Sensex, Nifty Rise Amid Slew Of Earnings Ahead Of Fed Rate Decision; FPIs Stay Net Sellers

India's stock benchmarks settled with almost 1% gains and snapped a two-day losing streak, amid sharp reactions to key corporate earnings, ahead of the U.S. Federal Reserve rate decision scheduled for today. The U.S. central bank is expected to hike rates in its ongoing efforts to arrest inflation.

The Sensex and Nifty logged best day in a week, aided by rise in healthcare, information technology, banking, metal, realty and capital goods stocks.

The Sensex added nearly 550 points (almost 1%) to 55,816.32. The Nifty rose nearly 1% to 16,641.80. Both the measure closed near day's high. Today 44 of the Nifty 50 stocks rose while six fell. Sun Pharma, State Bank of India, Divi's Laboratories, Larsen & Toubro and TCS were among the top gainers.

The MidCap index almost mirrored its larger peers, while SmallCap index underperformed, gaining 0.4%. Barring S&P BSE Telecom, all the other 18 sectoral measures advanced with Healthcare index rising 1.73%.

The market breadth was skewed in the favour of bulls. About 1,761 stocks rose, 1,560 fell and 144 remained unchanged.

Foreign portfolio investors net sold equities worth Rs 436.81 crore on Wednesday, data from the National Stock Exchange showed. FPIs have been net sellers for four days straight.

Domestic institutional investors, however, bought stocks worth Rs 712.03 crore on Wednesday.

Institutions have net bought Rs 695.9 crore worth of equities in July alone and net sold Rs 51,722.1 crore so far this year.

• Yield on the 10-year bond fell 3 bps to 7.33%, during the session. The 10-year bond yield closed at 7.34%, extending decline for fifth day in a row.

Source: Bloomberg

• Indian currency fell 0.15% (12 paise) to 79.90. This is more the Rupee has depreciated against the U.S. dollar in nearly two weeks since July 14.

Source: Bloomberg

Q1FY23 (Consolidated)

• Net profit at Rs 2596 crore vs Rs 1002.44 crore YoY (Bloomberg estimate: Rs 2459 crore)

• Total income at Rs 9283 crore vs Rs 6743.25 crore YoY

• GNPA at 1.25% vs 1.6% QoQ

• NNPA at 0.51% vs 0.68% QoQ

Q1FY2023 (Consolidated, YoY)

• Revenue up 20% at Rs 1,539 crore Vs Rs 1,279 crore (Bloomberg Consensus Estimate: Rs 1,435 crore)

• Net profit up 4% to Rs 251 crore Vs Rs 241 crore (Bloomberg Consensus Estimate: Rs 244 crore Profit)

• EBITDA up 15% to Rs 454 crore from Rs 395 crore (Bloomberg Consensus Estimate: Rs 418 crore Profit)

• Margins at 29.5% Vs 30.9% (Estimate : 29.1%)

• GAIL approves issuance of one bonus share for every two held.

• Issuance subject to approval of the shareholders at the AGM scheduled for August 26.

Source: Exchange filing

Q1FY2022-23 (Standalone, YoY)

• Net income at Rs 1012.8 crore Vs. Rs 440.8 crore (Bloomberg Consensus Estimate: Rs 1,570 crore)

• Revenue at Rs 26499.80 crore Vs. Rs 17770.7 crore (Estimate: Rs 25,780 crore)

• EBITDA at Rs 1,912.1 crore Vs. Rs. 821.1 crore

• EBITDA margin at 7.22% Vs. 4.62%

Source: Exchange filing

Shares of engineering and IT solutions provider Genesys International hit 5% upper circuit.

• Trading volume is more than twice the 30-day average. The rise comes after the company announced partnership with Google, to enable launch of Google Street View across India .

• Genesys is one of the first firms that introduced street imaging maps in India. The capability and technology with Genesys enables cature of 1,50,000 unique kms of street imaging data. The company wants to cover all of urban India street imaging over the next 12 months, spanning over 1 million kilometres.

• Shares of Tech Mahindra

Source: Exchange filing, Bloomberg

• European markets rise ahead of U.S. Federal Reserve's monetary policy decision. Credit Suisse, Deutsche Bank, Daimler and Airbus are among the key corporate earnings scheduled for today.

