The domestic equity barometers were trading with minor gain in mid morning trade. The Nifty marched towards the 15,950 mark. IT shares corrected after a stellar two-day run. Asian stock markets were trading mixed.
At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 35.09 points or 0.07% to 53,193.94. The Nifty 50 index added 12.35 points or 0.08% to 15,936.55.
In the broader market, the S&P BSE Mid-Cap index gained 0.27% while the S&P BSE Small-Cap index rose 0.28%.
The market breadth was strong. On the BSE, 1769 shares rose and 1255 shares fell. A total of 149 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 188,925,223 with 4,066,561 global deaths.
India reported 430,422 active cases of COVID-19 infection and 412,531 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Zomato IPO:
The initial public offer of online food delivery platform Zomato received bids for 455.01 crore shares as against 71.92 crore shares on offer on Friday (16 July 2021), according to stock exchange data at 11:25 IST. The issue was subscribed 6.33 times.
The retail individual investors (RIIs) category was subscribed 5.52 times. The qualified institutional buyers (QIBs) category was subscribed 9.41 times. The non-institutional investors (NIIs) category was subscribed 89%.
The issue opened for bidding on Wednesday (14 July 2021) and it will close on Friday (16 July 2021). The price band of the IPO is fixed at Rs 72-76 per share. An investor can bid for a minimum of 195 shares and in multiples thereof.
Buzzing Index:
The Nifty IT fell 1.27% to 29,339.45 amid some bit of profit booking. The index advanced 4.49% in the past two sessions.
Larsen & Toubro Infotech (down 3.45%), HCL Tech (down 3.05%), Tech Mahindra (down 2.38%), Mphasis (down 1.55%), Infosys (down 1.32%) and Coforge (down 1.08%) declined.
Wipro was down 0.65%. As per IFRS, the IT major's consolidated net income for Q1 June 2021 was Rs 3232.10 crore, an increase of 8.7% quarter-on-quarter (QoQ) and 35.2% year-on-year (YoY). Gross consolidated revenue was Rs 18252.40 crore in Q1 June 2021, an increase of 12.4% QoQ and 22.4% YoY.
IT services segment revenue was at $2,414.5 million, an increase of 12.2% QoQ and 25.7% YoY. IT services operating margin for the quarter was at 18.8%, a decrease of 29 bps YoY. Non-GAAP constant currency IT services segment revenue increased by 12% QoQ and 21.3% YoY.
Wipro said it expects revenue from its IT services business to be in the range of $2,535 million to $2,583 million. This translates to a sequential growth of 5.0% to 7.0%.
Stocks in Spotlight:
Sona BLW Precision Forgings added 2.90% to Rs 405.85. The company said that it has joined hands with Israel's IRP Nexus Group (IRP) to create a revolutionary magnet-less e-motor technology for the global electric vehicles market. Under the agreement, IRP will license its technology to Sona Comstar for manufacturing of the system exclusively in India, expecting to start mass production in 2023.
Bandhan Bank fell 2.14% to Rs 312.75. while the bank's total deposits have increased by 28% to Rs 60,610 crore, loans & advances have risen by 8% to Rs 74,331 crore in Q1 FY22 over Q1 FY21. Sequentially, the bank's total deposits and advances have, however, declined by 1% and 8%, respectively. The bank's collection efficiency for the month of June 2021 was approximately 80%. Liquidity coverage ratio (LCR) as on June 30, 2021 at approximately 138%.
Global Markets:
Asian stocks were mixed on Friday as concerns about the economic growth outlook came to the fore.
The Bank of Japan held steady on monetary policy. Japan's central bank downgraded its real GDP forecast for 2021 to 3.8% growth, as compared with the 4% growth forecast made in April.
The Bank of Japan also kept its yield curve control target at -0.1% for short-term interest rates and 0% for 10-year Japanese government bond yields. Yield curve control is a policy to stimulate the country's economy, and entails keeping the 10-year Japanese government bond yield at zero.
US stocks indexes fell on Thursday as energy and technology stocks declined.
Federal Reserve Chair Jerome Powell on Thursday maintained the central bank will continue to evaluate the economic recovery before changing its accommodating monetary policies. The Fed chair spoke before the Senate banking panel in a second day of testimony before Congress.
Meanwhile, Organization of the Petroleum Exporting Countries (OPEC) stuck to its forecast for a strong recovery in world oil demand in the rest of 2021 and predicted oil use would rise further in 2022 similar to pre-pandemic rates, led by growth in China and India.
"In 2022, healthy expectations for global economic growth in addition to improved containment of COVID-19 through the acceleration of vaccination programmes, effective treatment and natural immunisation, particularly in emerging and developing countries, along with frequent testing procedures, are assumed to spur consumption of oil next year to comparable pre-pandemic levels," OPEC said in the report.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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