The IT party continues

Nifty50: 15,924 ▲+70 (+0.4%)
Sensex: 53,158 ▲+254 (+0.4%)

The market hit record highs today as investors turned their attention to the earnings season. In all, 27 of the Nifty50 stocks closed in the green. 

Among the Nifty sectoral indices, Realty (+4.2%) and IT (+1.2%) were the top gainers, whereas Auto (-0.4%) and Media (-0.3%) fell the most. 

Here are the top stories of the day.

Wipro reports best-ever quarter

• India’s third-largest IT services company reported its best-ever quarter as its IT services revenue witnessed a sharp 12% sequential growth, on a constant-currency basis. Its profits at ₹3,232 crore were well ahead of street estimates of ₹2,854 crore.
• Backed by large deal wins, the IT major expects to post a robust September quarter growth at 5-7%. Shares of Wipro rose about 3% today, but the results were declared after market hours. The stock has risen nearly 10% so far this week.

KNR Constructions rises on ‘positive’ rating

• The credit-rating agency CRISIL has revised its outlook on KNR Constructions’ long-term bank facilities from ‘stable’ to ‘positive’. The rating agency has said that the road and infrastructure company’s strong execution record and healthy order book will support revenue growth. Currently, the company’s order book is over 4 times its annual revenue.
• CRISIL also observed that the company’s operating income grew by 20% in FY21 despite the pandemic-induced lockdowns. Shares of KNR Constructions were up almost 8% today.

Sequent Scientific surges on EU GMP approval

• Shares of Sequent Scientific rose over 8% today after it announced that it has received EU GMP approval for its tablets dosage manufacturing line in Turkey. Further, the EU GMP license for 8 other manufacturing lines in Turkey have also been renewed.
• The Mumbai-based animal health company is the third-largest player in the Turkish ruminant market with a market share of around 10%. 

Oil prices fall on expectation of more supplies

• Crude oil prices fell today after the OPEC countries and their allies reached a compromise on increasing oil production. According to the reports, Saudi Arabia and the UAE have reached an agreement over the crude oil production quotas. 
• Earlier, the talks between oil-producing nations had fallen apart over the UAE’s opposition to extending the oil supply cuts beyond April 2022. Meanwhile, MCX crude oil prices have dipped nearly 6% from their recent highs seen earlier this month. 

Closing bell

At this point, the Indian markets seem to be focusing on the June quarter results season and are ignoring what is happening in the international markets. All the major European markets are trading lower and Asian markets had a mixed closing. After nearly six weeks of consolidation, markets have seen a breakout and hit record highs. The mood is clearly upbeat. This is indicated by two aspects: first, the rising participation of midcap and smallcap stocks in the market, and second, the excitement in the IPO market. Time to make the most of the available opportunities, we would say. 

Good to know

What is constant currency in financial results?

Results based on a constant-currency basis strip off the effect of currency fluctuations and give investors the true picture of the company’s growth. This is because the change in currency prices (appreciation and depreciation) can impact financial numbers of export-oriented companies such as those in the IT and pharma sectors. For instance, rupee depreciation would mean these companies are getting more rupees for each dollar they earn. 

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