Sensex, Nifty End 0.2% Higher Led By Oil & Gas, Energy Stocks; FPIs Stay Net Buyers
Indian equity benchmarks ended the day with gains after a choppy start.
Foreign Investors Net Buyers
FPIs have stood as net buyers for eleven days in a row. It is the longest buying streak by FPIs till date in 2022.
Foreign portfolio investors net bought equities worth Rs 3,040.46 crore today, as per data from the National Stock Exchange.
On the other hand, domestic institutional investors net sold equities worth Rs 839.45 crore on Friday.
Institutions had net bought Rs 3,978.31 crore worth of equities last month in July alone; the only month of the year of 2022 so far when institutions remained net buyers.
Institutions have net bought Rs 10,597.5 crore worth of equities so far in August and net sold equities worth Rs 37,842.19 as yet in 2022.
Closing Bell: Sensex, Nifty End 0.2% Higher
Indian equity benchmarks ended the day with gains after a choppy start.
The S&P BSE Sensex ended 130 points higher at 59,462.7, while NSE Nifty 50 Index closed 0.2% higher at 17,698.1.
The broader market outperformed their larger peers. The S&P BSE MidCap gained 0.15% and S&P BSE SmallCap advanced 0.39%. As many as six of the 19 sector sub-indices compiled by BSE Ltd. declined, led by healthcare stocks. The S&P BSE Oil & Gas was the best performer, up over 2.1%.
The market breadth was slightly skewed in favour of the bulls. About 1,817 stocks gained, 1,575 declined and 151 remained unchanged.
Shriram City Shares Down Most In 14 Weeks
Shares of Shriram City Union Finance Ltd. fell as much as 4.9%, the most in at least 14 weeks.
Trading volume was 37 times the average for this time of the day.
(Source: Bloomberg)
Torrent Power Up Most In 10 Weeks
Shares of Torrent Power Ltd. gained as much as 4.8%, the most in 10 weeks.
Trading in the company's call options was triple the average.
(Source: Bloomberg)
CDSL Shares Up Most In 10 Weeks
Shares of Central Depository Services India Ltd. rose as much as 4.6%, the most in at least 10 weeks.
Trading volume was triple the average for this time of the day.
(Source: Bloomberg)
Grasim Shares Gain As Q1 Profit Beats Estimates
Shares of Grasim Industries Ltd. gained over 3.3% after the flagship Aditya Birla Group entity posted a net profit in Q1 that was ahead of analyst estimates.
Key Highlights (Standalone, QoQ)
Revenue up 13.7% to Rs 7,253 crore vs Rs 6,376.3 crore (Bloomberg estimate: Rs 6,490 crore)
Ebitda down 10% at Rs 1,320 crore vs Rs 1,477.9 crore. (Bloomberg estimate: Rs 1,114 crore)
Profit down 24.3% at Rs 808.5 crore vs Rs 1,068 crore. (Bloomberg estimate: Rs 637 crore)
Info Edge Up 3% After Q1 Profit Beats Estimates
Shares of Info Edge India Ltd. gained as much as 3.8% after the internet investor posted a net profit that was ahead of the analysts' estimate.
Key highlights (Standalone, YoY)
Revenue up 54.6% at Rs 507.6 crore (Bloomberg estimate: Rs 478 crore)
Profit up 41% at Rs 148 crore (Bloomberg estimate: Rs 135 crore)
“The recruitment business continues to grow strongly and we remain optimistic for the current quarter as well," said Hitesh Oberoi, managing director and chief executive officer.
“Consistent superlative growth of billings and profitability for the fifth consecutive quarter is evidence of renewed momentum in the business," said Chintan Thakkar, chief financial officer.
Fortis Healthcare Up Most In 5 Months
Shares of Fortis Healthcare Ltd. rose 6.7%, the most in five months.
Trading volume was four times the average for this time of the day and the stock was the best performer among peers.
Aster DM Healthcare Slips Most Since 2020 On Q1 Profit Miss
Shares of Aster DM Healthcare Ltd fell the most since Sept. 2020 after the pharma major's profit missed analyst estimates.
Key figures (Consolidated, YoY)
Revenue up 12% at Rs 2,662 crore vs Rs 2,372 crore (Bloomberg estimate: Rs 2,546 crore)
Net profit up 54% to Rs 68.5 crore vs Rs 44.5 crore (Bloomberg estimate: Rs 99.6 crore profit)
Ebitda up 4% to Rs 292 crore from Rs 281 crore (Bloomberg estimate: Rs 375 crore profit)
Margins at 11% vs 11.8% (Bloomberg estimate: 14.7%)
The stock reversed all the gains it had made yesterday and slipped as much as 10.3%. Of the 10 analysts tracking the company, nine maintain 'buy' and one suggests 'hold'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 11.7%.
Divi's Labs Q1 Beats Analyst Estimates
Shares of Divi's Laboratories Ltd. fell as much as 4% even as the company reported net income that beat analyst estimates.
