Infy ends 2% higher on Friday ahead of Q1 results; Sensex ends flat

The benchmark indices pared their day’s gains to end flat on Friday.

The S&P BSE Sensex ended at 36,542, down 7 points. The index had hit a fresh all-time high of 36,740.07 in intra-day deals earlier today tracking global markets ahead of information technology (IT) heavyweight Infosys June quarter earnings later in the day. The broader Nifty50 index settled at 11,019, down 4 points.

Among sectoral indices, the Nifty PSU Bank index fell over 2% weighed by a decline in Canara Bank and Indian Bank.

Shares of smallcap companies were under pressure with the S&P BSE Smallcap index falling more than 1% after a sharp decline in stock prices of PVR, KNR Constructions, Inox Leisure and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC).

Idea Cellular share price fell 2.7 per cent intraday on Friday after global research firm Credit Suisse maintained its Underperform rating on the stock with a target price at Rs 45, implying a 17 per cent downside. After the merger between the company and Vodafone, the new entity may prioritise cost savings over market share retention and the cost base should be close to current Bharti mobile cost base, the research house said.

Shares of Bajaj Finance hit a new high of Rs 2,460 per share on the BSE, rising by 2% today and extending their 2.5% gain on Thursday, on expectations of healthy financial performance for the quarter ended June 2018 (Q1FY19). In past two months after the March quarter (Q4FY18) results, Bajaj Finance have outperformed the market by surging 32% as compared to 2.8% rise in the S&P BSE Sensex.

Cyient fell 3.42% to Rs 716.65 on BSE after consolidated net profit fell 32.67%. Net sales rose 1.71% to Rs 10.80 billion in Q1 June 2018 over Q4 March 2018.

Infosys rose 2.8% to Rs 1330.90 on BSE ahead of the company’s Q1 June 2018 results later today, 13 July 2018. On the BSE, 2.08 lakh shares were traded in the counter so far compared with average daily volumes of 2.18 lakh shares in the past two weeks.

A gradual recovery in domestic volume growth performance and new launches in the premium category, both in scooters and motorcycles, is expected to help TVS Motor post strong volume growth and improve margins, going ahead. Domestic two-wheeler volume growth has been disappointing in May, as sales dipped to 2.4 per cent year-on-year, before recovering partially in June to about 8 per cent.

Reliance Industries (RIL) crossed Rs 7 trillion market capitalisation (market cap) mark for the first time on Friday and became second Indian firm to cross this mark after information technology giant Tata Consultancy Services (TCS). The stock touched a fresh record high of Rs 1,107 on BSE, up by 2.5% from its previous close with a market cap rising to Rs 7.01 trillion at 09.52 am; the BSE data shows. TCS is at top of the rank with Rs 7.55 trillion market cap, the BSE data shows.

Shares of HCL Technologies have slipped 2.3% to Rs 982 per share on the BSE in otherwise firm market after the company said it had received its board’s approval to conduct a share buyback of up to 36.3 million equity shares worth nearly Rs 40 billion. The company made announcement on Thursday after market hours. The buyback price of Rs 1,100 per share is at around 9% premium over its Thursday’s closing market price of Rs 1,005 at BSE. Currently, the promoters’ holding in the company stands at 60%.

Fortis Healthcare Ltd said on Friday it accepted an investment offer from Malaysia’s IHH Healthcare Bhd, capping a months-long bidding war for control of the firm that drew interest from domestic and international suitors. Cash-strapped Fortis said IHH will invest Rs 40 billion ($584.11 million) at Rs 170 per share in the company that operates about 30 private hospitals in India, where the race to cash in on a private healthcare boom is heating up. The offer is at a 19.5 per cent premium to Fortis’ closing price on Thursday.

Here are some picks from the week gone by.

Company: Dabur India CMP: 375.20 Mastermind

Company: Karnataka Bank CMP: 114.50 Mastermind

Company: Glenmark Pharma CMP: 565.60 Mastermind

Company: Dr. Reddys CMP: 2315.00 Mastermind

Company: UPL Limited CMP: 568.30 Mastermind

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