Sensex falls 887 points, Stock Market News July 21

Sensex falls, closed at 66,685 level: While Nifty at 19745 level

 Indian Market 

FII AND DII 

 Indian Market News 

1. Sensex declines 887 points, Nifty drops below 19,800; IT stocks are hardest affected
2. UltraTech Cement’s Q1 net profit rose 6.8% to Rs 1,690 crore from Rs 1,582 crore, while revenue rose 17% to Rs 17,737.1 crore from Rs 15,163 crore.
3. GNA Axles Q1 net profit fell 2.6 percent to Rs 33.1 crore from Rs 34 crore, and revenue down 2.5% to Rs 374 crore from Rs 383.7 crore.\
4. Dalmia Bharat Q1 earnings fall short of expectations; profit falls 29.6% to Rs 144 crore.
5. Oriental Hotels shares are down after reporting poor first-quarter profits.
6. Infosys falls 10% on dramatic outlook reduction; gasoline brokerages get downgraded
7. Persistent Systems’ Q1 earnings fell short of expectations; profit fell 9% year on year to Rs 228.8 crore. 
8. HAL inks letter of intent with Argentina to collaborate on light and medium utility helicopters.
9. Jindal Stainless completes the acquisition of Jindal United Steel’s remaining 74% interest for Rs 958 crore.
10. Utkarsh Small Finance Bank starts with a 60% premium.
11. Gold falls from a two-month high as the dollar and rates recover.
12. IndiaMART InterMESH Q1 profit increases 78% year on year to Rs 83 crore, and the board proposes a Rs 500 crore share repurchase.
13. The board of directors of IndusInd Bank has approved a Rs 20,000 crore fund raising strategy.
14. L&T Construction receives an order for over Rs 7,000 crore.  
15.  The Nifty Information Technology index fell 3%, led by Infosys, Tech Mahindra, and Persistent Systems.
16. Hindustan Unilever’s first-quarter earnings fell short of expectations; profit increased by 8% year on year to Rs 2,472 crore, while volume increased by 3%. 
17. Infosys’ Q1 profit decreases 3% to Rs 5,945 crore, while sales projection for FY24 is reduced to 1-3.5%.
18. Reliance Industries’ net profit during the first quarter was estimated to be Rs 16,995.

 Indian Market Today  

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• RIL Q1 net profit seen at Rs 16,995 crore

  Reliance Industries Ltd is expected to report muted earnings in the first quarter of 2022-23, despite steady consumer growth. A Bloomberg survey of 14 brokerages predicts consolidated net sales at Rs 2.14 lakh crore and net profit at Rs 16,995.50 crore. The company is scheduled to report its June quarter earnings on July 21. EBITDA is expected to marginally increase by 1% to Rs 38,800 crore, with O2C EBITDA down 4% to Rs 15,600 crore due to lower GRMs. Emkay Research expects net subscriber addition of 6.5 million for Jio, a 1% higher ARPU at Rs 180.

  Retail EBITDA is expected to be up 2% QoQ to Rs 5,000 crore, while upstream EBITDA remains largely flat. Emkay Research estimates consolidated adjusted PAT to decline 14 percent to Rs 16,500 crore, mainly due to higher ETR at 22%.

• HUL Q1 disappoints on weak demand, volume growth at 3%

  Hindustan Unilever Limited reported a net profit of Rs 2,472 crore for the June quarter of FY24, a 8% growth from the previous year’s Q2. However, the company experienced a 10% fall in profit. The total revenue is Rs 15,333 crore, a 6.4% increase from the year-ago quarter. However, net profit and revenue missed estimates, with Q1 revenue at Rs 15,477 crore and net profit at Rs 2,581 crore.

• Infosys slashes FY24 revenue guidance to 1-3.5%, profit increases 11% YoY

  Infosys, India’s second-largest IT company, reduced its fiscal revenue guidance to 1-3.5 percent from 4-7 percent due to a challenging demand environment. The company reported an 11% YoY increase in net profit to Rs 5,945 crore in Q1 2024. Consolidated revenue increased 10% YoY to Rs 37,933 crore, while operating margins fell by 20bps to 20.8 percent. Infosys maintained operating margin guidance at 20-22 percent.

Global Market Update

• Gift Nifty

GIFT Nifty starts flat with 14 points gain, futures at 19,872.50

•  US market

  On Thursday, the S&P 500 and Nasdaq fell due to Tesla and Netflix’s quarterly results.

  Tesla’s shares tumbled 9.74%, its biggest one-day percentage drop since April 20.

  Netflix’s slumped 8.41%, its biggest one-day percentage decline since December 15, as its quarterly revenue fell short of estimates.

  The Dow Jones Industrial Average rose by 0.47 percent, while the S&P 500 lost 30.85 points and the Nasdaq Composite dropped 294.71 points.

  Johnson & Johnson’s annual forecast showed a strong annual forecast.

• ASIA Markets

  Asia-Pacific markets fell on Friday after Japan’s consumer price index figures for June showed a 3.3 percent core inflation rate, consistent with Reuters economists’ expectations.

•  Eu Markets 

European stock markets closed cautiously higher on Tuesday, with the Stoxx 600 index up 0.6%. Telecom stocks experienced a 0.9% dip, while chemicals and retail stocks each saw a 1.3% increase.

