Sensex, Nifty Extend Winning Streak For Second Week Aided By Metal Stocks; FPIs Stay Net Buyers

India's stock benchmarks jumped for the second week in a row, to complete its best month in 2022, aided by metal stocks, amid a global risk-on-rally.

For both the measures, July marked the best month in 2022. Sensex logged best month since August 2021.

For Nifty 50, July markets best month since November 2020.

Bajaj twins, IndusInd Bank, Tata Steel, Asian Paints are among top gainers in the Nifty 50 index in July.

The Sensex jumped 1,500 points (2.67%) in the week. The Nifty 50 advanced by similar magnitude to close above 17,150. Bajaj twins jumped over 15% for the week, as did Tata Steel while SBI Life and IndusInd Bank advanced over 10%.

The Sensex jumped 1,500 points (2.67%) in the week. The Nifty 50 advanced by similar magnitude to close above 17,150. Bajaj twins jumped over 15% for the week, as did Tata Steel while SBI Life and IndusInd Bank advanced over 10%.

Metal index led the sectoral gainers, followed by media and information technology stocks while Nifty Auto was the biggest sectoral laggard.

On Friday, the Sensex added 1.25% (over 700 points) to 57,570.25. The Nify 50 advanced by similar magnitude to 17,158.25. Today 42 of Nifty 50 stocks rose while eight fell.

The two measures fell in the first two days of the week before snapping the losing streak to extend gains for the second week.

The broader indices almost mirrored the larger peers. All 19 sectoral indices compiled by BSE Ltd. rose with Metal gauge surging over 4.5%.

The market breadth is skewed in the favour of bulls. About 2,100 stocks rose, 1,227 fell and 144 remained unchanged.

Foreign portfolio investors net bought equities worth Rs 1,046.32 crore today, data from the National Stock Exchange showed. FPIs snapped out of four days of selling streak yesterday, July 28.

Domestic institutional investors, however net sold stocks worth Rs 0.91 crore today.

Institutions have net bought Rs 3,978.31 crore worth of equities in July alone and net sold Rs 48,439.69 crore so far this year.

• Indian currency appreciated 59 paise (0.74%) to 79.17 during the session. The rupee trimmed some of the gains to close at 79.27 against the U.S. dollar.

• This is the second straight week in which the Rupee has gained against the greenback.

Source: Bloomberg

Seasonally adjusted GDP of the Euro area, a collection of 19 countries using the Euro, has risen 0.7%.

• In the first quarter of 2022, GDP had grown by 0.5% in the Euro area.

• Euro area annual inflation is expected to be 8.9% in July 2022, up from 8.6% in June.

Source: Eurostat, the statistical office of the European Union.

June Quarter Numbers

• Net Profit: Rs 3,668 crore vs Rs 3,001 crore (YoY) (Bloomberg consensus estimate: Rs 3,883.5 crore)

• NII: Rs 4447 crore vs Rs 4125 crore (YoY)

• GNPA: 1.78% vs 1.91% (QoQ)

Source: Exchange filing

Q1FY2023 (Consolidated, YoY)

• Revenue up 11% at Rs 10,762 crore Vs Rs 9,719 crore (Bloomberg Consensus estimate : Rs 10,267 crore)

• Net profit up 43% at Rs 2,061 crore Vs Rs 1,444 crore (Bloomberg consensus estimate : Rs 1,750 crore Profit)

• EBITDA at par to Rs 2,739 crore from Rs 2,741 crore (Bloomberg consensus estimate: Rs 2,705 crore Profit)

• Margins at 25.4% Vs 28.2% (Estimate : 26.3%)

Ashok Leyland Q1FY2022-23 (Standalone, QoQ)

• Net income at Rs 68.05 crore Vs. Rs 901.37 crore (Bloomberg Consensus Estimate: Rs 160 crore)

• Revenue at Rs 7,222.85 crore Vs. 8744.29 (Estimate: Rs 7,019.8 crore)

• EBITDA at Rs 320.28 crore Vs. 776.04 (Estimate: 470.7 crore)

• EBITDA margin at 4.4% Vs. 8.9% (Estimate: 6.7%)

India's stock benchmarks surged for the third day and remained on course to extend gains for the second week. If the Sensex and Nifty hold on to current levels, the measures would gain over 6.5% in the last two weeks.

