Sensex, Nifty End Higher Buoyed By Cement, Telecom Stocks; FPIs Net Bought Today

Foreign portfolio investors net bought equities worth Rs 1,605.81 crore today, data from the National Stock Exchange showed. FPIs have been net buyers for seven days in a row, making it the longest buying streak of 2022 till present day.

On the other hand, domestic institutional investors net sold equities worth Rs 495.94 crore on Friday.

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 when institutions remained net buyers.

Institutions have net bought 5,225.57 crore worth of equities so far in August and net sold equities worth Rs 43,214.12 till date in 2022.

India's stock benchmarks ended marginally higher on Friday, returning to gains after a day's break aided by cement and telecom stocks.

The NSE Nifty 50 ended 0.1% higher at 17,397.5, a change of 15 points from yesterday's close. The S&P BSE Sensex ended 89 points higher, at 58,387.9.

The Nifty gained for the third straight week.

Shares of Pfizer Ltd. fell as much as 4% after the company's net profit missed estimates on one-time expenses.

(Consolidated figures, YoY)

• Revenue down 21% at Rs 593 crore

• Net profit down 84% at Rs 32.5 crore

• Total costs down 13% at Rs 431 crore

There were two one-time expenditures during the quarter:

• Rs 129.85 crore on account of Voluntary Retirement Scheme.

• Additional charge of Rs 6.48 crore (net) on account of restructuring to drive business transformation

Shares of Aditya Birla Fashion and Retail Ltd. remained little changed after the apparel retailer posted profit that beat analyst estimates.

(Consolidated figures, YoY)

• Revenue up 257% at Rs 2,770 crore vs Rs 774 crore

• Net profit at Rs 124 crore vs loss of Rs 510 crore

• Total costs up 112% to Rs 264 crore vs Rs 125 crore

Shares of Venky's india fell 11%, the most since November, as the company's Q1 profit declined on high bird feed prices.

The poultry firm posted a net profit of Rs 49.2 crore versus Rs 55.1 crore a year ago. Its revenue grew 11% to Rs 1,200 crore while costs grew to Rs 1,140 crore from Rs 1,020 crore in the same period last year.

"The poultry and poultry products segment witnessed lower realisations from the sale of day old chicks of layer and broiler and grown up broilers. High prices of feed ingredients (maize and soya), has resulted in lower profitability," the company said.

Titan Q1 FY23 (Consolidated figures, QoQ)

• Revenue up 21% at Rs 9,443 crore vs Rs 7,796 crore

• Net profit up 54% to Rs 785 crore vs Rs 510 crore

• Ebitda up 51% to Rs 1,196 crore vs Rs 794 crore

• Margins at 12.7% vs 10.2%

Source: Company Disclosure

Q1FY2023 (Consolidated, YoY)

• Revenue up 14% at Rs 399 crore Vs Rs 349 crore (BBG estimate : Rs 388 crore)

• Net profit down 11% to Rs 95 crore Vs Rs 107 crore (BBG estimate : Rs 101 crore Profit)

• EBITDA up 2% to Rs 129 crore from Rs 127 crore (BBG estimate : Rs 129 crore Profit)

• Margins at 32.4% Vs 36.2% (BBG estimate : 33.3%)

• Declared interim dividend of Rs 7.35 per share of face value Re 1 each

Source: Exchange filing

European markets are off to a mixed start amid key earnings ahead of the U.S. jobs report due later today.

Source: Bloomberg

Q1 FY2023 (Consolidated, YoY)

• Revenue down 6% at Rs 2,576 crore Vs Rs 2,731 crore (Bloomberg estimate : Rs 2,654 crore)

• Net profit down 73% to Rs 128 crore Vs Rs 468 crore (Bloomberg estimate : Rs 353 crore Profit)

• EBITDA down 66% to Rs 203 crore from Rs 593 crore (Bloomberg estimate : Rs 440 crore Profit)

• Margins at 7.9% Vs 21.7% (Bloomberg estimate : 16.6%)

India's stock benchmarks advanced, and are on course to gain for the third week in a row, amid 50bps rate hike announced by RBI's Monetary Policy Committee.

Information technology, telecom, banking, metal and basic materials stocks rose while auto and consumer durables stocks declined.

