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Sensex snaps 10-day winning run, Nifty ends at 14,146; IT, FMCG stocks drag

Indian benchmark share indices retreated from the record highs and settled lower on Wednesday led by losses in RIL, ITC and Infosys.

Market closing

Indian benchmark share indices retreated from the record highs and settled lower on Wednesday led by losses in RIL, ITC and Infosys.The 30-share BSE Sensex snapped 10-day winning streak and settled at 48,174.06, down 263.72 points or 0.54%. Similarly, NSE Nifty closed 53.25 points or 0.38% lower at 14, 146.25.

Power Grid, closing over 4% higher, was the top Sensex gainer followed by Bharti Airtel, ONGC, Ultratech Cement and ICICI Bank. ITC, RIL, Bajaj Finance and Axis Bank were among the laggards. Of 30 Sensex shares, 18 closed lower.

CIL optimistic of closing current fiscal with auction bookings of 120 MT

State-owned Coal India Ltd (CIL) on Wednesday said it is optimistic of closing the current financial year with auction bookings of 120 million tonnes (MT).CIL’s concentrated efforts to book increased volumes of coal under e-auction to bolster sales revenue, especially in view of the narrowed margins in add-ons during the covid-19 pandemic period, paid off with the company scoring a strong 76.2% growth during April-December of the current fiscal, the PSU said in a statement.

Inflationary pressure, rupee depreciation add to woes of services providers

Business activity in India’s services sector lost momentum in December. Data released by IHS Markit showed the Purchasing Managers’ Index (PMI) for the services sector dropped to 52.3 in December from 53.7 in November. A figure above 50 indicates expansion, while below this threshold indicates contraction.

According to the survey report, input costs increased to the greatest extent since February. Survey participants reported higher prices for a number of items, including cleaning products and fuel, said the report. For manufacturers, the PMI sub-index tracking input cost hit a 26-month high in December.

Indian benchmark share indices retreated from the record highs and settled lower on Wednesday led by losses in RIL, ITC and Infosys.The 30-share BSE Sensex snapped 10-day winning streak and settled at 48,174.06, down 263.72 points or 0.54%. Similarly, NSE Nifty closed 53.25 points or 0.38% lower at 14, 146.25.

Power Grid, closing over 4% higher, was the top Sensex gainer followed by Bharti Airtel, ONGC, Ultratech Cement and ICICI Bank. ITC, RIL, Bajaj Finance and Axis Bank were among the laggards. Of 30 Sensex shares, 18 closed lower.

Improved offtake from power sector crucial for driving Coal India’s volumes

Coal India Ltd, which had seen some uptick in sales volumes during the last few months, has failed to impress the Street with its December sales numbers. Sales volumes declined 2.1% year-on-year, albeit on a high base.The power sector demand revival holds key for driving sales, say analysts. Coal India under Fuel Supply Agreements (FSA) supplies most of its produce to thermal plant capacities.

Revenue momentum of IT companies likely to continue in Q3

The revenue momentum of top IT companies like Tata Consultancy Services (TCS) Ltd, Infosys Ltd, HCL Technologies Ltd, and Wipro Ltd, is expected to continue in the quarter ended December, despite being a seasonally weak quarter due to increased holidays and furloughs in the US and Europe, key markets for these firms.

The companies are likely to report steady sequential revenue growth on the back of broad-based demand recovery, ramp-up of large deals, strong deal wins and continued traction in digital, according to brokerage firm Emkay Research.“Indian IT companies are poised to turn in the best Q3 in a decade given highest-ever order books, marked revenue acceleration, margin expansion, and ongoing outlook upgrades,” Edelweiss Securities said in pre-earnings note.

Bandhan Bank down 1%

Private lender Bandhan Bank has signed an agreement with the Indian Army to provide banking services to the personnel of the force. The bank got the mandate to maintain zero-balance salary accounts of the Army personnel, the lender said in a statement.

BEML up 1.14%

The company has bagged orders worth around ₹758 crore to supply high mobility vehicles from Ministry of Defence.

Tips Industries declines 1.2%

The board of directors of the company has in-principally agreed to explore demerger of film business of Tips Industries Limited into separate entity.

Dish TV down 0.23%

Care Ratings has placed bank facilities worth ₹600 crore of Dish TV India Limited (DTIL) on ‘Credit watch with negative implications’ based on disclosure by the company regarding demand letter from Ministry of Information and Broadcasting for the disputed license fee including interest accrued thereon amounting to Rs.4164.05 crore, which is to be remitted within 15 days.

Godrej Consumer falls 1.3%

FMCG player Godrej Consumer Products Ltd (GCPL) expects to deliver “close to low double-digit sales growth” in the domestic market during the October-December 2020 quarter, led by soaps and household insecticides segments.

Hero MotoCorp up 1%

Life Insurance Corp Raises Stake the country’s largest two-wheeler maker by 2.021% to 9.166%.

Bajaj Finance down 1.2%

The Reserve Bank of India has fined non-bank financier Bajaj Finance ₹2.5 crore for failing to ensure that its recovery agents did not harass borrowers on the pretext of debt recovery.

Airtel moves SC over ‘error’ in DoT’s AGR calculation

Bharti Airtel Ltd has moved the Supreme Court over “arithmetical errors” in the department of telecommunications’ (DoT) calculation of adjusted gross revenue (AGR)-related dues to be paid by the telecom major, said a person aware of the matter.

According to the DoT’s calculation, Airtel owes a total of ₹43,980 crore in AGR dues including principal, interest, penalty and interest on penalty. However, the telco as per its self-assessment owes to the government ₹13,004 crore. Airtel has already paid ₹18,004 crore to the DoT.

Market outlook

“14200-14250 can pose as a resistance patch for the Nifty. If we can keep above 14250, we could travel to 14350. Since we are in unchartered territory, traders should trade cautiously and update their stops on a continuous basis. 13950-14000 is a good support,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

HDFC Ltd down 0.12%

The country’s largest mortgage lender is planning to raise up to ₹5,000 crore by issuing secured redeemable non-convertible debentures on private placement basis.

Market opening

Indian benchmark equity indices opened higher on Wednesday led by gains in index majors HDFC Bank, Titan and ONGC.Sensex opened at 48,616.66, up 178.88 points or 0.37%, while Nifty opened 41.45 points or 0.29% higher at 14,240.95.ONGC, rising over 3%, was the top Sensex gainer followed by HDFC Bank, IndusInd Bank, SBI, NTPC and HCL Tech. Nestle India, Bajaj Auto, ITC and Axis Bank were among the laggards.

Wall Street closes higher

Shares on Wall Street ended higher on Tuesday in choppy trading, as investors took advantage of the previous session’s slump to buy them back, ahead of the outcome of the Senate runoff elections in the battleground state of Georgia, which will determine the balance of power in Washington.The Dow Jones Industrial Average closed up 167.71 points, or 0.55%, to 30,391.6, the S&P 500 gained 26.21 points, or 0.71%, to 3,726.86 and the Nasdaq Composite added 120.51 points, or 0.95%, to 12,818.96.

SourceLive mint
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