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Sensex, Nifty Close Lower As Investors Digest Earnings; RIL Drags

Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.

A bronze bull statue stands at the entrance to the Bombay Stock Exchange (BSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
A bronze bull statue stands at the entrance to the Bombay Stock Exchange (BSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
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Closing Bell

India's key equity benchmarks closed lower, dragged by index heavyweight Reliance Industries and banking stocks, as earnings for June quarter continued to disappoint.

The S&P BSE Sensex declined 0.23% to 52,852.27, and NSE Nifty 50 Index posted losses of similar magnitude to 15,824.45. Both the indices swung between gains and losses, locked in a narrow range, before finally closing lower.

Sensex, Nifty Close  Lower As Investors Digest Earnings; RIL Drags

The broader markets outperformed their larger peers. The S&P BSE MidCap was little changed while the S&P BSE SmallCap gained 0.34%. Thirteen of the 19 sectoral indices posted losses with S&P BSE Energy shedding 1.09% and S&P BSE Realty declining by 0.76%.

The market breadth was skewed in favour of the bulls. About 1,845 stocks advanced, 1,509 declined and 155 remained unchanged on the BSE.

Sensex, Nifty Close  Lower As Investors Digest Earnings; RIL Drags

Reliance Industries was among prominent contributors to the Nifty's decline, falling nearly 1.4%. The company, which reported its earnings after markets hours on Friday, missed analysts’ estimates for June quarter profit as its retail and energy businesses were hurt by Covid-19 related situation.

In earnings, 12 of the 16 Nifty companies that have announced results so far fell short of analysts’ estimates while four have beaten the consensus.

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M&M Financial Slips After Reporting Q1 Loss

Shares of M&M Financial Services Ltd. shed as much as 7% to Rs 142.75 apiece after it reported a loss for June quarter.

Key Highlights

  • Net loss at Rs 1,528.76 crore

  • Revenue at Rs 2,187.06 crore vs estimate Rs 1,480 crore

  • Total costs at Rs 4,256.87 crore

  • Finance cost at Rs 1,017.94 crore

  • Other income at Rs 11.08 crore

Commentary and Context

  • Cites ECL, additional overlay provision for loss

  • Expect improvement over the next few quarters, resulting in provision reversals for 80-90% of loan contracts over Q3/Q4 FY22

  • During the June quarter, the Company has implemented resolution plans to relieve Covid-19 pandemic related stress of eligible borrowers in 59,455 loan accounts with a total outstanding of Rs 2,172 crore as on June 30.

Out of the 36 analysts tracking the company, 17 maintained ‘buy’, 12 maintained ‘hold’ and 7 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg hints at an upside of 21.1%. Shares of Mahindra & Mahindra Financial services shed 14.41% in 2021 so far.


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JSW Energy Posts Longest Winning Streak In 6.5 Years

Shares of JSW Energy Ltd. gained for the 8th consecutive day, the longest winning streak in over 6 years. Over the last 8 sessions, shares of JSW Energy have added 44% while the S&P BSE Sensex gained 0.3 percent over the same period.

The company, which will report its June quarter earnings on Friday (July 30) has an Relative Strength Index (RSI) of 89, which indicates that the stock may be in overbought territory.

Out of the 14 analysts tracking the company, 4 maintained ‘buy’, 4 maintained ‘hold’ and 6 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 50.9%.


Kotak Mahindra Bank Q1 Meets Estimates; Stock Extends Gain

Shares of Kotak Mahindra Bank gained 1.46% to Rs 1,746.05 crore apiece after it reported net income that met street estimates.

Kotak Mahindra Q1FY22 (Standalone)

  • Net income Rs 1,642 crore, +32% YoY, estimate Rs 1,650 crore

  • Net interest income Rs 3,942 crore vs estimate Rs 3,961 crore

  • Net non-performing assets 1.28% vs 1.21% QoQ

  • Gross non-performing assets 3.56% vs. 3.25% QoQ

  • Provisions Rs 934.77 crore, down 21% QoQ

Out of the 45 analysts tracking the company, 20 maintained ‘buy’, 17 maintained ‘hold’ and 8 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 7.6%.

For a detail report on Kotak Mahindra's Q1 performance, click here.

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