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Domestic stock indices ended the week with strong gains aided by positive global sentiments and FIIs becoming net buyers.
In cash segment FIIs and DIIs were net buyers. FIIs bought Rs 4037.3 crore and DIIs bought for Rs 940.5 crore during the week. The FIIs have sold about Rs 283,405.28 crore from January 2022 to June 2022.
For the week, the Sensex surged 4.3% to 56,072.23. The Nifty 50 index jumped 4.18% to 16,719.45. The BSE Midcap index advanced 3.53% to 23,660.37. The BSE Smallcap index climbed 3.86% to 26,773.41.
Top gainers among Nifty sectoral indices were PSU Bank [7.71%], IT [6.36%], Bank [5.93%], Metal [5.45%] and Realty [4.64%]. Nifty Pharma index was the sole loser and the index fell 0.9% during the week.
The WTI Crude price stood at $94.7 per barrel, while the Brent Crude stood at $103.2 a barrel.
Company News
Reliance Industreies Ltd (RIL): The conglomerate reported a 46% rise in its April-June quarter net profit on strong earnings from oil business as well as an increases in telecom and retail businesses. Its consolidated net profit jumped to Rs 17,955 crore from Rs 12,273 crore in the year-ago period. The company’s consolidated revenue rose 53% year-on-year to Rs 2,42,982 crore in the first quarter of FY23.
Meanwhile, Dipak Jain and Raghunath Mashelkar will cease to be independent directors of the company upon completion of their term on July 20, 2022. Its board recommended appointment of KV Chowdary as independent director for five years. KV Chowdary, who was earlier a non-independent director resigned from the position on Wednesday.
Adani Group: The company has approached the country’s largest lender State Bank of India (SBI) for a loan worth Rs 14,000 crore to build a new plant in Mundra in Gujarat, according to a news report by Livemint. The new facility is being planned to manufacture polyvinyl chloride (PVC) from coal and the total cost of setting up the project is expected to be around Rs 19,000 crore.
UltraTech Cement: The company posted a consolidated profit of Rs 1,582 crore for the quarter ended June 2022, a decline of 7% YoY, from Rs 1,700 crore in the same quarter last year. The company’s consolidated revenue in Q1FY23 rose 28% to Rs 15,163.98 crore as against ₹11,830 crore reported in Q1FY22. The company said that cement demand was affected by overall inflationary trends and lower labour availability in May 2022.
HDFC Asset Management Company: The company reported a 9% fall in net profit to Rs 314.19 crore in Q1FY23 from 344.59 crore in the year-ago period. It posted a 12.4% decline in total income at Rs 532.90 crore in Q1FY23 from Rs 607.99 crore in Q1FY22. Total expenses during the quarter rose 4.3% YoY to Rs 147.92 crore.
Meanwhile, Prashant Jain has tendered his resignation after staying as CIO with the asset management company for 19 years. The board has approved the appointment of Chirag Setalvad as Head – Equities and Shobhit Mehrotra as Head-Fixed income.
Hindustan Unilever (HUL): The FMCG company posted a net profit of Rs 2,381 crore in Q1FY23, compared with a net profit Rs 2,097 crore in the year-ago period. Revenue rose 19.6% YoY to Rs 14,357 crore in Q1 FY23 as against Rs 12,004 crore a year ago. During the quarter, the company saw its PBIDT (profit before interest, depreciation and tax) increase 19% YoY to Rs 3,523 crore.
YES Bank: The lender’s aim to bring investment worth $1 billion from private equity investment companies Carlyle and Advent has gained momentum,according to a report by The Economic Times. Top executives from both the PR firms met with YES Bank, State Bank of India’s (SBI’s) senior management, and Reserve Bank of India officials this week, The Economic Times reported citing sources.
