Sensex, Nifty Close At Record High; Real Estate Stocks Surge
Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.
KEY HIGHLIGHTS
Closing Bell
Indian shares rose, with the Nifty posting its longest string of gains in a month, as investors focus on the ongoing earnings season and incoming key economic data.
The S&P BSE Sensex closed 0.5% higher to 53,158.85, a new record close for the index. The 30-share index gained as much as 0.7% to a new intraday all-time high of 53,266.12.
Likewise, the NSE Nifty 50 Index advanced 0.4% to 15,924.20, a record close. The 50-share index gained as much as 0.6% to a new intraday all-time high of 15,952.35.
HDFC Bank Ltd. contributed the most to the index gain, increasing 1.4%. HCL Technologies Ltd. had the largest increase, rising 5.1%. So far this week, the index rose 1.5%, heading for the biggest advance since the week ended June 6.
The broader markets almost mirrored the performance of their larger peers. The S&P BSE MidCap rose 0.3% while the S&P BSE SmallCap advanced 0.4%. Eleven of the 19 sectoral indices climbed, led by the S&P BSE Realty index, up 4.01%.
The market breadth was skewed in favour of the bulls. About 1,665 stocks advanced, 1,570 declined and 131 remained unchanged on the BSE.
HFCL Extend Decline Despite Healthy Q1 Earnings
Shares of the telecom company shed nearly 5%, its fourth straight session of decline, to Rs 78.45 apiece. Over the past five sessions, HFCL has shed over 5% despite reporting a three-fold rise YoY in net profit to Rs. 90.69 crore in the June quarter on Tuesday. Consolidated revenue almost grew over 70% YoY to Rs 1206.87 crore.
The decline follows an extended period of gains in which shares of HFCL added over 100% in a month ending July 6. Shares of HFCL gained over 200% for the year so far.
The performance of the telecom company has been driven by launch of another PM WANI model village in Karnataka, commissioning of dedicated 5G R&D centre and business division as well as healthy order inflows.
Jubilant Pharmova Slips Most In Five Weeks; Volume Surges
Jubilant Pharmova Ltd. fell 5%. Trading volume was seven times the average for this time of day.
Trading volume was 1.67 million shares, seven times the 20-day average of 231,530 shares for this time of day.
The shares are down 3.3% in the past 5 days and fell 5.9% in the past 30 days.
Analysts have seven buy, one hold, and no sell recommendations on the stock.
The price target of Rs 982.14 represents a 38% increase from the last price
Market Update: Sensex, Nifty Hover Near Record High
The S&P BSE Sensex rose 0.6% to 53,232.81, around 20 points away from its all-time high. The NSE Nifty 50 too gained 0.6% to 15,951.25 -- a new record high for the stock index.
The broader markets gained inline with their larger peers. The S&P BSE MidCap rose 0.35% while the S&P BSE SmallCap advanced 0.44%. Thirteen of the 19 sectoral indices climbed, led by the S&P BSE Capital Goods index, up 2%.
The S&P BSE Oil & Gas declined 0.8%, making it the worst performing sectoral index.
The market breadth was skewed in favour of the bulls. About 1,652 stocks advanced, 1,484 declined and 141 remained unchanged on the BSE.
Mid-Cap I.T. – Davids Find Valuation Momentum Versus Goliaths
Real Estate Stocks Make A Big U-Turn
The real estate index made a U-turn, rising over 4%. The index has risen nearly 10% so far this month.
KNR Constructions Jumps After Ratings Upgrade
Shares of KNR Constructions Ltd. gained as much as 5% to Rs 254.95 apiece after a credit ratings upgrade.
CRISIL Ratings revised its outlook on the long term bank facilities of firm from ‘stable’ to ‘positive’ and reaffirmed the long term rating at ‘CRISIL AA-‘, according to exchange filing of KNR Construction.
CRISIL listed the establish market position and strong project execution capability, strong order pipeline and robust financial risk profile as the key reasons for the ratings upgrade.
Shares of the construction engineering company were trading near the 52-week high of Rs 259.9 and have gained more than 12% over the last month and 55.52% for 2021 so far, respectively.
Of the 28 analysts covering KNR Construction, 25 have a ‘buy’ rating and three suggest a ‘hold’’, according to Bloomberg data. The average of the 12-month consensus price targets implies an upside of 4.3%.
Infosys Gains After Brokerages Retain Bullish Rating Post Q1
Shares of Infosys Ltd swung between gains and losses after the information technology firm posted revenue growth of 6% to Rs 27,896 crore in June quarter over the preceding quarter.
Sequential revenue growth in constant currency terms stood at 4.8% in the June quarter. Infosys also raised constant currency revenue growth estimate to 14-16% while EBIT margin contracted 80 basis points to 23.7% due to supply side pressures and wage hikes despite high utilization levels.
Shares of Infosys have gained 6.62% over the last month and nearly 25% for the year so far. Of the 49 analysts covering Infosys, 43 have a ‘buy’ rating, three suggest a ‘hold’ and three recommend a ‘sell’, according to Bloomberg data. The average of the 12-month consensus price targets implies an upside of 8.5%.
Craftsman Automation Slips After Q1 Earnings
Shares of Craftsman Automation shed 4% to Rs 2,028.85 apiece on the back of June quarter earnings. The engineering services company reported operating revenue of Rs. 435.19 crore, almost thrice the sales reported in the corresponding quarter in the previous fiscal. Operating revenue however slipped sequentially as the second wave disrupted activity during the course of the June quarter.
