Lenders Help Sensex, Nifty Rebound From Over Five-Month Low
A pedestrian walks past the Bombay Stock Exchange (BSE) building in Mumbai, India, on Tuesday. (Photographer: Dhiraj Singh/Bloomberg)

Lenders Help Sensex, Nifty Rebound From Over Five-Month Low

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Closing Bell: Lenders Help Sensex, Nifty Rebound From Over Five-Month Low

Indian equity benchmarks rebounded from more than five-month low, led by the gains in HDFC Ltd. and ICICI Bank Ltd.

The S&P BSE Sensex ended 277 points or 0.75 percent higher at 36,976.85 and the NSE Nifty 50 ended at 10,948.25, up 0.79 percent. The broader market represented by the NSE Nifty 500 Index rose 0.98 percent.

The market breadth was tilted in favour of buyers. About 1,284 stocks advanced and 499 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by National Stock Exchange ended higher, led by the NSE Nifty Financial Services Index’s 1.56 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 1.18 percent.

Lenders Help Sensex, Nifty Rebound From Over Five-Month Low

IRB Infra Jumps On Stake Sale Plans, Q1 Results

Shares of Mumbai-based company extended gains for the second consecutive trading session and rose as much as 10.6 percent to Rs 105.80.

The construction firm said it will sell stake in its road business to the Government of Singapore for Rs 4,400 crore, according its stock exchange filing. The company will transfer nine of its build–operate–transfer assets into a private Infrastructure Investment Trust in, which IRB will hold a 51 percent controlling stake.

Besides, the company announced its June quarter results.

Key Earnings Highlights (Q1, YoY)

  • Revenue rose 15.3 percent to Rs 1,773 crore. (estimate Rs 1,844 crore)
  • Net profit fell 17.4 percent to Rs 206.6 crore. (estimate Rs 211 crore)
  • Ebitda rose 14.6 percent to Rs 855.3 crore. (estimate Rs 768 crore)
  • Margin at 48.2 percent versus 48.5 percent.
  • Finance cost jumped 46 percent to Rs 362.2 crore.

The trading volume was more than 50 times its 20-day average for this time of the day, Bloomberg data showed.

Fab Four Stocks Of The Day

Pidilite Industries

  • Stock rose as much as 3.3 percent to Rs 1,314.40
  • Revenue up 10.0 percent to Rs 2016.81 crore
  • Net Profit up 23 percent to Rs 292.89 crore
  • Ebitda up 17 percent to Rs 443.73 crore
  • Margin at 22.0 percent versus 20.8 percent

L&T Infotech

  • Stock rose as much as 3.6 percent to Rs 1,594.40.
  • Morgan Stanley Initiate coverage on the stock
  • Initiated ‘Overweight’ with a price target of Rs 1,780.
  • Expect core business growth to outpace that of most peers.
  • L&T's purchase of Mindtree could suggest an opportunity to benefit from synergies.
  • Valuation is attractive; preferred mid-cap pick.

Torrent Power

  • Stock rose as much as 7.3 percent to Rs 304.80.
  • High OI build up of 32 percent

Oil India

  • Stock rose as much as 2.9 percent to Rs 155.45.
  • This after Brent crude fell 1.24 percent intraday to 59.07 a barrel.

Titan Q1 Profit Misses Estimates

Shares of Titan pared losses and rose as much as 2.6 percent to Rs 1,063.60 after the company announced its quarterly results.

Key Earnings Highlights (Q1, YoY)

  • Revenue up 14.4 percent to Rs 4,939 crore.
  • Net profit up 6.2 percent to Rs 371 crore.
  • Ebitda up 13.8 percent to Rs 564 crore.
  • Margin at 11.4 percent versus 11.5 percent.

Market Commentary: Expect Nifty To Trade Between 10,600-11,150 Levels, Kotak Securities Says

The Nifty is likely to trade between 10,600 and 11,150 for now, said Rusmik Oza of Kotak Securities. He advised investors to take fresh look only if these levels are decisively broken on either sides.

He said the index can head towards 11,688 if it scales 11,150. On the flipside, a break below 10,600 may take it back to the 10,000-mark. “Currently, the Nifty is in oversold territory. A pull-back is imminent either from 10,850-10,600 levels.”

It is ideal for investors to spread across the buying or accumulation over the next three-to-four months as any material recovery in the economy could only happen from December quarter. The base effect will also start playing out positively in many sectors from December quarter, he said.

Stocks Reacting To Results Announcement

Kolte-Patil (Q1, YoY)

  • Stock rose as much as 16.1 percent to Rs 242.30.
  • Revenue up 50.0 percent to Rs 585.68 crore
  • Net Profit up 206 percent to Rs 115.88 crore
  • Ebitda up 44 percent to Rs 195.07 crore
  • Margin at 33.3 percent versus 34.7 percent

Minda Industries (Q1, YoY)

  • Stock rose as much as 3.3 percent to Rs 300.
  • Revenue up 0.7 percent to Rs 1439.75 crore
  • Net Profit down 24 percent to Rs 53.48 crore
  • Ebitda up 6 percent to Rs 172.2 crore
  • Margin at 12.0 percent versus 11.3 percent

Aditya Birla Fashion and Retail (Q1, YoY)

  • Stock rose as much as 5.6 percent to Rs 198.50.
  • Revenue up 7.9 percent to Rs 2,065.46 crore
  • Net Profit up 285 percent to Rs 21.56 crore
  • Ebitda up 176 percent to Rs 314.22 crore
  • Margin at 15.2 percent versus 5.9 percent

Hawkins (Q1, YoY)

  • Stock rose as much as 7.9 percent to Rs 2,980.
  • Revenue up 17.7 percent to Rs 142.1 crore
  • Net Profit up 28 percent to Rs 13.68 crore
  • Ebitda up 32 percent to Rs 22.1 crore
  • Margin at 15.6 percent versus 13.9 percent

Arvind (Q1, YoY)

  • Stock fell as much as 6.1 percent to Rs 52.45.
  • Revenue up 4.8 percent to Rs 1896.45 crore
  • Net Profit down 61 percent to Rs 24.1 crore
  • Ebitda down 23 percent to Rs 154.4 crore
  • Margin at 8.1 percent versus 11.1 percent

Pidilite Industries (Q1, YoY)

  • Stock rose as much as 3.3 percent to Rs 1,314.40
  • Revenue up 10.0 percent to Rs 2016.81 crore
  • Net Profit up 23 percent to Rs 292.89 crore
  • Ebitda up 17 percent to Rs 443.73 crore
  • Margin at 22.0 percent versus 20.8 percent

JSW Energy (Q1, YoY)

  • Stock swung between gains and losses to trade 0.3 percent lower at Rs 67.05
  • Revenue up 2.2 percent to Rs 2,412 crore.
  • Net profit up 6.6 percent to Rs 244 crore
  • Ebitda up 4.3 percent to Rs 809 crore
  • Margin at 33.5 percent versus 32.9 percent
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