Nifty, Sensex End 0.8% Higher Buoyed By Power, Capital Goods, Industrials Stocks; FPIs Stay Net Buyers

FPIs have been net buyers for eight days in a row, making it the longest buying streak of 2022 so far.

Foreign portfolio investors net bought equities worth Rs 1,449.7 crore today, as per data from the National Stock Exchange.

On the other hand, domestic institutional investors net sold equities worth Rs 140.73 crore on Monday.

Institutions had net bought Rs 3,978.31 crore worth of equities last month in July alone. It was the only month of the year till date when institutions remained net buyers.

Institutions have net bought 6,534.54 crore worth of equities so far in August and net sold equities worth Rs 41,905.15 as yet in 2022.

Indian equity benchmarks got off to a volatile start but ended the day with clear gains.

The S&P BSE Sensex gained 0.8% to 58,853.07, while NSE Nifty 50 Index gained a similar magnitude to end at 17,525.1.

The larger market outperformed their broader peers. The S&P BSE LargeCap gained 0.77%, while the S&P BSE MidCap and S&P BSE SmallCap advanced around 0.3%. Only the S&P BSE Oil & Gas declined, that too marginally. Gains were led by capital goods, power and industrial goods stocks.

The market breadth was slightly skewed in favour of the bulls. About 1,940 stocks gained, 1,556 declined and 174 remained unchanged.

DCM Shriram Industries Ltd. have constituted a committee of independent directors/non-executive directors under the company's chairman to explore the possibility of restructuring the ccompany's operations with a view to unlock growth potential and shareholders' value.

Shares of the company jumped as much as 4% on the announcement.

Apollo Tyres Ltd., in the meeting of board of directors scheduled on Aug. 12 will consider the issue of non-convertible debentures through private placement within the limits approved by members in the July 11 AGM.

Shares of Adani Ports and Special Economic Zones Ltd. erased all gains and traded lower after the company's net profit failed to meet analyst estimates.

Highlights (YoY)

• Net Profit fell 16% to Rs 1,072 crore from Rs 1,278 crore (Bloomberg estimates: Rs 1,256 crore)

• Revenue fell 1% to Rs 4,638 crore from Rs 4,671 crore (Estimates: Rs 4,609 crore)

• Ebitda rose 13% to Rs 3,005.5 crore from Rs 2,656 crore, excluding forex MTM loss/gain (Estimates: Rs 2,776 crore)

Shares of AstraZeneca Pharma India Ltd. gained as much as 5.5% to Rs 3,248.9 apiece after the company posted a nearly 100% jump in profit.

Consolidated figures (YoY)

• Revenue up 32% at Rs 232 crore vs Rs 175 crore

• Net profit up 97% at Rs 20 crore vs net profit of Rs 10 crore

• Ebitda at Rs 28 crore vs Rs 16 crore, up 79%

• Margins at 12% vs 8.9%

HFCL Ltd. and Qualcomm have entered an agreement with for HFCL's design and development of 5G millimeter wave FWA (Fixed Wireless Access) products.

Shares of HFCL rose as much as 5.5% after the agreement was announced on the exchanges.

European markets gained on Monday as investors assessed prospects of aggressive Federal Reserve interest-rate hikes against a reassuring earnings season.

Shares of Hindustan Copper Ltd. gained as much as 6.3% to Rs 110.7 apiece. This is the most the stock has gained in seven weeks.

Trading in the company's call options was double the average.

As of July 25, as many as 21 posts of Chairman/Managing Directors of central public sector enterprises were vacant, MoS Finance Bhagwat Karad said in a parliament reply.

ONGC, IRCTC, Oil India, Shipping Corporation of India, Bharat Electronics, HUDCO among those running without a CMD.

Shares of Zensar Technologies Ltd. slumped the most since April 18 after the IT firm reported a 25% drop in Q1 profit due to higher employee costs.

Trading volume was 2.4 times the three-month average.

The company reported a profit of Rs 75.1 crore versus Rs 100 crore a year ago. The company posted a profit of Rs 130 crore in the previous quarter.

Revenue grew 28% to Rs 1,200 crore while subcontracting costs weighed as total costs grew 40%.

UpGrad has raised $210 million in a fresh round of fundraise from marquee investors and family offices.

ETS Global, Bodhi Tree, family office of Bharti Airtel, Narotam Sekhsaria family office (Ambuja Cements and ACC) and Artisan Investments (family office of Lakshmi Mittal - ArcelorMittal) along with existing investors Temasek, IFC and IIFL participated in the round.

Founder group also invested $12.5 million in this round to maintain their over 50% ownership.

Source: Press statement

Shares of Mahanagar Gas Ltd. jumped as much as 5.6% to its highest level since April 28 after the company reported better-than-estimated profits for the first quarter.

The company reported a profit of Rs 185 crore, down 9.3% year-on-year but ahead of analyst estimate of Rs 142 crore.

