Sensex strikes fresh record high above 53,500; IT stocks gain

The benchmark indices continued to trade on firm note after scaling record highs in mid-afternoon trade. IT stocks were in demand.

At 14:29 IST, the barometer index, the S&P BSE Sensex, surged 589.97 points or 1.11% at 53,540.60. The Nifty 50 index soared 163.15 points or 1.03% at 16,048.85. The S&P BSE Sensex scaled a new all-time high of 53,557.93 while the Nifty 50 index hit 16,062.45 during intraday trade.

Broader markets underperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.04%. The S&P BSE Small-Cap index gained 0.19%.

Buyers outnumbered the sellers. On the BSE, 1,763 shares rose and 1,391 shares fell. A total of 135 shares were unchanged.

Buzzing Index:

The Nifty IT index added 0.85% to 31,063.95, rising for fourth consecutive trading session. The IT index added 4% in four trading days.

Mphasis (up 2.4%), TCS (up 1.63%), Tech Mahindra (up 1.1%) and Infosys (up 0.9%) were top gainers in IT space.

Earnings Impact:

Bank of India rose 0.81%. The PSU bank reported 14.7% fall in standalone net profit to Rs 720 crore on a 2% decline in total income to Rs 11,698.13 crore in Q1 FY22 over Q1 FY21. Net interest income (NII) fell 9.7% to Rs 3,145 crore in Q1 FY22 over Q1 FY21. Global net interest margin (NIM) was at 2.16% as on 30 June 2021 as against 2.48% as on 30 June 2020. Operating profit was at Rs 2,806.21 crore in Q1 FY21, down by 1.3% from Rs 2,844.52 crore in Q1 FY22. Provisions (other than tax) and contingencies increased by 13% YoY to Rs 1,709.12 crore in the first quarter, of which provision for non-performing assets aggregated to Rs 873.27 crore (up 13.9% YoY).

Punjab National Bank fell 1.47%. The PSU bank reported 232.1% increase in standalone net profit to Rs. 1,023 crore in Q1 FY22 from Rs 308 crore in Q1 FY21. Total income stood at Rs 22,515 crore during Q1 FY22, down by 7.3% from Rs 24,293 crore during Q1 FY21. Net interest income (NII) grew by 6.6% YoY to Rs 7,227 crore in Q1 FY22. Provisions other than tax amounted to Rs 4,679 crore in Q1 FY22 as against Rs 4,686 crore in Q1 FY21. Of this, provisions for NPAs aggregated to Rs 3,248 crore in Q1 FY22 as compared with Rs 4,836 crore in Q1 FY21.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee rose to 74.245 compared with its previous closing of 74.3475.

MCX Gold futures for 5 August 2021 settlement shed 0.51% to Rs 47,800.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.06% to 92.013.

The yield on 10-year benchmark federal paper fell to 6.193% from its previous close of 6.197%.

In the commodities market, Brent crude for October 2021 settlement rose 28 cents or 0.38% to $73.17 a barrel.

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