The markets had a gap-down start on Monday amid weakness across global markets. Domestic equity benchmarks extended losses as investors remained concerned about the impact of steep rate hikes on economic growth. As a result, headline indices lost 1.4 per cent during early trades. The Sensex quoted at 57,360 levels and the Nifty 50 slid to 17,060 levels.
Tata Consultancy Services kicked off the corporate earnings season for the September quarter (Q2FY23), post-market hours on Monday.
Taking cues from the overnight rally in Wall Street, the indices climbed more than 1.5 per cent during early trades on Friday. However, they trimmed gains towards the end. The thirty-share index (BSE Sensex) closed the week at 57920 points, up 684 points or 1.20 per cent. Similarly, the fifty-share index (Nifty 50) settled at 17185 points, up 171 points or 1.01 per cent.
Market Movers
Stocks that gained the most this week were Rajesh Exports Ltd. (up 14.44 per cent), Brightcom Group Ltd. (up 9.13 per cent), Castrol India Ltd. (up 8.71 per cent), Angel One Ltd. (up 8.03 per cent) and IDFC Ltd. (up 7.99 per cent).
On the other hand, stocks that tumbled this week were India Cements Ltd. (down 16.25 per cent), Adani Wilmar Ltd. (down 12.8 per cent), Suzlon Energy Ltd. (down 12.42 per cent), Welspun Corp Ltd. (down 12.38 per cent), Zomato Ltd. (down 11 per cent).
The Recap
Paytm saw more than 3x loan disbursals in the September quarter
● According to the company’s official release, its loan distribution business grew 224 per cent year-on-year to 9.2 million loans. Further, the value of loans disbursed grew 482 per cent from the corresponding period a year ago to ₹ 7,313 crores. ● It said that it continued to strengthen its leadership in offline payments, deploying 4.8 million devices at merchant stores across the country.
● The company recorded a 63 per cent increase in its total merchant GMV (Gross Merchandise Value) on a year-on-year (YoY) basis, to ₹ 3.18 lakh crores.
Here’s why defence stocks outperformed the market in the past month
● Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers and Cochin Shipyard share rallied in the past one month and have rallied anywhere from 25 per cent to 60 per cent as compared to a 3.36 per cent decline in the BSE Sensex.
● Market experts believe that investors are expecting an opportunity worth ₹ 9 lakh crore from the government over the next few years in the sector and the biggest trigger will come from the indigenisation share or more coming from Indian players.
● They say that the defence shipyard business is USD 60 billion or ₹ 4-5 lakh crore opportunity because the Indian Navy will scale the ships from almost 137 to 200 by 2027.
Mahindra and Jio-BP are firming up their fast EV charging network
● Mahindra & Mahindra and Jio-BP said that Jio-BP will be setting up a robust charging network for Mahindra’s upcoming e-SUVs launches. (Jio-BP is the fuel and mobility joint venture between Reliance Industries and supermajor BP, offering charging infrastructure to Indian consumers).
● Jio-BP will install DC fast chargers at the M&M dealership network and workshops across the country, starting with 16 cities.
● The partnership envisages rolling out e-mobility solutions across discovery, navigation, availability, and transactions to empower all EV users to seamlessly access the M&M partner charging network.
Infosys approved the fourth buyback of its shares in five years
● The IT major on Thursday approved the fourth share buyback in the last five years. It will buy back five crores of shares through the open market route at a maximum price of ₹ 1850 per share. This price was at a premium of 30 per cent to Thursday’s closing price.
● The size of the buyback this year is ₹ 9,300 crores. Previously, its buybacks were worth ₹ 13,000 crores in 2017, ₹ 8,260 crores in 2019, and ₹ 9,200 crores in 2021.
● The company had returned nearly 73 per cent of its free cash flows until FY22. It has a capital allocation policy in order to return 85 per cent of its free cash flows until 2024. This will be through a combination of dividends and buybacks.
TVS Motors achieved a landmark for the first time in 25 years
● TVS Motors has become the sixth most valued listed automobile company in India, defeating Hero Motocorp for the position. This is the first time since 1997 that TVS Motors has a market capitalisation greater than Hero Motocorp.
● The company achieved a market capitalisation of ₹ 51,750 crores as compared to Hero Motocorp’s ₹ 51,300 crores on Friday’s intraday trading. In fact, its shares gained 71 per cent since the beginning of this year.
● TVS Motors is narrowing the profitability gap between its peers. Its margin is likely to improve by 50 basis points from last quarter and 80 basis points year-on-year, according to experts.
Results
Tata Consultancy Services
● The results of this IT giant beat D-street estimates on most fronts. Its revenue jumped 18.01 per cent from ₹ 46,867 crores in September 2021 (Q1FY22) to ₹ 55,309 crores in September 2022 (Q2FY23).
● Its net profit increased 8.39 per cent year-on-year (YoY) from ₹ 9,624 crores in September 2021 to ₹ 10,431 crores in September 2022.
Infosys Ltd
● The IT major reported an impressive 23.43 per cent increase in its revenues from ₹ 29,602 crores in September 2021 to ₹ 36,538 crores in September 2022. ● Its net profit shot up 11.06 per cent from ₹ 5,421 crores in September 2021 to ₹ 6,021 crores in September 2022.
Wipro Ltd
● The Bengaluru-based IT company’s revenue grew 14.60 per cent from ₹ 19,667 crores in September 2021 to ₹ 22,540 crores in September 2022.
● However, its net profit disappointed market observers as it dropped 9.59 per cent from ₹ 2,930 crores in September 2021 to ₹ 2,649 crores in September 2022.
Written by Simran Bafna
