Wipro reports muted Q1 numbers, crude oil rises higher & more

NIFTY50: 19,413 ▲ 29 (+0.1%)
SENSEX: 65,393 ▲164 (+0.2%)

Namaste, friends!

There is a reason behind the saying “Too much of a good thing can be bad.” When a popular burger chain in Thailand announced the “real cheeseburger” with 20 slices of American cheese and no meat, even avid cheese lovers felt it was way too much! As they say, in food as in life, it’s important to have a balance. Meanwhile, even the markets were finely balanced today, giving up their early gains to close nearly flat. More on that later.

• After rising to record highs intraday, benchmark indices closed with minor gains
• In all, 24 of the NIFTY50 stocks closed in the green
• Utkarsh SMB IPO was oversubscribed 16.2 times on Day 2. Click here to subscribe to this IPO.

Among the NIFTY sectoral indices, IT (+1.7%) and Realty (+1.0%) were the top gainers, while PSU Bank (-2.3%) and Media (-1.8%) were the top losers.

What’s trending

⭐Wipro reports subdued Q1 numbers 

 For the June quarter, IT services major Wipro reported a 1.5% QoQ fall in its consolidated revenue to ₹22,831 crore. Meanwhile, its net profit declined by 6.7% QoQ to ₹2,886 crore. Both numbers were below street estimates. However, the company’s attrition levels dipped to 14%, the lowest in two years. The results were announced after market hours.

⭐ Federal Bank posts robust Q1 results

For the first quarter of FY24, the private lender reported a 42% YoY growth in net profit to ₹853 crore. Meanwhile, its net interest income rose 19.5% YoY to ₹1,918 crore. The bank’s asset quality improved, with gross non-performing asset (GNPA) dropping to 2.38% from 2.69% in the same period last year. Despite the strong results, the stock closed 5.4% lower today.

⭐ Ramco Cements sells logistics arm to Swiggy

Ramco Cements has approved the sale of Lynks Logistics, its retail logistics subsidiary, to food-delivery platform Swiggy in a share-swap deal. Under the agreement Ramco Cements will sell its entire stake in Lynks Logistics in exchange for 24 lakh preference shares of Bundl Technologies Private Limited, the parent company of Swiggy. Shares of Ramco Cements closed 0.3% higher today.

⭐ Crude oil rises higher 

Brent crude oil prices traded in green, hovering above $80 per barrel as US retail inflation eased to 3%, lowest since March 2021. Slowdown in US inflation numbers further pulled the US dollar to 15-month lows, which benefits the commodities priced in the US dollars.

In Focus

Retail inflation sees an uptick

India’s retail inflation accelerated for the first time in five months to 4.81% in June from 4.31% in May. What are the key factors that led to an increase in inflation numbers? Let’s find out. 

Domestic retail inflation reversed its four-month downtrend on account of a sharp increase in food inflation, which rose to 4.99% in June from 2.91% in May. Prices of vegetables, cereals, pulses and milk saw the biggest rise, mainly due to untimely rain in several parts of the country. 

Part of the increase in food prices was seasonal, especially in the case of vegetables. Meanwhile, increase in prices of daily essentials like rice, pulses and milk continue to rise, which could be a concern for policymakers. 

However, despite this uptick, inflation continues to remain within RBI’s tolerance band of 4-6%. Hence, experts believe it may not prompt the central bank to hike rates yet.

On the flip side, the Index of Industrial Production (IIP) rose 5.2% YoY in May 2023, surpassing market expectations, along with the manufacturing PMI, which stood at a healthy 57.8 for June 2023.

Furthermore, June quarter results kickstarted on a positive note with TCS and HCL Tech reporting upbeat numbers. Moreover, automakers reported that vehicle sales surpassed 20 lakh in the first half of 2023, which paints a robust picture of the domestic economy.

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