Sensex, Nifty Gain In Volatile Session To Extend Winning Streak For Sixth Day; FPIs Net Bought Today

India's stock benchmarks advanced for sixth day in a row, in a volatile session, aided solely by gains in information technology stocks.

The Sensex gained over 200 points to 58,350.53, over 500-point rise from the intraday low of 57,788.78. The Nifty 50 also advanced by similar magnitude to 17,388.15. Today 25 of Nifty 50 stocks rose while 25 fell. Tech Mahindra, Infosys and TCS were the top gainers in today's session.

The broader indices underperformed with MidCap gauge losing 0.6% and SmallCap index losing 0.3%. Sixteen of the 19 sectoral indices compiled by BSE declined. S&P BSE Information Technology, Teck and Finance were the only three sectoral measures that gained.

The market breadth is skewed in the favour of bears. About 1,376 stocks rose, 1,971 fell and 137 remained unchanged.

Foreign portfolio investors net bought equities worth Rs 765.17 crore today, data from the National Stock Exchange showed. FPIs have been net buyers for five days in a row.

On the other hand, domestic institutional investors net sold equities worth Rs 518.42 crore on Wednesday.

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 2,687.72 crore worth of equities so far in August and net sold equities worth Rs 45,751.97 as yet in 2022.

• Yield on the 10-year bond rose 6bps to 7.25% before closing at 7.24%.

• 10-year bond yield rose after falling for nine sessions in a row.

Source: Bloomberg

Indian currency depreciated 45 paise to 79.16, at the close.

• Rupee rose against the dollar for four consecutive sessions before today's fall.

• This is the most Rupee fell against the greenback in nearly three months since May 9.

• The decline comes after India's trade deficit ballooned to record high in July, amid high commodity costs. The weak rupee also contributed to the trade deficit, by adding to the import bill.

Source: Bloomberg

June Quarter Earnings (Consolidated, YoY)

• Net profit at Rs 4779.86 crore Vs. Rs 278.22 crore

• Revenue at Rs 13723.06 crore Vs. Rs 6568.86 crore

• EBITDA at Rs 5739.74 crore Vs. Rs 1648.01 crore

• EBITDA margin at 41.68% Vs. 25.09%

Source: Exchange filing

(Consolidated, YoY)

• Net profit at Rs 120.72 crore Vs. Rs 125.51 crore (Bloomberg consensus estimate: Rs 121 crore)

• Revenue at Rs 1154.41 crore Vs. Rs 945.32 crore (Estimate: Rs 1,159 crore)

• EBITDA at Rs 169.80 crore Vs. Rs 151.05 crore (Estimate: Rs 174 crore)

• EBITDA margin at 14.71% Vs. 15.98%

Source: Exchange filing

• India's Union Cabinet approves climate targets announced by Prime Minister Narendra Modi at COP26 in Glasgow last year.

• The updated targets will be communicated to the UN Framework Convention on Climate Change.

• India will commit to have 50% of electricity from non-fossil fuel sources by 2030.

• Will target 45% reduction in emissions intensity of the economy by 2030 over 2005 levels.

Source: PIB

Shares of Chambal Fertilisers and Chemicals fell over 4%, after the company reported net income that missed average analyst estimate, for the quarter-ended June.

Q1 Results (Consolidated, YoY)

• Net profit at Rs 341.82 crore Vs. Rs 381.43 crore (Bloomberg Consensus Rs 396 crore)

• Revenue at Rs 7,291.18 crore Vs. Rs 3,539.52 crore (Estimate: Rs 5,311 crore)

• EBITDA at Rs 593.3 crore Vs. Rs 581.1 crore

• EBITDA margin at 8.1% Vs. 16.4%

Trading volume is nearly thrice the 30-day average. All four analysts tracking the company maintain 'buy'. The return potential of the stock is 44.3%.

Source: Exchange filing, Bloomberg

ICICIDirect has acquired startup Multipie, a web and app based networking platform for the investor community. It was launched in October 2021.

• Transaction involves acquisition of Multipie app, technology, brand, domain name, user base and other related matters.

• This is the second investment by ICICIdirect in a startup. It had previously invested in Asknbid, a financial gaming firm.

Source: Press release

Q1FY2022-23 (Consolidated figures, QoQ)

• Revenue up 7% at Rs 3124.97 crore Vs Rs 2915.82 crore

• Net profit down 5% to Rs 345.12 crore Vs Rs 363.24 crore

• EBITDA up 12% to Rs 520.79 crore Vs Rs 463.07 crore

• Margins at 16.7% Vs 15.9%

Source: Company Disclosure

India's stock benchmarks declined, dragged by losses across sectors except information technology.