Source: Bloomberg

Shares of V-Guard Industries rose nearly 4% in intraday trade, most in over two weeks despite the company reporting net income for the quarter-ended June that missed the analyst estimate. Revenue rose abov estimate, while net profit more than doubled compared to the corresponding quarter in the last fiscal.

Q1FY2022-23 (Standalone, YoY)

• Net income at Rs 54.02 crore Vs. Rs 24.63 crore (Bloomberg Consensus Estimate: Rs 57.75 crore)

• Revenue at Rs 1,009.64 crore Vs. Rs 560.72 crore (Estimate: Rs 909 crore)

• EBITDA at Rs 84.16 crore Vs. Rs 46.22 crore

• EBITDA margin at 8.34% Vs. 8.24%

Trading volume is nearly 10 times the 30-day average. Of the 25 analysts tracking the company, 15 maintain 'buy', eight suggest 'hold' and two recommend 'sell'. The return potential of the stock is 13%.

Source: Exchange filing, Bloomberg

India's stock benchmarks rose after volatile open, aided by gains in healthcare, information technology, capital goods stocks, ahead of the anticipated rate hike by U.S. Federal Reserve on Wednesday.

The Sensex rose over 200 points to 55,512.30. The Nifty 50 also rose 0.5% to 16,564.10. Today 35 of Nifty 50 stocks rose, while 15 fell. Larsen & Toubro led the advance after its Q1 beat, rising 3% while Bajaj Auto declined 2%, the most among Nifty 50 constituents.

The broader indices underperformed, with MidCap index rising 0.28% and SmallCap gauge adding 0.2%. Fifteen of the 19 sectoral indices compiled by BSE advanced with Capital Goods measure jumping nearly 2%.

The market breadth is skewed in the favour of neither bulls nor bears. About 1,630 stocks rose, 1,547 fell and 162 remained unchanged.

Shares of Ujjivan Small Finance Bank are on course to extend gains for the sixth day. Stock rose 4.7% in intraday trade. On Tuesday, the scrip gained 9.8%.

• Trading volume on the stock is more than 23 times the 30-day average. The relative strength index is at 85, suggesting the stock may be overbought.

• Of the 15 analysts tracking the company, 13 maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock is 25.5%.

• The rise comes after the company reported net profit that beat average analyst estimate during market hours on Tuesday.

• After earnings, four analysts upgraded their recommendations while three more reiterated 'buy'. They believed that the stock is ripe for re-rating as the firm recovers from asset quality woes and leadership concerns and focus shifts to sustaining growth. They revised earnings estimates higher to factor in lower credit cost and robust collection trends.

Source: Brokerage notes, Bloomberg, Exchange filing.

• Google has launched Street View in India, in collaboration with Genesys and Tech Mahindra.

• The technology is available for 10 Indian cities starting today and will be expanded to 50 cities by the end of the year.

Source: Press statement

Merged entity to be called InCred Finance, will be managed by Bhupinder Singh, Founder CEO of InCred Group.

• Merged entity will have $600 million balance sheet and $300 million equity base.

• InCred Finance will remain a strategic investment for KKR and will not be a portfolio company.

• Alert: Merger was first announced in August 2021

Source: InCred, KKR statement

Supreme Court gives its verdict on challenge to anti-money laundering law and powers of the Enforcement Directorate.

• Supreme Court rejects the challenge to provision of power of arrest and says it does not suffer from arbitrariness.

• The challenge to PMLA provisions dealing with search and seizure has also been rejected.

• An Enforcement Case Information Report (ECIR) cannot be equated with an FIR.

• Supply of copy of an ECIR is not mandatory. Giving the grounds at the time of the arrest is sufficient.

• Over 200 petitions were filed challenging various provisions of the Prevention of Money Laundering Act, 2002.

• The judgment was pronounced by a bench presided by Justice AM Khanwilkar.

• The question of certain amendments to PMLA via the Finance Act is left open. To be decided by a larger bench.

• The full copy of the judgment is yet to be uploaded.

Shares of Sanofi India fell over 3%, most since May 16. The company reported 33% YoY decline in net profit for the quarter-ended June, post market hours on Tuesday.

