Closing Bell: Sensex gains 622 pts, Nifty above 24,500; IT rally, realty drags

Indian benchmark indices ended strong on July 12 led by Information Technology stocks. At close, the Sensex was up 622.00 points or 0.78 percent at 80,519.34, and the Nifty was up 186.20 points or 0.77 percent at 24,502.20.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Monday morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

The Bank Nifty remained volatile throughout the day before closing flat. Sentiment might continue to favor the bulls, as the index appears to have found support at the 21 EMA on the daily timeframe on Thursday.

The buy-on-dips strategy looks best from the current perspective. On the higher end, resistance is visible at 52,800; and above 52,800, the index might continue its upward journey towards 54,000.

Nifty after consolidating in the last few days, recovered smartly to make a fresh high above 24500 levels led by IT heavyweights. The index closed with handsome gains of 196 points (0.8%) at 24512 levels. Majority of the sector ended in green with buying seen in IT, Oil & Gas, and Banking. IT saw a fresh rally and was up 4% after TCS reported inline numbers.

Nifty after seeing profit booking during the week made a comeback on the back of a positive start to Q1 earnings from IT major TCS lifting sentiments across the street. We expect this momentum to continue supported by the expectation of healthy quarterly results, hope of a rate cut, and a pre-budget rally.

IT sector is expected to be in focus as other IT majors will come out with results. On Monday, markets will react to India's inflation data which will be released post-market. Key results next week include Jio Financials, HDFC Life, Asian Paints, LTI Mindtree, Infosys, Havells, Wipro, JSW Steel, Paytm, etc. Also globally, investors will take cues from China’s Q2GDP numbers, US Core Retail Sales data, and ECB interest rate decisions.

#1 Market gains for 6 consecutive weeks, longest streak in 2024

#2 Benchmark indices outperform broder markets this week

#3 Friday’s big IT move helps Sensex & Nifty gain 1% each this week

#4 Nifty Bank give negative returns, falls 0.6%

#5 Midcap index records a minor gain on 0.2% this wee

Multiple tailwinds led the market to come out of the range bound trajectory. The strong result from the IT bellwether and a drop in US inflation to a one-year low added optimism to the market. The chances of a rate cut in September are inching higher, which is evident in the fall of the dollar index. We expect stock-specific moves to gain traction due to the ongoing earnings season and upcoming budget; indeed, IT will be in the limelight due to the good start to the earnings and outlook.

Indian rupee ended flat at 83.53 per dollar on Friday against Thursday's close of 83.56

Indian benchmark indices ended strong on July 12 led by Information Technology stocks.

At close, the Sensex was up 622 points or 0.78 percent at 80,519.34, and the Nifty was up 186.20 points or 0.77 percent at 24,502.20. About 1595 shares advanced, 2186 shares declined, and 98 shares unchanged.

Biggest gainers on the Nifty were TCS, Wipro, LTIMindtree, Infosys and HCL Technologies, while losers included Maruti Suzuki, Divis Labs, BPCL, Coal India and Asian Paints.

Among sectors, Information Technology index surged 4.5 percent, and Media index added more than 2 percent. On the other hand, Realty index shed 1.5 percent, Power index down nearly 1 percent, Capital goods and Auto indices down 0.5 percent, respectively.

The BSE midcap and smallcap indices ended with marginal losses.

The Sensex was up 653.28 points or 0.82 percent at 80,550.62, and the Nifty was up 202.50 points or 0.83 percent at 24,518.50. About 1512 shares advanced, 1882 shares declined, and 79 shares unchanged.

Indian Rupee gained by 0.05% today as domestic equities touched fresh all-time highs and a weak tone in the US Dollar. US Dollar declined as inflation cooled more than expected. US CPI rose 3% y-o-y in June 2024 versus forecast of 3.1%. Core CPI rose 3.3% y-o-y in June 2024 versus forecast of 3.4%. However, weekly unemployment claims fell to 222,000 vs 239,000 in the previous week.

We expect Rupee to trade with a slight positive bias on weak US Dollar as cooling inflation raised expectations of a September rate cut by the Fed. Odds of a September rate cut rose to around 90% post inflation data.