The Sensex fell over 130 points to 57,999.87. The Nifty declined 0.40% to 17,276.10. Today, 10 of Nifty 50 stocks rose while 40 fell.

The broader indices underperformed their larger peers, with MidCap index losing 1.25% and SmallCap shedding 0.7%. Barring information technology and teck indices, all the other 17 sectoral indices compiled by BSE Ltd. declined with Telecom index losing nearly 2%.

The market breadth is skewed in the favour of bears. About 1,108 stocks rose, 2,128 fell and 129 remained unchanged.

Shares of Indus Towers Ltd. lost over 8.2%, most in over 10 weeks, to Rs 201.2 apiece. The company reported YoY decline in net profit for the quarter-ended June post market hours on Tuesday.

June Quarter Results (Consolidated, YoY)

• Net profit at Rs 477.3 crore Vs. Rs. 1415.3 crore

• Revenue at Rs 6897.3 crore Vs. Rs 6797 crore

• EBITDA at Rs 2414.7 crore Vs. Rs 3585.4 crore

• EBITDA margin at 35% Vs. 51.98%

Trading volume is more than five times the 30-day average. Share price crossed below 50-day simple moving average, indicating potential downward price momentum.

Of the 27 analysts tracking the company, 13 maintain 'buy', 11 suggest 'hold' and three recommend 'sell'. The return potential of the stock is 16.5%. Since the company's earnings on Tuesday, Credit Suisse and Ambit Capital reiterated 'underperform' and 'sell', respectively.

Here's a gist of brokerages' view of the stock.

Motilal Oswal

• Reiterates 'neutral' and maintains target price at Rs 215.

• Consolidated revenue fell while other expenses included Rs 1,230 crore towards doubtful debts due to weak liquidity position of Idea.

• Trade receivables declined due to Rs 1,230 crore provision

• Company says Idea is delaying regular monthly payments and proposes to pay only part of the due amount billed until December 31, 2022.

• Firm says potential loss of significant customer (Vi), could have adverse effect on its business.

Source: Exchange filing, Bloomberg

Shares of Jubilant Pharmova fell nearly 4%, on track to lose over 6% in two days since Q1 numbers.

The company reported net income for the quarter-ended June that missed the average analyst estimate, on Tuesday.

June Quarter Results (Consolidated, YoY)

• Net income down 71% at Rs 47.04 crore Vs. Rs 160.56 crore (Bloomberg Consensus Estimate: Rs 70.75 crore)

• Revenue down 11% at Rs 1,451.72 crore Vs. Rs 1,634.65 crore (Estimate: Rs 1,471 crore)

• EBITDA down 46% at Rs 192.40 crore Vs. Rs 374.24 crore (Estimate: Rs 234 crore)

• EBITDA margin at 13.25% Vs. 22.90%

The decline also comes after U.S. FDA concluded audiot of the solid dosage formulations facility at Roorkee plant and issued six observations. Jubilant Pharmova said it will submit an action plant on the observation and engage with U.S. drug regulator for next steps.

Trading volume is five times the 30-day average. Of the seven analysts tracking the company, three maintain 'buy', three suggest 'hold' and one recommends 'sell'. The return potential of the stock is 41.7%.

Source: Bloomberg, Exchange filing

• Enforcement Directorate attaches assets of two businessmen worth Rs 415 crore, in the Yes Bank-DHFL fraud case

• Assets worth Rs 251 crore of Sanjay Chhabaria and assets worth Rs 164 crore of Avinash Bhosale attached by enforcement directorate.

• Total attachment of assets in the case now stands at Rs 1,827 crore.

• Alert: Yes Bank-DHFL fraud case involves funds worth Rs 3,500-4,000 crore

Source: ED twitter handle

• Indian currency remains little changed against the U.S. dollar at 78.74.

Source: Bloomberg

Shares of Navneet Education Ltd. rose 20%. Trading volume is 34 times the 30-day average. The relative strength index of the stock is 72, suggesting it may be overbought.Both the analysts tracking the company maintain 'buy'. The return potential of the stock is 6%.

June Quarter Results (Consolidated, YoY)

• Net profit at Rs 139.35 crore Vs. Rs 32.06 crore

• Revenue at Rs 693.74 crore Vs. Rs 327.85 crore

• EBITDA at Rs 195.31 crore Vs. Rs 58.73 crore

• EBITDA margins at 28.15% Vs. 17.91%

Source: Exchange filing, Bloomberg

India Services PMI eases to four month low in July but continues to show robust expansion.

- Services PMI at 55.5 in July compared to 59.2 in June.

- Charge inflation eased amidst slower rise in input costs.