June Quarter Results (Consolidated, YoY)

• Revenue down 11% at Rs 699.3 crore

• EBITDA down 35% at Rs 161.10 crore

• EBITDA margin at 23% vs 31%

• Net profit down 33% at Rs 120.4 crore

The company also announced one-time special dividend of Rs 193 per share of Rs 10 each for the financial year ending December 31, 2022. The company has fixed August 8 as the record time for the payment of special interim dividend.

Trading volume on the stock is nearly quadruple the 30-day average. Of the nine analysts tracking the company, seven maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock is 29.2%.

Post earnings, DAM Capital reiterated 'buy' while ICICI Securities retained 'add'. Both the brokerages slashed target price.

Source: Exchange filing, Bloomberg

Shares of Sansera Engineering Ltd. fell 8.5%, steepest intraday decline since February 8. Trading volume on the iron and steel maker's stock is seven times the 30-day average. All four analysts tracking the company maintain 'buy'. The return potential of the stock is 27.2%.

The decline comes after the company informed bourses that an order previous awarded to the company by a North American OEM to develop, manufacture, supply connecting rods, has been cancelled.

Source: Exchange filing, Bloomberg

India's stock benchmarks opened little changed, as gains in capital goods, energy stocks were offset by losses in FMCG, telecom stocks, ahead of the anticipated rate hike by U.S. Federal Reserve in its policy meeting scheduled on Wednesday.

The S&P BSE Sensex rose 70 points (0.14%) to 55,346.15. The NSE Nifty 50 was little changed at 16,498.80. Today 32 of Nifty 50 stocks rose, 18 fell.

The broader indices almost mirrored their larger peers. Fifteen of the 19 sectoral measures compiled by BSE Ltd. advanced with Capital Goods gauge rising 0.8%.

The market breadth is skewed in the favour of neither bulls nor bears. About 1,126 stocks rose, 1,051 fell and 112 remained unchanged.

• Yield on the 10-year bond was at 7.37% at the open.

Source: Bloomberg

The board will evaluate the proposal for raising of funds by way of rights issue, preferential allotment, qualified institutions placement, or any other route.

• Funds to be raised through issuance of equity shares, convertibles, or any other eligible securities.

• Alert: Yes Bank is looking to raise $1 billion from a clutch of investors, after it completes the sale of its Rs 48,000 crore stressed assets, CEO Prashant Kumar had told BQ Prime last week.

Source: Exchange notification

Tata Motors, Maruti Suzuki, Biocon, Bajaj Finance, Laurus Labs, APL Apollo Tubes, Colgate Palmolive, Coromandel International, IIFL Finance, Clean Science and Technology, Mahindra Lifespace Developers, Dixon Technologies, Gujarat Fluorochemicals, EIH, CG Power and Industrial Solutions, Blue Dart Express, Elantas Beck India, Apcotex Industries, Aarti Drugs, Mishra Dhatu Nigam, Laxmi Organic, Latent View Analytics, JSW Holdings, Jindal Stainless (Hisar), JK Lakshmi Cement, Home First Finance Company, Fino Payments, ZF Commercial Vehicle Control Systems, Welspun, VIP Industries, V-Guard Industries, United Breweries, TeamLease Services, SKF India, Shriram City Union Finance, Schaeffler India, Poonawalla Fincorp, PowerGrid Infrastructure Investment Trust

• Yes Bank: The private sector lender will on July 29 consider raising of funds via a rights issue, preferential allotment, qualified institutions placement or through any other permissible mode.

• ONGC: The company has signed a memorandum of understanding with Greenko ZeroC to jointly pursue opportunities in Renewables, Green Hydrogen, Green Ammonia and other derivatives of green hydrogen. The MoU is valid for two years.

• Wipro: The company has announced a new five-year strategic engagement with Nokia. The new agreement builds on a partnership originally established over 20 years ago.

• Zomato: The company’s shareholders approved the proposal to acquire Blinkit in an all-stock deal.

• Piramal Enterprises: The company received NBFC license from the Reserve Bank of India that will allow it to begin NBFC operations.

• Zydus Wellness: The company has received final approval from the U.S. FDA for Bisoprolol Fumarate tablets used to treat high blood pressure. The drug will be manufactured at the company’s formulation manufacturing facility at SEZ Ahmedabad and will be distributed by Viona Pharmaceuticals Inc.

• JSW Energy: The company received NCLT approval for the resolution plan for Ind-Barath that owns a 700 MW under-construction thermal power plant in Odisha.