The Sensex rose 80 points (0.14%) to 58,380.74, off day's high of 58,649.19. The Nifty 50 advanced to 17,400 level. Today 28 of Nifty 50 stocks gained while 22 fell. Ultratech Cement, HDFC Life, ICICI Bank, Shree Cement and Bharti Airtel were among the top gainers.

The broader indices outperformed their larger peers, with MidCap gauge adding 0.25% and SmallCap index rising 0.6%. Twelve of the 19 sectoral indices compiled by BSE rose with Telecom index jumping 1.3%.

The market breadth is skewed in the favour of bulls. About 1,939 stocks rose, 1,290 fell and 164 remained unchanged.

M&M Q1FY23 (Standalone, QoQ)

• Net Profit rose 11% to Rs 1,430 crore from Rs 1,292 crore (Bloomberg estimate: Rs 1,540 crore)

• Revenue increased 15% to Rs 19,613 crore from Rs 17,124 crore (Estimate: Rs 19,926 crore)

• Operating profit rose 20% to Rs 2,341 crore from Rs 1,946 crore (Estimate: Rs 2,461 crore)

• Operating margin expanded to 11.9% from 11.4% (Estimate: 12.4%)

Source: Exchange filing

• Current account deficit likely to remain at sustainable levels as per RBI’s forecasts.

• Cannot spell out forecast for current account deficit.

• Two months of trade data cannot be extrapolated to current account deficit for the full year.

Source: RBI Press Conference

Steel-linked stocks gained in trade. This comes amid report that government may reduce or eliminate the export duty on steel products. Mint reported today, citing people familiar with the matter, that steel ministry and finance ministry are already mulling the roll back, amid industry representation seeking a cut.

• The government levied 15% export duty on steel products and reduced import duty on some raw materials of steel, on May 22. Analysts had argued that the move is a net negative for the ferrous sector (Tata Steel, JSW Steel, Steel Authority of India and NMDC). They stressed that the export duty would not only bring down domestic realisation but also export realisation.

• According to the Mint report, the export duty could be halved or even eliminated for some products and a decision is likely by the end of August.

• Shares of NMDC, Jindal Steel & Power, Vedanta, SAIL, JSW Steel advanced in today's session.

Source: Bloomberg, News report by Mint

Aurobindo Pharma disclosed that it’s an oral manufacturing facility at Jedcherla, Hyderabad, received an Establishment Inspection Report (EIR) with a Voluntary Action Initiated (VAl) status from the US FDA concluding the inspection.

• VAI means objectionable conditions were found and documented but the agency is not prepared to take or recommend regulatory action. The company must address them voluntarily.

• The US FDA inspected the unit from 2nd to 10th May 2022. It was issued a ‘Form 483’ with six observations.

Source: Exchange filing

Shares of GAIL India fell 4.5%, most in over two weeks. This despite the company reported 91% YoY growth in net profit for June quarter, during market hours on Thursday.

• Revenue more than doubled YoY.

• The company said that it is facing shortage of liquefied natural gas. The supply deficit, as acknowledged by company's Finance Director Rakesh Kumar Jain during the conference call on Thursday, comes after reports said that GAIL had started rationing gas, cutting supplies to certain clients. The reports argued that the shortage was because Gazprom Marketing and Trading Singapore, had failed to deliver LNG cargoes to GAIL.

• The stock fell 0.5% yesterday. Trading volume is six times the 30-day average. Of the 34 analysts tracking the company, 29 maintain 'buy', four suggest 'hold' and one recommends 'sell'.

• The return potential of the stock is 36.6%. Twenty of the 21 analysts reiterated 'buy'/'neutral' on the stock post the earnings while Jefferies downgraded the stock to 'hold' from 'buy'.

Source: Exchange filing, Bloomberg

• Indian currency appreciated 37 paise to 79.10 against the greenback, after the MPC rate decision.

Source: Bloomberg

• Yield on the 10-year bond rose 7bps to 7.23% after RBI's Monetary Policy Committee announced decision to raise repo rate by 50bps.

• 10-year bond yield was down 5bps to 7.11% ahead of the announcement.

Source: Bloomberg

Shares of Balkrishna Industries Ltd. fell nearly 7%, most in over five months.

The decline comes after the company reported net income and Ebitda for the June quarter that missed average analyst estimates, post market hours on Thursday.

