net present value (NPV) of this interest is expected to be nearly Rs 850 crore as per the company`s best estimates, subject to confirmation by the Department of Telecom (DoT), it said in a regulatory filing. The average price of the company`s shares at the relevant date of 14 August 2021, as per the calculation method provided in the DoT communication works out to be about Rs 41.50 per share, subject to final confirmation by the DoT. In case of conversion, it will result in dilution of all the existing shareholders of the company, including the promoters, the filing said.

COVID-19 Update:

India reported 1,94,720 new cases in the last 24 hours. The daily positivity rate stood at 11.05%. The country`s active caseload currently stands at 9,55,319. Active cases stands at 2.65% of the total infections and recovery rate currently stands at 96.01%. There were 60,405 recoveries in the last 24 hours, which increases total recoveries to 34,630,536.


The World Bank noted yesterday that India`s economic growth is expected to be 8.3% in the current financial year and 8.7% in 2022-23. The 8.3% estimate for the current fiscal is the same as what was projected by the World Bank in its last projection released in October 2021 even as it cut the global economic growth forecast.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.597% as compared with 6.570% at close in the previous trading session.

In the foreign exchange market, the rupee higher against the dollar. The partially convertible rupee was hovering at 73.93, compared with its close of 73.9475 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement rose 0.08% to Rs 47,725.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.02% to 95.64.

In the commodities market, Brent crude for March 2022 settlement rose 5 cents or 0.06% to $83.77 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Wednesday as U.S. markets rallied overnight as comments from the Fed chief appeared to reassure investors.

Federal Reserve Chair Jerome Powell testified before a Senate committee on Tuesday as part of his re-confirmation process. Powell said that he expected a normalized supply chain to help ease inflation pressures in 2022 but said the Fed would not be afraid to hike rates further than projected if inflation remains high.

Meanwhile, the World Bank Tuesday cut growth forecasts for the U.S., the Euro zone as well as China. It warned that high debt levels, rising income inequality and new coronavirus variants threatened the recovery in developing economies.

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