• HDFC Life Insurance: The company will consider raising funds by way of issue of equity shares and/or other securities by way of preferential issue.

• Trident Group: The company has resumed operations at manufacturing locations following suspension on July 19.

• Delhivery: The company has integrated its subsidiary Spoton Logistics with itself.

L&T Q1 FY23 (Consolidated, YoY)

• Revenue up 22% at Rs 35,853.20 crore

• EBITDA down 2% at Rs 3,120.62 crore

• EBITDA margin at 8.7% vs 10.8%

• Net profit up 50% at Rs 2,293.01 crore

Tata Power Q1 FY23 (Consolidated, YoY)

• Revenue up 45% at Rs 14,495.48 crore

• EBITDA down 2% at Rs 1,683.39 crore

• EBITDA margin at 11.61% vs 17.3%

• Net profit up 90% at Rs 883.54 crore

Relaxo Footwears Q1 FY23 (Consolidated, YoY)

• Revenue up 34% at Rs 667.15 crore

• EBITDA up 30% at Rs 86.12 crore

• EBITDA margin at 12.9% vs 13.3%

• Net profit up 25% at Rs 38.67 crore

Tata Investment Corporation Q1 FY23 (Consolidated, QoQ)

• Revenue up 65% at Rs 101.97 crore Vs Rs 61.9 crore

• EBIT up 62% at Rs 90.83 crore Vs Rs 55.99 crore

• EBIT margin 89% Vs 90.5%

• Net profit up 67% at Rs 89.94 crore Vs Rs 53.84 crore

United Spirits Q1 FY23 (Consolidated, YoY)

• Revenue up 16% at Rs 7,131.3 crore Vs Rs 6,168.5 crore (Bloomberg estimate: Rs 1,057.8 crore)

• EBITDA up 98% at Rs 372.30 crore Vs Rs 188.5 crore (Bloomberg estimate: Rs 142.8 crore)

• EBITDA margin 5% Vs 3%

• Net profit up 38x at Rs 266.2 crore Vs Rs 55.5 crore (Bloomberg estimate: Rs 81.54 crore)

Aditya Birla Sun Life AMC Q1 FY23 (Standalone, YoY)

• Revenue up 1% at Rs 299.01 crore Vs Rs 295.15 crore (Bloomberg estimate: Rs 300 crore)

• EBITDA up 0.4% at Rs 179.98 crore Vs Rs 179.25 crore (Bloomberg estimate: Rs 170 crore)

• EBITDA margin 60.19% Vs 60.73%

• Net profit fell 33% at Rs 101.51 crore Vs Rs 151.36 crore (Bloomberg estimate: Rs 140 crore)

UTI Asset Management Q1 FY23 (Consolidated, YoY)

• Revenue up 15% at Rs 293.12 crore Vs Rs 344.34 crore (Bloomberg estimate: Rs 270 crore)

• EBIT fell 50% at Rs 95.91 crore Vs Rs 190.29 crore (Bloomberg estimate: Rs 120 crore)

• EBIT margin 33% Vs 55%

• Net profit fell 39% at Rs 94.41 crore Vs Rs 155.03 crore (Bloomberg estimate: Rs 50 crore)

Sanofi Q1 FY23 (Consolidated, YoY)

• Revenue fell 11% at Rs 699.3 crore Vs Rs 789.1 crore

• EBITDA fell 35% at Rs 161.10 crore Vs Rs 247.1 crore

• EBITDA margin 23% Vs 31%

• Net profit fell 33% at Rs 120.4 crore Vs Rs 178.3 crore

India Grid Trust Q1 FY23 (Consolidated, QoQ)

• Revenue up 1% at Rs 560.88 crore Vs Rs 554.38 crore

• EBIT fell 7% at Rs 319.87 crore Vs Rs 345.25 crore

• EBIT margin 57% Vs 62%

• Net profit fell 5% at Rs 80.95 crore Vs Rs 85.25 crore

Shopper’s Stop Q1 FY23 (Consolidated, QoQ)

• Revenue up 33% at Rs 948.44 crore Vs Rs 713.34 crore

• EBITDA up 2x at Rs 162.50 crore Vs Rs 76.24 crore

• EBITDA margin 17% Vs 11%

• Net profit of Rs 22.83 crore Vs net loss of Rs 15.85 crore