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Indian Indices Extend Rally; Infosys & Axis Bank Top Gainers
Wed, 15 Jul 12:30 pm

Share markets in India have extended early gains and are presently trading on a strong note.

Benchmark indices gained in early trade today, in line with Asian peers, on optimism over vaccine trials and more stimulus from the governments.

Risk appetite was boosted after Moderna Inc's experimental vaccine for coronavirus showed it was safe and provoked immune responses in all 45 healthy volunteers in an ongoing early-stage study.

The experimental vaccine, developed by US government's top infectious disease expert Anthony Fauci's colleagues at the National Institutes of Health and Moderna Inc, will start its most important step around July 27, a 30,000-person study to prove if the shots really are strong enough to protect against the coronavirus.

The BSE Sensex is trading up by 771 points, up 2.1%, at 36,800 levels. Meanwhile, the NSE Nifty is trading up by 213 points.

The BSE Mid Cap index is trading up by 1%. The BSE Small Cap index is trading up by 1.3%.

On the sectoral front, gains are largely seen in the IT sector and banking sector.

The rupee is trading at 75.30 against the US$.

Gold prices are trading down by 0.1% at Rs 49,191 per 10 grams.

Speaking of the current stock market scenario, have a look at the chart below which shows how the BSE Sensex and the smallcap index have moved over the past one year:


The markets are coming out of the deep fall. An important driver of this rally is the increasing inflow from foreign institutional investors now that the global economies have opened the liquidity tap.

A lot of this money is coming to the mid and smallcap space.

In her latest video, Richa Agarwal, editor of our premium smallcap service Hidden Treasure, shares her thoughts on what this could mean for the rebound in smallcaps and how to make the most of it.

Tune in to find out more...

Moving on, market participants are tracking shares of Infosys, L&T and Bandhan Bank as these companies are scheduled to announce their June quarter results later today.

In news from the FMCG sector, the Burman family, the promoters of Dabur, on Tuesday acquired around an 8.48% additional equity stake in battery major Eveready Industries from the open market operations, taking its holding in the company to 19.84%.

Significantly, the Khaitans, promoters of Eveready, a Williamson Magor group company, held a 22.99% equity stake at the end of the last fiscal, which was down from 30.83% at the end of the second quarter of FY20.

Shares of Eveready Industries had surged 10% yesterday on the back of above news.

Dabur India vice-chairman Mohit Burman said, "this is a portfolio investment by the Burman family. It's a personal investment and is not connected with Dabur India".

Eveready Industries had earlier mandated Kotak Mahindra Bank to scout for potential financial or strategic investors. The strategic sale was reportedly intended to deleverage promoter group holding in the company.

Facing cash flow constraints due to the lockdown, the company last month said it was in discussions with its lenders in relation to infusion of additional funds to bridge the working capital gap to ensure no impact on its operations.

The company also approached all term lenders to extend the moratorium as per RBI's Covid-19 regulatory package in relation to repayment of instalments falling due during the period of March to August.

Moving on, Wipro is among the top buzzing stocks today. Shares of the company surged nearly 18% today, a day after the Bengaluru-based IT major reported a better-than-expected net profit in the April-June period.

This is the biggest intraday jump in the Wipro stock since May 2004.

After market hours on Tuesday, the company reported a net profit of Rs 23.9 billion for the quarter ended June 30, beating analysts' expectations.

The company's revenue came in at Rs 149.1 billion in the first quarter of current financial year, marking a fall of 5.1% compared to the previous quarter.

Wipro's IT services revenue stood at Rs 146 billion in the quarter ended June 30 (Q1FY21), down 4.6% from the previous quarter.

Operating margin improved to 195 in the June quarter, compared to 17.6% in the January-March period.

Wipro said the conditions caused by the coronavirus pandemic could adversely affect its future sales, operating results and overall financial performance.

Wipro share price is presently trading up by 15%.

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!

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