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Domestic benchmark indices ended higher helped by modest buying by FIIs, easing commodity prices and the RBI increasing repo rate by 50 basis points to 5.4% as expected by market participants.
For the week, the Sensex gained 1.42% to 58,387.93 and the broader Nifty 50 index gained 1.39% to 17,397.50.
In broader markets, the BSE Midcap index rose 1.78% to 24,479.05 in the week. The BSE Smallcap index added 2.03% to 27,605.08.
During the week, FIIs bought for Rs 6991.6 crore in the equity segment, while DIIs sold for Rs 1765.5 crore.
Top Nifty sectoral gainers were IT [2.82%], Auto [2.08%], Metal [2.01%] and PSU Bank [1.6%]. Top loser was Realty [-2.89%] during the week.
Company News
HDFC: The mortgage lender said that it has raised $1.1 billion from investors under the ‘Syndicated Social Loan Facility’ to cater to the affordable housing segment. The amount was raised through external commercial borrowings (ECBs). MUFG Bank Ltd (MUFG) is the lead social loan coordinator for this transaction along with being one of the Mandated Lead Arrangers and Borrowers (MLAB). State Bank of India, CTBC Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation were the other MLABs and joint social loan coordinators.
Reliance industries Ltd (RIL): The Competition Commission of India (CCI) granted its approval for the acquisition of a 50.1 per cent stake of Sanmina-SCI India (SCIPL) by Reliance Strategic Business Ventures (RSBVL), a a subsidiary of RIL. Sanmina Corporation and RSBVL had inked an agreement in March to create a joint venture through investment in Sanmina SCI India. The investment would be about Rs 1,670 crore and RIL would hold the majority stake in the JV.
Reliance Jio and Tata Communications: The Supreme Court directed Jio, the telecom arm of Reliance Industris Ltd, to pay Rs 70 crore to Tata Communications in two weeks while hearing Reliance Jio’s plea against Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order.The order asked Reliance Jio to pay Rs 147 crore to Tata Telecom as cable landing station usage charges.
Meanwhile, Reliance Jio said that it is fully ready for 5G rollout in the shortest period of time, backed by nationwide fibre presence, an all-IP network with no legacy infrastructure, an indigenous 5G stack and strong global partnerships across the technology ecosystem.
Mahindra & Mahindra (M&M): The company posted revenue from operations at Rs 19,612.64 crore in Q1FY23 as against Rs 11,764.82 crore in the year-ago period. Its profit after tax stood at Rs 1,430.16 crore in Q1FY23 from 856.67 crore in Q1FY22.
GAIL India: The nation’s largest gas utility reported a 51 per cent jump at Rs 3250.95 crore in Q1FY23 helped by higher margins from natural gas marketing. It had posted a consolidated net profit of Rs 2,157.15 crore in Q1FY22. Its revenue more than doubled to Rs 38,033.30 crore in Q1FY23 from Rs 17,702.43 crore in the same period last fiscal.
Steel Stocks: The steel ministry and finance ministry are mulling to roll back or reduce export duty, amid industry representation seeking a cut, Mint news reported citing sources. According to the news report, the export duty could be halved or even eliminated for some products and a decision is likely by the end of August.
ITC: The cigarette maker recorded a 38.3% year-on-year growth in standalone profit at Rs 4,169.4 crore for the quarter ended June 2022, on strong topline and operating performance. Revenue grew by 41.4% YoY to Rs 18,320 crore in Q1FY23 quarter. Its EBITDA jumped 41.5% YoY to Rs 5,647.2 crore in Q1FY23.
Titan: The company’s consolidated total income jumped more than two-fold to Rs 9487 crore in Q1FY23 from Rs 3519 crore in the year-ago period. The profit after tax surged to Rs 790 crore in Q1FY23 from Rs 18 crore in the year-ago period.
Dabur India: The FMCG major reported a marginal increase in consolidated net profit at Rs 441.06 crore for the first quarter ended June 2022. It had posted a net profit of Rs 438.30 crore in the year-ago period. Its revenue from operations was up 8.07 per cent to Rs 2,822.43 crore during the quarter under review as against Rs 2,611.54 crore in the corresponding quarter of the previous fiscal.