Positive tone in the domestic markets and fresh foreign inflows may also support the Rupee. However, surge in crude oil prices may cap sharp upside. Traders may take cues from India’s IIP and CPI data. USDINR spot price is expected to trade in a range of Rs 83.25 to Rs 83.80.

#1 A good beat in Q1 may imply a recovery

#2 Management said demand environment was stable with lower scrutiny by clients on ongoing projects

#3 Company’s GenAI deal pipeline at USD 1.2 billion V USD 900 m in Q4 FY24 is worth watching

#4 There were small but many positives in results#5

Another quarter of outperformance could lead to a re-rating for the company

Ashish Kumar has resigned as President & CEO – AMD & Essentials of the company due to personal reasons, effective August 10.

Vinod Jain has resigned as Chief Financial Officer & Chief Risk Officer of the company, effective July 11.

The company's subsidiary, Oriental Foundry, has received orders worth Rs 432.16 crore for the manufacture and supply of 1,200 BVCM-C wagons from Indian Railways.

The company reported solid quarter on the revenue front while margin declined on account of wage hike. Despite the uncertainty, management maintains FY25 to be better than FY24, deriving confidence from the broad-based performance across markets and verticals and healthy order pipeline.

With wage inflation taken upfront, management believes margins can typically inch up in the following quarters.

Expect ~11%/15% sales and PAT CAGR over FY24-26E.

Believe the company is well-placed to deliver better performance in FY25 with industry leading metrics, winning market share owing to large deal ramp ups, healthy order pipeline and improving traction in AI pipeline.

A proposal to raise funds through the mode of issuance of non-convertible debentures will be placed for consideration before the board of directors at its upcoming scheduled on July 18, 2024.

#1 Raise FY25-26 EPS by 1.2-1.5 percent

#2 Stock trades at 25.4x FY26 EPS

#3 Infosys & Wipro are top picks in the large cap Indian IT services space

Indosolar has set up 1.30 GW solar module manufacturing facility at its factory at Greater Noida, Uttar Pradesh, India and has commenced operations at such facility with effect from July 11, 2024.

Axis Bank, Sun Pharmaceutical Industries, Indian Oil Corporation, Jubilant FoodWorks, 20 Microns, Anant Raj, Atul, AU Small Finance Bank, Bimetal Bearings, Blue Dart Express, Birlasoft, D-Link (India), Indus Finance, India Infrastructure Trust, IRM Energy, Jayant Agro-Organics, Kabra Extrusiontechnik, Kirloskar Pneumatic, Mahindra Lifespace Developers, Mahindra Logistics, Neuland Laboratories, Nilkamal, Onward Technologies, Petronet LNG, Polychem, Piramal Pharma, PTL Enterprises, Safari Industries, SAT Industries, Themis Medicare,Transcorp International, Ujjivan Small Finance Bank, United Spirits, Utkarsh Small Finance Bank, VMS Industries, Wendt (India)

Shares of Rashtriya Chemicals and Fertilizers Ltd (RCFL) surged around 10 percent on July 12 to hit a fresh record high of Rs 244.9 on the National Stock Exchange (NSE) after the company announced a significant development.

The Board of Directors of the company approved a purchase order worth Rs 515 crore for Topsoe A/s to procure a Basic Engineering Design Package (BEDP) and supply proprietary equipment and catalyst. Read More

The board of directors of the company approved the proposal for sale of ID central (a unit of Subex Digital LLP, wholly owned subsidiary of the Subex Limited) by way of slump sale, without values being assigned to the individual assets and liabilities to Handy Online Solutions for consideration in the form of fully paid up Equity shares of Ongrid on such terms and conditions mutually agreed between Subex Digital LLP and Ongrid.

ABB India shares fell almost three percent in trade after international brokerage UBS downgraded the counter to 'neutral', seeing limited room for a re-rating.

UBS slashed its rating on ABB India from 'buy' to 'neutral', but it also hiked its target price to Rs 9,100 per share from Rs 8,830 apiece. Read More

Zerodha said on 12 July that some users may be experiencing issues with their BSE Futures and Options (F&O) orders. The problem was due to a connectivity issue with the Bombay Stock Exchange (BSE), and has resulted in orders appearing in the "Open Pending" state, said Zerodha in a post on X (Twitter).

