Indian equity markets will track global market cues, crude oil prices and companies’ second-quarter earnings on Thursday, October 22. The Sensex and Nifty closed lower in the previous trading session, with international developments and company-specific announcements likely to influence market activity.
Shares of Bharat Electronics Limited (BEL), Persistent Systems, KEI Industries, Mahindra & Mahindra Financial Services and Eternal, among others, may see trading activity during the session.
The Indian stock market failed to sustain its early gains on Wednesday, with selling pressure dominating towards the close. The Sensex fell 143.21 points, or 0.19%, to close at 73,709.69. The Nifty 50 declined 77.60 points, or 0.34%, to 22,811.35. The Bank Nifty also fell 0.92% to close at 54,976.90.
Elevated crude oil prices were among the key factors weighing on the market. Brent crude rising above $110 per barrel has raised concerns about India’s economy, inflation and companies’ operating costs. India imports a substantial share of its oil requirements, making the country’s import bill and economic pressures vulnerable to increases in crude oil prices.
Information technology stocks performed relatively better in the previous session, while banking, automobile, mid-cap and small-cap stocks declined.
From a technical perspective, 23,175 is being identified as an important level for the Nifty. If the index sustains above this level, 23,300 and 23,500 will remain in focus. Market volatility may continue.
Defence public sector company Bharat Electronics Limited (BEL) has received additional orders worth ₹1,011 crore since October 13. The orders cover radars, communication equipment, sonar systems, jammers, upgrades, spare parts and services.
The company has also received a ₹770 crore contract from the Ministry of Defence.
IT services company Persistent Systems has initiated a fund-raising process through a qualified institutional placement (QIP) worth ₹4,265 crore. The company approved the opening of the issue on October 21. The fund-raising process will remain in focus as investors track developments related to the issue.
Wire and cable manufacturer KEI Industries reported its September-quarter financial results, with net profit rising 29.3% year-on-year to ₹262.5 crore.
Revenue increased 38.5% to ₹3,776.4 crore, while EBITDA rose approximately 39.8%.
Mahindra & Mahindra Financial Services reported a 54.8% increase in second-quarter profit to ₹881.5 crore, compared with ₹569.3 crore in the corresponding quarter last year.
Net interest income rose 13.2% to ₹2,391.4 crore.
Eternal, which operates in food delivery and quick commerce, reported an increase in profit to ₹125 crore from ₹92 crore in the previous quarter.
Tata Group hospitality company Indian Hotels Company Limited (IHCL) reported a 19.4% year-on-year increase in September-quarter profit to ₹380 crore. Revenue rose 21.7% to ₹2,484.3 crore.
The Spain-based subsidiary of Tata Communications received a favourable ruling in a tax dispute. A Spanish court set aside a VAT demand of €15.51 million and a penalty of €18.10 million.
Digital payments company Pine Labs invested approximately ₹25 crore in its subsidiary, SFNPL, by acquiring 49,869 equity shares through a rights issue. The investment is intended to support the subsidiary’s working capital and business requirements.
Several companies are scheduled to announce their second-quarter financial results on Thursday. These include Swiggy, Colgate-Palmolive India, Adani Energy Solutions, Adani Total Gas, Havells India, Hindustan Petroleum Corporation, Jindal Stainless, Chennai Petroleum Corporation, Cyient, CreditAccess Grameen, Nippon Life India Asset Management, Nuvoco Vistas, Rallis India, Sagility, Sapphire Foods India, BlueStone Jewellery and Lifestyle, and Tata Teleservices (Maharashtra).
Investors will track these companies’ revenue, profit, margins and management commentary on future business plans. Their share prices may fluctuate depending on how the reported results compare with expectations.
