SENSEX RISES FOR 6TH DAY; NIFTY CLOSES ABOVE 17,900; NSE VIX HOVERS BELOW 12 MARK

The key equity indices ended with decent gains on Thursday, with the Nifty crossing 17,900 due to widespread buying across sectors. Although the market commenced on a neutral note owing to conflicting global signals, the second half of the session saw a surge in buying which led to the indices ending close to their peak levels. Trading was volatile today due to expiry of April 2023 futures and options (F&O) contracts. IT, auto and realty shares were in demand. On the other hand, FMCG and PSU banks corrected.

The S&P BSE Sensex jumped 348.80 points or 0.58% to 60,649.38, rising for the sixth straight session. The Nifty 50 index rose 101.45 points or 0.57% to 17,915.05, rising for the fourth straight session.

In the broader market, the S&P BSE Mid-Cap index gained 0.52% while the S&P BSE Small-Cap index advanced 0.62%.

The market breadth was strong. On the BSE, 1952 shares rose and 1528 shares fell. A total of 134 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 1.95% to 11.43.

Numbers to track:

The yield on India`s 10-year benchmark federal paper declined to 7.099 from 7.116 in previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.84 compared with its close of 81.74 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement advanced 0.57% to Rs 60,233.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.01% to 101.48.

The United States 10-year bond yield rose 0.87% to 3.460.

In the commodities market, Brent crude for June 2023 settlement gained 6 cents or 0.08% to $77.75 a barrel.

Global Markets:

The Dow Jones index futures were up 155 points, pointing towards a robust start for US stocks today.

Most shares in Europe and Asia advanced on Thursday. Investors` attention was drawn towards the Bank of Japan`s inaugural policy meeting under new governor Kazuo Ueda.

Reports suggest that Ueda is likely to sustain the extremely accommodative monetary policy implemented by his predecessor, Haruhiko Kuroda, for the time being. However, there are expectations that he will chart a course to move away from this policy in the future.

The US stock market ended on a mixed note on Wednesday, with concerns about the banking sector outweighing the strong earnings of big tech companies. The ongoing political debate over raising the federal debt ceiling added to investor anxiety.

Earnings Impact:

Wipro shed 0.04%. The IT major`s consolidated net profit rose 0.71% to Rs 3,074.5 crore on 0.17% decline in revenue form operations to Rs 23,190.3 crore in Q4 FY23 over Q3 FY23. On a year on year (YoY) basis, the IT firm`s net profit declined 0.41% while revenue jumped 11.17% in Q4 FY23.

In dollar terms, Wipro`s gross revenue was $2.8 billion, down 0.2% QoQ and up 11.2% YoY. IT Services segment revenue improved to $2,823 million, an increase of 0.7% QoQ and 3.7% YoY.

IT Services operating margin for the quarter was at 16.3%, flat QoQ, Non-GAAP constant currency IT Services segment revenue decreased 0.6% QoQ and up 6.5% YoY.

For the quarter ending 30 June 2023, Wipro expects revenue from its IT Services business including India State Run Enterprise (ISRE) segment to be in the range of $2,753 million to $2,811 million. This translates to a sequential guidance of -3% to -1% in constant currency terms.

Meanwhile, the IT firm said that its board has approved a share buyback of upto Rs 12,000 crore.

Axis Bank fell 0.76%. The private lender reported a net loss of Rs 5,728.42 crore in Q4 FY23 as against a net profit of Rs 4,117.77 crore in Q4 FY22. Total income increased 31.2% year on year (YoY) to Rs 28,865.08 crore in the quarter ended 31 March 2023.

Hindustan Unilever (HUL) declined 1.46%. The FMCG major reported 9.67% rise in standalone net profit to Rs 2,552 crore on 10.98% increase in turnover to Rs 14,638 crore in Q4 FY23 over Q4 FY22. HUL delivered underlying volume growth of 4%. Growth was competitive with more than 75% of the business winning market shares, said the company.

