Share Market LIVE: Sensex gains 200 pts, Nifty above 16,000; FMCG, pharma shine

Tata Metaliks sinks over 5% as net profit plunges 

The Tata group company’s net profit fell 98.7% year-on-year to ₹1.22 crore. Revenue rose 10.5% to ₹666.4 crore. Ebitda fell 84.3% to ₹24.13 crore, and operating margin dropped to 3.62% from 25.46% a year ago.

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Reliance Research says ‘buy’ JSW Steel with a target price of ₹740.

Intraday Picks

DIVISLAB (PREVIOUS CLOSE: 3,779) BUY

For today’s trade, long position can be initiated in the range of Rs3,755- 3,730 for the target of Rs3,890 with a strict stop loss of Rs3,680.

SRTRANSFIN (PREVIOUS CLOSE: 1,269) BUY

For today’s trade, long position can be initiated in the range of Rs1,257- 1,249 for the target of Rs1,294-1,310 with a strict stop loss of Rs1,229.

BOSCH (PREVIOUS CLOSE: 16,367) SELL

For today’s trade, short position can be initiated in the range of Rs16,480- 16,570 for the target of Rs16,050 with a strict stop loss of Rs16,760.

Hindustan Zinc up 5%; board approves interim dividend of ₹21 per share for 2022-23, amounting to ₹8,873.17 crore

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India’s inflation could dip to 5% by March: SBI Research Report

There is only 20-30% likelihood of a global recession and chances of prolonged stagflation in the economy seem more, according to State Bank of India research report Ecowrap’s latest edition, which has projected that India’s inflation rate is expected to come closer to 5% by March 2023.

“The fear arises that spiralling inflation and an aggressive monetary policy tightening cycle may lead to the recession, particularly in the US economy. However, the fear is unfounded,” it said.

In India, retail inflation has been over the Reserve Bank of India’s upper tolerance band of 6 % for the sixth consecutive month in a row in June. Retail inflation came in at 7.01% in June.

“CPI inflation moderated slightly to 7.01 per cent in Jun 2022 as compared to 7.04 per cent in May 2022 due to moderation in food inflation. The June data now confirms the fact that peak had passed,” the report said.

PSU Banks among worst performers in NIFTY; down by 0.6%. 

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Mindtree plunges more than 3% to ₹2,812 a piece as Q1 earnings disappoint

Mindtree lost more than 3% to ₹2,812 apiece on the BSE in Thursday’s opening deals. The IT company on Wednesday posted a 37% rise in net profit at ₹471.6 crore for the three months that ended on June 30, 2022. This was driven by improved operational efficiencies, increased utilization and revenue growth.

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Nifty sectoral indices: FMCG, Pharma lead pack, while IT, Metal and PSU Bank index trade with deep cuts

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Nifty reclaims 16,000 in early trade; Sun Pharma, Power Grid top gainers; Axis Bank, NTPC prominent laggards

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Sensex up 200 points in early trade; all stocks, barring Axis Bank and ICICI Bank, in green; Sun Pharma, Titan lead 

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Indian rupee hits record low for fourth straight day on broad dollar rally

The Indian rupee weakened in opening trade on Thursday to hit record lows against the greenback for a fourth straight session after data showed U.S. inflation, already at four-decade highs, accelerated even further.

The rupee was trading at 79.75/76 per dollar, compared to its close of 79.63 on Wednesday. The unit touched a life low of 79.77.

Sensex, Nifty open higher as caution prevails in world markets

Sensex up 100 points in pre-opening trade; Mindtree, Infosys in focus today

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Sensex, Nifty flat in pre-opening trade

TCS’s wage bill to surpass India’s pensions bill for armed force veterans

Like most businesses, the technology services industry was thrown into a tailspin during the global financial crisis of 2008. Then, all IT services companies, save for two, slowed down on hiring.(Read more)

Nomura lowers GDP forecast for 2022-23 to 4.7%

Nomura on Wednesday sharply lowered India’s gross domestic product (GDP) growth forecast for 2023 to 4.7% from 5.4% estimated earlier on the back of the global economic slowdown, elevated inflation and rising interest rates. However, it maintained its growth projection for 2022 at 7.2%, highlighting a robust near-term economic growth outlook.

The upside of falling global crude prices for import-reliant India

Falling crude oil prices on fears of an impending global recession could help offset inflationary risks in the economy, arrest the rupee’s free fall, boost corporate margins and slow the pace of interest rate hikes, analysts said.