The company has also terminated the joint venture agreements with Mitsubishi corporation, Tokyo, MC Machinery Systems Inc., USA, Mitsubishi Corporation India and Mitsubishi Corporation Technos, Japan. According to Craftsman Automation’s exchange filings, these JVs that came into effect in 2007 for selling laser cutting machines and electric discharge machines were terminated to shift focus to increasing needs of its primary business.
Craftsman Automation has a consensus rating of 5 with all three of the analysts covering the firm maintaining a buy rating. The company has a Relative Strength Index of 74.25 indicating that it may be overbought territory.
Shares of Craftsman Automation gained over 44% in 2021 so far and has recovered from the decline in April due to the second wave
RBL Bank Falls After Mastercard Curb
RBL Bank Ltd.’s agreement with Visa Worldwide Pte. will allow the lender to issue credit cards enabled on the Visa payment network, although technology integration could take 8-10 weeks, according to a statement on exchanges.
RBL Bank, which currently issues credit cards on the Mastercard network only, expects its rate of about 100,000 new credit card issuances per month “could potentially be impacted” until there is more clarity from the Reserve Bank of India on new credit cards on the Mastercard network
RBL Bank has about 3 million credit card customers, which makes it the fifth-largest credit card issuer in Indian with an about 5% market share
The bank’s shares fell as much as 3.2% to their lowest in a week
Larsen Shares Up Most in Nine Weeks; Trading Volume Surges
Larsen & Toubro Ltd. rose 3.5%. Trading volume was seven times the average for this time of day.
The stock was the best performer among its peers.
Trading volume was 1.21 million shares, seven times the 20-day average of 178,314 shares for this time of day.
One-month implied volatility was 36%.
The shares are up 6.7% in the past 5 days and rose 6% in the past 30 days.
Larsen trades at 23 times its estimated earnings per share for the coming year. It trades at 67 times trailing EPS.
Analysts have 38 buy, two hold, and one sell recommendations on the stock.
The price target of Rs 1,729.51 represents a 8.2% increase from the last price
Opening Bell: Sensex, Nifty Climb Marginally Higher Led By IT Stocks
Indian equity benchmarks climbed marginally higher, amid mixed regional trade, as investors focussed first quarter earnings and incoming economic data.
The S&P BSE Sensex rose as much as 0.3% to 53,056.74, while the NSE Nifty 50 index advanced by a similar magnitude at 15,896.15. The 50 share index has risen for last four sessions in a row and is less than 20 points away from its all-time high. So far this week, the index rose 1.2%, heading for the biggest advance since the week ended June 6.
Larsen & Toubro Ltd. contributed the most to the index gain and had the largest move, increasing 3.4%.
The broader markets slightly outperformed their larger peers. The S&P BSE MidCap rose 0.24% while the S&P BSE SmallCap advanced 0.65%. Sixteen of the 19 sectoral indices climbed, led by the S&P BSE Capital Goods index, up 2.13%.
The market breadth was skewed in favour of the bulls. About 1,757 stocks advanced, 860 declined and 93 remained unchanged on the BSE.
Rupee Bonds May Gain On Crude, Treasury Yield Drop
Indian bonds are likely to gain on a drop in global oil prices and U.S. Treasury yields. The rupee is expected to advance amid inflows for share sales and a weaker dollar.
Direct financing of the govt’s fiscal deficit by the central bank or creation of new money is fraught with downside risks, RBI Governor Das says in interview with The Financial Express newspaper
RBI never had any fixation that the 10-year yield should be 6%, only interested in orderly evolution of yield curve and market expectations seem to be converging to this approach
Reiterates current inflation spike was temporary and should moderate in the third quarter, says inflation driven by supply-side factors
USD/INR rose 0.1% to 74.5900 on Wednesday
Implied opening from forwards suggest spot may start trading around 74.56
5.63% 2026 bond yield fell 3bps to 5.69% on Wednesday; 5.22% 2025 yield drops 5bps to 5.53%; new 6.1% 2031 bond yield up 1bp at 6.11%
Traders will watch for RBI Governor Das’s speech at a financial inclusion summit at 3pm Mumbai time
SGX Nifty Little Changed Amid Mixed Asia Trade
Asian stocks were mixed Thursday as traders digested a slowdown in China's growth as well as Federal Reserve Chair Jerome Powell's signal that more U.S. economic progress is needed before stimulus can be pared back.
Shares slipped in Japan, were steady in China and rose in Hong Kong. U.S. contracts fluctuated after modest S&P 500 and Nasdaq 100 gains on Powell's reassurance over accommodative policy and reiteration that high inflation will likely moderate. Treasury yields fell and the dollar trimmed a retreat.
India’s SGX Nifty 50 Index futures for July delivery rose 0.1%, while MSCI Asia Pacific Index is up 0.1%. The NSE Nifty 50 Index added 0.3% Wednesday to 15,853.95.
China’s economy slowed largely in line with forecasts in the second quarter, with the recovery showing signs of steadying after record growth in the previous three months. The central bank rolled over a portion of medium-term policy loans coming due, a move that confirms its intention to keep monetary policy largely unchanged.
Oil tumbled below $73 a barrel on building U.S. fuel inventories and a potential OPEC+ agreement to increase supply. Gold was around a four-week high, aided by inflation concerns and Powell’s comments on stimulus.
Back home, Infosys, L&T Technology, Tinplate, Craftsman Automation, Dodla Dairy may react as the companies reported quarterly results after the market closed Wednesday. Wipro, L&T Infotech, Cyient are among the companies scheduled to report earnings Thursday. Kalpataru Power, Laurus Labs among companies holding their annual shareholders’ meeting. India to release trade data for June. Foreign investors bought net Rs 69.91 crore of stocks on Tuesday, according to NSDL website.