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Sensex rallies 1041 pts, Nifty ends above 16,900; Bajaj twins surge

Published on Jul 28, 2022 16:59

The benchmark indices ended with stellar gains on Thursday, tracking positive global cues. The Nifty opened at 16,774.85 and marched higher as the session progressed to settle above the 16,900 level. Buying was broad based with IT, banks and financial services stocks in demand.

The barometer index, the S&P BSE Sensex, jumped 1,041.47 points or 1.87% to 56,857.79. The Nifty 50 index surged 287.80 points or 1.73% to 16,929.60. The 50-unit index has risen 2.7% in two sessions.

Kotak Mahindra Bank (up 4.25%), Infosys (up 3.14%), Reliance Industries (up 1.57%) and ICICI Bank (up 1.75%) boosted the indices.

Global sentiment was upbeat after the US Fed hinted at slowing down rate hikes going forward and rejected the speculation that the US economy is in recession.

In the broader market, the S&P BSE Mid-Cap index rose 0.94% while the S&P BSE Small-Cap index added 0.65%.

The market breadth was positive. On the BSE, 1,902 shares rose and 1,427 shares fell. A total of 150 shares were unchanged.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 6.16% to 17.01.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.331 compared with 7.338 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 79.66, compared with its close of 79.9150 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement rose 0.28% to Rs 50,676.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, added 0.15 % to 106.62.

In the commodities market, Brent crude for September 2022 settlement rose $1.83 or 1.72% at $108.45 a barrel. The contract increased $2.22 or 2.13% to settle at $106.62 a barrel during the previous trading session.

Foreign Markets:

Most shares in Europe and Asia advanced on Thursday following the U.S. Federal Reserve`s decision to raise rates by 75 basis points to fight inflation, a move that was widely expected.

US stocks rallied Wednesday after the Federal Reserve announced its much anticipated rate increase to fight inflation, but hinted that it could slow the pace of its hiking campaign at some point.

The Federal Reserve on Wednesday enacted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25%-2.5%. The increase takes the funds rate to its highest level since December 2018.

Powell said in a press conference that the Fed could hike by 0.75 percentage point again in September, but that it would be dependent on the data.

"As the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation," he said.

Buzzing Segment:

The Nifty IT index rose 2.81% to 28,663.05. The index jumped 4.54% in two sessions.

Mindtree (up 5.68%), Larsen & Toubro Infotech (up 5.24%), Tech Mahindra (up 3.28%), Infosys (up 3.14%), L&T Technology Services (up 2.91%), TCS (up 2.29%), Wipro (up 2.2%), HCL Technologies (up 2.11%), Coforge (up 1.92%) and Mphasis (up 0.77%) advanced.

Stocks in Spotlight:

SBI Cards and Payment Services gained 4.67% after the company`s net profit soared 105.81% to Rs 626.91 crore on 31.26% rise in total income to Rs 3,262.85 crore in Q1 FY23 over Q1 FY22. Interest income jumped 20.27% to Rs 1,387.30 crore in Q1 FY23 as against Rs 1,153.45 crore recorded in the same quarter last year. Income from fees and services surged 39.98% to Rs 1,537.99 crore in the Q1 FY23 from Rs 1,098.71 crore posted in Q1 FY22. SBI Cards` market share in Q1 FY23 (available till May 2022) - Card-in-force was at 18.4% in Q1 FY23 from 19.2% posted in Q1 FY22.

Bajaj Finserv surged 10.14% after the company`s consolidated net profit rose 57% to Rs 1,309 crore on a 14% rise in total income to Rs 15,888 crore in Q1 FY23 over Q1 FY22.

The board of Bajaj Finserv has approved 5-for-1 stock split and 1:1 bonus issue of shares. The company will split each equity share of face value Rs 5 each into Rs 1 each. Later it will issue one fully paid bonus equity share of the face value of Rs 1 each against one equity share of the face value of Rs 1 each. This is subject to shareholders` approval.

Nestle India added 2.51%. The FMCG major reported a 4.32% decline in net profit to Rs 515.34 crore on 16.1% rise in revenue from operations to Rs 4,036.57 crore in Q2 CY22 over Q2 CY21. Total sales jumped 15.7% year on year to Rs 4,007 crore in Q2 CY22 against Q2 CY21.

Bajaj Finance zoomed 10.68% after the NFBC`s consolidated net profit surged 158.99% to Rs 2,596.25 crore on 37.66% jump in total income to Rs 9,282.71 crore in Q1 FY23 over Q1 FY22.

The company said it reported highest ever consolidated profit after tax in Q1 FY23. New loans booked during Q1 FY23 grew 60% to 7.42 million as against 4.63 million in the same quarter last year. The company`s net interest income (NII) for the June quarter soared 48% to Rs 6,638 crore from Rs 4,489 crore posted in the corresponding quarter previous year. Total operating expenses to net interest income for Q1 FY23 was at 35.9% as against 30.6% reported in Q1 FY22.

Biocon tumbled 4.99%. On a consolidated basis, Biocon`s net profit jumped 71% to Rs 144 crore on 23% increase in revenue to Rs 2217 crore in Q1 FY23 over Q1 FY22. EBITDA rose 9% to Rs 478 crore in Q1 FY23 as compared to Rs 437 crore reported in Q1 FY22. EBITDA margin decreased to 22% in Q1 FY23 as against 24% recorded in the same period last year. Core EBITDA jumped 25% to Rs 660 crore in the first quarter from Rs 530 crore posted in Q1 FY22.

Home First Finance Company India advanced 3.04%. On a consolidated basis, the company`s net profit jumped 46% to Rs 51 crore on 19.4% increase in total income to Rs 169 crore in Q1 FY23 over Q1 FY22.

Jubilant FoodWorks gained 1.37%. The QSR chain operator`s standalone net profit soared 61.41% to Rs 100.96 crore on 41.1% surge in revenue from operations to Rs 1,240.27 crore in Q1 FY23 over Q1 FY22.

Dixon Technologies (India) fell 3.26%. The company reported a 151.7% surge in consolidated net profit to Rs 45.70 crore on 52.9% jump in net sales to Rs 2,855.07crore in Q1 FY23 over Q1 FY22.

Schaeffler India gained 3.72%. The company`s net profit jumped 76.19% to Rs 225.75 crore on 41.85% rise in net sales to Rs 1748.83 crore in Q2 June 2022 over Q2 June 2021.

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