Sensex, Nifty Gain; Realty Stocks Surge
Closing Bell: Sensex, Nifty Gain; Realty Stocks Surge
India’s stock benchmarks held on to gains amid a slew of quarterly corporate earnings.
The S&P BSE Sensex gained 0.69% to 52,950.63 and NSE Nifty 50 Index edged 0.77% higher to 15,885.15.
Both measures completed a second week of losses on Friday as lackluster quarterly earnings weighed on sentiment. Reliance Industries Ltd. contributed the most to the index gain, increasing 1.8%. Shree Cement Ltd. had the largest increase, rising 3.6%.
The broader markets outperformed the larger peers with both the S&P BSE Midcap and the S&P BSE SmallCap adding over 1%.
All the 19 sectoral indices compiled by the BSE Ltd. gained with S&P BSE Realty climbing nearly 5%.
The market breadth was skewed in favour of bulls. About 2,183 stocks advanced, 1,154 declined and 165 remained unchanged on the BSE
Torrent Power Shares Up Most In 7 Weeks, Call Options Quadruple
Shares of Torrent Power Ltd. gained 3.01%, the most in eight weeks, to Rs 468.90 apiece. Trading in the company’s call options was quadruple the average. Trading volume was double the average for this time of the day.
Torrent Power announced post market hours on Friday that it had signed an agreement with Lightsource India Ltd. and Lightsource Renewable Energy (India) Ltd to acquire a 50 MW solar plant situated in Maharashtra for an enterprise value of Rs 317 crore.
Out of the 13 analysts tracking the company, 7 maintained ‘buy’, 4 maintained ‘hold’ and 2 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 3.3% Shares of Torrent Power added 50.9% in 2021 so far. The company will report its June quarter earnings on August 6, Friday.
Emami Q1 Net Income Below Analyst Estimate
Emami Ltd reported net income for the June quarter that missed the average analyst estimate.
First Quarter Results
Net income at Rs. 77.79 crore vs estimate of Rs 93.36 crore (Bloomberg Consensus).
Revenue at Rs 660.95 crore vs estimate of Rs 643 crore.
Total Expenses at Rs 491.24 crore vs Rs 567.96 crore (QoQ).
Other income at Rs 10.72 crore vs Rs 46.50 crore (QoQ).
Out of the 34 analysts tracking the company, 28 maintained ‘buy’, 5 maintained ‘hold’ and 1 analyst maintained ‘sell’ recommendations. Shares of Emami gained 34% in 2021 so far.
Varun Beverages Advances On June Quarter Beat
Shares of Varun Beverages Ltd. gained 6.04% to Rs 807.80 apiece after reporting net income for the June quarter that beat average analyst estimates
Q2FY22 Results (Consolidated)
Net income at Rs 308.16 crore vs estimate of Rs 237 crore (Bloomberg Consensus)
Revenue at Rs 2,483 crore vs estimate of Rs 2,213 crore
Total expenses at Rs 2,087.8 crore vs Rs 2,080.9 crore QoQ
Dividend per share Rs 2.50
Commentary and Context
Rajesh Chawla named Chief Financial Officer from Aug. 2.
Company says resurgence of Covid pandemic caused "significant disturbance" and led to slowdown in economic activity and business operations of company in May.
Company says it saw a faster recovery in demand, as lockdowns and curbs started easing from June.
Out of the 17 analysts tracking the company, 14 maintained ‘buy’ and 3 maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 2.2%. Shares of Varun Beverages climbed 29.2% in 2021 so far compared to 5.94% gains for NSE Nifty FMCG Index.