SSPL WEALTH PVT LTD

Mid - Session

Market behaviours during the course of the trading session.

Market trades range bound; Nifty trades below 18,300 level

14-Oct-21 13:39 Hrs IST

The benchmark indices traded in a narrow range in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, rose 292.01 points or 0.48% at 61,029.06. The Nifty 50 index gained 120.05 points or 0.66% at 18,281.80.

The Sensex hit a record high of 61,216.26 while the Nifty hit an all-time high of 18,323.20 in morning trade.

HDFC Bank (up 2.03%), Larsen & Toubro (L&T) (up 2.90%) and ITC (up 2.45%) boosted the indices.

Broader market was trading firm. The S&P BSE Mid-Cap index rose 0.71%. The S&P BSE Small-Cap index gained 0.62%.

The BSE Mid Cap index has gained 5.76% while the BSE Small Cap index rallied 4.5% in six sessions.

Buyers outnumbered sellers. On the BSE, 1,732 shares rose and 1,528 shares fell. A total of 160 shares were unchanged.

Economy:

Prime Minister Narendra Modi on Wednesday inaugurated the PM Gati Shakti-National Master Plan for multi-modal connectivity. In his address, Modi said the national master plan will provide Gati Shakti to 21st century India with multimodal connectivity and next-generation infrastructure.

The Confederation of Indian Industry (CII) has lauded the launch of Gati Shakti Master Plan saying that the proposed geo-spatial digital platform is a well-timed and revolutionary initiative.

In a statement, director general of CII Chandrajit Banerjee said that the initiative would spur manufacturing competitiveness by facilitating ease of doing business through improved connectivity. He said it is a giant step towards unlocking India's growth potential and creating jobs.

WPI Inflation:

India's inflation based on wholesale price index (WPI) rose 10.66% in September 2021 compared with 1.32% in September 2020.

The high rate of inflation in September 2021 is primarily due to rise in prices of mineral oils, basic metals, non-food articles, food products, crude petroleum & natural gas, chemicals and chemical products, etc. compared with the corresponding month of the previous year, the Ministry of Commerce & Industry said in a statement today.

WPI grew 11.39% in August 2021, while the figure for July was 11.57%.

Gainers & Losers:

Adani Ports & Special Economic Zone (APSEZ) (up 5.65%), Grasim Industries (up 4.21%), Indian Oil Corporation (IOCL) (up 2.93%) and Larsen & Toubro (L&T) (up 2.90%) were major gainers in Nifty 50 index.

Coal India (down 3.58%), Eicher Motors (down 1.93%), IndusInd Bank (down 1.37%), Bajaj Finance (down 1.03%) and Bharti Airtel (down 0.99%) were major losers in Nifty 50 index.

Nifty Result Today:

HCL Technologies (down 0.77%) will announce its quarterly results today.

Earnings Impact:

Mindtree surged 9.32% after the company reported 16.2% rise in consolidated net profit to Rs 398.9 crore on a 12.9% increase in revenue to Rs 2,586.2 crore in Q2 FY22 over Q1 FY22. As compared to Q2 FY21, the company's net profit and revenue have increased by 57.2% and 34.3%, respectively. EBITDA improved by 14.3% to Rs 530.7 crore in Q2 FY22 from Rs 464.5 crore in Q1 FY22. EBITDA margin was at 20.5% as on 30 September 2021 as against 20.3% as on 30 June 2021. The company's free cash flow increased to Rs 279.1 crore in Q2 FY22 from Rs 97.3 crore in Q1 FY22. In dollar terms, Mindtree registered 16% increase in consolidated net profit to $54 million on a 12.7% rise in revenue to $350.1 million in Q2 FY22 over Q1 FY22.

Wipro climbed 6.46% after the IT major reported 9.6% fall in consolidated net profit to Rs 2,930.7 crore in Q2 FY22 from Rs 3,242.6 crore in Q1 FY22. Revenue from operations increased by 7.8% Q-o-Q to Rs 19,667.4 crore during the quarter. As compared to Q2 FY21, the IT firm's net profit and revenue from operations in Q2 FY22 have risen by 18.9% and 30.1%, respectively. Profit before tax in Q2 FY22 stood at Rs 3,756.5 crore, down by 3% from Rs 3,873.3 crore in Q1 FY22. In dollar terms, Wipro's gross revenue was $2.7 billion in the second quarter. The IT Services segment revenue was at $2,580 million, an increase of 6.9% Q-o-Q and 29.5% Y-o-Y. The Non-GAAP constant currency IT Services segment revenue increased by 8.1% Q-o-Q and 28.8% Y-o-Y. The IT Services operating margin for the quarter was at 17.8%, down 104 bps on a sequential basis.

Infosys gained 0.50%. The IT bellwether said its consolidated net profit rose 4.4% to Rs 5,421 crore on 6.1% increase in revenues to Rs 29,602 crore in Q2 FY22 over Q1 FY22. On a year-on-year basis, Infosys' net profit and revenue in Q2 FY22 increased 11.9% and 20.5%, respectively. Revenues in constant currency terms grew by 19.4% YoY and 6.3% QoQ. Operating margin for the quarter stood at 23.6%, a decline of 1.8% YoY and 0.1% QoQ. Infosys said its revenue guidance for FY22 is revised upwards to 16.5%-17.5%. Margin guidance is retained at 22%-24%.

Global Markets:

European stocks rose across the board while most Asian stocks edged higher on Thursday, 14 October 2021, with investors around the world reflecting on the latest inflation data and earnings out of the US. Investors also reacted to the release of China's inflation data for September. Markets in Hong Kong are closed on Thursday for a holiday.

China's producer price index for September soared 10.7% as compared with a year ago. China's consumer price index also rose 0.7% in September as compared with a year ago.

Singapore's central bank unexpectedly tightened monetary policy on Thursday. Official advance estimates also showed on Thursday that Singapore's economy grew 6.5% year-on-year in the third quarter of 2021.

In US, the S&P 500 and Nasdaq ended higher on Wednesday, led by gains in shares of big growth names like Amazon.com and Microsoft, but JPMorgan shares fell along with other bank shares and weighed on the market.

Minutes released Wednesday afternoon from the Federal Open Market Committee's September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.

Consumer prices rose 0.4% last month, slightly higher than August's gain and pushing annual inflation back to the highest increase in 13 years. The consumer price index rose 5.4% in September from a year ago, the Labor Department said Wednesday, up slightly from August's gain of 5.3%. Excluding the volatile food and energy categories, core inflation rose 0.2% in September and 4% compared with a year ago. Core prices hit a three-decade high of 4.5% in June.