PVR Ltd: The he multiplex operator reported a profit of Rs 68 crore in Q1FY23 as against a loss of Rs 142 crore in the corresponding quarter of last fiscal. The firm reported a 1,308% rise in revenue at Rs 1,000 crore in the June quarter as against Rs 71 crore revenue in the corresponding period of the previous fiscal. The company reiterated that it is on track to open 125 screens in the current fiscal.
State Bank of India (SBI) and LIC of India: SBI has become the most valuable company by market capitalisation among public sector undertaking (PSU), surpassing insurance giant–Life Insurance Corporation of India’s (LIC) market cap. Shares of SBI have gained 17% in the last one month, while LIC shares have risen by 5%. SBI market cap stands at Rs 4.53 lakh crore.
Electric Bus manufacturers: Shares of electric bus manufacturers Tata Motors, Ashok Leyland, Sona BLW, JBM Auto, Olectra Greentech jumped after comments by state-owned Convergence Energy Services Ltd’s (CESL) MD Mahua Acharya said that the company is planning $10 billion tender for 50,000 electric buses, Bloomberg news reported.
HDFC Life: The private insurer reported a profit after tax (PAT) of Rs 365 crore in the June quarter, up 21% from Rs 302 crore in the corresponding quarter last year. Its value of new business rose 25% to Rs 510 YoY crore in Q1FY23. The total assets under management rose 10% YoY to cross the Rs 2 lakh crore mark. The total annualized premium equivalent climbed 22% to Rs 1,904 crore.
Wipro: The company’s net profit in Q1FY23 declined 21% YoY to Rs 2,563.6 crore due to acquisition, higher cost of talent, and taxes. The revenue for the quarter under review was Rs 21,528 crore, up 17.9% YoY. Its IT services revenue stood at $2.73 billion, an increase of 13.3% YoY.
IndusInd Bank: The private sector lender reported a 60.5% jump in net profit at Rs 1,631.02 crore for the quarter ended June, helped by a decline in bad loans. It had posted a net profit of Rs 1,016.11 crore in the year-ago period. The bank’s total income increased to Rs 10,113.29 crore as against Rs 9,298.07 crore in the same period a year ago. Interest income in the June quarter rose 9.5% to Rs 8,181.77 crore compared to the year-ago period. Its gross NPA stood at 2.35% of the gross advances at the end of June as against 2.88% in the year-ago period.
Economy News
The Indian government has cut the windfall tax on diesel and aviation turbine fuel (ATF) by Rs 2 per litre and eliminated Rs 6 per litre tax on export of petrol. The tax on ATF has now been cut to Rs 4 a litre from Rs 6, earlier and on diesel to Rs 11 from Rs 13 per litre. Further, the additional tax on crude oil produced domestically has been cut to Rs 17,000 per tonne from Rs 23,250 per tonne.
Global Markets
The US markets ended higher as negative sentiments eased and waning inflationary pressures. Technology and consumer discretionary stocks were top gainers. For the week, the S&P 500 index rose 2.56%, the Dow gained 1.96% and the Nasdaq jumped 3.33%.
International Monetary Fund’s managing director Kristalina Georgieva said that global interest rates is expected to rise until higher prices begins to cool in response to the measures taken by central banks.
Chinese markets were mixed as increasing COVID-19 cases and worries over potential risks emanating from the real estate sector weighed on the country’s economic growth prospects. The Shanghai Composite index added 1.3% and Hang Seng index rose 1.53%, while the blue-chip CSI 300 Index fell 0.24%.
Meanwhile, Chinese authorities kept its one- and five-year prime lending rates unchanged at 3.7% and 4.45%. The Asian Development Bank slashed the economic growth forecast for China due to its strict lockdowns. Gross domestic product growth for the country is expected to be at 4% in 2022, down from an earlier estimate of 5%, according to ADB report.
Japanese stocks ended higher as investors’ confidence were upbeat about overall business performances ahead of corporate earnings season and continued loose monetary policy. The Nikkei 225 index soared 4.20% and the broader Topix advanced 3.35%.