Key Highlights (Consolidated, YoY)
Revenue up 15% at Rs 2,255 crore vs Rs 1,961 crore (Bloomberg estimate: Rs 2,228 crore)
Net profit up 26% to Rs 702 crore vs Rs 557 crore (Bloomberg estimate: Rs 660 crore profit)
Ebitda down 1% to Rs 847 crore vs Rs 852 crore (Bloomberg estimate: Rs 922 crore profit)
Margins at 37.6% vs 43.5% (Bloomberg estimate: 41.4%)
Midday Market Update: Sensex, Nifty Trade Higher
Indian equity benchmarks traded little changed at noon.
The S&P BSE Sensex was little changed at 59,392.7, while NSE Nifty 50 Index is trading flat at 17,684.5.
The broader market outperformed their larger peers. The S&P BSE MidCap gained 0.21% and S&P BSE SmallCap advanced 0.57%. As many as five of the 19 sector sub-indices compiled by BSE Ltd. declined, led by teck and IT stocks. The S&P BSE Oil & Gas was the best performer, up over 2%.
The market breadth was slightly skewed in favour of the bulls. About 1,899 stocks gained, 1,371 declined and 147 remained unchanged.
Reliance Capital Insolvency Process Extended Till Nov. 1
CIRP extended by another 60 days.
Extension on account of exclusion of time spent in litigation of Credit Suisse's claim.
CIRP deadline was to be Sept. 2.
Passenger Vehicle, Two-Wheeler Dispatches Rise In July
Passenger vehicle dispatches rise 11% year-on-year to 2,93,865 units in July
Two-wheeler dispatches rise 9.6% year-on-year to 13.81 lakh units in July
Source: SIAM
Indraprastha Gas Rises Most In Seven Months
Shares of Indraprastha Gas Ltd. gained as much as 7.2%, the most in seven months.
The stock has now gained over 17% in the last three sessions.
On Aug. 9, the company had posted earnings that beat analyst estimates.
Trading in the company's call options was quadruple the average. Trading volume was seven times the average for this time of the day.
Tata Chemicals Up 7.2%
Shares of Tata Chemicals gained as much as 7.2%, building on gains in the past two days after it posted a twofold rise in profits.
The stock had climbed as much as 13.5% on Wednesday, after the company posted its earnings.
Trading in the company's call options was five times the average. Trading volume was seven times the average for this time of the day.
Zomato Up Most In A Week
Shares of Zomato Ltd. gained as much as 4.2%, most in a more than a week after the company informed the exchanges on Aug. 10 that it has completed the acquisition of Blinkit.
"The company has completed acquisition of 100% shareholding of Blinkit from its shareholders. Accordingly, Blinkit became a wholly owned subsidiary of the Company with immediate effect from Aug. 10," it said.
Separately, the food delivery company saw 11.6 lakh shares change hands in a bunched trade. Buyers and sellers weren't immediately known.
Of the 21 analysts tracking the company, 18 maintain 'buy', two suggest 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 40.4%.
MRPL Shares Up 11%
Shares of Mangalore Refinery and Petrochemicals Ltd. gained as much as 11%, the most since June 8.
Trading volume was quadruple the average for this time of the day and the stock was the best performer among its peers.
Tata Elxsi Up Most In 3 Months
Shares of Tata Elxsi Ltd. gained as much as 5.1% to Rs 9,990 apiece. This is the most the stock has gained since Aug. 5.
Trading volume was triple the average for this time of the day and the stock was the best performer among its peers.
Bharat Forge Up Most In A Year
Shares of Bharat Forge Ltd. rose as much as 8.3%, the most in at least a year, even as the company posted a net profit that missed analyst estimates.
Key Highlights (YoY)
Revenue came in at Rs 1,760 crore, up 28% (Estimate: Rs 1,660 crore)
Ebitda margin came in 24.7% (-100bps QoQ)
Profit up 46% at Rs 246 crore. (Estimate: Rs 249 crore)
In its commentary, the management highlighted that demand remains steady in above segment along with increased traction for aerospace components.
"Underlying demand for commercial vehicles in U.S. and EU remains steady (healthy order book) and cancellation rate remains low. Domestic industrial business is likely to be driven by new orders, while export (industrials) is expected to be supported by supply chain diversification related demand. We see long-term growth triggers in BHFC intact.Also, cost-optimisation initiatives and benefit of recent softening of commodity prices are likely to support margins going forward," JM Financial said in a note, reiterating its 'buy' rating. It has a target price of Rs 870, implying a potential upside of 18.2% from current levels.
However, it listed prolonged supply constraints, significant correction in crude oil price and profit unsustainability at international subsidiaries as key risks.
CLSA upgraded the stock to 'outperform' from 'underperform' and raised the target price from Rs 713 to Rs 798.
"Bharat Forge’s...earnings were better than our estimates as growth in export revenue and higher-than-expected realisations led to sequential expansion in gross and Ebitda margin. We increase our estimates based on better visibility on new orders and scale-up in non-auto business," it said.
