The key equity barometers ended with minor cuts after a volatile session on Monday. The Nifty held the 16,200 mark after hitting the day's high of 16,248.55 in the late trade. Negative global cues, persistent inflation worries and fears of steep interest rates hikes dampened the investor's sentiment. Barring the Nifty IT index, all sectoral indices on the NSE ended in the green.
As per provisional closing data, the barometer index, the S&P BSE Sensex, down 86.61 points or 0.16% to 54,395.23. The Nifty 50 index shed 4.60 points or 0.02% to 16,216.
The headline equity indices snapped their three days winning streak. In three sessions, the Sensex has added 2.54% while the Nifty has gained 2.59%.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.63% while the S&P BSE Small-Cap index added 1.07%.
The market breadth was strong. On the BSE, 2,103 shares rose and 1,318 shares fell. A total of 161 shares were unchanged.
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The Nifty Bank index rose 0.85% to 35,421.20, extending its winning run for the fourth session. The index gained 4.75% in four trading sessions.
Bank of Baroda (up 3.79%), Federal Bank (up 2.36%), ICICI Bank (up 1.91%), IDFC First Bank (up 1.78%) and Axis Bank (up 1.75%), Punjab National Bank (up 1.47%), IndusInd Bank (up 1.25%), Bandhan Bank (up 1.18%), HDFC Bank (up 0.79%) and AU Small Finance Bank (up 0.6%) edged higher.
Bandhan Bank gained 1.18%. The bank's loans & advances increased by 20% YoY to Rs 96,649 crore as on 30 June 2022. Total deposits with the bank as on 30 June 2022 amounted to Rs 93,057 crore, which is higher by 20% as compared with the same period last year.
Stocks in Spotlight:
Tata Consultancy Services (TCS) dropped 4.81% after the IT major reported a 4.5% fall in consolidated net profit to Rs 9,478 crore despite a 4.3% rise in revenue from operations to Rs 52,758 crore in Q1 FY23 over Q4 FY22. Profit before tax in Q1 FY23 stood at Rs 12,776 crore, down by 4.40% from Rs 13,364 crore in Q4 FY22. Constant currency revenue grew 15.5% YoY in Q1 FY23. Operating margin for the period under review was 23.1%, recording a contraction of 2.4% YoY. The company's order book total contract value (TCV) stood at $8.2 billion in Q1 FY23 and the book to bill ratio was at 1.2.
Avenue Supermarts gained 1.07%. On a consolidated basis, total revenue for the quarter ended 30 June 2022 stood at Rs.10,038 crore, as compared to Rs.5,183 crore in the same period last year. Net profit stood at Rs.643 crore for Q1FY23, as compared to Rs.95 crore in the corresponding quarter of last year.
Larsen & Toubro (L&T) fell 1.48%. The buildings & factories (B&F) business of L&T Construction has secured significant contracts from various clients. As per L&T's classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.
Coal India (CIL) rose 1.71% after the PSU company said that its capital expenditure (capex) soared 65% to Rs 3,034 crore during April-June 2022 compared to Rs 1,841 crore of April-June 2021 resulting in Rs 1,193 crore volume increase. The company said that it has sustained its growth in capex for the ninth successive quarter.
A senior official of the company, said, "The capex increase came on the back of a strong spending in acquiring land and strengthening transport infrastructure in our coalfields under first mile connectivity proiects. These two vital areas help CIL in expanding its mining operations for accelerated production and pairing it with seamless transportation of coal."
Hindustan Aeronautics (HAL) added 0.23%. HAL and Safran Helicopter Engines signed a Memorandum of Understanding (MoU) to create a new joint venture intended to develop helicopter engines. Both the companies will establish a new aero-engine company in India, dedicated to the development, production, sales and support of helicopter engines.
Power Grid Corporation of India declined 1.01% after the company has been declared as the successful bidder under Tariff based competitive bidding to establish Inter-State transmission system for "Transmission System for Evacuation of Power from Neemuch SEZ" on build, own operate and transfer (BOOT) basis.
Global Markets:
The US Dow Jones index futures were down 154 points, indicating a negative opening in the US stocks on Monday.
Shares in Europe and Asia declined on Monday as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season where profits could be under pressure.
Investors in the U.K. will be watching developments surrounding the political uncertainty in the country after Prime Minister Boris Johnson announced last week that he would be resigning as Conservative Party leader. Johnson said he would stay on in the post while a successor was found and a number of high-profile Conservatives have announced their leadership bids over the weekend.
Hong Kong's Hang Seng index fell nearly 3% after reports that China has imposed fines on heavyweights Tencent and Alibaba. China imposed fines on several companies, including tech giants Alibaba and Tencent, for not complying with anti-monopoly rules on disclosure of transactions, as per reports.
However, Tokyo stocks are trading higher on Monday after Japan's ruling bloc secured a strong win in Sunday's upper house election, held just days after the assassination of former premier Shinzo Abe.
U.S. stocks closed mixed Friday, with the technology-heavy Nasdaq Composite ending higher as the Dow Jones Industrial Average and S&P 500 index slipped, after a stronger-than-expected June jobs report.
The U.S. saw stronger than expected job growth in June, as the economy added 372,000 jobs, according to data released by the Bureau of Labor Statistics on Friday. June's gains marked a slight deceleration from the downwardly revised 384,000 in May. April's count was revised down to 368,000. The unemployment rate was 3.6%, unchanged from May and in line with estimates.
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