Both Sensex and Nifty surged 1%, powered by metal stocks. The Sensex jumped 500 points to 57,344.15. The Nifty 50 added over 160 points to hover around 17,100. Today 38 of the 50 stocks rose, while 12 fell. SBI Life Insurance surged 8% and was the top gainer on the 50-stock gauge, followed by Tata Steel who rose over 6.6%.

The broader indices almost mirrored their larger peers. Barring FMCG and Healthcare, all the other 17 sectoral measures gained with Metal gauge jumping 4%.

The market breadth is skewed in the favour of bulls. About 2,019 stocks rose, 1,242 fell and 135 remained unchanged.

The World Bank does not plan to offer new financing to Sri Lanka until an adequate macroeconomic policy framework is in place.

• To help alleviate severe shortages of essential items such as medicines, cooking gas and cash transfers, it is repurposing resources under existing loans.

• The World Bank has disbursed around $160 million to meet urgent needs.

Source: World Bank statement

About half of the stocks in Jefferies' coverage universe that reported earnings so far have beaten average analyst estimate, while nearly one-fifth of the 47 stocks reported in-line earnings. Yet, the FY2023 Nifty earnings estimates have moved down by nearly 1.5%, according to Jefferies.

• Globally-linked stocks (nine constituents the Nifty 50) contributed the most to the cut in earnings estimates. Information technology and cement stocks witnessed cuts even as margin outlook improved across the board.

Source: Jefferies

Indian currency appreciated 0.53% (42 paise) to 79.34, during the session. This is Rupee's biggest intraday rise since May 5, and comes amid a rally in stock benchmarks, which have risen 1%.

Source: Bloomberg

Shares of PNC Infratech Ltd. rose most in a week. The company signed a concession agreement for a HAM project with National Highways Authority of India (NHAI). The bid project cost of Rs 864 crore.

The project pertains to the upgradation of four-lane bypass in Hardoi district in Uttar Pradesh. The project length is 53.99 km.

Trading volume is 3.6 times the 30-day average. All 23 analysts tracking the company maintain 'buy'. The return potential is 49.5%. The stock has underperformed benchmarks in 2022 so far, falling 3.5% compared to 0.7% loss for Sensex.

Source: Exchange filing, Bloomberg

• India has mandated all tobacco product manufacturers and importers to print new health warnings and images on products starting December 1.

Source: PIB

Shares of Granules India Ltd. rose nearly 4%, most in nearly three weeks. The uptick comes after the company said that will be consider a proposal for buyback of equity shares in its board meeting on August 9.

• Granules India will also report its June quarter numbers on the same day.

• Trading volume on the API manufacturer's stock is 4.6 times the 30-day average. Of the eight analysts tracking the company, seven suggest 'buy' and one recommends 'hold'. The return potential of the stock is 2.7%.

Source: Exchange filing, Bloomberg

Shares of glass-lined reactors maker for pharma, chemicals and dyes industries GMM Pfaudler jumped 18%, most in at least a year. The surge comes after the company reported growth in net income and revenue for the quarter-ended June, post market hours on Thursday.

Q1FY2022-23 (Consolidated, YoY)

• Net income at Rs 44.51 crore Vs. Rs 2.59 crore

• Revenue at Rs 739.24 crore Vs. Rs 551.58 crore

• EBITDA at Rs 97.81 crore Vs. Rs 35.94 crore

• EBITDA margin at 13.23% Vs. 6.52%

The company also approved the proposal for acquisition of Hydro Air Research Italia, based in Milan for 4.96 million Euro. Hydro Air is an engineering firm specialising in liquid separation and filtration, with crucial applications in pharmaceutical, chemical, food and waste-water industries. Hydro Air reported a turnover of 7.9 million Euro as on December 31,2021.

