The benchmark indices reversed intraday losses and ended with modest gains on Wednesday. IT, financial services and oil & gas shares supported the indices. On the other hand, auto, pharma and realty stocks were under pressure.
The barometer index, the S&P BSE Sensex, rose 214.17 points or 0.37% to 58,350.53. The Nifty 50 index added 42.70 points or 0.25% to 17,388.15. Both the indices have climbed about 5.5% in six consecutive sessions.
ICICI Bank (up 0.97%), Reliance Industries (up 0.88%), HDFC (up 0.68%) and HDFC Bank (up 0.30%) boosted the indices.
After opening higher, the Nifty slipped into the negative terrain in the morning trade. It hit the day's low of 17,225.85 in the mid-morning trade. The index staged a gradual recovery and bounced into the positive terrain in the late trade to hit the day's high of 17,407.50.
The initial selloff came amid geopolitical tensions between the U.S. and China. Investors kept a close eye on U.S. House Speaker Nancy Pelosi's movement as she visited Taiwan, the much anticipated stop on the trip that has angered China.
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The broader market lagged the main stock indices. The S&P BSE Mid-Cap index declined 0.60% while the S&P BSE Small-Cap index shed 0.28%.
The market breadth was negative. On the BSE, 1,367 shares rose and 1,979 shares fell. A total of 138 shares were unchanged.
Economy:
India's exports dipped marginally by 0.76% to $35.24 billion in July, though the trade deficit tripled to $31.02 billion during the month, according to official data revealed on Tuesday. This has been achieved despite measures to control inflation and the continued disruptions of supply chains due to Covid and Russia-Ukraine conflict, the commerce ministry noted. The imports in July went up to $66.26 billion from $46.15 billion in the corresponding month last fiscal. The trade deficit was $100.01 billion during April -July 2022-23.
India Services PMI:
The seasonally adjusted S&P Global India Services PMI Business Activity Index stood at 55.5 in July, from from 59.2 in June, which was the highest figure in over 11 years. The latest reading indicated the slowest rate of growth in four months.
Meanwhile, the S&P Global India Composite PMI Output Index fell to 56.6 from 58.2 in June, highlighting the slowest increase since March. Manufacturing led the upturn with the quickest rise in production since last November, while growth of services activity eased to the weakest in four months.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.241 as compared with 7.196 at close in the previous trading session.
In the foreign exchange market, the rupee fell against the dollar. The partially convertible rupee was hovering at 79.21, compared with its close of 78.53 during the previous trading session.
MCX Gold futures for 5 August 2022 settlement declined 0.27% to Rs 51,171.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.01 % to 106.23.
In the commodities market, Brent crude for October 2022 settlement fell 96 cents or 0.95% at $99.58 a barrel. The contract increased 51 cents or 0.51% to settle at $ 100.54 a barrel during the previous trading session.
Global Markets:
The Dow Jones futures were up 114 points, indicating a positive opening in the US stock market today.
Most shares in Europe and Asia advanced on Wednesday. Geopolitical tensions between the U.S. and China intensified over U.S. House Speaker Nancy Pelosi's visit to Taiwan. Pelosi arrived in Taiwan on Tuesday night local time amid warnings from Beijing.
In economic news, China's services activity grew at the fastest rate in 15 months in July as easing COVID curbs boosted consumer confidence, a private-sector survey showed on Wednesday. China's Caixin Services Purchasing Managers' Index for July came in at 55.5, up from 54.5 in June. It's also the highest since April 2021.
Buzzing Index:
The Nifty IT index rose 1.35% to 29,416.95. The index shed 0.67% in the past trading session..
Larsen & Toubro Infotech (up 2.02%), Tech Mahindra (up 1.94%), Mphasis (up 1.63%), Mindtree (up 1.5%), Infosys (up 1.46%), Tata Consultancy Services (up 1.45%), Coforge (up 1.29%), HCL Technologies (up 0.65%), Wipro (up 0.64%) advanced.
