Bulls strengthen grip on Dalal Street

Product Updates

Bulls strengthened their grip on Dalal Street with frontline gauges hitting all-time highs, settling above their crucial 66,000 (Sensex) and 19,550 (Nifty) levels. Foreign Institutional Investors (FIIs) were net buyers in the equity segment in the week, with gross purchases of Rs 61,069.16 crore and gross sales of Rs 52,352.95 crore, leading to a net inflow of Rs 8,716.21 crore. The Bombay Stock Exchange (BSE) Sensex surged 780.45 points or 1.20% to 66,060.90 during the week ended July 14, 2023. The Nifty surged 232.70 points or 1.20% to 19,564.50.

Industry and Economics

Revenue Secretary Sanjay Malhotra has said the exchequer will get an estimated additional revenue of Rs 20,000 crore annually following the decision of the GST Council to levy a 28 per cent tax on total bet value on online gaming. He said the GST Council has unanimously decided to impose a 28 per cent tax on online gaming, casino and horse racing etc. The Income Tax department in its latest data has shown that net direct tax kitty swelled 15.87 per cent to Rs 4.75 lakh crore so far this fiscal over the net collections for the corresponding period of last year. The group has touched 26.05 per cent of the total budget estimates of direct taxes for the full 2023-24 fiscal of Rs 18.23 lakh crore.

Equity movers

  • Quarterly results of Wipro Ltd.: Company has reported results for the first quarter ended June 30, 2023 (Q1FY24). Wipro has reported a 16.75% rise in its net profit at Rs 2,587.80 crore for the quarter under review as compared to Rs 2,216.60 crore for the same quarter in the previous year. The total income of the company increased by 7.81% at Rs 17,944.90 crore for Q1FY24 as compared to Rs 16,645.30 crore for the corresponding quarter previous year. On a consolidated basis, the company has reported a 12.78% rise in its net profit at Rs 2,886.00 crore for the quarter ended June 30, 2023, as compared to Rs 2,558.90 crore for the same quarter in the previous year. The total income of the company increased by 6.72% at Rs 23,479.00 crore for Q1FY24 as compared to Rs 22,001.00 crore for the corresponding quarter previous year.
  • Quarterly results of TCS Ltd.: Company has reported a 22.08% rise in its net profit at Rs 10,484 crore for the quarter that ended June 30, 2023 (Q1FY24) as compared to Rs 8,588 crore for the same quarter in the previous year. The total income of the company increased by 14.54% at Rs 51,765 crore for Q1FY24 as compared to Rs 45,195 crore for the corresponding quarter previous year. On a consolidated basis, the company has reported a 16.82% rise in its net profit at Rs 11,120 crore for the quarter ended June 30, 2023, as compared to Rs 9,519 crore for the same quarter in the previous year. The total income of the company increased by 13.50% at Rs 60,778 crore for Q1FY24 as compared to Rs 53,547 crore for the corresponding quarter previous year.
  • Dreamfolks pacts with Plaza premium group: The company has entered into a strategic collaboration with Plaza Premium Group to include more than 340 Plaza Premium Lounges in more than 70 major international airports into the DreamFolks global lounge network, offering an enhanced travel experience to its members worldwide starting July 24, 2023. This collaboration will facilitate extensive coverage of Plaza Premium Lounges across 4 continents including key travel hubs such as Australia, Canada, the United Kingdom, Hong Kong, Florida, Brazil, Italy, Indonesia, Malaysia, Singapore, Dubai, Saudi Arabia, Jordan and more. With the inclusion of Plaza Premium Lounges, DreamFolks’ global touchpoints will increase to an impressive 1700-plus. This expanded network will offer members unparalleled access to premium lounges across key travel destinations worldwide, ensuring a seamless and comfortable travel experience.
  • Quarterly results of HCL Tech Ltd.: Company has reported a 3.06% fall in its net profit at Rs 2,596 crore for the first quarter ended June 30, 2023, as compared to Rs 2,678 crore for the same quarter in the previous year. However, the total income of the company increased by 14.54% to Rs 11,713 crore for Q1FY24 as compared to Rs 11,151 crore for the corresponding quarter previous year. On a consolidated basis, the company has reported a 7.62% rise in its net profit at Rs 3,531 crore for the quarter ended June 30, 2023, as compared to Rs 3,281 crore for the same quarter in the previous year. The total income of the company increased by 11.59% at Rs 26,640 crore for Q1FY24 as compared to Rs 23,873 crore for the corresponding quarter previous year.
  • IPO-Senco Gold: Company has debuted at Rs 431.00 on the BSE, up by 114 points or 35.96% from its issue price of Rs 317. The scrip is currently trading at Rs 410.60, up by 93.60 points or 29.53% from its issue price. It has touched a high and low of Rs 443.80 and Rs 408.90 respectively. So far 8.74 lakh shares were traded on the counter. The offering, which was open for subscription between July 4, 2023, and July 6, 2023, was subscribed 77.25 times. The issue price was fixed at Rs 317 per share i.e. at the upper end of the price band of Rs 301-317 apiece.
  • Order win for Zen Technologies Ltd: Company has won orders in the export markets. The order is valued at around Rs 340 crore (around $41.5 million). The company also foresees more orders shortly. Earlier, the company had won an order from the Government of India valued at around Rs 160 crore. The contract comes under the government’s Indigenous Design and Development (IDDM) initiative, which requires Indian IP and over 60% indigenous content. Zen Technologies is a pioneer in the design, development and manufacture of world-class, state-of-the-art training simulators

Outlook for the coming week                                               

Indian equity markets performed well in the past week, with gains of over one per cent. This positive performance could be attributed to India’s industrial production growth, which increased by 5.2 per cent in May, as measured by the Index of Industrial Production. Additionally, the wholesale price index deflated for the third consecutive month in June, indicating a decrease in wholesale prices. Looking ahead, traders will be closely watching the release of Foreign Exchange Reserves data on July 21. As of June 30, the Foreign Exchange Reserves in India decreased slightly to $595,050 million from $596,100 million in the previous week. Foreign exchange reserves are an important indicator of a country’s ability to meet its external payment obligations and maintain stability in the foreign exchange market.

Traders will also be eyeing lots of important earnings announcements scheduled for the week, Central Bank of India, Crisil, HDFC Bank, LTIMindtree, Tata Elxsi, IndusInd Bank, L&T Technology Services, Polycab India, Mastek, Newgen Software Technologies, Tata Communications, Coforge, Hindustan Unilever, Infosys, Mphasis, Persistent Systems, Ashok Leyland, Hindustan Zinc, JSW Steel, UltraTech Cement, ICICI Bank, Kotak Mahindra