Sensex, Nifty close with marginal gains; metal, pharma stocks surge  |  Photo Credit: PTI
Domestic benchmarks logged minor gains while the majority of bets were concentrated in metals and pharma packs on Thursday.
S&P BSE Sensex closed at 61,235.30 levels, gaining 85.26 points or 0.14% during the day while the broader CNX Nifty50 index settled at 18,257.80, rising over 45 points or 0.25% from its yesterday’s closing levels.
The advance-decline favoured the bulls was flat with a positive bias as 1,077 stocks advanced against a decline seen in 956 stocks while 2 remained unchanged.
Tata Steel, JSW Steel, Sun Pharma, Coal India, and Larsen & Toubro were top blue-chip gainers of the day while Wipro, Asian Paints, HCL Tech, HDFC Bank, IndusInd Bank were top Nifty laggards.
Broader markets fared better than benchmarks as Nifty Midcap 100 and Nifty SmallCap 100 indices rose 0.6% as compared to benchmarks’ 0.25% up move.
Among sectoral gauges, Nifty Metal surged 3.48%, Pharma added 1.57%, Nifty Healthcare index was up 1.39% while Nifty Bank, Nifty Private Bank and Realty barometers settled in the red zone compared to Wednesday closing levels.
“The Base metals pack is off to a kick start in 2022, continuing with its momentum from last year. Disrupted supply following the limited supply from China and concerns over a sustained period of high-power prices following the energy crunch has been the primary supportive element for the entire pack,” said Yash Sawant (Research Associate, Angel One Ltd)
“Nickel prices surged as signs of a promising demand outlook given the upswing in the EV sector and depleting LME inventories gave strength to the prices. Also, stainless steel prices, where most nickel supply is used, jumped as producers cut production to carry out maintenance which further pushed Nickel prices higher,” he added.
In other important developments, TCS, Infosys and Wipro posted their October-December quarter earnings results post market hours on Wednesday.
TCS reported in-line revenue performance but margins were a miss. The deal TCV continues to be strong driven by BFSI sector and North America geography. TCS board also approved Rs 18,000 crore share buyback at Rs 4,500 per share. The stock closed almost 1% higher at Rs 3,898 on the NSE on Thursday.
Out of three, Wipro’s performance was relatively muted in Q3 with net profit growing at 3.0% QoQ on a constant currency which was below estimate and the lowest in the last five quarters. The organic growth at around 2% QoQ was the lowest among top-3 IT companies.
“We reduce our revenue estimate for FY22/23E by 0.6/0.5% to factor in revenue miss. Our target price of INR 740 is based on 24x Mar-24E EPS (~20% discount to INFY). The stock is trading at 26.9/22.5x FY23/24E EPS. Maintain ADD,” wrote Institutional Research Desk at HDFC Securities in a note shared with investors on Thursday.
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