Shares of the company rose 8.4%, the most in at least a year to Rs 798 apiece. Of the 32 analysts tracking the company, 25 maintain 'buy', two suggest 'hold' and five recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 3.4%.
Rupee Weakens Against The U.S. Dollar
The Indian rupee opened flat but weakened against the U.S. dollar in early trade.
The rupee opened little changes at 79.64, but declined 8 paise to 79.72 in early trade. It closed at 79.63 yesterday.
The rupee had weakened to a record low beyond 80 twice last month.
Paytm Posts 82% Rise In Merchant Payment Volumes In July; Shares Decline
One97 Communications Ltd., which operates Paytm, posted a 82% year-on-year increase in merchant payment volumes in July at Rs 1.06 lakh crore.
The company also reported the following metrics in its business update:
Loan distribution business scales to 29 lakh total loan disbursals, up 296% YoY.
Loan distribution business annualizing a run-rate of Rs 25,000 crore. The firm said it believes "there is ample opportunity for upsell in this business." "We are being conservative on the quality of the book, especially given the possibility of macro headwinds."
Average monthly transacting users at 7.76 crore in July, up 41% YoY.
Shares of Paytm, however, fell as much as 5.5%, the most since July 26. Of the 12 analysts tracking the company, six maintain 'buy' and three each suggest 'hold' and 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 14.4%.
Dabur Announces Changes To Senior Leadership
Amit Burman to resign as Chairman. He will continue to be the Non-Executive Director.
Mohit Burman, who is currently the Non-Executive Vice Chairman, will be the Non-Executive Chairman for 5 years effective August 11.
Saket Burman named Non-Executive Vice-Chairman for 5 years effective August 11.
Source: Exchange filing
Apollo Hospitals Falls Most In Over 6 Weeks On Profit Decline
Shares of Apollo Hospitals Enterprise Ltd. fell as much as 3.3%, the most in six weeks after the Chennai-headquartered healthcare group reported a 35% fall in profit that still beat analyst estimates.
Key Highlights (Consolidated, YoY)
Revenue up 1% at Rs 3,796 crore Vs Rs 3,760 crore (BBG estimate : Rs 3,868 crore)
Net profit down 35% to Rs 317 crore Vs Rs 489 crore (BBG estimate : Rs 196 crore Profit)
Ebitda down 6% to Rs 491 crore from Rs 520 crore (BBG estimate : Rs 536 crore Profit)
Margins at 12.9% Vs 13.8% (BBG estimate : 13.9%)
Apollo Hospital Group Chairman Dr Prathap C. Reddy said the first quarter of the new financial year has seen a "definitive increase" in the demand for non-Covid health services and "augurs well for growth this financial year."
While the hospital segment seems to be performing well for the company, the digital business, and clinics and diagnostics segment are a drag on its profitability.
Shares of the company fell as much as 3.3%, the most since June 29 in early trade on Friday. Of the 26 analysts tracking the company, 24 maintain 'buy' and one each suggest 'hold' and 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 11.8%.
Opening Bell: Nifty, Sensex Open Little Changed
Indian equity benchmarks had a flat open, tracking mixed signs from global markets as Japan rose, while China and Hong Kong remained flat. US futures fluctuated after the S&P 500 and Nasdaq 100 dipped.
The S&P BSE Sensex was little changed at 59,289.84, while NSE Nifty 50 Index is trading flat at 17,645.7.
The broader market outperformed their larger peers. The S&P BSE MidCap gained 0.02% and S&P BSE SmallCap advanced 0.25%. As many as seven of the 19 sector sub-indices compiled by BSE Ltd. declined, led by healthcare and IT stocks. The S&P BSE Realty was the best performer, up 0.98%.
The market breadth was slightly skewed in favour of the bulls. About 1,422 stocks gained, 827 declined and 103 remained unchanged.
SBI Group Sells 2.4% Stake In Paisalo Digital
Three firms of the SBI Group -- State Bank of India Ltd., SBI General Insurance Co. and SBI Life Insurance Company Ltd. -- pared a total 2.4% of their holdings in Paisalo Digital Ltd.
The group firms trimmed their holding from 11.08% to 8.64% in the digital, listed lender.
The shares were sold via open market on Aug. 8, according to an exchange filing.
Abu Dhabi Investment Authority To Invest In Aditya Birla Health Insurance Co.
ADIA will invest Rs 665 crore in Aditya Birla Health Insurance Co. for a 9.99% stake.
The transaction values ABHI at Rs 6,650 crores. Completion is subject to regulatory approvals, including IRDAI.
Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital Ltd. and a unit of South Africa-based Momentum Metropolitan Holdings Ltd.
Upon the completion of the transaction, ADIA will own a 9.99% stake, Aditya Birla Capital will hold a 45.91% stake and MMH a 44.1% stake.
Source: Press statement
Trade Setup: 12 August | Nifty Sees Selling Pressure At Higher Level
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Voltas: Life Insurance Corporation raised its stake in the company to 6.86% from 4.83%.
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