NIFTY50: 19,564 ▲ 150 (+0.7%)
SENSEX: 66,060 ▲ 502 (+0.7%)
Namaste, friends!
Third time's a charm! India’s most eagerly awaited Chandrayaan 3 lunar mission launched successfully today. Three cheers to ISRO and fellow Indian’s. Here’s wishing our beloved Vikram rover all the best for a safe landing on the moon! Meanwhile, the markets also soared to new heights today. More on that later.
- Benchmark indices scaled fresh closing peaks, with Sensex closing above 66,000
- In all, 34 of the NIFTY50 stocks closed in the green
- India’s wholesale price inflation fell for third straight month to 4.12%
All sectoral indices closed in the green, with IT (+4.4%) and Media (+3.9%) among the top gainers.
| Top gainers | Today's change |
| TCS | 3,509 ▲ 168 (+5.0%) |
| Infosys | 1,426 ▲ 60 (+4.4%) |
| Tech Mahindra | 1,226 ▲ 50 (+4.3%) |
| Top losers | Today's change |
| HDFC Life | 670 ▼ 10 (-1.5%) |
| Power Grid | 240 ▼ 2.5 (-1.0%) |
| Dr Reddy | 5,101 ▼ 41 (-0.8%) |
What’s trending
⭐ Domestic air passenger traffic rises
The air passenger traffic on domestic flights rose by over 18% in June 2023, as compared to the same month in 2022. This was the fourth consecutive month when the number surpassed pre-COVID levels in India. IndiGo's market share for June stood at 63.2%, while Air India retained its second position with a market share of 9.7%.
⭐ Bandhan Bank reports muted Q1 results
Private lender reported a 18.6% YoY drop in its net profit to ₹721 crore for the first quarter of FY24. Meanwhile, its net interest income was at ₹2,491 crore marginally down compared to ₹2,514 crore in the same quarter last year. Asset quality improved slightly, with gross non-performing assets (NPAs) falling to 6.76%, against 7.25% in the year-ago period.
⭐JBM Auto soars on huge order win
Shares of JBM Auto closed 11% higher today after the company and its subsidiaries won orders to supply nearly 5,000 electric buses to various state transport undertakings and leading companies in the country. The company said it plans to capitalise on the emerging market requirements in the electric-mobility domain, and garner new market access and expand its market share.
⭐ Gold prices rises as US dollar remains weak
Domestic gold prices are trading higher with MCX Gold futures, up 0.1% at ₹59,295 per 10 gram. They are set to close in the green for the second consecutive week as the US dollar index trades at its lowest level since April 2022, making commodities priced in the US dollars less expensive for overseas investors.
In Focus
IT stocks in the spotlight
Major tech stocks are finally witnessing strong investor traction. Before Q1FY24 results announcements, investors were taking cautious bets on IT stocks amid expectations that weak global macroeconomic sentiments could weigh on quarterly results.
However, the NIFTY IT index saw a surprise rebound and has gained nearly 5.5% in the last three days, after quarterly updates by tech heavyweights like TCS, HCL Tech and Wipro. Let’s take a quick look at the IT sector and the investor sentiments after the June quarter results.
Investor confidence intact despite subdued revenue growth
Firstly, the topline of all three IT cos were subdued, with TCS reporting revenue rise of just 0.3% compared to previous quarter at ₹59,381 crore. Meanwhile, its net profit declined by 2.8% QoQ to ₹11,074 crore.
During the same period, HCL Tech and Wipro reported a fall in revenue as well as net profit. All three companies missed their street estimates. However, as per experts, Q1 revenue was largely expected to be on the lower side amid cuts in IT spending across the globe.
Moreover, the firms only marginally missed their estimates, which may have lifted investor confidence. Meanwhile, companies continue to maintain that they will meet their FY24 guidance. Furthermore, TCS and HCL Tech announced interim dividends of ₹9 and ₹10 per share, respectively.
New deal wins boost sentiments
Although Q1 results were muted, strong new deal wins and encouraging order pipelines gave comfort to investors. TCS secured multiple new deals worth $10.2 billion for the June quarter. This is the second consecutive quarter of $10 billion+ order wins for the company.
Wipro’s total contract value (TCV) stood at $3.7 billion. Its TCV has remained above the $3-billion mark for five quarters now. Meanwhile, HCL Tech bagged 18 large deals with a combined value of $1,565 million, up 17% sequentially.
Attrition rate dips further
All three firms managed to address rising attrition rate during the quarter, which is a positive sign for the companies that are largely dependent on human capital for their growth and profitability.
For TCS, attrition rate eased 230 basis points to 17.8% on a trailing 12-month basis. HCL Tech’s attrition rate declined to 16.3% from 19.5% in the previous quarter, while Wipro’s attrition rate dropped to a two-year low at 14%.
All in all, Q1 numbers of IT companies were a mixed bag but still managed to give confidence to investors. Markets now look forward to further clues as Infosys and Tech Mahindra set to announce their Q1 numbers in the forthcoming weeks.
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