Trading volume is more than 40 times the 30-day average. Share price crossed 50-day and 200-day simple moving average, indicating potential upward price momentum. All three analysts tracking the company maintain 'buy'. The return potential of the stock is 15.8%. The stock is on course to snap six-day decline and is the best performer on S&P BSE 500, Nifty SmallCap 100, Nifty 500.

Source: Exchange filing, Bloomberg

India's stock benchmarks opened higher, building momentum from yesterday's gains, aided by auto, metal, realty, information technology, banking, consumer durables stocks, amid upside in global equities

The S&P BSE Sensex climbed over 500 points to 57,395.50, at the open. The NSE Nifty 50 also advanced by similar magnitude to reclaim 17,000. Today 46 of Nifty 50 stocks rose, with SBI Life jumping 7%.

The broader indices almost mirrored their larger peers. Barring S&P BSE Healthcare, all the other 18 sectoral measures compiled by BSE Ltd. advanced with S&P BSE Auto and Power gauges gaining the most

The market breadth is skewed in the favour of bulls. About 1,787 stocks rose, 520 fell and 88 remained unchanged.

• Indian currency appreciated 32 paise (0.40%) to 79.44, at the open. This is the steepest intraday rise for Rupee in over three weeks since July 7.

Source: Bloomberg

IndiGo’s Jorhat-Kolkata flight partially ran over the grass adjacent to the taxiway while taxiing out.

• Pilot held the taxi procedure and the aircraft was taken back to the bay in Jorhat.

• Initial inspection showed no abnormalities in the plane.

Source: IndiGo press statement

• Dr Reddy’s Laboratories

• Biocon

• Axis Bank

• Ashok Leyland

• Godrej Agrovet

• Cholamandalam Investment and Finance Company

• Sun Pharmaceutical

• HDFC

• Cipla

• Indian Oil

• Zydus Wellness

• Torrent Pharmaceuticals

• Credit Access Grameen

• Cholamandalam Investment and Finance

• CarTrade Tech

• Ashok Leyland

• HIL

• Star Health and Allied Insurance Company

• Grindwell Norton

• Godawari Power & Ispat

• Godrej Agrovet

• Great Eastern Shipping Company

• Exide Industries

• Emami

• EKI Energy Services

• Deepak Fertilisers & Petrochemicals

• Dalmia Bharat

• LT Foods

• Sundaram Fasteners

• Sundaram- Clayton

• Route Mobile

• Rain Industries

• Nilkamal

• Mahindra Logistics

• JK Paper

• VST Industries

• Cochin Shipyard: The company has delivered first indigenously built Aircraft Carrier (IAC-1) to the Indian Navy. It is the largest warship ever to be built in India having a deep displacement of 45,000 tons.

• IIFL Finance: The company has approved increasing its stake in IIFL Samasta, a subsidiary of the company from 74.41% to 99.41% for Rs 259.07 crore.

• Indus Towers: Managing Director and CEO Bimal Dayal has resigned.

• Chalet Hotels: The company is awarded a contract by the Delhi International Airport to design, develop, finance, operate, manage, and maintain a terminal hotel at a site opposite to Terminal 3, at the IGI Airport, New Delhi. The project shall be developed on a land parcel spread over 2.65 acres. The consideration for the project is under evaluation between the parties.