Britannia: The biscuit manufacturer said its consolidated net profit fell 13.24 per cent to Rs 335.74 crore in the April-June quarter of FY23 due to higher cost of raw materials such as wheat and industrial fuel. The company had posted a net profit of Rs 387.01 crore in the April-June quarter a year ago. Its total revenue from operations increased 8.74 per cent to Rs 3,700.96 crore during the quarter under review as against Rs 3,403.46 crore in the year-ago period.
InterGlobe Aviation (IndiGo): The company narrowed its net loss to Rs 1,064.3 crore in Q1FY23, compared with a net loss of Rs 3,174.2 crore in the year-ago period. The airline’s revenue from operations rose 328% to Rs 12,855.3 crore from Rs 3,007 crore in the year-ago period.
Bharti Airtel: The telcom company announced it has signed 5G network agreements with gear makers Ericsson, Nokia and Samsung to start deploying 5G this month. Airtel highlighted its long-standing relationship for connectivity and pan-India managed services with Ericsson and Nokia, while stating that partnership with Samsung will begin this year onwards.
Vodafone Idea: The telecom firm’s net loss marginally narrowed to Rs 7,297 crore for the quarter ended June 2022, from a net loss of Rs 7,319 crore in the year-ago period. The company’s revenue from operations rose 14% to Rs 10,410 crore as against Rs 9,152 crore in Q1FY22. Average revenue per user (ARPU) for the quarter stood at Rs 128 in the quarter versus Rs 104 in Q1FY22, up 23.4% helped by tariff hikes.
UPL: The speciality chemicals company posted a consolidated net profit of Rs 877 crore in Q1FY23 as against Rs 677 crore in the year-ago period. Its revenue rose to Rs 10,821 crore in the reported quarter as against Rs 8,515 crore in the same period a year ago. The company’s EBITDA stood at Rs 2,343 crore in Q1FY23 from Rs 1,863 crore in the same period a year ago.
Adani Group Companies
Adani Power: The company’s net profit jumped multi-fold to Rs 4,779.86 crore in Q1FY23 from Rs 278.22 crore in the year-ago period. The company’s revenue doubled to Rs 13,723.06 crore in the quarter under review from Rs 6,568.86 crore in the same period last year.
Adani Green Energy Limited (AGEL): The company posted a fall of over 2 per cent in consolidated net profit at Rs 214 crore in Q1FY23 as against Rs 219 crore in the year-ago period. The company’s total income rose to Rs 1,701 crore in Q1FY23 from Rs 1,079 crore in the same period last year. Th company noted that solar and wind segment continued to show performance improvement.
Adani Transmission: The company reported a consolidated net profit after tax (PAT) of Rs 168.46 crore for the quarter ended June 2022, as against a consolidated PAT of Rs 433.24 crore in the year-ago period. The company’s total income was at Rs 3,249.74 crore in the first quarter of the current fiscal, and Rs 2,935.72 crore in the same period last fiscal.
Adani Wilmar Ltd (AWL): Edible oil major reported a 10 per cent growth in consolidated net profit at Rs 193.59 crore for the quarter ended June on higher sales. It had posted a net profit of Rs 175.70 crore in the year-ago period. Total income rose to Rs 14,783.92 crore in the first quarter of this fiscal from Rs 11,369.41 crore in the corresponding period of the previous year. Angshu Mallick, Managing Director and CEO, Adani Wilmar, said the company has seen double-digit growth in sales through e-commerce and modern trade.
Adani Enterprises: The company reported 73% jump in consolidated net profit at Rs 469 crore for the quarter ending June 2022 compared to a consolidated net profit of Rs 271 crore in the year-ago period. The company’s consolidated revenue from operations surged 225% to Rs 40,844 crore in Q1FY23 from Rs 12,579 crore in Q1FY22.
