Bronze bull statue stands near BSE (Photographer: Dhiraj Singh/Bloomberg)
5 years ago
Jul 09, 2021
India stock benchmarks registered their a second weekly decline as worries return over the global economic recovery amid the spread of Covid-19 variants.
Shares of Oracle Financial Services Software Ltd. gained on the back of new deals.
The stock rose as much as 5% in the afternoon trade on Friday, and more than 8% for the week.
A subsidiary of Oracle Corporation, Oracle Financial Services is a technology solutions provider for banking and insurance industry. It has announced 58 unique deals in FY21 against 51 in the entire FY20. Most of the deals were in corporate banking solutions and analytics.
According to Dolat Capital, Q1 FY22 would be a key quarter to take note of as it’s seasonally the best for Oracle Financial Services in terms of new licence wins as well as growth. The brokerage maintained the company as its preferred pick with a ‘buy’ rating and target price of Rs 4,000 apiece.
Key tweaks around the BFSI segment, rising focus on digitization and cloud shift, gaining preference for data analytics augured well for the company. The use of artificial intelligence and machine learning as key principles in product development are being viewed as an advantage, Dolat said.
Indian stock benchmarks are on course for weekly losses amid the decline in global markets. The NSE Nifty50 slipped over 0.3% to trade below 15,700 level. The S&P BSE Sensex shed nearly 200 points and hovered around 52,400 mark.
Broader markets rallied with Nifty Midcap (+0.32%) and Nifty Smallcap (+0.31%) extending their outperformance over Nifty (-0.32%). Among sectors, Nifty Realty (+1.51%), Nifty Metal (+0.97%), Nifty Media (+0.65%), Nifty Pharma (+0.33) gained.
Banking stocks slipped with Axis Bank (-1.25%). HDFC Bank (0.80%) and ICICI Bank (-0.74%) leading the decline.
Shares of TCS fell over 1.28% to Rs. 3,216.84 after it posted its Q1FY22 earnings after markets hours on Thursday
Shares of Bajaj Finserv gained 3.37 to a new all-time high with the company’s market capitalisation crossing the Rs 2 lakh crore milestone. The stock added over 10% over the last month when compared to 0.8% gain for Sensex
Progress of monsoon, measures to ease supply of certain commodities, and gradual unlocking of states with declining virus cases would mitigate cost pressures going forward, the finance ministry said in its monthly economic report.
However, rising international commodity prices, especially of crude and logistics costs, pose upside risks to the inflation outlook
The economy is showing signs of revival, but the recovery is uneven
The recently announced economic relief package is expected to “further oil the wheels” of the capital expenditure cycle
Shares of Tata Steel Ltd. gained more than 2% amid rising prices of the alloy.
The steelmaker has rallied over 6.5% in the last five sessions, in excess of 10% in the past month, and nearly 90% in 2021 so far.
Tata Steel on Thursday told the bourses that CARE Ratings Ltd. has upgraded its rating on the steel mill from ‘AA’ (outlook: negative) to ‘AA+’ (outlook: stable). That, it said, was on account of the company’s strong performance in FY21, both domestic and European operations, besides increase in steel prices, which has led to a substantial cash flow generation.
According to JPMorgan, Tata Steel’s near-term prospects in Europe remained intact with material upside risk for the business over FY22-FY23. Steel prices, predicted to remain at healthy levels for the next 12 months, alongside rising demand are likely to be key growth drivers for Tata Steel. JPMorgan said the June-quarter results would act as a catalyst for consensus revision of FY21 estimates and pricing regime till 2022.
“Domestic equities continue to look soft due to weak global cues as of now,” Binod Modi, head of strategy at Reliance Securities, said in a note. He expects investors to focus on progress of southwest monsoon in the country as well as quarterly earnings and Covid-19 related situation in the term.
