Bulls make a comeback, but fall short

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Nifty50: 15,709 -37 (-0.2%)
Sensex: 52,443 -135 (-0.2%)

It was a see-saw session where the first of the session was dominated by the bears and the second half by the bulls. Nonetheless, the markets closed on a negative note, as 27 of the Nifty50 stocks closed in the red. 

Among the Nifty sectoral indices, only Metal (+1.2%) and IT (+0.2%) ended positively, whereas PSU Bank (-1.8%) and Auto (-0.9%) lost the most.

Top gainers Today's change
Bharti Airtel ▲ 5.0%
Tata Steel ▲ 2.8%
SBI Life ▲ 2.1%


Top losers Today's change
Kotak Bank ▼ 2.5%
Dr Reddy's ▼ 2.5%
Tata Motors ▼ 2.2%

Here are the top stories of the day.

Maruti’s profit tumbles in Q1

  • In the June quarter, India’s leading car manufacturer’s net profit dropped by 62% sequentially to ₹440 crore due to lower sales. The street expected a net profit of ₹878 crore. The company’s net sales declined by 26% QoQ to ₹16,798 crore as the second wave dented demand. 
  • The company said that the commodity prices increased steeply but it continues to take steps to reduce costs. In positive developments, the car marker spent less on promotions and increased the selling price of its vehicles in Q1FY22. Shares of Maruri Suzuki were down 1.3% today. 

Coforge posts strong profit in Q1

  • IT services company Coforge reported a 55% YoY jump in its consolidated net profit to ₹124 crore for the June quarter. The profit growth was supported by a 38% rise in the revenue from operations to ₹1,462 crore. The Q1 figures also include the contribution from SLK Global, which the company acquired in April 2021.
  • The total executable order book over the next 12 months grew 39% YoY to $645 million. Further, the company said that it has secured 3 large deals, including a $105 million engagement. It is planning for an organic growth of at least 19% in constant currency terms during FY22, which is higher than the 17% growth indicated earlier. The stock was up 0.5% today and has gained 62% so far this fiscal.

BLS International posts profitable Q1

  • In the June quarter, the global visa outsourcing service provider reported a consolidated net profit of ₹20 crore compared to a loss of 80 lakh in Q1FY21. In the same period, the company’s revenue rose by 242% to ₹178 crore. 
  • The management has said that as borders reopen globally it expects visa business to start contributing again in the coming quarters, which is expected to significantly improve its financial performance in FY22. Shares of the company were up 11% today after the results were announced yesterday post the market hours.

Closing bell

The market showed completely opposite trends today. It started on an extremely weak note and dived down. However, as it reached closer to the lower end of the current consolidation range (15450-15950), buying interest emerged. Favourable opening of the European indices also provided positive cues. Meanwhile, unlike the decent results posted by the Indian IT companies earlier this month, the recently announced results by other large companies have been below street estimates. This is acting as a sentiment spoiler especially at the time when markets are trading close to their lifetime highs. The US Fed is expected to announce its interest decision tonight. While the street expects rates to remain unchanged, Fed’s commentary could have a bearing on how markets open tomorrow.

Good to know

What is a moving average?
A moving average is a technical indicator that helps to identify a trend in the price of a stock. Traders also use moving averages to determine support and resistance levels. Thus, by studying moving averages, traders can spot buying and selling opportunities. Some of the widely used moving averages are 5-day and 20-day for short term trading and 50-day and 200-day for long term investment.

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.