The brokerage firm clarified that this issue is not isolated to Zerodha but affects brokers across the board. Angel One users also complained on social media that they were not able to square off positions.

Later, Zerodha confirmed that the issue had been resolved by the exchange.

#1 Acquisition of a 12.77 acre land parcel at Ghodbunder Road in Thane, MMR with a total potential carpet area of 1.82 msft, a 7.26 acre land parcel at Electronics City (Hebbagodi) in Bengaluru with a potential carpet area of 0.60 msft along with the landowner share of 0.83 msft saleable area in three projects by Provident in Goa and Bengaluru.

#2 Achieved quarterly customer collections from the real estate business of Rs 965 crores in Q1FY25 compared to Rs 696 crores in Q1FY24, up by 39 percent YoY

#3 Achieved quarterly sales value of Rs 1,128 crore for Q1FY25 in sustenance; vs Rs 1,126 crores in Q1FY24, while the planned launches were deferred to Q2FY25

#4 Average price realisation in Q1FY25 increased to Rs 8,746/sft, up by 6 percent from Rs 8,277/sft in Q1FY24

The company received provisional certificate of completion for the project of upgradation of Cheyyur-VandavasiPolur Road (SH-115) from km 1/620 to km 106/246 and ECR Link (ODR) Cheyyur-Panayur Road from km 0/000 to km 4/647 to two lanes with paved shoulders and maintenance of entire project stretch (109.273 km) for 7 years in the state of Tamil Nadu on Engineering, Procurement and Construction (EPC) Mode.

The total project cost is Rs 603.63 crore.

Cyient today announced the strategic expansion of its Semiconductor business with the establishment of a fully owned subsidiary.

#1 Target revised to Rs 663 from Rs 496

#2 Profits of most profitable fuel refinery in Asia tripled in 4 years

#3 Dividend distribution policy and earnings set to double in 2029

#1 Q1 results beat estimates

#2 See return to growth of its key verticals/markets

#3 Net hiring at a seven-quarter high as signs of revival emerge

#4 Raise revenue estimates but tweak EPS slightly

#5 Expect 7 percent/10 percent CAGR in CC revenues/EPS over FY24-27

#6 Company offers value relative to Nifty as its current PE premium of 29 percent is 1-standard below its 5-year average

The company has opened its new facility in Harlow, United Kingdom, and expects annual revenue to the tune of 50 million pounds over the next 2 years, with a target of 100 million pounds within the next 5 years.

Zerodha said on 12 July that some users may be experiencing issues with their BSE Futures and Options (F&O) orders. The problem was due to a connectivity issue with the Bombay Stock Exchange (BSE), and has resulted in orders appearing in the "Open Pending" state, said Zerodha in a post on X (Twitter). READ MORE

Appetite for overseas bonds is back after a two-year gap with demand from foreign investors picking up, experts said. According to Prime Database, fundraising through overseas bonds by Indian companies in 2024 till June has surpassed the overall issuances in 2023. So far this year, companies have raised Rs 32,619 crore, blowing past the Rs 31,218 crore raised in all of calendar 2023. In 2022, companies had raised Rs 45,237 crore. READ MORE

The Sensex was up 865.11 points or 1.08 percent at 80,762.45, and the Nifty was up 252.80 points or 1.04 percent at 24,568.80. About 1908 shares advanced, 1317 shares declined, and 107 shares unchanged.

The telecom operator has received approval from shareholders for issuance of equity shares on a preferential basis.

#1 A good beat in Q1 may imply a recovery

#2 Management said demand environment was stable with lower scrutiny by clients on ongoing projects

#3 Company’s GenAI deal pipeline at USD 1.2 billion V USD 900 m in Q4 FY24 is worth watching

#4 There were small but many positives in results#5

Another quarter of outperformance could lead to a re-rating for the company

Shares of the Power Finance Corporation (PFC) gained over 1.5 percent on July 12, a day after the government appointed Sandeep Kumar as Director (Finance) of the company.

