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SGX Nifty Down 108 Points, HCL Technologies Q1 Preview, New Entrant in the EV Space, and Top Buzzing Stocks Today
Tue, 12 Jul Pre-Open

HCL Technologies Q1 Preview, New Entrant in the EV Space, and Top Buzzing Stocks Today

On Monday, Indian share markets ended on a weak note dragged by technology companies after top IT services provider Tata Consultancy Services missed estimates for June-quarter profit.

TCS share prices continue falling and ended 4.6% lower on the BSE yesterday. Read Equitymaster's editorial for a detailed analysis of why TCS share price is falling.

The domestic currency hit a new record low against the US Dollar yesterday, begging the question can a depreciating rupee trigger the recovery in Indian IT stocks?

Yesterday, benchmark indices recovered from the intraday lows but ended with marginal losses in the volatile session.

Looking ahead, India's retail inflation data is due later today, with a Reuters poll showing that the reading likely held steady in June but well above the Reserve Bank of India's tolerance limit for the sixth month.

At the closing bell on Monday, the BSE Sensex stood lower by 87 points (down 0.2%).

Meanwhile, the NSE Nifty closed flat at 16,216 (down 5 points).

Tata Steel, M&M, and Dr Reddy's Laboratories were among the top gainers.

Bharti Airtel, TCS, and HCL Technologies, on the other hand, were among the top losers.

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Bucking the trend, the broader markets ended in the green. The BSE MidCap index ended higher by 0.6% while the BSE SmallCap index ended higher by 1.1%.

Sectoral indices ended on a mixed note with stocks in the IT sector, telecom sector, and capital goods sector witnessing most of the selling.

While stocks in the auto sector, metal sector, and energy sector witnessed most of the buying.

According to Chartist Brijesh Bhatia, the auto index is on the verge of a multiyear breakout.

Shares of Eicher Motors and Adani Total Gas hit their 52-week highs.

Since you're interested in high flying stocks, check out our guide on how to pick the best multibagger stocks in 2022.

Also, check out the 5 largecap stocks that will soon declare dividends.

Gold prices for the latest contract on MCX were trading down by 0.2% at Rs 50,670 per 10 grams, at the time of Indian market closing hours yesterday.

Gold prices have fallen and have taken quite a knock in recent weeks.

At 7:40 AM today, the SGX Nifty was trading down by 108 points or 0.7% lower at 16,090 levels.

Indian share markets are headed for a negative opening today following the trend on SGX Nifty.

Speaking of stock markets, the volatility of 2022 has left investors confused. The unpredictability of the market has disappointed investors more than the ending of Bahubali - the beginning.

But lately, the stock markets have started to recover giving investors some reasons to be pleased.

Discover: How to Grow Your Wealth in a Stress-Free Way

Recently the Indian share market indices, more specifically investors of NSE markets were pleased. As on 7 July 2022, the index was trading above 16,000.

But with high interest rates, probability of recession in US, and unpredictable crude oil prices, will this rally survive? Chartist - Brijesh Bhatia explains in the below how long will the rally survive?

Top Buzzing Stocks Today

Paytm share price will be among the top buzzing stocks today.

On Monday, Paytm announced its monthly business operating performance update for the quarter.

In its regulatory filing, Paytm announced the number of loans disbursed through their platform grew 492% YoY to 8.5 m loans in the quarter under review.

While the value of loans disbursed increased 779% YoY to Rs 55.5 bn.

Meanwhile, the company's app reached its highest at 76 m in the period.

If you are interested in investing in Paytm via the mutual fund route, check out these Mutual Fund Schemes Investing in Beaten Down Stocks Like Zomato and Paytm.

Bharti Airtel share price will also be in focus today.

Adani Group's announcement of bidding for 5G spectrum has spooked investors in the telecom industry.

Experts say Adani might make a full-fledged foray into the telecom market at a later stage.

Market participants will also track shares of HCL Technologies, Delta Corp, and Sterling and Wilson Renewable Energy as these companies are set to announce their Q1 results later today.

Coal India: scales up CAPEX

State-run miner Coal India has scaled up its CAPEX to Rs 30.3 m for the first quarter of financial year 2023.

According to the company's statement, the CAPEX is 65% higher as compared to last year driven by the government's push to expand capacity as the country faced yet another power crisis around the same time.

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The near-monopoly stock has been under pressure to increase production as coal supplies dwindled at power plants even as demand for electricity hit all-time highs driven by a spike in household expenditure.

This comes amid an ongoing heat wave and a pick-up in industrial demand, forcing many states to resort to power cuts in March-April.

In a statement, Coal India's spokesperson said:

  • CIL's production tempo is keeping up a consistent double-digit growth in FY23 so far and all efforts are on to continue the trend. What assumes importance is to have a matching evacuation infrastructure that can handle transportation of the increased output.

Note that despite having a monopoly, shares of Coal India that once traded at Rs 350 (in 2010), now trade at Rs 195 levels.

HCL Technologies: Q1 preview

As per an article in The Economic Times, HCL Technologies is likely to report a flat to single-digit year-on-year growth in profit for the June 2022 quarter despite an over 15% rise in net sales.

EBIT margin is seen falling at least 200 basis points on a yearly basis.

According to experts, HCL Technologies is expected to retain a 12-14% revenue growth guidance and an 18-20% EBIT margin guidance for the current financial year.

The management commentary on the product and platform business would be among key things to watch out for.

Electric Vehicle under Rs 600,000?

Homegrown solar company, Gensol Engineering, is aiming to make an electric car for less than Rs 600,000.

The company on Friday told investors that it had signed a term sheet to acquire an US-based electric vehicle manufacturing start-up which will provide the technical expertise to develop an electric car.

Gensol Engineering did not reveal the name of the US company or the price it paid for the acquisition.

Anmol Singh Jaggi, Managing Director of Gensol Engineering said:

  • We clearly believe that there is a need for a Rs. 0.5 - 0.6 m (on road price) electric vehicle.

    The Indian EV manufacturing industry needs a disruption and that can only happen if an e-car could be sold for as less as Rs. 0.5 m.  We have taken up that challenge.

Currently, the cheapest electric car on Indian roads is Tata Motors' Tata Tigor which costs at least Rs 1.24 m.

If you are interested in EV stocks, have a look at top EV stocks in India and the EV penny stocks in India.

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

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


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