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Market snaps 3-day streak, Nifty holds 16,200; TCS slumps 4.7%

Published on Jul 11, 2022 16:56

The bench mark indices ended with tiny losses after a volatile session on Monday. The Nifty ended above the 16,200 mark after hitting the day`s low of 16,115.50 in the morning trade. Negative global cues dampened investors sentiment. Barring the Nifty IT index, all the sectoral indices on the NSE ended higher. Metals, PSU banks and oil & gas stocks were in demand. IT stocks were under pressure as TCS Q1 numbers disspointed investors.

The barometer index, the S&P BSE Sensex, down 86.61 points or 0.16% to 54,395.23. The Nifty 50 index shed 4.60 points or 0.03% to 16,216.

Tata Steel (up 3.04%), Mahindra & Mahindra (up 2.86%), Dr Reddy Laboratories (up 2.25%), ICICI Bank (up 1.83%) and Asian Paints (up 1.80%) supported the indices.

Traders booked profits after the Sensex added 2.54% and the Nifty gained 2.59% in the past three sessions.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.63% while the S&P BSE Small-Cap index added 1.07%.

The market breadth was strong. On the BSE, 2,103 shares rose and 1,318 shares fell. A total of 161 shares were unchanged.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.428 as compared with 7.415 at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 79.5, compared with its close of 79.26 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement declined 0.21% to Rs 50,671.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.62 % to 107.67.

In the commodities market, Brent crude for September 2022 settlement rose $2.43 or 2.32% at $107.08 a barrel. The contract rose $2.37 or 2.26% to settle at $107.02 a barrel during the previous trading session.

Global Markets:

The US Dow Jones index futures were down 106 points, indicating a negative opening in the US stocks on Monday.

Shares in Europe and Asia declined on Monday as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season where profits could be under pressure.

Investors in the U.K. will be watching developments surrounding the political uncertainty in the country after Prime Minister Boris Johnson announced last week that he would be resigning as Conservative Party leader. Johnson said he would stay on in the post while a successor was found and a number of high-profile Conservatives have announced their leadership bids over the weekend.

Hong Kong`s Hang Seng index fell nearly 3% after reports that China has imposed fines on heavyweights Tencent and Alibaba. China imposed fines on several companies, including tech giants Alibaba and Tencent, for not complying with anti-monopoly rules on disclosure of transactions, as per reports.

U.S. stocks closed mixed Friday, with the technology-heavy Nasdaq Composite ending higher as the Dow Jones Industrial Average and S&P 500 index slipped, after a stronger-than-expected June jobs report.

The U.S. saw stronger than expected job growth in June, as the economy added 372,000 jobs, according to data released by the Bureau of Labor Statistics on Friday. June`s gains marked a slight deceleration from the downwardly revised 384,000 in May. April`s count was revised down to 368,000. The unemployment rate was 3.6%, unchanged from May and in line with estimates.

Buzzing Segment:

The Nifty IT index slumped 3.08% to 27,380.55. The index rose 2% in the past three sessions.

HCL Technologies (down 4.33%), Coforge (down 3.01%), Infosys (down 2.9%), Mindtree (down 2.86%), Larsen & Toubro Infotech (down 2.85%), Tech Mahindra (down 1.9%), Wipro (down 1.86%) and Mphasis (down 1.61%) and L&T Technology Services (LTTS) (down 0.38%) tumbled.

TCS slumped 4.7%. The IT major reported a 5.2% rise in Q1 June 2022 net profit to Rs 9,478 crore, restricted by the impact of annual wage hikes and promotions that took operating profit margins to multi-quarter lows. TCS issued a warning that while net hiring for the June quarter was 14,136, attrition was increasing in absolute terms.

Stocks in Spotlight:

Avenue Supermarts (DMart) gained 1.12%. On a consolidated basis, total revenue for the quarter ended 30 June 2022 stood at Rs.10,038 crore, as compared to Rs.5,183 crore in the same period last year. Net profit stood at Rs.643 crore for Q1FY23, as compared to Rs.95 crore in the corresponding quarter of last year.

One 97 Communications (Paytm) rose 1.47%. The number of loans disbursed through the company`s platform surged 492% year on year (YoY) to 8.5 million loans in quarter ending June 2022, while the value of loans disbursed grew 779% YoY to Rs 5,554 crore ($703 million).

Larsen & Toubro (L&T) fell 1.46%. The buildings & factories (B&F) business of L&T Construction has secured significant contracts from various clients. As per L&T`s classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.

Coal India (CIL) rose 1.84% after the PSU company said that its capital expenditure (capex) soared 65% to Rs 3,034 crore during April-June 2022 compared to Rs 1,841 crore of April-June 2021 resulting in Rs 1,193 crore volume increase. The company said that it has sustained its growth in capex for the ninth successive quarter.

Hindustan Aeronautics (HAL) added 0.25%. HAL and Safran Helicopter Engines signed a Memorandum of Understanding (MoU) to create a new joint venture intended to develop helicopter engines. Both the companies will establish a new aero-engine company in India, dedicated to the development, production, sales and support of helicopter engines.

Power Grid Corporation of India declined 0.82% after the company has been declared as the successful bidder under Tariff based competitive bidding to establish Inter-State transmission system for "Transmission System for Evacuation of Power from Neemuch SEZ" on build, own operate and transfer (BOOT) basis.

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