Highlights (YoY)

• Revenue up 138% at Rs 1,593 crore. (Bloomberg estimate: Rs 1,370 crore)

• Ebitda at Rs 286 crore. (Bloomberg estimate: Rs 221 crore)

ICICI Securities upgraded the stock to 'buy' from 'add' and said it turning bullish on it for the next 12-18 months due to "stock price weakness seen in past six months (down 7%) and favourable multiples.

"With ahead-of-estimated volume growth and abysmal valuations, coupled with robust return ratios, we see the risk-reward ratio strongly tilted in favour of reward." It set a target price of Rs 980 per share.

Shares of the company gained as much as 5.6% to Rs 829 apiece. Of the 34 analysts tracking the company, 26 maintain 'buy' and five suggest 'hold', while three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 18.5%.

• The IPO consists of a fresh issue worth Rs 625 crore and an offer for sale of up to 1.7 crore shares.

• It had earlier filed draft papers in May last year for an IPO with a fresh issue of Rs 330 crore and an offer for sale of Rs 1,000 crore.

Shares of JSW Energy Ltd. rose as much as 9.1%. Trading volume for the stock was six times the average for this time of the day.

The tock was the best performer among its peers.

Shares of Tarsons Products Ltd. fell as much as 20%, the most since its Nov. 26 debut on the bourses, after its Q1 profit dropped.

The company reported a net profit of Rs 20.3 crore, down 18% year-on-year.

Key Highlights (YoY)

• Revenue down 0.8% to Rs 68.6 crore.

• Ebitda down 15.5% to Rs 31.1 crore.

• Ebitda margin down to 45.4% vs 53.4%

Ebitda margins in Q1 were impacted on account of "higher expenses due to traveling and participation in fare and exhibitions and higher investments in manpower to support future growth," the company said.

Shares of the company fell as much as 20% but pared some losses to trade 11% lower as of 10:35 a.m. All three analysts tracking the company maintain 'buy'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 17.5%.

Shares of One97 Communications Ltd. surged as much as 5.8% after the company's first-quarter loss narrowed and revenue rose aided by its payments services business.

Paytm, reported a net loss of Rs 644.4 crore in the quarter ended June 30, according to its exchange filing. That compares with a net loss of Rs 761.4 crore in the January-March period and Bloomberg consensus estimate of Rs 789.4 crore loss.

Paytm Q1 FY23 (Consolidated, QoQ)

• Revenue up 9% at Rs 1,679.6 crore (Estimate: Rs 1,701.4 crore)

• Ebitda loss at Rs 633.90 crore (Estimate Rs 676.8 crore)

The company said increase in subscription revenues due to more payment devices, growth in bill payments and disbursements were the main drivers for the top line.

The stock is now set for its highest since Feb. 18. Of the 12 analysts tracking the company, six maintain 'buy' and two suggest 'hold', while four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 5%.

Shares of Blue Star Ltd. gained as much as 2.1% after the company announced it is entering the water projects business with orders totaling Rs 375 crore.

The air conditioning and commercial refrigeration company has secured three rural water supply orders from the Department of Rural Water Supply and Sanitation, Government of Odisha.

• An order worth Rs 126.51 crores for the execution of Mega Piped Water Supply (PWS) to 144 villages in Baliapal Block of Balasore District, Odisha, including five years of operation & maintenance.

• Another order worth Rs 62.16 crores for the execution of Mega PWS to 72 villages under 11 Gram Panchayats of Nischintakoili block of Cuttack district, Odisha, including five years of operation & maintenance.

• A third order worth Rs 186.68 crores for the execution of Mega PWS to 13 Gram Panchayats (GPs) of Banki, 17 GPs of Dampada, and two GPs of Baranga Block, in Cuttack district, Odisha, including 5 years operation & maintenance.

"The scope of all the above orders comprises field investigation and total station survey; soil investigation; hydraulic and structural design; procurement, construction, and erection of electro-mechanical equipment; testing and commissioning; and operation & maintenance; with a completion period of 24 months," a filing said.

Of the 22 analysts tracking the company, 14 maintain 'buy' and six suggest 'hold', while two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 18%.

Shares of Hindustan Petroleum Corp. and Bharat Petroleum Corp. declined after the two posted losses wider than estimates over the weekend.

HPCL Q1 FY23 (Consolidated, QoQ)

• Revenue up 15% at Rs 1,21,496 crore Vs Rs 1,05,350.5 crore (Bloomberg estimate: Rs 1,18,237.1 crore)

• EBITDA loss up 3.5x at Rs 19,490.2 crore Vs Rs 5,543 crore (Bloomberg estimate: Rs 7,520 crore)

• Net loss at Rs 8,557.12 crore Vs profit Rs 2,018.45 crore (Bloomberg estimate: Rs 7,860 crore)

BPCL Q1 FY23 (Consolidated, QoQ)

• Revenue up 12% at Rs 1,38,424.5 crore Vs Rs 1,23,217.1 crore (Bloomberg estimate: Rs 1,40,952.1 crore)

• EBITDA loss up 76% at Rs Rs 23,166.8 crore Vs Rs 13,152.9 crore (Bloomberg estimate: Rs 2,674.2 crore)

• Net loss up at Rs 6,147.94 crore Vs profit Rs 2,560 crore (Bloomberg estimate: Rs 4,640.7 crore loss)

Shares of Bharat Petroleum Corp. fell as much as 4.7%, the most in weeks after the earnings. Of the 38 analysts tracking the company, 28 maintain 'buy', seven suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 24.1%.

