Domestic benchmark indices settled with strong gains on Wednesday, extending rise for the fifth straight session. Global stocks were subdued ahead of the release of US inflation data. Barring the Nifty Realty index, all the sectoral indices on the NSE settled in the green. Tata Group stocks surged on back of Rs 7,500 crore TPG funding in Tata Motors.
The S&P BSE Sensex jumped 452.74 points or 0.75% at 60,737.05. The Nifty 50 index gained 169.80 points or 0.94% at 18,161.75. Both the indices attained record closing levels.
The Sensex hit a record high of 60,836.63 and the Nifty hit an all time high of 18,197.80 in afternoon trade.
The broader market displayed strength. The S&P BSE Mid-Cap index rose 1.56% while the S&P BSE Small-Cap index added 0.59%.
Gainers outpaced losers. On the BSE, 1760 shares rose and 1578 shares fell. A total of 138 shares were unchanged.
The Sensex has risen 2.61% and the Nifty has climbed 2.92% in five consecutive sessions.
Economy:
In its latest World Economic Outlook report, released on Tuesday, the International Monetary Fund (IMF) said that Indian economy is expected to grow by 9.5% in 2021 and 8.5% in the next year.
The global growth projection for 2021 has been revised down marginally to 5.9% and is unchanged for 2022 at 4.9%.
India's industrial production rose 11.9% in August, according to the data released by the National Statistical Office (NSO) on Tuesday. The manufacturing sector, which constitutes 77.63% of the Index of Industrial Production (IIP), grew 9.7% in August, mining sector output rose 23.6% in August, while power generation increased 16 per cent.
Retail inflation growth in India based on Consumer Price Index (CPI) eased to 4.35% in the month of September following a 5.30% in August, the data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed.
Numbers to Track:
MCX Gold futures for 3 December 2021 settlement rose 0.35% to Rs 47,362.
The yield on India's 10-year benchmark federal paper (06.10 GS 2031) was currently at 6.316% as compared with its previous closing of 6.326%.
In the commodities market, Brent crude for December 2021 settlement fell 52 cents or 0.62% to $82.90 a barrel.
In the foreign exchange market, the partially convertible rupee rose to 75.375 from its previous closing of 75.5225.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.25% to 94.28.
The yield on the benchmark 10-year U.S. Treasury note eased to 1.56%.
Global Markets:
Most shares in Europe and Asia advanced on Wednesday, as investors awaited U.S. inflation data to gauge the Federal Reserve's path on normalizing policy.
On the data front, U.K. GDP was 6.9% higher in August than the same period last year.
The U.S. consumer price inflation data and the minutes from US Fed's Sept. 21-22 policy meeting will release later today.
Stocks in Action:
Infosys rose 1.42%. The IT bellwether's net profit rose 4.4% to Rs 5,421 crore on 6.1% increase in revenues to Rs 29,602 crore in Q2 FY22 over Q1 FY22.
On a year-on-year basis, Infosys' net profit and revenue from operations in Q2 FY22 increased 11.9% and 20.5%, respectively. Revenues in constant currency terms grew by 19.4% YoY and 6.3% QoQ. Operating margin stood at 23.6%, decline of 1.8% YoY and 0.1% QoQ. The board has announced interim dividend of Rs 15 per share for FY22.
The company announced large deal signings of $2.15 billion. Revenue guidance for FY22 is revised upwards to 16.5%-17.5%. Margin guidance is retained at 22%-24%.
Wipro rose 2.05%. The IT major reported 9.6% fall in consolidated net profit to Rs 2,930.7 crore in Q2 FY22 from Rs 3,242.6 crore in Q1 FY22. Revenue from operations increased by 7.8% QoQ to Rs 19,667.4 crore during the quarter.
On a year-on-year basis, the IT firm's net profit and revenue from operations in Q2 FY22 increased 18.9% and 30.1%, respectively.
The IT Services segment revenue was at $2,580 million, an increase of 6.9% QoQ and and 29.5% YoY. The Non-GAAP constant currency IT Services segment revenue increased by 8.1% QoQ and 28.8% YoY. The IT Services operating margin for the quarter was at 17.8%, down 104 bps on a sequential basis.
Wipro expects revenue from its IT Services business to be in the range of $2,631 million to $2,683 million. This translates to a sequential growth of 2% to 4%, the company said.
Shares of Tata Group companies saw strong demand with heavy volumes. Tata Chemicals (up 14.16%), Tata Investment Corporation (up 14%) Tata Power (up 14.48%), Indian Hotels Company (up 8.13%), Tinplate Company of India (up 4.72%), Nelco (up 5%), Tata Communications (up 4.51%), Tata Consumer Products (up 3.92%), Titan Company (up 1.71%) and Tata Steel (up 1.90%) advanced.
Tata Motors surged 20.43%. The auto major and and TPG Rise Climate entered into a binding agreement whereby TPG Rise Climate along with its co-investor ADQ, shall invest in a subsidiary of Tata Motors that will be newly incorporated.
TPG Rise Climate along with co-investors shall invest Rs 7,500 crore in compulsory convertible instruments to secure between 11% to 15% stake in this company translating to an equity valuation of up to $9.1 billion.
The new company shall leverage all existing investments and capabilities of Tata Motors and will channelise the future investments into electric vehicles, dedicated BEV platforms, advanced automotive technologies and catalyse investments in charging infrastructure and battery technologies. Over the next 5 years, this company will create a portfolio of 10 EVs and in association with Tata Power, catalyse the creation of a widespread charging infrastructure to facilitate rapid EV adoption in India.
Index major Reliance Industries (RIL) rose 1.02%. Reliance New Energy Solar (RNESL), a wholly owned subsidiary of RIL, has invested $29 million as a strategic lead investor in Germany-based NexWafe GmbH's (NexWafe) Series C financing round.
Separately, RNESL and Denmark-based Stiesdal have signed a cooperation agreement for technology development, and manufacturing of Stiesdal's hydrogen electrolyzers in India.
Power Grid Corporation of India rose 3.41% after the state-owned transmission player's board okayed an investment of Rs 14.23 crore for an electric vehicle charging station in Navi Mumbai and to create an arm to undertake telecom and digital technology businesses.
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