Sensex Trades Over 200 Points Higher, Dow Futures Up by 25 Points

Wed, 30 Jun 12:30 pm | Ayesha Shetty, TM Team

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Share markets in India are presently trading on a strong note.

The BSE Sensex is trading up by 255 points, up 0.5% at 52,804 levels.

Meanwhile, the NSE Nifty is trading up by 76 points.

Kotak Bank and Infosys are among the top gainers today. Shree Cement and Power Grid Corporation of India are among the top losers today.

The BSE Mid Cap index is trading up by 0.2%.

The BSE Small Cap index is trading up by 0.7%.

On the sectoral front, stocks from the software sector, are witnessing most of the buying interest.

On the other hand, stocks from the power sector, are witnessing most of the selling pressure.

US stock futures are trading higher today, indicating a positive opening for Wall Street.

Nasdaq Futures are trading up by 16 points (up 0.1%) while Dow Futures are trading up by 25 points (up 0.1%).

The rupee is trading at 74.32 against the US$.

Gold prices are trading up by 0.1% at Rs 46,589 per 10 grams.

Gold prices in India continued to be under pressure today as prices dipped to a near three-month low. On MCX, August gold futures edged lower to Rs 46,518 per 10 grams.

Note that so far this month, gold has fallen about Rs 2,700 per 10 grams. From last year's high of Rs 56,200, the precious metal is down about Rs 10,000 per 10 grams.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani shares why he has turned cautious on the market, in his latest video for Fast Profits Daily.

Tune in here to find out more:

Moving on to stock specific news...

Among the buzzing stocks today is PNC Infratech.

Shares of PNC Infratech surged 9% in intra-day trade today after the company said it has a strong order book of over Rs 116 bn.

The stock of the roads and highways construction company was quoting close to its record high level of Rs 291 touched on 11 February 2021.

In an investor presentation, PNC Infratech said -

• As of 31 March 2021, the remaining value of contracts under execution stands at Rs 116 bn. After considering two engineering, procurement, and construction (EPC) road projects, seven EPC water projects, the total order book is over Rs 166 bn.

The road EPC projects constitute 89% of PNC Infratech's order book.

After considering the EPC value of the above projects, contracts under execution are over Rs 166 bn, which is over 3 times the company's 2021 revenue.

Watch Now: 3 Little-known Stocks We are Super Bullish On

PNC Infratech's execution was robust for the quarter, with stronger-than-expected topline and higher margins led by operating leverage.

Topline came in at Rs 16.5 bn, up 42% year-on-year (YoY), driven by improved executable order book and optimum labour availability.

The consequent margins were at 14.1%, up 63 basis points YoY.

Overall, the company's net profit came in at Rs 1.3 bn, up 70% YoY, despite higher taxation, led by strong operating performance and lower interest costs.

We will keep you posted on more updates from this space. Stay tuned.

At the time of writing, PNC Infratech shares were trading up by 8.8% on the BSE.

Speaking of the capital goods sector, here's an interesting data point:

Had you instead invested in the BSE Capital Goods index in 2002, you would have made a return of over 3,000% - a whopping 83% CAGR (compound annual growth rate) - over the next six years.

Here's what Aditya Vora, Research Analyst at Equitymaster, wrote about the capital goods sector in one of the editions of Profit Hunter:

• I'm a firm proponent of the economic revival theme in the stock market. I'm bullish on capital goods and infrastructure stocks.
  
  These sectors have emerged stronger from an elongated down cycle. There is also a strong momentum in economic indicators which is in favour of these stocks.
  
  Indicators like rising construction equipment sales, record highway construction run rate, capacity expansion by private players in the cement, metals, and consumer durables gives us confidence of a strong capex cycle ahead.
  
  There may be a near term speed bump to the economic recovery due to the rising covid cases and lockdowns. However, I believe we are at an inflection point with regards to the capex cycle.
  
  The cycle has turned up.

The recent Hidden Treasure recommendation is a fundamentally strong business in the capital goods space that is 'essential' to the infrastructure revival.

You can read the report here. (requires subscription)

And if you're not a subscriber, here's where you can sign up.

Moving on to news from the banking sector...

Axis Bank Inks Multi-Year Deal With Amazon Web Services

Axis Bank has inked a multi-year deal with Amazon Web Services (AWS) to power its digital transformation program.

As part of the agreement, Axis Bank will draw on the breadth and depth of AWS services to build a portfolio of new digital financial services to bring advanced banking experiences to customers, including online accounts that can be opened in under six minutes and instant digital payments.

This will help the bank increase customer satisfaction by 35% and lower costs by 24%.

To date, Axis Bank has deployed over 25 mission-critical applications on AWS, including a Buy Now Pay Later product, Account Aggregator, Video-Know Your Customer (V-KYC), and WhatsApp Banking.

Axis Bank plans to migrate 70% of its on-premises data centre infrastructure in the next 24 months to further reduce cost, improve agility and customer experience.

Puneet Chandok, President (Commercial Business), AWS India and South Asia, Amazon Internet Services (AISPL) said digital transformation for banks is no longer an initiative but it's becoming the only way to thrive and serve customers better every day.

AISPL is a local legal Indian entity that acts as a seller for AWS services in India.

Subrat Mohanty, Group Executive at Axis Bank said over the last 18 months, the organisation has been working with a very specific focus on making Axis Bank, the best digital bank in the country.

He added that the investments are directed towards strengthening its technical support teams, building capabilities and infrastructure to support its growth in the country.

How this pans out for the bank remains to be seen. Meanwhile, stay tuned for more updates from this space.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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