Stocks in Spotlight:
eClerx Services climbed 3.95% after the company said its board will consider bonus issue of shares on Tuesday, 9 August 2022.
Birlasoft rose 2.41%. The company reported 9.2% fall in net profit to Rs 120.7 crore on a 4.8% increase in revenue from operations to Rs 1,154.4 crore in Q1 FY23 over Q4 FY22. As compared with Q1 FY22, the company's net profit and revenue rose by 6.2% and 22.1%, respectively.
In dollar terms, the company's revenue for Q1 FY23 was $148.6 million, up 1.5% QoQ and up 15.8% YoY. The company said it signed deals of total contract value (TCV) $185 million during the quarter. TCV of new deal wins was $112 million and renewals amounted to $73 million for Q1 FY23.
Navneet Education (NEL) surged 11.75% after the publication company's consolidated net profit jumped to Rs 138.56 crore in Q1 FY23 from Rs 32.12 crore posted in Q1 FY22. Revenue from Publishing content segment jumped to Rs 368.06 crore in Q1 FY23 from Rs 108.3 crore posted in Q1 FY22.
Siemens slipped 4.46%. The industrial manufacturing company's standalone net profit jumped 85% to Rs 296 crore in the quarter ended 30 June 2022 from Rs 160 crore recorded in the quarter ended 30 June 2021. For the third quarter of Financial Year 2022 ended 30 June 2022, revenue from continuing operations of Rs 3,865 crore, a 51% increase over the same quarter in the preceding year.
Bosch declined 2.96%. The technology supplier reported 9.4% rise in consolidated net profit to Rs 334 crore on a 45.1% increase in total revenue from operations to Rs 3,544 crore in Q1 FY 2022-23 over Q1 FY 2021-22. The company said that the revenue was at al all-time high is due to the low base last year and the easing of supply-chain bottlenecks, especially toward the end of the quarter, in conjunction with a positive production in the tractor segment.
Voltas fell 1.74% after the company's consolidated net profit declined 10.6% to Rs 108.88 crore despite of 55.2% rise in net sales to Rs 2741.22 crore in Q1 FY23 over Q1 FY22.
Deepak Nitrite rose 0.64% after the company's consolidated net profit declined 22.5% to Rs 234.62 crore despite of a 34.8% rise in net sales to Rs 2,057.99 crore in Q1 FY23 over Q1 FY22. Among segmental front, revenue from phenolics business rose 33.61% to Rs 1,334.9 crore and advanced intermediates segment revenue rose 38.45% to Rs 729.98 crore in Q1 FY23 over Q1 FY22.
Adani Green Energy (AGEL) skid 4.06% after the company's consolidated net profit declined 2.3% to Rs 214 crore on 64% surge in net sales to Rs 1,591 crore in Q1 FY23 over Q1 FY22.
Indus Towers dropped 5.88% after the company's net profit tumbled 66% to Rs 477.30 crore on 1.5% increase in net sales to Rs 6,897.30 crore in Q1 FY23 over Q1 FY22.
MOIL climbed 4.82% after the company's standalone net profit jumped 66.3% to Rs 102.78 crore in Q1 FY23 from Rs 61.80 crore posted in Q1 FY22. Net sales rose by 28% year on year to Rs 375.59 crore from Rs 293.32 crore in the quarter ended 30 June 2022.
Godrej Consumer Products shed 0.63% after the company reported 16.7% fall in consolidated net profit to Rs 345 crore despite an 8% increase in net sales to Rs 3,094 crore in Q1 FY2023 over Q1 FY2022. During the quarter, the India business sales grew by 12% to Rs 1,814 crore but volume declined by 6%. While the Home Care category recorded a decline of 4%, Personal Care category reported a growth of 25%. EBITDA declined by 4% to Rs 408 crore in Q1 FY23.
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