Shares of Hindustan Petroleum Corp. fell as much as 6.2% in early trade, as the stock responded to earnings. Of the 37 analysts tracking the company, 26 maintain 'buy', six suggest 'hold' and five recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 23.7%.

Both stocks were downgraded to 'sell' at Kotak Institutional Equities, while Prabhudas Lilladher downgraded BPCL to 'hold'.

Indian equity benchmarks opened slightly higher even as SGX Nifty indicated a weaker opening.

The S&P BSE Sensex was up 0.06% at 58,421.18, while NSE Nifty 50 Index is trading flat at 17,409.4, up 0.07%.

The broader market outperformed their larger peers. The S&P BSE MidCap gained 0.1% and S&P BSE SmallCap advanced 0.16%. Eight of the 19 sector sub-indices compiled by BSE Ltd. declined, led by oil and gas stocks. The S&P BSE Auto was the best performer, up 0.47%.

The market breadth was slightly skewed in favour of the bulls. About 1,386 stocks gained, 972 declined and 129 remained unchanged.

Indian currency depreciates 19 paise to 79.44 against the greenback.

Source: Bloomberg

• Bharti Airtel has 29.7 lakh shares change hands.

• Reliance Industries has 41.3 lakh shares change hands.

• Indian Oil has 33.3 lakh shares change hands.

• Hindustan Unilever has 11.1 lakh shares change hands.

• Hindalco has 18.2 lakh shares change hands.

• GAIL has 18.3 lakh shares change hands.

• Mahindra & Mahindra has 11.8 lakh shares change hands.

• Larsen & Toubro has 10 lakh shares change hands.

• Bharat Petroleum Corp. has 11.8 lakh shares change hands.

• ICICI Bank has 71.8 lakh shares change hands.

• Infosys has 45.5 lakh shares change hands.

• HDFC has 23.2 lakh shares change hands.

• NTPC has 53.4 lakh shares change hands.

• SJVN: The company has bagged 200 MW Solar Project at Rs 2.90/unit on build, own and operate basis from Maharashtra State Electricity Distribution Company. The tentative cost of construction / development of this project is around Rs 1,200 crore and the PPA shall be signed for 25 years.

• Indian Bank: The bank revised Repo Benchmark Rate for all loans from 4.9% to 5.4% and Repo Benchmark Lending Rate from 7.7% to 8.2%. The revision in rates is effective from Aug. 6.

• NTPC: The company commissioned 250 MW Kolyat, Bikaner Solar PV Project at Bikaner, Rajasthan. With this, the company’s installed and commercial capacity will become 69,433 MW.

Adani Ports & SEZ, Bharti Airtel, Power Grid Corporation, Borosil, Vedant Fashions, Whirlpool of India, Torrent Power, Suven Pharmaceuticals, Astrazeneca Pharma India, Indian Hotels, Housing & Urban Development Corporation, Gujarat Narmada Valley Fertilizers & Chemicals, Delhivery, City Union Bank, KRBL, JK Tyres & Industries, IRCON International, Renaissance Global, Rainbow Children's Medicare, Narayana Hrudayalaya, NSECO, National Aluminum, Samvardhana Motherson International, Mirza International, Subex, Sun Pharma Advanced Research, Sequent Scientific

India's stock markets will start the new week amid indications that the oil market will remain tight and the U.S. Federal Reserve will continue with sharp rate hikes.

Saudi Arabia raised oil prices for Asian buyers to record levels, a sign the world’s largest exporter sees the region’s market remaining tight despite concerns that a slowing global economy may hurt demand.

Shares were mixed in Japan but fell in Hong Kong and China, where fresh Covid lockdowns in the resort island of Hainan also dragged on sentiment.

U.S. stocks had ended with weekly gains as a surprisingly strong jobs report eased recession fears but increased chances of a large rate hikes by the Fed at its next meeting.

The S&P 500 and the Nasdaq 100 rose for the third straight week, the longest rising streak since April. Treasuries sank, with the 10-year yield around 2.83% after climbing nearly 26 basis points since Monday.

For domestic equities, the return of foreign investors continues to be a sentiment boost. India's stock benchmarks rose on Friday and also for the third straight week, aided by return of foreign flows.

Foreign portfolio investors have have net invested Rs 14,000 crore in the first week of August, after having turned net buyers in July.

The NSE Nifty 50 closed at 17,397.5 and the S&P BSE Sensex at 58,387.9 on Friday.