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Indices trade near flat line, breadth negative

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Capital Market
Last Updated : Jul 14 2022 | 11:50 AM IST

The key equity indices pared gains and traded near the flat line in the mid-morning trade. The Nifty traded below the crucial 16,000 level after hitting a day's high of 16,070.85 in the morning trade. IT shares extended losses for the fourth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 53.54 points or 0.10% to 53,567.69 The Nifty 50 index gained 11.50 points or 0.07% to 15,978.15

In the broader market, the S&P BSE Mid-Cap index shed 0.09% while the S&P BSE Small-Cap index declined 0.16%.

The market breadth was negative. On the BSE, 1,406 shares rose and 1,642 shares fell. A total of 144 shares were unchanged.

Buzzing Index:

The Nifty IT index declined 0.59% to 26,789.45, extending its losing streak for the fourth trading session. The index slipped 5.17% in four trading sessions.

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Mindtree (down 3.1%), Larsen & Toubro Infotech (down 2.68%), L&T Technology Services (down 1.18%), Mphasis (down 0.86%) and Coforge (down 0.71%), Tata Consultancy Services (down 0.65%), Tech Mahindra (down 0.59%), HCL Technologies (down 0.15%) declined.

MindTree fell 3.1% after the company reported 0.3% decline in net profit to Rs 471.6 crore despite a 7.7% rise in revenue to Rs 3,121.1 crore in Q1 FY23 over Q4 FY22. As compared with Q1 FY22, the company's net profit and revenue are higher by 37.3% and 36.2%, respectively. Employee benefits expense in Q1 FY23 was Rs 1,853.6 crore, up 5.9% QoQ and up 35.6% YoY. The company had a healthy order book of $570 million, up 13.1% in Q1 FY23.

Stocks in Spotlight:

Tata Power Company rose 0.34%. TP Saurya, a wholly owned subsidiary of Tata Power Company received the Letter of Award (LoA) from Solar Energy Corporation of India (SECI) for setting up a 600 megawatt (MW) hybrid power project in Karnataka. The letter was awarded through tariff-based competitive bidding followed by an e-Reverse auction. The hybrid (wind and solar) power project will be commissioned within 24 months from the power purchase agreement (PPA) execution date.

JSW Energy gained 1.43% after the company said that its wholly owned subsidiary, JSW Neo Energy has received Letter of Award (LoA) for a total wind capacity of 300 MW from Solar Energy Corporation of India (SECI). JSW Neo has won the contract against the tariff-based competitive bid invited by SECI for the setting up of 1200 MW ISTS-connected wind power projects (Tranche - XII).

Global Markets:

Most Asian stocks were trading higher despite a hotter-than-expected inflation report in the US.

Singapore's central bank tightened its monetary policy on Thursday, in an off-cycle move, saying the action would slow inflation as the city-state joins other countries ramping up their battle against mounting price pressures.

US stocks closed modestly lower on Wednesday as hotter-than-expected US inflation data drove fear the Federal Reserve will raise interest rates even more aggressively to slow price increases, potentially sending the economy into recession.

US inflation accelerated in June by more than forecast. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday. The widely followed inflation gauge increased 1.3% from a month earlier, the most since 2005, reflecting higher gasoline, shelter and food costs.

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First Published: Jul 14 2022 | 11:32 AM IST

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