In other news, the company said that its unit will acquire Macquarie Asia Infrastructure Fund’s India toll roads in Andhra Pradesh and Gujarat for Rs 3,110 crore ($391.89 million). The acquired portfolio has more than 5,000 lane km of highway projects under construction / operation.
The company has signed an MoU with Israel Innovation Authority to create an innovation platform that will allow Adani businesses to access tech solutions provided by Israeli startups and selected innovation projects will be supported by the partnership. The collaboration between the two entities will involve climate change, cyber, Al, loT, 5G and agriculture.
Adani Data Networks: The digital connectivity solutions arm of the group, has won 400MHz of spectrum in the 26GHz millimetre wave band for 20 years in the recently concluded 5G spectrum auction, which was conducted by telecommunications department. It is expected to accelerate Adani Group’s digitisation efforts of its core infrastructure, primary industry and B2C business portfolio.
Adani Total Gas: The company psoted a net profit of Rs 138.37 crore in Q1FY23 from Rs 142.58 crore in the same period last fiscal. The company’s revenue doubled to Rs 1,110.21 crore in Q1FY23 from Rs 522.27 crore in Q1FY22. The company’s EBITDA stood nearly flat at Rs 218.55 crore in Q1FY23 compared with Rs 207.11 crore in Q1FY22.
Economy News
The RBI’s Monetary Policy Committee (MPC) at the end of its three-day meeting decided to increase the repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.4% with immediate effect. The standing deposit facility (SDF) rate was adjusted to 5.15% and the marginal standing facility (MSF) rate and the Bank Rate to 5.65%.
The MPC has retained the real GDP growth forecast for the ongoing financial year at 7.2%. The MPC has also maintained its retail inflation projection for the current financial year at 6.7%, which was revised from 5.7% in the preceding monetary policy review in June.
The seasonally adjusted S&P Global India Services Purchasing Managers’ Index (PMI) stood at 55.5 in July, compared with 59.2 in June. The S&P Global India Composite PMI fell to 56.6 from 58.2 in June, highlighting the slowdown in private sector. The S&P Global India Manufacturing PMI rose to 56.4 in July from 53.9 in June. A reading of more than 50 indicates the sector is expanding, while less than 50 signals contraction in the sector.
The Indian government collected Rs 1,48,995 crore as Goods and Services Tax (GST) in July, an increase of 28% from the same month last year, according to finance ministry. This is 3% higher than the GST collected in June.
Further, India’s eight core sectors recorded a growth of 12.7% in June, slowing from an upwardly revised 19.3% in May, the commerce ministry said yesterday. Out of the eight sectors, output in seven core sectors increased in June 2022.
Global Markets
Most Wall Street stocks ended higher as many top companies gave an upbeat forecast, but gains were capped as investor were worried that the Fed would continue its aggressive monetary policy after higher-than-expected jobs data. For the week, the S&P 500 rose 0.36%, the Dow lost 0.13%, and the Nasdaq gained 2.15%.
Nonfarm payrolls increased by 528,000 jobs last month, the largest gain since February, the survey of establishments showed. Data for June was revised higher to show 398,000 jobs created instead of the previously reported 372,000. Meanwhile, the ISM’s non-manufacturing PMI rebounded to a reading of 56.7 last month from 55.3 in June, ending three straight monthly declines.
Chinese stock markets fell as investors were worried over geopolitical tensions between Shanghai and Washington and tepid economic data. The Shanghai Composite index fell 0.81%, the blue chip CSI 300 Index dropped 0.32% and Hang Seng rose 0.23% as technology stocks gained.
In the economic front, the manufacturing purchasing managers’ Index (PMI) fell to 49.0 in July. The non-manufacturing PMI in July fell to 53.8 in July from 54.7 in June. The composite PMI, which includes manufacturing and services, fell to 52.5 from 54.1. China’s Caixin Services Purchasing Managers’ Index for July came in at 55.5, up from 54.5 in June.
Japanese stock markets ended higher on upbeat corporate earnings. The Nikkei 225 index rose 1.35% and the broader Topix edged up 0.35%.