Vedanta Q1 FY23 (Consolidated, QoQ)

• Revenue fell 3% Rs 38,622 crore Vs Rs 39,822 crore (Bloomberg estimate: 37,698.7 crore)

• EBITDA fell 25% Rs 10,197 crore Vs 13,633 crore (Bloomberg estimate: 12,292.3 crore)

• EBITDA margin 26.4% Vs 34.2%

• Net Profit fell 24% at Rs 4,421 crore Vs Rs 5,799 crore (Bloomberg estimate: Rs 4,572.9 crore)

TVS Motor Q1 FY23 (Standalone, YoY)

• Revenue up 9% at Rs 6008 crore Vs Rs 5530.31 crore (Bloomberg estimate: Rs 5,900.2 crore)

• EBITDA up 7.5% at Rs 598.75 crore Vs Rs 556.82 crore (Bloomberg estimate: Rs 592 crore)

• EBITDA margin 10% Vs 10.1%

• Net profit up 17% at Rs 320.54 crore Vs Rs 274.5 crore (Bloomberg estimate: Rs 303.1 crore)

Dr Reddy’s Laboratories Q1 FY23 (Consolidated, YoY)

• Revenue up 6% at Rs 5,233 crore Vs Rs 4,945 crore (Bloomberg estimate: Rs 5,388 crore)

• EBITDA up 3% to Rs 941 crore from Rs 918 crore (Bloomberg estimate: Rs 1,116 crore)

• EBITDA margins at 18% Vs 18.6% (Bloomberg estimate: 20.7%)

• Net profit up 2.1 times to Rs 1,189 crore Vs Rs 380 crore (Bloomberg estimate: Rs 699 crore)

SBI Life Insurance Company Q1 FY23 (Consolidated, YoY)

• Revenue down 71% at Rs 4,641 crore Vs 15,737 crore (Bloomberg estimate: Rs 9,579 crore)

• Net profit up 18% of Rs 263 crore Vs Rs 223 crore (Bloomberg estimate: Rs 453 crore)

• VNB up 1.3 times at Rs 880 crore Vs Rs 380 crore

• VNB margin at 30.4% Vs 23.7%

Ajanta Pharma Q1 FY23 (Consolidated, YoY)

• Revenue up 27% at Rs 951 crore Vs Rs 748 crore (Bloomberg estimate: Rs 833 crore)

• EBITDA up 1% to Rs 222 crore from Rs 220 crore (Bloomberg estimate: Rs 214 crore)

• EBITDA margins at 23.3% Vs 29.4% (Bloomberg estimate: 25.7%)

• Net profit at par at Rs 175 crore Vs Rs 174 crore (Bloomberg estimate: Rs 154 crore)

Punjab National Bank Q1 FY23 (Standalone)

• Net interest income up 4% at Rs 7,543 crore Vs Rs 7,234 crore (YoY)

• Net profit fell 70% at Rs 308.44 crore Vs Rs 1,023.46 crore (YoY) (Bloomberg estimate: Rs 554.1 crore)

• GNPA 11.27% Vs 11.78% (QoQ)

• NNPA 4.28% Vs 4.80% (QoQ)

Bajaj Holdings & Investments Q1 FY23 (Consolidated, YoY)

• Revenue fell 6% at Rs 91.33 crore Vs Rs 97.65 crore

• EBITDA fell 21% at Rs 54.50 crore Vs Rs 69.15 crore

• EBITDA margin 60% Vs 71%

• Net profit up 24.5% at Rs 969.33 crore Vs Rs 778.56 crore

Sona BLW Precision Forgings Q1 FY23 (Consolidated, YoY)

• Revenue up 7% at Rs 584.25 crore Vs Rs 547.86 crore

• EBITDA up 3% at Rs 137.53 crore Vs Rs 133.23 crore

• EBITDA margin 23.5% Vs 24.3%

• Net profit fell 28% at Rs 75.84 crore Vs Rs 104.65 crore

Shriram Transport Finance Q1 FY23 (Consolidated, YoY)

• Revenue up 11% at Rs 5,144.81 crore Vs Rs 4,647.84 crore

• EBITDA up 38% at Rs 3,795.30 crore Vs Rs 2761.88 crore

• EBITDA margin 74% Vs 59%

• Net profit up 5.7x at Rs 966.52 crore Vs Rs 169.75 crore