Informist, Monday, Jul 11, 2022
NEW DELHI – Gains in frontline stocks across sectors, including index-heavyweight Reliance Industries, helped domestic benchmark indices recoup early losses and end the session largely flat.
Buying in the shares of banks, metal companies, and RIL offset most of the losses in the information technology pack, in the last hour of trade, which helped the Nifty 50 end above 16200 points.
The Nifty 50 opened lower on weak global cues and a sharp sell-off in IT counters, which saw the index fall below 16200 points and struggle throughout the session to surpass it.
Today, the Nifty 50 ended largely unchanged at 16216 points after it tested a low of 16115.50 points and a high of 16248.55 points. Similarly, the BSE Sensex also moved between 54090.53 and 54527.90 points to close marginally down 0.2% at 54395.23 points.
An upmove for Nifty 50 towards 16500 points is likely in the coming sessions as long as it holds above 16100 points, said Bhavin Mehta, vice-president-derivatives at Dolat Capital Markets.
Meanwhile, in the currency market, the rupee further depreciated against the dollar, as the Indian unit closed at a fresh record low of 79.4375 rupee per dollar.
Shares in the information technology pack saw strong selling pressure today as below-par earnings reported by industry major Tata Consultancy Services for the quarter ended June triggered concerns about other IT majors meeting a similar fate.
TCS’ consolidated operating profit margin contracted by a sharp 190 basis points to 23.1% in Apr-Jun due to higher spend on employees to retain talent, and rising costs related to travel. Consequently, the bottomline fell 4.6% sequentially and also missed analysts’ expectations.
Further, the management’s commentary about stability of demand from its core markets of the US and Europe did little to reassure investors. Concerns over signs of weakening demand outlook were visible in the shares of other IT companies as well. Tech Mahindra, Wipro, Infosys, HCL Technologies, and Tata Consultancy Services slumped 2-5%, which pulled the Nifty IT index down over 3%.
Among other Nifty 50 constituents, Bharti Airtel was another major laggard, having shed 5% on rising concerns over stiff competition as the Adani Group announced its plan to bid for the fifth-generation spectrum in the upcoming auction.
However, the news was a positive for Vodafone Idea as it sparked speculation of a possible tie-up with the Adani Group. Shares of Vodafone Idea ended nearly 4% higher.
Shares of banks remained resilient throughout the session and helped limit losses in the headline Nifty 50 through the day.
Metal companies, especially steelmakers, rose sharply in the second half of the session today following reports that the government may soon consider cutting or abolishing export duties on key steel products. JSW Steel, Tata Steel, Jindal Steel & Power, Jindal Stainless and Steel Authority of India rose 1-3%. This lifted the Nifty Metal index up 2%.
On the earnings front, Avenue Supermarts also rose nearly 5% during the day buoyed by a robust performance on all fronts during the quarter ended June. The stock, however, fell prey to profit booking after strong gains in six straight sessions and ended sharply off its day’s highs, up a little over 1%.
The broader market fared better than the headline index as all small- and mid-cap indices on the National Stock Exchange rose around 1% each.
* Among Nifty 50 stocks, 28 rose, 22 fell
* Among Sensex stocks, 15 rose and 15 fell
* On the NSE, 1,156 stocks rose, 948 fell and 92 were unchanged
* On the BSE, 2,096 stocks rose, 1,328 fell and 158 were unchanged
* Nifty IT: Down 3.1%; Nifty Metal: Up 2%; Nifty Bank: Up 1%
BSE National Stock Exchange
Sensex: 54395.23 points, down 86.61 pts (0.2%) Nifty 50: 16216.00, down 4.60 pts (0.03%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17) : 2022 Closing High: 18308.10 (Jan 17)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
2022 Low (intraday): 50921.22 (Jun 17) : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)-
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
US$1 = 79.4375 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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