Crude prices continued declining on Wednesday after a selloff on the previous day when prices tumbled by about 8% to breach the $100 per barrel mark for the first time in three months, on concerns about a global economic slowdown and growing covid cases in China. (Read more)

Mitul Shah, head of research, Reliance Securities on Mindtree Q1FY23 earnings

# Mindtree reported a strong performance in 1QFY23 with EBIT margin coming in at 19.2%, 75bps above our estimate of 18.4%.

# Revenue grew by 4% QoQ/29% YoY in USD to US$399mn, 0.7% above our estimate of US$397mn (consensus US$399mn). Sequential constant currency growth came in at 5.5% vs. our estimate of 3.7%. (consensus 4.9%)

# EBIT grew by 9% QoQ (up 47% YoY) to Rs5.9bn while EBIT margin stood at 19.2% (up 23bps QoQ /up 144bps YoY), 75bps above our estimate of 18.4% and 85bps above consensus estimate of 18.3%.

# Its net income stood at Rs4.7bn (flat QoQ/ up 37% YoY), while adjusted net margin came in at 15.1% vs. our estimate of 15.2%. Net income was impacted by lower non operating income, which fell by 45% YoY and 56% QoQ to Rs395mn.

Our View: The company reported strong performance in 1QFY23 beating our estimates across all parameters. We expect the company to report healthy revenue due to strong deal pipeline and strong order book. The revenue contribution from top clients increased by 110bps QoQ to 26% which is high compared to the mid-cap peer group. At present, we have SELL rating on the stock.

Stocks to Watch: Mindtree, Tata Power, Infosys, Dabur, JSW Energy and others

ACC, Angel One, GTPL Hathway L&T Infotech, Tata Elxsi, and Tata Steel Long are some of the companies that will also be in focus as they declare their June quarter earnings on Thursday. (Full report)

Indian markets may remain under pressure on Thursday

Benchmark equity indices Sensex and Nifty may open in the red and remain under pressure amid shaky global markets. Domestic markets reversed their early gains to close lower for the third day on Wednesday due to selling in oil & gas, banking and IT stocks.

The 30-share BSE Sensex declined by 372.46 points or 0.69% to close at 53,514.15, while Nifty 50 ended 0.6% lower at 15,966.65.

Fed report says inflation ‘substantial’ but signs of moderating

The Federal Reserve said price increases remained “substantial” across the US in recent weeks though some areas saw signs that inflation is cooling, amid indications of a slowdown in demand and rising worries of a recession.

While economic activity “expanded at a modest pace, on balance, since mid-May,” several Fed regions “reported growing signs of a slowdown in demand,” and some contacts noted “concerns over an increased risk of a recession,” the Fed said Wednesday in its Beige Book report, typically published two weeks before each meeting of the policy-setting Federal Open Market Committee.

The Fed’s report came hours after another government release showed June consumer prices rose 9.1% from a year earlier, the fastest in more than four decades. (Bloomberg)

Crude prices near $96 a barrel

Oil fluctuated near $96 a barrel as sizzling US inflation data raised the prospect of more aggressive interest rate hikes, while high gasoline prices are starting to taking their toll on consumption.

U.S. West Texas Intermediate crude for August delivery was at $95.93 a barrel, down 37 cents, or 0.4%, after rising 46 cents in the previous session.

Asian markets mixed, US futures struggle

Stocks and US equity futures struggled Thursday after sizzling US inflation data hardened expectations for more aggressive Federal Reserve monetary tightening that could lead to a recession.

An Asian share gauge dipped amid declines in China and mixed performance in Japan and Hong Kong. S&P 500 and Nasdaq 100 contracts shed about 0.5%. Japan’s Topix index added 0.1%; South Korea’s Kospi index dropped 0.3%; Australia’s S&P/ASX 200 index added 0.4%; China’s Shanghai Composite index fell 0.4%; Hong Kong’s Hang Seng index shed 0.1%

Wall Street ends lower overnight

US stocks finished lower on Wednesday as a shockingly hot US inflation report rattled financial markets, boosting bets the Federal Reserve could get even more aggressive with its rate tightening move.

The S&P 500 ended 0.4% lower. The Dow Jones Industrial Average fell 0.7%, while the Nasdaq composite dropped 0.2%, erasing nearly all of an early 2.1% loss.