STOCK IN NEWS

• Infosys: The second-largest IT services provider in the nation reported a profit of Rs 5,945 crore for the quarter ended June FY24, down 3% from the prior quarter. It also lowered its full-year revenue growth guidance to 1-3.5 percent from 4-7 percent earlier in the year while keeping its EBIT margin guidance at 20-22 percent. Revenue increased by 1.3 percent sequentially to Rs 37,933 crore, while revenue in dollars increased by 1.4 percent QoQ to $4,617 million. Revenue growth in constant currency terms was 1 percent as opposed to the 0.7 percent increase predicted by the CNBC-TV18 poll.

• Hindustan Unilever: For the quarter that ended in June of FY24, the FMCG giant saw revenue increase by 6.1 percent year over year to Rs 15,148 crore and profit increase by 8 percent to Rs 2,472 crore. Growth was seen in all key segments, including home care, beauty & personal care, and foods & refreshment. Operating-wise, EBITDA increased by 8.4% to Rs 3,521 crore and the margin increased by 50 basis points to 23.2 percent from the same time last year. The quarter’s underlying volume growth was only 3%, which was less than the 5–6% growth that the CNBC-TV18 poll had predicted.

• Jindal Stainless: The largest stainless steel producer in the nation, Jindal Stainless, has finished buying Jindal United Steel. The company previously owned a 26 percent stake in Jindal United Steel, and for a cash payment of Rs 958 crore, it has since purchased the company’s remaining 74 percent equity stake in Jindal United Steel. As a result, Jindal United Steel is now wholly owned by Jindal Stainless. A cold rolling mill with a capacity of 0.2 MTPA and a hot strip mill with a capacity of 1.6 MTPA are both run by Jindal United Steel. In Jajpur, Odisha, it is also undergoing capacity expansion to reach 3.2 MTPA.

• Persistent Systems: The Pune-based IT company reported a net profit of Rs. 228.8 crore for the three months that ended in June FY24, a 9 percent decrease from the three months prior due to subpar operating results. Revenue in rupee terms increased by 3% QoQ to Rs 2,321.2 crore, and topline revenue for the quarter rose by 3% to $282.90 million in dollars. The total contract value of the orders for the quarter that ended in June 2023 was $380.3 million, while the annual contract value was $271.9 million.

• IndusInd Bank: The board of directors of IndusInd Bank has given the private sector lender permission to raise up to Rs 20,000 crore through the private placement of debt securities.

• Union Bank of India: For the quarter that ended in June of fiscal year 24, the public sector lender reported a profit of Rs 3,236 crore, up 107.67% from Rs 1,558 crore in the same quarter last year. The quarter’s net interest income increased by 16.6% year over year to Rs 8,840 crore, and the net interest margin increased by 13 bps to 3.13% in Q1FY24. In comparison to the same period last fiscal year, global advances for the quarter increased by 12.33% to Rs 8.18 lakh crore, and deposits increased by 13.63% to Rs 11.28 lakh crore. Asset quality improved, with net non-performing assets (NPA) falling 12 bps QoQ to 1.58% and gross non-performing assets (NPA) falling 19 bps sequentially to 7.34% in Q1FY24.

• Coforge: The multinational provider of IT solutions reported a profit of Rs 165.3 crore for the quarter that ended in June FY24, up 44% from the prior quarter. Revenue increased 2.4% sequentially to Rs 2,221 crore, 2.8% quarterly to $271.8 million in dollars, and 2.7% quarterly in constant currency. In the most recent quarter, the company reported its highest-ever order intake of $531 million and reaffirmed its FY24 annual revenue growth guidance of 13-16% in constant currency terms.

• United Spirits: The alcoholic beverage company reported a standalone profit of Rs. 238,2 crore for the quarter ending June FY24, up from Rs. 194,9 crore in the same quarter last year. In comparison to the same period last fiscal year, revenue from operations (net of excise duty) decreased by 1% to Rs 2,171.9 crore during the quarter. In Q1FY24, volumes were 13.24 million cases, up from 12.5 million cases in Q1FY23.

• Dalmia Bharat: The cement manufacturer reported profit of Rs 144 crore for the June FY24 quarter, down 29.6% from the corresponding quarter a year earlier due to weaker operating margin performance. Operations revenue increased by 9.8% YoY to Rs 3,624 crore for the quarter, and volume increased by 12.4% YoY to 7 million tonnes.

• IndiaMART InterMESH: In comparison to the same period last year, the company’s profit increased by 78% year over year to Rs 83 crore for the June FY24 quarter, driven by other income of Rs 57 crore (on fair value gains on treasury investments). In comparison to the same period last year, operating revenue increased by 26% to Rs 282 crore, primarily due to a 16% increase in the number of paying subscription suppliers. Operatingly, EBITDA for the quarter increased by 20% to Rs 77 crore YoY, but margin fell by 200 bps YoY to 27% as the company continued to invest in sales, servicing, product and technology development, and human resources. The company’s board of directors has given the go-ahead for a maximum Rs 500 crore share buyback at a price of Rs 4,000.

• Tanla Platforms: For the quarter ended in June of FY24, the CPaaS provider’s profit increased by 35% year over year to Rs 135.4 crore. Revenue for the quarter increased by 14% year over year to Rs 911.1 crore, with growth in both the enterprise communications business and digital platforms.

   

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