Bajaj Finserv advanced 1.90% after the company reported 31.41% jump in consolidated net profit to Rs 1,768.95 crore on a 25.25% increase in total income to Rs 23,624.95 crore in Q4 FY23 over Q4 FY22.

Bajaj Finance gained 2.39% after the company reported 30% rise in consolidated net profit to Rs 3,158 crore on a 32% increase in total income to Rs 11,363 crore in Q4 FY23 as compared with Q4 FY22. Loan losses and provisions amounted to Rs 859 crore (up 22% YoY). The company stated that it holds a management and macro-economic overlay of Rs 960 crore as of 31 March 2023.

The company booked 7.56 million new loans during Q4 FY23, which is higher by 20% as compared with 6.28 million in Q4 FY22.Assets under management (AUM) grew by 29% Rs 2,47,379 crore as of 31 March 2023 from core AUM (i.e. AUM excluding short term IPO financing receivable) of Rs 1,92,087 crore as of 31 March 2022. AUM growth in Q4 FY23 was highest ever at Rs 16,537 crore.

Shoppers Stop advanced 4.48% after the company reported consolidated net profit of Rs 14.26 crore in Q4 FY23 as compared with net loss of Rs 15.85 crore recorded in Q4 FY22. Meanwhile, the board has approved the re-appointment of Venugopal Gopal as managing director designated as managing director and chief executive officer (CEO) for a further period of 3 years from 6 November 2023 to 5 November 2026 (both days inclusive).

Chennai Petroleum Corporation surged 13.80% after the company`s standalone net profit increased marginally to Rs 1,004.19 crore in Q4 FY23 as against Rs 994.42 crore recorded in Q4 FY22. Net sales grew by 9.72% to Rs 18,008.89 crore in the quarter ended 31 March 2023 from Rs 16,413.57 crore recorded in the corresponding quarter previous year.

Swaraj Engines rallied 4.23% after the company`s consolidated net profit jumped 59.9% to Rs 34.96 crore in Q4 FY23 as compared with Rs 21.86 crore in Q4 FY22. Revenue from operations stood at Rs 359.79 crore in Q4 FY23, registering the growth of 48.5% as against Rs 242.35 crore posted in corresponding quarter last year.

SBI Life Insurance Company gained 1.97% after the life insurer`s net profit increased 15.6% to Rs 776.85 crore on 6.43% rise in total income to Rs 22,805.40 crore in Q4 FY23 over Q4 FY22.

L&T Technology Services (LTTS) jumped 8.16% after the company reported a 1.98% rise in consolidated net profit to Rs 309.60 crore on 2.32% increase in revenue from operations to Rs 2,096.20 crore in Q4 FY23 over Q3 FY23. As compared to Q4 FY22, the company`s net profit and revenue surged by 18.2% and 19.4%, respectively.

Voltas dropped 5.41% after the company reported 21.2% decline in net profit to Rs 143.92 crore from Rs 182.70 crore in Q4 FY23 over Q4 FY22. Total income increased by 11% year on year to Rs 3,003.46 crore during the quarter.

Syngene International rallied 4.17% after the company`s consolidated net profit increased by 21% to Rs 178.7 crore in Q4 FY23 from Rs 147.8 crore in Q4 FY22. Revenue from operations rose by 31% YoY to Rs 994.4 crore during the quarter.

Coforge gained 2.59%. The company reported 49.69% decline in consolidated net profit to Rs 114.80 crore in Q4 FY23 as compared with Rs 228.20 crore in Q3 FY23. Revenue from operations increased by 5.56% to Rs 2,170 crore in Q4 FY23 as against Rs 2,055.80 crore posted in corresponding quarter last year.

Laurus Labs fell 2.6% after the pharmaceutical company`s consolidated net profit tumbled 55.32% to Rs 102.98 crore on 3.08% slide in revenue from operations to Rs 1,380.90 in Q4 FY23 over Q4 FY22. The decline in revenue was mainly due to lower sales particularly in CDMO-Synthesis and ARVs FDF.

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