Source: IHS Markit

Shares of eClerx Services rose nearly 15%, most in nine months. Trading volume is 59 times the 30-day average. Share pricess crossed above 200-day simple moving average, indicating potential upward price momentum. The relative strength index on th stock is 73, suggesting the stock may be overbought.

• The rise comes after the company said it will consider the proposal for issuance of bonus equity shares in its board meeting on August 9. The company will also report its financial results for June quarter on the same day.

• All nine analysts tracking the company maintain 'buy'. The return potential of the stock is 14.2%.

Source: Exchange filing, Bloomberg

Shares of Subex Ltd. hit the 20% upper circuit level after the company partnered with Reliance's Jio Platforms to augment its 5G product line.

The deal involves Subex's AI Orchestration Platform, HyperSense, which can enable telcos to enable AI across the data value chain. "As per the collaboration, JPL will offer its Cloud Native 5G Core to telcos globally along with Subex’s HyperSense for enabling closed loop network automation, product performance and customer experience analytics," a statement read.

Subex was the best performer on S&P BSE Small Cap and IT indices. It has now extended gains to the fourth day.

Shares of SpiceJet Ltd. gained nearly 7% even as CNBC-TV18 reported that founder Ajay Singh is exploring sale of a part of his stake in the airline.

The news channel said Singh is in talks with a Middle East-based airline and a large Indian conglomerate for the sale.

Ajay Singh holds about 59.4% in SpiceJet.

Shares of Zomato Ltd. had a volatile start to Wednesday as block trades, likely being executed by Uber, caused the stock to sink as much as 9.5%.

Shortly thereafter, the scrip erased all losses and gained as much as 1.17% within minutes, before sinking back in the red at about 9:50 a.m.

According to Bloomberg data, about 61.4 crore shares of Zomato have changed hands at Rs 51.9 apiece. That matches with the terms of the deal reviewed by BQ Prime.

An undisclosed seller is listed as selling a 7.8% stake or 61.2 crore shares in Zomato, according to terms of a block deal being executed by BofA Securities. As on June 30, Uber held a 7.78% stake in Zomato, the BSE data showed.

The sale is being executed in the price band of Rs 48-54 per share, a 2.8-13.6% discount to the company's closing price of Rs 55.5 apiece on Aug. 2.

At the lower end of the price range, the block trade will garner around Rs 2,938.6 crore for the seller.

India's stock benchmarks fell, and are on course to snap five-day winning streak, dragged by losses across sector, led by teleecom, power stocks.

The Sensex fell 0.24% to 57,999.67. The Nifty 50 fell over 0.3% to 17,281.15. Today 11 of the Nifty 50 stocks rose while 39 fell.

The S&P BSE SmallCap mirrored its larger peers while MidCap index underperformed, losing 0.7%. Barring S&P BSE INformation Technology, all the other 18 sectoral indices declined.

The market breadth is skewed in the favour of bears. About 1,189 stocks rose, 1,825 and 119 remained unchanged.

Cipla Ltd. and Infosys Ltd. were the top gainers among Nifty stocks while Coal India Ltd., Mahindra & Mahindra Ltd. and Tata Motors led the decline.

Adani Transmission, Adani Power, Godrej Consumer Products, Adani Wilmar, Lupin, Aditya Birla Capital, Inox Leisure, InterGlobe Aviation, Vodafone Idea, Devyani International, BASF India, Chambal Fertilisers & Chemicals, Gulf Oil Lubricants, FirstSource Solutions, Birlasoft, Triveni Engineering, TCI Express, Tata Coffee, Redington, Prism Johnson, PI Industries, Paras Defence & Space Technologies, KIOCL, KEC International

• RIL/ONGC/oil exporter stocks: Government raised export duty on crude oil Rs 17,000/ton to Rs 17,750/ton. Export duty on diesel cut from Rs 11 to Rs 5 and export duty on ATF scrapped.

• ITC: The company has exited the Lifestyle Retailing business following a strategic review of its business portfolio.

• Mahindra & Mahindra Financial Services: The company’s disbursements in July 2022 rose 63% YoY and 3% sequentially to Rs 3,912 crore. The collection efficiency was at 97% for July 2022, better than the CE of 95% for July 2021.

• Jubilant Pharmova: The U.S. FDA issued six observations following the completion of audit of the Solid Dosage Formulations facility at Roorkee, India of Jubilant Generics, a subsidiary of its wholly owned subsidiary Jubilant Pharma.

• Easy Trip Planners: Nomura Singapore bought 11.5 lakh (0.52%) shares at Rs 399 apiece

• Aurobindo Pharma: The company has received Form 483 with three observations from the U.S. FDA following inspection in its Unit XI, an API non-antibiotic manufacturing facility situated at Pydibhimavaram, Srikakulam District, Andhra Pradesh. The company said that it will respond to the observations and that none of them are related to data integrity.

