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Dalal Street closed higher for the third week in a row ahead of first quarter earnings on positive global cues amid easing commodity prices. For the week, the Sensex rose 2.97% to 54,481.84, while the Nifty 50 index gained 2.97% to 16,220.60.
In broader markets, the BSE Midcap index jumped 3.64% to 22,655.57 and the BSE Smallcap index surged 3.36% to 25,640.81.
Top gainers among Nifty sectoral indices were PSU Bank [6.63%], FMCG [5.68%], Realty [5.01%], Bank [4.72%] and Auto [3.52%].
In cash segment, FIIs sold for Rs 2218.4 crore and the DIIs bought for Rs 3910.3 crore during the week.
The WTI Crude prices stood at $104.79 per barrel, while the Brent Crude was at Rs 107.02 a barrel.
Company News
Tata Consultancy Services (TCS): The company’s net profit grew 5.2% year-on-year and 2.5% sequentially to Rs 9,478 crore in Q1FY23. Revenue for the quarter came in at Rs 52,758 crore, up 16.2% YoY and 4.28% sequentially. TCS announced a dividend of Rs 8 per share, which will be credited by August 3, 2022. The record date for the same is July 16, 2022.
Adani Group: The group plans to make an entry into the race to acquire telecom spectrum, which will pitch it directly against Mukesh Ambani’s Reliance Jio and telecom czar Sunil Bharti Mittal’s Airtel, sources said, according to PTI news report. Applications for participating in the July 26 auction of airwaves, including those capable of providing 5G telecom services such as ultra-high-speed internet connectivity, closed on Friday with at least four applications.
HDFC Bank: The lender reported a 21.5 % year-on-year (YoY) growth in advances to Rs 13.95 trillion in Q1 FY23. The advances were at Rs 11.48 trillion on June 30, 2021. As of June 30, HDFC Bank’s deposits registered a YoY rise of 19.3% to Rs 16.05 trillion from Rs 13.46 trillion a year ago.
In other news, the lender has received the Reserve Bank of India’s (RBI) approval for the merger of Housing Development Finance Corporation with the bank, according to a regulatory filing. The proposed merger remains subject to approvals from CCI, NCLT and shareholders and creditors of the two companies.
Reliance industries Ltd (RIL): The conglomerate’s retail arm has entered into a franchise agreement with Gap Inc to bring the American fashion brand to India. Reliance Retail will be the official retailer for the fashion house in India, mixing exclusive stores and digital commerce platforms.
Tata Power: The company would spend Rs 75,000 crore in the next five years to expand the capacity of its renewable energy business, Chairman N Chandrasekaran said on Thursday. An amount of Rs 10,000 crore would be spent in 2022-23 (FY23) to take the total capital expenditure (capex) during the financial year to Rs 14,000 crore, Chandrasekaran said at the company’s 103rd annual general meeting, which was held virtually.
Meanwhile, the company has signed an MoU with Tamil Nadu government to set up a greenfield 4 Gigawatt solar cell and 4 Gigawatt solar module manufacturing plant, for an investment of Rs 3,000 crore. The investment in the plant will be made over 16 months, the company said in an exchange filing.
Hindustan Aeronautics Ltd (HAL): The company shares rose 2.3% after Tejas Light Combat Aircraft emerged as the top choice for Malaysia as the country looks to replace its fighter jets’ fleet. The two countries are are holding negotiations to firm up procurement. The LCA Tejas is developed and made in India by HAL.
Titan: The company’s first quarter sales jumped by 205% year-on-year due to a low base effect as the corresponding period of the past fiscal was hit by the brutal second wave of COVID-19. Titan continued with its expansion strategy in the first quarter, with the total number of stores being operated by the luxury brand climbing to 2,160 as of June 30, including 120 stores that were set up in the April-June period. The jewellery sales during the first quarter jumped by 207% as compared to the year-ago period.
