The main indices traded at record high level with strong gains in mid morning trade. The Nifty scaled 18,300 mark and hit a record high of 18,306.65. The Sensex also hit an all time high of 61,171.32. Barring auto and media index, buying demand was seen across the board.At 11:29 IST, the barometer index, the S&P BSE Sensex, rallied 428.51 points or 0.71% to 61,165.16. The Nifty 50 index added 143.8 points or 0.79% to 18,305.25.
The Nifty has rallied 3.74% in last six trading days while the BSE Sensex added 3.3% in the same period.
The broader market displayed strength and outperformed the main indices. The S&P BSE Mid-Cap index rallied 1.05% while the S&P BSE Small-Cap index gained 0.81%. The BSE Mid Cap index has gained 5.76% while the BSE Small Cap index rallied 4.5% in last six trading days.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1852 shares rose and 1147 shares fell. A total of 170 shares were unchanged.
Economy:
Prime Minister Narendra Modi on Wednesday inaugurated the PM Gati Shakti-National Master Plan for multi-modal connectivity. In his address, Modi said the national master plan will provide Gati Shakti to 21st century India with multimodal connectivity and next-generation infrastructure.
The Confederation of Indian Industry (CII) has lauded the launch of Gati Shakti Master Plan saying that the proposed geo-spatial digital platform is a well-timed and revolutionary initiative.
In a statement, director general of CII Chandrajit Banerjee said that the initiative would spur manufacturing competitiveness by facilitating ease of doing business through improved connectivity. He said it is a giant step towards unlocking India's growth potential and creating jobs.
Buzzing Index:
The Nifty IT index jumped 2.56% to 36,187.45, rising for second trading day. The IT index added nearly 4% in two days.
Mphasis (up 7.94%), Coforge (up 5.38%), L&T Technology Services (up 3.79%), L&T Infotech (up 3.74%) and Tech Mahindra (up 3.4%) were top gainers in IT segment.
Mindtree jumped 11% after the company reported 16.2% rise in consolidated net profit to Rs 398.9 crore on a 12.9% increase in revenue to Rs 2,586.2 crore in Q2 FY22 over Q1 FY22. As compared to Q2 FY21, the company's net profit and revenue have increased by 57.2% and 34.3%, respectively. EBITDA improved by 14.3% to Rs 530.7 crore in Q2 FY22 from Rs 464.5 crore in Q1 FY22. EBITDA margin was at 20.5% as on 30 September 2021 as against 20.3% as on 30 June 2021. The company's free cash flow increased to Rs 279.1 crore in Q2 FY22 from Rs 97.3 crore in Q1 FY22. In dollar terms, Mindtree registered 16% increase in consolidated net profit to $54 million on a 12.7% rise in revenue to $350.1 million in Q2 FY22 over Q1 FY22.
Wipro jumped 7%. 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. As compared to Q2 FY21, the IT firm's net profit and revenue from operations in Q2 FY22 have risen by 18.9% and 30.1%, respectively. Profit before tax in Q2 FY22 stood at Rs 3,756.5 crore, down by 3% from Rs 3,873.3 crore in Q1 FY22. In dollar terms, Wipro's gross revenue was $2.7 billion in the second quarter. 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.
Infosys rose 1.68% after the IT bellwether said its consolidated 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 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 for the quarter stood at 23.6%, a decline of 1.8% YoY and 0.1% QoQ. Infosys said its revenue guidance for FY22 is revised upwards to 16.5%-17.5%. Margin guidance is retained at 22%-24%.
Global Markets:
Asian markets were mostly trading higher as investors reacted to the release of China's inflation data for September. Markets in Hong Kong are closed on Thursday for a holiday.
Producer inflation surged in September; official data showed Thursday. The producer price index for September soared 10.7% as compared with a year ago. China's consumer price index also rose 0.7% in September as compared with a year ago.
Singapore's central bank unexpectedly tightened monetary policy on Thursday. Official advance estimates also showed Thursday that Singapore's economy grew 6.5% year-on-year in the third quarter of 2021.
In US, the S&P 500 and Nasdaq ended higher on Wednesday, led by gains in shares of big growth names like Amazon.com and Microsoft, but JPMorgan shares fell along with other bank shares and weighed on the market.
Minutes released Wednesday afternoon from the Federal Open Market Committee's September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.
Consumer prices rose 0.4% last month, slightly higher than August's gain and pushing annual inflation back to the highest increase in 13 years. The consumer price index rose 5.4% in September from a year ago, the Labor Department said Wednesday, up slightly from August's gain of 5.3%. Excluding the volatile food and energy categories, core inflation rose 0.2% in September and 4% compared with a year ago. Core prices hit a three-decade high of 4.5% in June.
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