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Nifty holds 16,600; European shares decline

Published on Jul 25, 2022 13:26

The benchmark indices continued to trade with modest losses in the afternoon trade. The Nifty held the 16,600 mark. Metal and IT shares saw buying demand while oil & gas, auto and pharma shares corrected.

At 13:23 IST, the barometer index, the S&P BSE Sensex, was down 324.49 points or 0.58% to 55,747.74. The Nifty 50 index lost 102.35 points or 0.61% to 16,617.10.

In the broader market, the S&P BSE Mid-Cap index fell 0.17% while the S&P BSE Small-Cap index declined 0.12%.

The market breadth was negative. On the BSE, 1,353 shares rose and 1,978 shares fell. A total of 187 shares were unchanged.

Gainers & Losers:

Tata Steel (up 2.39%), Indusind Bank (up 1.09%), Hindalco Industries (up 0.85%), Britannia Industries (up 0.81%) and HCl Technologies (up 0.75%) were major Nifty gainers.

Mahindra & Mahindra (down 3.34%), Reliance Industries (down 3.15%), Oil and Natural Gas Corporation (down 2.68%), Ultratech Cements (down 2.46%) and SBI Life Insurance Company (down 2%) were majority Nifty losers.

Stocks in Spotlight:

Reliance Industries (RIL) fell 3.15%. The Mukesh Ambani-led diversified company reported 40.8% increase in consolidated net profit to Rs 19,443 crore on 56.7% increase in net sales to Rs 2,19,304 crore in Q1 June 2022 over Q1 June 2021. EBITDA jumped 45.8% YoY to Rs 40,179 crore during the quarter, driven by strong contribution from O2C business, even as other businesses contributed positively to growth.

Infosys declined 0.42% as the IT major`s consolidated net profit dropped 5.7% to Rs 5360 crore on 6.8% rise in revenue to Rs 34470 crore in Q1 FY23 over Q4 FY22. On a year on year (YoY) basis, Infosys` net profit and revenue in Q1 FY23 increased 3.2% and 23.6%, respectively. In dollar terms, the company reported revenues of $4,444 million, registering a growth of 17.5% YoY for the quarter ended 30 June 2022.

ICICI Bank rose 0.06% after the bank reported standalone net profit of Rs 6,905 crore in Q1 June 2022 as against a net profit of Rs 4,616 crore in Q1 June 2021. Net interest income rose to Rs 13210 crore from Rs 10936 crore. The bank`s profit before tax (PBT) jumped 51.67% year on year to Rs 9,165.07 crore in the quarter ended 30 June 2022. Net interest income (NII) increased 21% year on year to Rs 13,210 crore in Q1 FY23 from Rs 10,936 crore posted in Q1 FY22.

Kotak Mahindra Bank fell 1.92%. The bank reported 26% rise in standalone net profit to Rs 2071 crore on 19% rise in net interest income to Rs 4697 crore in Q1 June 2022 over in Q1 June 2021. Profit before tax advanced 26.2% year on year to Rs 2,759.67 crore in Q1 June 2022. Operating profit before provisions and contingencies for the quarter slipped by 3.7% year on year to Rs 2,783 crore in quarter ended 30 June 2022.

JSW Steel rose 0.27%. The company`s consolidated net profit slumped 85.81% to Rs 838 crore in Q1 FY23 as against Rs 5,904 crore recorded in Q1 FY22. Revenue from operations surged 31.78% to Rs 38,086 crore in Q1 FY23 compared with Rs 28,902 crore in the same quarter last year. Crude Steel Production was at 5.77 million tones in Q1 FY23.

Global Markets:

Shares in Europe and Asia declined on Monday ahead of an important week in the U.S. Also, the European Central Bank last week kick-started its own hiking cycle with a 50 basis point increase, which was larger than previously suggested.

Hawkish ECB policymaker Robert Holzmann told an Austrian broadcaster on Sunday that the Governing Council will consider the economic landscape across the euro zone before determining whether another big rate hike will be feasible in September.

US stocks ended lower on Friday as disappointing earnings from Snap spooked investors and shares in social media and ad-tech firms dropped, offsetting gains from card issuer American Express following an upbeat forecast.

Later this week, all eyes will be on the Fed rate decision and the release of second quarter gross domestic product data in the U.S. The US Federal Reserve will opt for another 75 basis point rate hike rather than a larger move at its meeting next week to quell stubbornly-high inflation, as per reports.

Over the weekend, the World Health Organization declared monkeypox a global health emergency. The organization`s emergency committee was unable to reach a consensus, but WHO chief Tedros Adhanom Ghebreyesus made the decision to issue the highest alert, though he said it is unlikely to disrupt global trade or travel at the moment.

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