Nifty below 16,160 mark, IT stocks under pressure

The domestic equity benchmarks traded with modest cuts in the morning trade. The Nifty traded a tad below the 16,160 mark. IT stocks witnessed profit booking after gaining in the past three sessions.

At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 263.19 points or 0.48% to 54,218.65. The Nifty 50 index shed 67.20 points or 0.41% to 16,153.40.

In the broader market, the S&P BSE Mid-Cap index fell 0.23% while the S&P BSE Small-Cap index shed 0.54%.

The market breadth was positive. On the BSE, 1,759 shares rose and 1,248 shares fell. A total of 166 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 109.31 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 34.61 crore in the Indian equity market on 8 July, provisional data showed.

Buzzing Index:

The Nifty IT index slipped 3.10% to 27,373.70. The index witnessed profit booking after gaining 2% in the past three trading sessions.

Tata Consultancy Services (down 4.42%), Coforge (down 3.62%), Larsen & Toubro Infotech (down 3.12%), Mindtree (down 2.98%), L&T Technology Services (down 2.52%), Infosys (down 2.5%), HCL Technologies (down 2.44%), Wipro (down 2.37%), Mphasis (down 2.31%) and Tech Mahindra (down 2.09%) edged lower.

Tata Consultancy Services (TCS) dropped 4.42% after the IT major reported a 4.5% fall in consolidated net profit to Rs 9,478 crore despite a 4.3% rise in revenue from operations to Rs 52,758 crore in Q1 FY23 over Q4 FY22. Profit before tax in Q1 FY23 stood at Rs 12,776 crore, down by 4.40% from Rs 13,364 crore in Q4 FY22. Constant currency revenue grew 15.5% YoY in Q1 FY23. Operating margin for the period under review was 23.1%, recording a contraction of 2.4% YoY. The company`s order book total contract value (TCV) stood at $8.2 billion in Q1 FY23 and the book to bill ratio was at 1.2.

Stocks in Spotlight:

Avenue Supermarts gained 1.10%. 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.

Bandhan Bank rose 1.07%. As compared with the Jan-March 2022 quarter, however, the bank`s total loan book and total deposits have declined by 3%. Bandhan Bank`s loans & advances increased by 20% YoY to Rs 96,649 crore as on 30 June 2022. The bank had disbursed loans aggregating to Rs 80,357 crore in the quarter ended on 30 June 2021. Total deposits with the bank as on 30 June 2022 amounted to Rs 93,057 crore, which is higher by 20% as compared with Rs 77,336 crore as on 30 June 2021.

Hindustan Aeronautics (HAL) added 0.81%. 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. One of its main objectives will be to meet the requirements of HAL and Ministry of Defence`s future helicopters, including the 13-ton Indian multi-role helicopter (IMRH).

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