Balkrishna Industries Q1 FY23 (Consolidated, YoY)

• Revenue up 45% at Rs 2,619.43 crore Vs Rs 1,802.87 crore (Estimate: Rs 2,490 crore)

• EBITDA fell 13% at Rs 443.98 crore Vs Rs 511.17 crore

• EBITDA margin 17% Vs 28%

• Net profit fell 7% at Rs 306.96 crore Vs Rs 330.56 crore (Bloomberg consensus estimate: Rs 373 crore)

• Declared interim dividend of Rs 4 per share of face value of Rs 2 each

Trading volume is more than 10 times the 30-day average. Of the 26 analysts tracking the company, 15 maintain 'buy', four suggest 'hold' and seven recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implied an upside of 2%. Axis Research reiterated 'reduce' and kept target price unchanged at Rs 1,700 (an implied downside of 26.72%) on the stock, post the earnings. Dolat Capital, in its immediate note after the results said that higher raw material costs led to contraction in EBITDA.

Source: Exchange filing, Bloomberg

• Yield on the 10-year bond fell 5bps to 7.11% during the session.

Source: Bloomberg

• Rupee rose 55 paise to 78.92 before trimming gains to 79.15 ahead of MPC's rate decision.

Source: Bloomberg

Shares of Crompton Greaves fell over 4.7%, most in two weeks. Trading volume is 184 times the 30-day average, making it the most traded Indian stock in today's session by value as well as volume.

• According to Bloomberg data, about 21.49 million shares changed hands today.

• Of the 44 analysts tracking the company, 40 maintain 'buy', two suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 21.9%. Nomura reiterated 'buy' on the stock and maintained target price at Rs 483 (an implied return of 28.22%) on Friday.

Source: Bloomberg

India's stock benchmarks opened higher, aided by gains in metal, information technology, capital goods stocks even as investors await the MPC rate decision due today.

The S&P BSE Sensex rose 0.1% to 58,352.17. The NSE Nifty 50 also advanced by similar magnitude to 17,415.20

The MidCap index almost mirrored its larger peers while SmallCap gauge outperformed jumping 0.5%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. advanced with Metal and Telecom measures gaining nearly 1%.

The market breadth is skewed in the favour of bulls. About 1,679 stocks rose, 730 fell and 99 remained unchanged.

• Indian currency appreciates 44 paise to 79.02 against the greenback.

Source: Bloomberg

Mahindra & Mahindra, One97 Communications, FSN E-Commerce Ventures, Titan, Fortis Healthcare, Alkem Laboratories, Indigo Paints, Greenply Industries, Engineers India, Chemplast Sanmar, CCL Products, Caplin Point Laboratories, CAMS, BLS International Services, Automotive Axles, Aptus Value Housing Finance, Akzo Nobel, Pfizer, Petronet LNG, Paisalo Digital, Motherson Sumi Wiring India, C.E. Info Systems, Jindal Saw, Jubilant Ingrevia, Kirloskar Ferrous, Zensar Technologies, UCO Bank, Rolex Rings, Raymond

• Adani Enterprises: The company, through its subsidiary Adani Road Transport signed a share purchase agreement with Macquarie Asia Infrastructure Fund India to 100% stake in Andhra Pradesh toll roads portfolio and 56.8% stake in Gujarat Road and Infrastructure. Total consideration is Rs 3,110 crore.

• Adani Ports & SEZ: AD Ports and Adani Ports signed a key agreement for strategic joint investments in end-to-end logistics infrastructure and solutions in Tanzania. It will include rail, maritime services, port operations, digital services, an industrial zone and the establishment of maritime academies in Tanzania.

• Axis Bank: The bank has terminated the agreement with OpenPayd Holdings for sale of its UK arm. The parties have mutually decided not to go ahead with the transaction. The bank will now initiate the winding up process of Axis Bank UK

• Berger Paints: The company has appointed Vikash Sarda as the Chief Financial Officer with effect from October 1.

