Nifty above 17,300 level, FMCG stocks advance

The key equity barometers pared losses and traded with minor gains in the mid-afternoon trade. The Nifty hovered above the 17,300 level after hitting a day`s low of 17,215.85 in the morning trade. FMCG stocks extended gains for the fifth consecutive trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was up 69.99 points or 0.12% to 58,185.49. The Nifty 50 index rose 9.85 points or 0.05% to 17,349.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.51% while the S&P BSE Small-Cap index gained 0.42%.

The market breadth was positive. On the BSE, 1,924 shares rose and 1,397 shares fell. A total of 134 shares were unchanged.

5G Spectrum Auction:

Communications Minister Ashwini Vaishnaw has said that the 5G telecom services is likely to be launched by October this year.

Briefing the media in New Delhi, Vaishnaw said, more than Rs 1.5 lakh crore of bids were received during the 5G auction, which commenced on 26th of last month. The spectrum will be assigned to the successful bidders for providing 5G services to the public and enterprises. The auction was held for spectrum in various Low, Medium, and High-frequency bands.

The Government of India had put 72,098 MHz spectrum to auction, of which 51,236 MHz (71% of the total) has been sold with bid amounting to Rs 1,50,173 crore.

Adani Data Networks has obtained 400 MHz spectrum in mm wave band (26 GHz). Bharti Airtel has obtained 19,867.8 MHz in 900, 1800, 2100, 3300 MHz and 26 GHz bands. Reliance Jio Infocomm has obtained 24,740 MHz spectrum in 700, 800, 1800, 3300 MHz and 26 GHz. Vodafone Idea has obtained 6,228 MHz spectrum in 1800, 2100, 2500, 3300 MHz and 26 GHz.

The total bid amount of Rs 1,50,173 crore comprises the bids Rs 212 crore by Adani Data Networks, Rs 43,048 crore Bharti Airtel, Rs 88,078 crore by Reliance Jio Infocomm, and Rs 18,799 crore by Vodafone idea. The annual installment to be paid by all the participants is Rs 13,365 crore.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper declined to 7.210 as compared with 7.240 at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 78.6550, compared with its close of 79.06 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement declined 0.15% to Rs 51,351

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.15 % to 105.61.

In the commodities market, Brent crude for October 2022 settlement fell 60 cents or 0.60% at $99.43 a barrel.

Buzzing Index:

The Nifty FMCG index rose 0.74% to 42,843.55, extending its winning streak for the fifth consecutive sesseion. The index added 2.5% in five trading sessions.

Emami (up 2.89%), Procter & Gamble Hygiene and Health Care (up 2.45%), Hindustan Unilever (up 1.35%), ITC (up 1.22%), Nestle India (up 1.17%), Tata Consumer Products (up 0.55%), Godrej Consumer Products (up 0.34%), Colgate-Palmolive (India) (up 0.2%) advanced.

On the other hand, Britannia Industries (down 1.83%), Radico Khaitan (down 1.17%) and United Spirits (down 1.12%) declined.

ITC rose 1.22% after the company`s standalone net profit rose 38.4% to Rs 4,169 crore on 41.9% increase in net revenue to Rs 17,217 crore in Q1 June 2022 over Q1 June 2021. The counter hit 52 week high of Rs 316.65, extending its winning run to second consecutive trading session.

Total FMCG segment revenue increased 25% YoY to Rs 11060 crore during the period under review. In the FMCG segment, cigarettes revenue rose by 29% YoY to Rs 6609 crore while the revenue from other FMCG segment improved by 19% YoY to Rs 4451 crore during the quarter. Hotel business revenue stood at Rs 555 crore (up 336% YoY), agri-business revenue was at Rs 7473 crore (up 83% YoY) and paperboards, paper & packaging revenues were at Rs 2267 crore (up 43% YoY) in the frist quarter of FY23.

Stocks in Spotlight:

Adani Ports and Special Economic Zone (APSEZ) shed 0.03%. The company said that it handled a record cargo volume of 31.23 million metric tonnes (MMT) in July 2022, implying a 13% YoY growth. In the initial four months of FY23, the company managed 122.12 MMT of cargo, rising 9% YoY over a strong April-July 21, that saw the post COVID volume surge.

Mundra (12% YoY), Krishnapatnam (16% YoY), Tuna (81% YoY), Kattupalli & Ennore combined (87% YoY), and Dahej (69% YoY) were the key ports that helped drive this monthly volume growth, the company said.

Yes Bank surged 13.50% after the media reported that former HDFC Bank MD Aditya Puri is likely to get a board seat in Yes Bank on behalf of the Carlyle Group.

Aditya Puri is a senior advisor to the Carlyle Group`s Asia private equity team. Puri was the CEO and managing director of HDFC Bank from its inception in 1994 until October 2020. Over his 26 tenure leading the business, Puri grew HDFC Bank into the largest private sector bank in India with over $210 billion of assets (as of 30 September 2020), and the most valuable bank in India with a market cap of over $90 billion (as of October 2020). The media reported that Yes Bank MD and CEO Prashant Kumar will continue to lead the bank, post the deal.

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