• Voltas: The company completed the transfer of domestic B2B businesses comprising projects to its wholly owned subsidiary Universal MEP Projects & Engineering Services for a consideration of Rs 1,190 crore.

• Zomato: Uber likely to sell 7.8% stake in Zomtao via mega block deal today, reported Reuters .

Adani Green Energy Q1 FY23 (Consolidated, YoY)

• Revenue up 67% at Rs 1635 crore Vs Rs 977 crore

• EBITDA up 26% at Rs 948 crore Vs Rs 754 crore

• EBITDA margin 58% Vs 77%

• Net profit fell 2% at Rs 214 crore Vs Rs 219 crore

Deepak Nitrite Q1 FY23 (Consolidated, YoY)

• Revenue up 35% at Rs 2,057.99 crore Vs Rs 1,526.22 crore (Bloomberg estimate: Rs 1,783.7 crore)

• EBITDA fell 21% at Rs 355.98 crore Vs Rs 451.5 crore (Bloomberg estimate: Rs 345.5 crore)

• EBITDA margin 17% Vs 30%

• Net profit fell 22% at Rs 234.62 crore Vs Rs 302.63 crore (Bloomberg estimate: Rs 221.5 crore)

Brigade Enterprises Q1 FY23 (Consolidated, QoQ)

• Revenue fell 4% at Rs 902.49 crore Vs Rs 942.31 crore

• EBITDA up 13% at Rs 232.65 crore Vs Rs 205.19 crore

• EBITDA margin 26% Vs 22%

• Net profit up 2.7x at Rs 87.68 crore Vs Rs 32.47 crore

Bosch Q1 FY23 (Consolidated, YoY)

• Revenue up 45% at Rs 3,544.4 crore Vs Rs 2,443.5 crore

• EBITDA up 47% at Rs 449.40 crore Vs Rs 306.6 crore

• EBITDA margin 12.7% Vs 12.5%

• Net profit up 29% at Rs 334.1 crore Vs Rs 259.8 crore

Voltas Q1 FY23 (Consolidated, YoY)

• Revenue up 55% at Rs 2,768 crore Vs Rs 1,785 crore

• EBITDA up 29% at Rs 174.99 crore Vs Rs 135.58 crore

• EBITDA margin 6.3% Vs 7.6%

• Net profit fell 11% at Rs 108.88 crore Vs Rs 121.8 crore

Thermax Q1 FY23 (Consolidated, QoQ)

• Revenue up 57% at Rs 1,654.48 crore Vs Rs 1,052.36 crore

• EBITDA up 52% at Rs 96.03 crore Vs Rs 63.04 crore

• EBITDA margin 5.8% Vs 5.9%

• Net profit up 39% at Rs 58.95 crore Vs Rs 42.4 crore

Siemens Q1 FY23 (Consolidated, YoY)

• Revenue up 12% at Rs 4,258.3 crore Vs Rs 3,801.1 crore

• EBITDA fell 12% at Rs 412.20 crore Vs Rs 469.4 crore

• EBITDA margin 10% Vs 12%

• Net profit fell 12% at Rs 300.7 crore Vs Rs 340 crore

Moil Q1 FY23 (Consolidated, YoY)

• Revenue up 28% at Rs 375.58 crore Vs Rs 293.32 crore

• EBITDA up 77% at Rs 147.99 crore Vs Rs 83.76 crore

• EBITDA margin 39% Vs 29%

• Net profit up 66% at Rs 102.78 crore Vs Rs 61.79 crore

Lemon Tree Hotels Q1 FY23 (Consolidated, QoQ)

• Revenue up 61% at Rs 192.03 crore Vs Rs 119.53 crore

• EBITDA up 4x at Rs 87.58 crore Vs Rs 21.58 crore

• EBITDA margin 46% Vs 18%

• Net profit at Rs 13.85 crore Vs net loss 24.62 crore

Stocks fell in Asia on Wednesday and the dollar climbed as investors evaluated heightened U.S.-China tension and hawkish Federal Reserve comments.

Shares were mixed in Japan and fell in South Korea and Australia. S&P 500 and Nasdaq 100 futures slipped after a dip in Wall Street shares on Tuesday.

Hong Kong contracts earlier pointed to the bourse there unwinding some of the losses sparked by worries over U.S. House Speaker Nancy Pelosi’s Taiwan visit. At 7:20 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- traded 0.29% higher at 17,375 points.

Elsewhere, oil fell below $94 a barrel as traders counted down to an OPEC+ crude production meeting. Gold retreated and Bitcoin dropped under $23,000.