Adani Enterprises Q1 FY23 (Consolidated, QoQ)

• Revenue up 64% at Rs 40844.25 crore Vs Rs 24,865.52 crore

• EBITDA up 38% at Rs 1,742.39 crore Vs Rs 1,262.44 crore

• EBITDA margin 4.3% Vs 5%

• Net profit up 54% at Rs 469.46 crore Vs Rs 304.32 crore

Container Corporation of India Q1 FY23 (Consolidated, YoY)

• Revenue up 10% at Rs 1,993.99 crore Vs Rs 1,819.94 crore (Bloomberg estimate: Rs 2,059.9 crore)

• EBITDA up 9% at Rs 478.75 crore Vs Rs 438.2 crore (Bloomberg estimate: Rs 332.8 crore)

• EBITDA margin 24% flat

• Net profit up 15% at Rs 297.08 crore Vs Rs 259.23 crore

• Declared interim dividend of Rs 2 per share of face value of Rs 5 each

Dalmia Bharat Q1 FY23 (Consolidated, YoY)

• Revenue up 27% at Rs 3,302 crore Vs Rs 2,591 crore (Bloomberg estimate: Rs 3,191.7 crore)

• EBITDA fell 18% at Rs 589 crore Vs Rs 717 crore (Bloomberg estimate: Rs 535.6 crore)

• EBITDA margin 18% Vs 28%

• Net profit fell 27% at Rs 196 crore Vs Rs 269 crore (Bloomberg estimate: Rs 144.4 crore)

Gujarat Alkalies & Chemicals Q1 FY23 (Consolidated, YoY)

• Revenue up 58% at Rs 1128.33 crore Vs Rs 716.44 crore

• EBITDA up 3x at Rs 381.76 crore Vs Rs 126.96 crore

• EBITDA margin 34% Vs 18%

• Net profit up 3x at Rs 190.87 crore Vs Rs 63.12 crore

Gujarat State Petronet Q1 FY23 (Consolidated, YoY)

• Revenue up 63% at Rs 5,669.6 crore Vs Rs 3,481.66 crore

• EBITDA fell 12% at Rs 973.51 crore Vs Rs 1101.21 crore

• EBITDA margin 17% Vs 32%

• Net profit fell 7% at Rs 473.12 crore Vs Rs 509.46 crore

BEML Q1 FY23 (Consolidated, YoY)

• Revenue up 43% at Rs 669.18 crore Vs Rs 467.19 crore

• EBITDA loss fell 16% at Rs 55.79 crore Vs Rs 66.1 crore

• EBITDA margin -8% Vs -14%

• Net loss fell 12% at Rs 82.36 crore Vs Rs 94.01 crore

Bayer Cropscience Q1 FY23 (Consolidated, YoY)

• Revenue up 18% at Rs 1,667.4 crore Vs Rs 1,415.9 crore

• EBITDA up 23% at Rs 395.10 crore Vs Rs 322.3 crore

• EBITDA 24% Vs 23%

• Net profit up 19% at Rs 302.6 crore Vs Rs 253.7 crore

Balkrishna Industries Q1 FY23 (Consolidated, YoY)

• Revenue up 45% at Rs 2,619.43 crore Vs Rs 1,802.87 crore

• EBITDA fell 13% at Rs 443.98 crore Vs Rs 511.17 crore

• EBITDA margin 17% Vs 28%

• Net profit fell 7% at Rs 306.96 crore Vs Rs 330.56 crore

• Declared interim dividend of Rs 4 per share of face value of Rs 2 each

Alembic Pharma Q1 FY23 (Consolidated, YoY)

• Revenue fell 5% at Rs 1262.14 crore Vs Rs 1326.03 crore

• EBITDA fell 94% at Rs 14.65 crore Vs Rs 233.75 crore

• EBITDA margin 1% Vs 18%

• Net loss 65.88 crore Vs net profit of Rs 158.27 crore

Manappuram Finance Q1 FY23 (Consolidated, YoY)

• Revenue fell 11% at Rs 1,099.11 crore Vs Rs 1,233.07 crore

• EBITDA fell 21% at Rs 764.15 crore Vs Rs 962.02 crore

• EBITDA margin 70% Vs 78%

• Net profit fell 32% at Rs 290.12 crore Vs Rs 425.21 crore

LIC Housing Finance Q1 FY23 (Consolidated, YoY)

• Revenue up 9% at Rs 5,255.11 crore Vs Rs 4,828.54 crore

• EBITDA up 27% at Rs 4,750.88 crore Vs Rs 3,717.23 crore

• EBITDA margin 90.4% Vs 77%

• Net profit up 6x at Rs 926.89 crore Vs Rs 151.07 crore

Asian equities rose amid slew of earnings and decisions from central banks to tackle inflation.

Shares gained in Japan, South Korea and Australia. U.S. futures were volatile after the S&P 500 ended little changed.

At 7:20 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- traded 0.30% higher at 17,449.50 points. The West Texas Intermediate crude was at $88.48 a barrel, down 0.1%