Mahindra & Mahindra (M&M): The automaker has approved incorporation of wholly owned subsidiary to undertake four wheeler passenger EV business. The company executed a binding agreement to sell stake in its new electric vehicle arm to British International Investment Plc. Both the companies will invest a total of Rs 3,850 crore in the subsidiary firm.
Bajaj Finance: The NBFC registered 60.9% jump in new loans booked to 74 lakh during Q1 FY23 as against 46 lakh in Q1 FY22. Core assets under management (AuM) stood approximately at Rs 2,04,000 crore as of 30 June 2022 as against Rs 1,56,115 crore as of 30 June 2021, jumping 31% YoY. Bajaj Finance’s deposit book stood at approximately Rs 34,100 crore as of 30 June 2022 compared with Rs 27,972 crore as of 30 June 2021, recording a growth of 22% YoY.
Tata Motors: The company’s UK-based Jaguar Land Rover reported sales volumes at 78,825 units for three-month period ended June 2022, down 37% YoY and flat compared to previous quarter. Sales continued to be pressured by the global chip shortage, impact of Covid lockdowns in China and new model transition of Range Rover Sport.
Adani Transmission: The company said that it will seek shareholders’ approval for the proposed related-party transactions worth up to Rs 10,600 crore in 2022-23. Three resolutions for the purpose of related party transactions during 2022-23 are listed on the agenda as per the notice of the company’s AGM (Annual General Meeting) scheduled on July 27.
Tejas Networks: The company has acquired 62.65% stake in Saankhya at a price of Rs 454.19 per equity share. The transaction cost is Rs 276.24 crore. After this transaction, Saankhya has become a subsidiary of the company.
Economy News
The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 59.2 in June from 58.9 in May. The survey said that the June data pointed to further accelerations in growth of new business and output at Indian services companies amid ongoing improvements in demand conditions.
Input costs continued to rise at a historically elevated pace, although one that was the slowest in three months, while charge inflation hit a near five-year high. Services companies expect the recovery to be sustained over the coming 12 months, concerns surrounding price pressures weighed on business confidence.
The S&P Global India Composite PMI Output Index was at 58.2 in June , little-changed from 58.3 in May and indicative of a marked rate of expansion. Growth of Indian private sector output steadied in June, as a faster increase in services activity offset a slower rise in factory production.
Global Markets
The US market rose during the week as investors were hopeful that the Federal Reserve will be able to curb inflation without pushing the economy into a recession. For the week, the Dow was up 0.8%, the S&P 500 rose 1.9% and the Nasdaq gained 4.6%
In the economic data front, the Labor Department showed employers added 372,000 nonfarm jobs in June, higher than consensus expectations of around 270,000.
The S&P Global US Composite PMI was revised higher to 52.3 in June from a preliminary reading of 51.2, down from 53.6 in May. The S&P Global US Services PMI was revised higher to 52.7 in June from a preliminary score of 51.6, and down from 53.4 in May.
The Institute for Supply Management report showed that the pace of growth in US manufacturing activity slowed by more than expected in the month of June. The ISM said its manufacturing PMI slid to 53.0 in June from 56.1 in May. Meanwhile, the Commerce Department said that factory orders rose 1.6% in May after increasing 0.7% in April.
Chinese markets fell after the authorities ordered mass testing for COVID-19 in the district of Pudong, triggering fears of fresh restrictions in Shanghai, China’s financial capital and its most important trade hub. The CSI 300 index fell 0.85% and the Shanghai Composite index dropped 0.93%.
In economic news, the Caixin Services Purchasing Managers’ Index (PMI) for June surged to a better-than-expected 54.5 from 41.4 in May.
Japan’s stock markets gained during the week, with the Nikkei 225 index up 2.24% and the broader Topix rising 2.30%. Bank of Japan’s dovish stance weighed heavily on the yen, which depreciated to around JPY 135.90 against the U.S. dollar, from the previous week’s 135.22.