Sensex, Nifty Stretch Gains To Second Week After Record Close
India’s stock benchmarks rose for the second consecutive week and closed at record, aided by gains in technology and telecom stocks, as positivity on the macroeconomic front and hopes of relaxation of covid curbs spilled over to the markets.
The S&P BSE Sensex gained 1.08% to 55,437.29. This is the first time the Sensex has crossed the 55,000 mark. The 30-stock index had hit a record 55.487.79 in intraday trade. The NSE Nifty 50 advanced by a similar magnitude to 16,529.10. The 50-stock index crossed both 16,400 and 16,500 level for the first time ever and hit a record 16,543.60 in intraday trade.
The broader indices underperformed the larger peers with both the S&P BSE MidCap and and S&P BSE SmallCap almost unchanged. Barring S&P BSE Healthcare, S&P BSE Utilities and S&P BSE Realty, all the other 16 sectoral indices compiled by the BSE Ltd. advanced, led by S&P BSE Telecom, S&P BSE Information Technology and S&P BSE Capital Goods, up above 1.5%.
The market breadth was skewed in favour of the bears. About 1,562 stocks advanced, 1,653 declined and 125 remained unchanged.
On Thursday, a government report showed that India’s retail prices increased at the slowest pace in three months in July, while Finance Minister Nirmala Sitharaman reaffirmed support for the central banks’ policy of prioritizing growth.
Indian companies’ earnings for the latest quarter have been mixed so far, with 18 of the 47 Nifty companies that have posted results beating analysts’ estimates, while 27 trailed the consensus.
Adi Godrej To Step Down As Chairman Of Godrej Industries
Godrej Industries Ltd. announced that Adi Godrej will step down as Chairman and from the Board of Directors of the company, effective October 1, 2021. He will continue to serve as Chairman of the Godrej Group and Chairman Emeritus of Godrej Industries.
Nadir Godrej, who is currently the Managing Director, will take over as Chairman and Managing Director of Godrej Industries.
Source: Exchange Filing
Westlife Development Slips Post Q1 Miss
Shares of Westlife Development Ltd. shed 3.20% to Rs 506 apiece after the company reported net loss for the first quarter wider than the average analyst estimate
June Quarter Earnings
Net loss at Rs 33.39 crore vs estimate net loss of Rs 20.96 crore (Bloomberg Consensus)
Revenue at Rs 259.16 crore vs estimate of Rs 252 crore
Operating Ebitda at Rs 5.1 crore vs Rs 49 crore QoQ
Of the 16 analysts tracking the company, 12 maintained ‘buy’, 3 maintained ‘hold’ and 1 analysts maintained ‘sell’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 0.2%
Bajaj Healthcare Gains After Stock Split Approval
Shares of Bajaj Healthcare Ltd. gained 4.56% to Rs 964 apiece after the company approved the split of 1 equity share of face value of Rs 10/- each into 2 equity shares of Rs 5/- each.
In an exchange filing, Bajaj Healthcare cited the need to enhance the liquidity in the capital market, to widen shareholder base and to make shares affordable to small investors as the key reasons behind the stock split decision.
Grasim Gains Post June Quarter Beat
Shares of Grasim Industries Ltd. gained 2.69% to Rs 1,532.45 apiece after the company reported net income for the first quarter that beat the average analyst estimate.
June Quarter Results (Standalone)
Net income at Rs 481.59 crore vs estimate of Rs 326 crore (Bloomberg Consensus)
Revenue at Rs 3,762.68 crore vs estimate of Rs 3,750 crore
Total costs at Rs 3,282.34 crore vs Rs 3,851.51 crore QoQ
Other income at Rs 64.92 crore vs Rs 69.15 crore QoQ
Of the 10- analysts tracking the company, 6 maintained ‘buy’ and 4 maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.3%