Before this appointment, he was the Executive Director (Finance) at PFC since January 1, 2020, and held the position of Chief Financial Officer (CFO), PFC said in a statement. Read More

Shares of Ganesh Green Bharat Limited made a bumper stock market debut on July 12 listing at Rs 361, a premium of 90 percent over the issue price of Rs 190 per share on the NSE SME.

The Rs 125-crore public offer, consisting of a fresh issue of 65.91 lakh shares, garnered significant investor interest, being subscribed 229.92 times over three days. Non-institutional buyers led the surge, subscribing 470.44 times, while qualified institutions and retail investors subscribed 154.50 times and 176.88 times, respectively.

The Adani Group company has entered into a Share Subscription and Share Purchase Agreement for taking a majority stake of 67% in Omkar Chemical Industries in Gujarat.

A meeting of the board of directors of Zee Entertainment Enterprises is scheduled to be held on Tuesday, July 16, 2024, to consider and approve the raising of the funds through the issuance of appropriate instruments along with the terms and conditions of the appropriate instruments, subject to such regulatory/statutory approvals, as may be required.

AVG Logistics has been awarded the tender as the authorized partner for Express parcel services by Uttar Pradesh State Road Transport Corporation (UPSRTC).

In a significant move to bolster its service capabilities, AVG has secured space in 9,000 UPSRTC buses for Express parcel delivery services and expecting the lifetime revenue of Rs. 60 Crore over a period of 5 years.

Aditya Birla Fashion and Retail has raised its shareholding in Goodview Fashion from 33.5% to 51%, through secondary acquisition of 17.5% equity stake from the existing shareholders of GFPL.

HCL Technologies, Indian Renewable Energy Development Agency, Atharv Enterprises, Betala Global Securities, Gautam Gems, Golkonda Aluminium Extrusions, Indo Cotspin, Infomedia Press, JIK Industries, Oriental Hotels, Setco Automotive, Teamo Productions HQ, and Vipul will release their quarterly earnings scorecard on July 12.

Jio Financial Services has received from the Reserve Bank of India approval for conversion of the company from non-banking financial company to core investment company.

#1 Analysts predict marginal downturn in revenue, profit

#2 Revenue may drop 1%; profit may decline 3.7% QoQ

#3 EBIT margin may decline 40 bps to 17.2% QoQ amid higher onsite expenses, staggered wage hikes

#4 Likely to maintain FY25 revenue growth guidance of 3-5%

#5 Management commentary on new deal ramp-ups, outlook on IT services, ER&D, products business, and capital allocation

Despite positive global market trends, the Indian stock market traded sideways with significant intraday volatility and ended flat on Thursday. However, there was notable activity in certain sectors and individual stocks due to the ongoing Q1 results season.

On its weekly expiry day, NIFTY traded within a narrow range of 24,100 to 24,450. The index has been consolidating within this range for the past seven days, making these levels critical for anticipating future market direction. From the option data, the 24,400 Call strike holds a noteworthy open interest of approximately 32 lakh shares, while on the Put side, the 24,200 strike holds a sizable OI of about 30 lakh shares.

Overall, the market is demonstrating strong resilience, with investors eagerly buying on price dips. Today's market movements will be influenced by the US inflation data released yesterday.

Brigade launches residential tower at 50-acre township with revenue potential of over Rs. 400 crore

Boeing has notified some 737 Max customers in recent weeks that aircraft due for delivery in 2025 and 2026 might face additional delays of three to six months, Bloomberg News reported on Thursday, citing people familiar with the matter.

Boeing did not immediately respond to a Reuters request for comment.

Reuters reported last month citing two industry sources that Boeing informed its suppliers it was delaying a key production milestone for its 737 jet family by three months as Boeing's jet production has slowed sharply in the face of increased scrutiny from regulators, airlines and lawmakers.

The planemaker in May had said that deliveries will not increase in the second quarter as originally expected.

Tata Consultancy Services (TCS) Q1 FY25 results met street expectations, with the consolidated net profit rising 9 percent year-on-year to Rs 12,040 crore. India’s largest IT company’s April-June revenue from operations rose 5.4 percent on-year to Rs 62,613 crore. Moneycontrol had projected a profit of Rs 11,999 crore on a revenue of Rs 62,190 crore, based on an average of 10 brokerage estimates.

