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Sensex, Nifty stage strong rebound; IT shares decline

Published on Jul 22, 2022 12:25

The domestic equity barometers bounced back and marched towards the day`s high in early afternoon trade. The Nifty traded above the 16,650 mark. IT shares witnessed some bit of profit booking after a four-day wining streak.

At 12:23 IST, the barometer index, the S&P BSE Sensex, was up 229.93 points or 0.41% to 55,911.88. The Nifty 50 index added 76.65 points or 0.46% to 16,681.90.

In the broader market, the S&P BSE Mid-Cap index fell 0.10% while the S&P BSE Small-Cap index added 0.14%.

The market breadth was positive. On the BSE, 1,716 shares rose and 1,444 shares fell. A total of 182 shares were unchanged.

Economy:

The Reserve Bank of India (RBI) on 21 July 2022 said that the rate setting Monetary Policy Committee`s (MPC) meeting next month is rescheduled due to administrative exigencies. The MPC will now meet on August 3-5, from previously scheduled August 2-4, said the RBI.

Politics:

National Democratic Alliance (NDA) candidate Droupadi Murmu was elected the 15th President of India. She was declared elected on Thursday after four rounds of counting, posting an unassailable lead over her rival and the Opposition`s candidate Yashwant Sinha, who conceded the election thereafter. The President-elect will take oath on July 25.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 0.96% to 16.70. The Nifty 28 July 2022 futures were trading at 16,567.50, at a premium of 2.45 points as compared with the spot at 16,565.05.

The Nifty option chain for the 28 July 2022 expiry showed maximum Call OI of 71.1 lakh contracts at the 17,000 strike prices. Maximum Put OI of 73 lakh contracts was seen at 16,500 strike price.

Buzzing Index:

The Nifty IT index fell 1.14% to 28,020.95. The index had advanced 7.02% in the past four sessions.

Mphasis (down 2.68%), Infosys (down 2.28%), Mindtree (down 1.27%), Tech Mahindra (down 0.96%) and HCL Technologies (down 0.85%) were the top index losers.

Further, Larsen & Toubro Infotech (down 0.68%), Tata Consultancy Services (down 0.53%), Wipro (down 0.53%) declined.

Coforge rose 0.18%. The IT firm`s consolidated net profit declined 27.9% to Rs 149.7 crore despite a 5% increase in gross revenues to Rs 1,829.4 crore in Q1 FY23 over Q4 FY22. In dollar terms, the company`s revenue for the quarter was $238.7 million, up 2.7% QoQ and up 19.5% YoY. In constant currency terms, the company`s revenue has risen by 4.7% QoQ.

The company has upgraded its annual revenue guidance to grow at least 20% in constant currency terms and reiterated its adjusted EBITDA margin guidance between 18.5% and 19.0% during the year.

Cyient declined 2.71%. The company`s consolidated net profit slipped 24.71% to Rs 116.10 crore while net sales rose 5.83% to Rs 1,250.10 crore in Q1 FY23 over Q4 FY22. The company`s constant currency revenue growth stood at 4.4% QoQ and 15.8% YoY.

The company expects revenue to grow in the range of 13% - 15% in FY23 in constant currency for the Group. EBIT Margin for the full year is expected to be in the range of 13% to 14%.

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