Sensex jumps 465 pts, Nifty ends above 17,500; private banks climbs

The benchmark indices closed near the day`s high with major gains on Monday, tracking positive global cues. Sustained buying by FPIs and sliding crude oil prices also supported buying. The Nifty ended above 17,500 level after hitting the day`s low of 17,359.75 in the early trade. Metals, private banks and auto stocks advanced while PSU banks, IT and pharma shares declined.

The barometer index, the S&P BSE Sensex, rose 465.14 points or 0.80% to 58,853.07. The Nifty 50 index gained 127.60 points or 0.73% to 17,525.10.

M&M (up 3.13%), Bajaj Finserv (up 2.95%), Larsen & Toubro (up 2.34%) and NTPC (up 2.12%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.31% while the S&P BSE Small-Cap index gained 0.28%.

The market breadth was positive. On the BSE, 1,894 shares rose and 1,613 shares fell. A total of 163 shares were unchanged.

The domestic stock market will remain closed tomorrow (9 August 2022) on account of Muharram.

Economy:

The Securities and Exchange Board of India (Sebi) has constituted an expert group of Foreign Portfolio Investors (FPIs) to boost overseas flows into the country.

The FPI Advisory Committee (FAC) will be chaired by former Chief Economic Adviser KV Subramanian and consists of 14 other members representing foreign banks, stock exchanges depositories and RBI.

The FAC has been tasked with advising on issues related to investments and operations of FPIs in the financial markets, including measures to facilitate ease of doing business by FPIs in India.

The committee will review investment avenues available for FPIs and to advise on the feasibility of new investment avenues. It will also suggest measures required to encourage FPI participation in the bond market.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.349 compared with 7.300 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 79.6450, compared with its close of 79.24 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement rose 0.08% to Rs 51,913.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.10% to 106.52.

In the commodities market, Brent crude for October 2022 settlement fell $1.02 or 1.07% at $93.90 a barrel.

Global Markets:

The Dow Jones index futures were up 118 points, indicating a positive opening in the US stocks today.

Shares in Europe and Asia advanced on Monday, as investors continued to monitor corporate earnings and key economic data points, assessing the risk of recession.

Over the weekend, China reported trade data for July that showed dollar-denominated exports grew 18% compared to a year ago. China`s dollar-denominated imports increased 2.3% in July compared to the same period in 2021, lower than the expected 3.7% gain.

US stocks ended mixed on Friday after a solid jobs report torpedoed recent optimism that the Federal Reserve might let up its aggressive campaign to reign in decades-high inflation.

Defying anxiety about a possible recession and raging inflation, America`s employers added a stunning 528,000 jobs last month, restoring all the jobs lost in the coronavirus recession. Unemployment fell to 3.5%, lowest since the pandemic struck in early 2020. July`s job creation was up from 398,000 in June and the most since February.

Buzzing Indian Segment:

The Nifty Private Bank index rose 1.23% to 19,488.15. The index has risen 1.65% in two sessions.

IDFC First Bank (up 3.11%), HDFC Bank (up 2.40%), Axis Bank (up 2.40%), RBL Bank (up 1.76%), IndusInd Bank (up 1.52%), City Union Bank (up 1.15%), Kotak Mahindra Bank (up 0.71%), Federal Bank (up 0.50%), ICICI Bank (up 0.48%) and Bandhan Bank (up 0.40%) advanced.

Earnings Impact:

Adani Ports and Special Economic Zone (APSEZ) declined 1.08% after the company`s consolidated net profit dropped 16.86% to Rs 1,091.56 crore in Q1 FY23 as against Rs 1,312.99 crore recorded in Q1 FY22. Revenue from operations declined 0.71% to Rs 4,637.95 in Q1 FY23 from Rs 4,671.19 crore reported in Q1 FY22. The company`s profit before tax stood at Rs 1030.44 crore in the first quarter, down 29.05% from Rs 1452.39 crore recorded in the same period last year.

One 97 Communications (Paytm) climbed 6.46% after the company`s revenue surged 89% to Rs 1,680 crore in Q1 June 2022 over Q1 June 2021. Main drivers for revenue growth were increase in subscription revenues due to growing number of payment devices, growth in bill payments due to growing monthly transacting users (MTUs), growth in disbursements of loans by partners through platform, and increase in Commerce revenues.

FSN E-Commerce Ventures (Nykaa) rose 0.20%. The company`s consolidated net profit rose 33% to Rs 4.55 crore in Q1 FY23 as against net profit of Rs 3.42 crore in Q1 FY22. Revenue from operations jumped 41% year on year (YoY) to Rs 1,148.42 crore in Q1 FY23. Profit before tax increased to Rs 8.34 crore in Q1 FY23 from Rs 3.15 crore posted in Q1 FY22.

Acrysil rose 3% after the company`s consolidated net profit rose 38.96% to Rs 18.69 crore on 75.61% increase in net sales to Rs 171.31 crore in Q1 June 2022 over Q1 June 2021.

Kirloskar Ferrous Industries jumped 5.5% after the company reported consolidated net profit of Rs 102.08 crore in Q1 June 2022 as against net loss of Rs 41.12 crore in Q4 March 2022. On a consolidated basis, net sales rose 44.5% quarter-on-quarter (QoQ) to Rs 1493.82 crore in Q1 June 2022. Profit before tax (PBT) climbed 65.2% QoQ to Rs 125.61 crore in Q1 June 2022.

NMDC rose 1.71%. The company reported a 54% fall in standalone net profit to Rs 1,469.44 crore in Q1 FY23 as against Rs 3,192.84 crore in Q1 FY22. Net sales was at Rs 4,767.07 crore for the quarter ended 30 June 2022 as against Rs 6,512.21 crore during the same period in the previous year, registering a decline of 26.8%.

Hindustan Petroleum Corporation (HPCL) tumbled 4.65% after the company reported a standalone net loss of Rs 10,196.94 crore in Q1 FY23 as against a net profit of Rs 1,795 crore recorded in Q1 FY22. Net sales (excluding Excise Duty) surged 58.1% to Rs 114,079.76 crore in Q1 FY23 from Rs 72,166.39 crore posted in the corresponding quarter previous year.

Bharat Petroleum Corporation (BPCL) dropped 3.14% after the PSU OMC reported a standalone net loss of Rs 6,290.80 crore in Q1 FY23 from a net profit of Rs 1,559.62 crore posted in Q1 FY22. Net sales (excluding Excise Duty) climbed 70.7% to Rs 121,065.89 crore in Q1 FY23 as against Rs 70,921.28 crore recorded in the corresponding quarter previous year.

Mahanagar Gas rose 3.43%. The LPG supplier reported 9.25% fall in net profit to Rs 185.20 crore despite a 136.36% jump in net revenue from operations to Rs 1,454.75 crore in Q1 FY23 over Q1 FY22. Cost of natural gas or cost of conversion into CNG for retailing, jumped to Rs 1,004.53 crore from Rs 191.04 crore last year.

Sudarshan Chemical Industries fell 6.16% after the company`s consolidated net profit slumped 72.9% to Rs 7.08 crore on 16.7% rise in net sales to Rs 549.68 crore in Q1 June 2022 over Q1 June 2021.

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