Markets continue to remain resilient despite pressure in global markets as the Nifty witnessed lower opening but rebounded sharply to close in the positive terrain at the highest point of the day. The breadth of the market remained negative with the advance-decline ratio deeply in favor of declines and midcap & small cap stocks remained under pressure.
For Nifty, 17250 is seen as a new base for the market for the immediate potential of 18612. This can be confirmed with a sustained rise in the spread of the Nifty 50 & Nifty 500 index which shows fund flows moving from broader markets towards Nifty 50 stocks.
A breakout in Bankex in Euro terms is also likely to grab the attention of FII to place an aggressive bet on Indian financial stocks in days to come.
BSE Bankex in Euro terms & Spread of Nifty50-Nifty 500 Index.
Stocks to watch
Positive Read Through
- Hindalco- Novelis adjusted EBITDA at $561 m, EBITDA guidance raised.
- Inox Leisure- Revenue up 83%, Profits at 57 Cr vs loss of 28 Cr YoY
- Indigo- Revenue in line with estimates, highest ever quarterly revenue at Rs. 12,855 Cr.
- Redington- Revenue up 24.9%, margins at 2.7% vs 2.6%
- Adani Wilmar- Revenue up 30%, margins at 3% vs 3.3% YoY
- Sugar stocks- Govt increased the remunerative price for sugarcane to Rs 305/quintal from Rs 290/ quintal.
- Bharti Airtel signed 5G network agreements with Ericsson, Nokia, and Samsung. Deployment of 5G is to commence in August 2022.
- Wipro extended its strategic alignment with Nokia for digitization and automation of Nokia’s operations.
Negative Read Through
- Lupin- Revenue down 12% YoY, US sales $121 m vs $181m QoQ
- Gujarat Gas- Revenue up 11%, EBITDA down 13% margin 11.7% vs 15%
- AU Small Finance Bank- Promoter and promoter group to sell 75 lakh shares, issue price 570 – 590/ share
- Voda Idea- Revenue up 1.7%, ARPU growth offset by 1.4% decline in subscribers
- KEC International – Revenue up 31%, margins at 5.1% vs 6.3%, debt raises to Rs. 3,418 Cr.
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