TCS Q1 results showed that the company’s margins took a hit due to the wage hike cycle during the quarter. The EBIT margin or the operating margin narrowed to 24.7 percent for Q1, a 130 basis points fall from 26 percent in the previous quarter; in line with the Moneycontrol estimate of 24.7 percent. EBIT is short for earnings before interest and taxes.

The company's board also approved an interim dividend of Rs 10 per share for the quarter.

TCS added 5,452 employees in Q1 taking the total workforce to 6.07 lakh. The company's attrition rate stood at 12.1% on last twelve-month (LTM) basis.

Amid weak global cues, the Indian indices opened higher on July 12.

The Sensex was up 150.74 points or 0.19 percent at 80,048.08, and the Nifty was up 70.70 points or 0.29 percent at 24,386.70. About 1850 shares advanced, 593 shares declined, and 100 shares unchanged.

TCS, LTIMindtree, BPCL, Coal India and ONGC were among major gainers on the Nifty, while losers were Maruti Suzuki, Power Grid Corp, Apollo Hospitals, HDFC Life and Divis Labs.

The market which has been moving in a narrow range this week might react favourably to positive global and domestic cues. The positive global cue is the decline in inflation in the US by 0.1% in June triggering hopes of a rate cut by the Fed in September for which the market indicates a 90% probability. The positive domestic cue is the better than expected numbers from TCS and positive management commentary which can lift most IT stocks.

An important trend in the market now is that segments like Railways and Defence are booming unabated on hopes while financials are under pressure on fears of declining deposit growth. Both these trends are a bit overdone. Investors can think of moving some money from the overvalued segments to segments which are attractive from the valuation perspective.

The benchmark Sensex and Nifty indices are expected to open positive on July 12, following GIFT Nifty trends indicating a gain of 60 points for the broader index.

Nifty can find support at 24,300 followed by 24,200 and 24,150. On the higher side, 24,400 can be an immediate resistance, followed by 24,450 and 24,500.

The charts of Bank Nifty indicate that it may get support at 52,000, followed by 51,800 and 51,700. If the index advances further, 52,500 would be the initial key resistance, followed by 52,700 and 52,800.

Yesterday again we saw a sharp down move in Nifty on its weekly expiry but a strong bounce back helped Nifty to close above 24300 levels. Today we can witness a volatile session in markets where traders are advised to book profits near the resistance of 24400-24450 levels and should enter long positions on dips near the support level of 24300-24250 levels with a strict stop loss of 24200 on closing basis.

Indian rupee opened flat at 83.54 per dollar on Friday versus Thursday's close of 83.56.

Benchmark indices are trading higher in the pre-opening session.

The Sensex was up 260.68 points or 0.33 percent at 80,158.02, and the Nifty was up 21.10 points or 0.09 percent at 24,337.10.

Reliance Jio Infocomm Ltd, the telecom unit of Reliance Industries Ltd, could be headed for a mega IPO in 2025, with a potential valuation of more than Rs 9.3 lakh crore, a Jefferies note said.

Jio 'could list at $112 billion valuation' and add '7-15 percent upside' to the Reliance Industries share price, Jefferies said in the note on July 11.

The brokerage maintained a 'buy' rating on the RIL stock, with a target price of Rs 3,580 per share. This implies an upside of more than 13 percent to the last closing price of Rs 3,164. RIL's share price has surged more than 22 percent since January, outperforming the Nifty 50, which gained 12 percent. Read More

Boeing has notified some 737 Max customers in recent weeks that aircraft due for delivery in 2025 and 2026 might face additional delays of three to six months, Bloomberg News reported on Thursday, citing people familiar with the matter.

Boeing did not immediately respond to a Reuters request for comment.

Reuters reported last month citing two industry sources that Boeing informed its suppliers it was delaying a key production milestone for its 737 jet family by three months as Boeing's jet production has slowed sharply in the face of increased scrutiny from regulators, airlines and lawmakers.

The planemaker in May had said that deliveries will not increase in the second quarter as originally expected.