Sensex and Nifty closed higher on Monday amid heavy buying in IT and banking stocks led by better-than-expected earnings in Q1.
Extending last week's gains, Sensex rose 398 points to 37,418 and Nifty ended 120 points higher to 11,022.
Ajit Mishra, VP - Research, Religare Broking said," Markets are largely focusing on the earnings and the recent announcements from the index majors have positively surprised the market, which in turn fueling the recovery".
Vinod Nair, Head of Research at Geojit Financial Services said, "The Indian benchmark indices exhibited volatility, tracking earnings results. The earnings results declared so far have been positive, as the sectoral leaders, especially in the IT and Banking sector, have emerged better than expected in a quarter that was considered to be a washout, in terms of business."
Top gainers today
Britannia: Many brokerages have raised target prices for this FMCG stock, that ended 5.26% higher at Rs 3,983.25 apiece today. The company posted over two-fold rise in its consolidated profit at Rs 542.68 crore, as against Rs 248.64 crore during the corresponding quarter of last year. Its total income jumped 26.97% to Rs 3,514.35 crore from Rs 2,767.8 crore YoY.
Wipro: The IT index heavyweight reported flat net profit at Rs 2,390 crore, still beating street estimates last week. The company posted a flat 0.11% rise in its net profit at Rs 2,390.40 crore for the quarter ended June 30 against Rs 2,387.60 crore YoY. The IT stock climbed 3.58% to end at Rs 270.85 on BSE today.
Infosys: Shares of the second-largest Indian IT company continued to rise on the back of latest Q1 earnings. The IT major posted a 11.5% rise in its profit to Rs 4,233 crore for the quarter ended June 30 against Rs 3,798 crore in the corresponding quarter last year. Shares of Infosys ended 3.27% higher at Rs 933.55 on BSE. The stock trades 1.98% away from 52-weeks high of Rs 952.
Tech Mahindra: Stock price of Tech Mahindra ended 3.91% higher at Rs 623,40 on BSE. The IT major is expected to post April-June quarterly updates on July 28, 2020. The company is expected to report a 3% QoQ increase in its net profit, as per Motilal Oswal.
HCL Tech: The IT firm has been received positive commentary by many brokerages post stellar April-June quarter earnings. Company reported net profit of Rs 2,925 crore during the quarter, which was up 32% YoY and down 7.3% sequentially. The stock climbed 4.01% to end at Rs 648.45 on BSE on July 20.
Top losers today
Sun Pharma: The pharma heavyweight stock closed 3.90% lower at Rs 483.95 today. This was on the back of profit booking in pharma index, the only sector that closed 1.60% lower in today's session. Recently, Sun Pharmaceutical Industries MD Dilip Shanghvi in an analyst call said the company plans to gain market share in each of its business by doing better, despite the near-term uncertainties related to Covid-19.
Cipla: Cipla shares closed lower on Monday as the pharmaceutical company said it has reached a settlement with Amgen Inc on a pending legal case involving generic cinacalcet hydrochloride tablets, used in the treatment of secondary hyperparathyroidism in adult patients with chronic kidney disease. The pharma heavyweight stock closed 2.15% lower at Rs 674.30 today.
Zee Entertainment: The media stock closed 1.72% lower at Rs 154.70 today. As per ICICI Direct, company's net profit is expected to fall 55.5% year-on-year to Rs 236 crore and net sales are expected to fall 37.6% YoY to Rs 1,252.2 crore. The media major will report Q1 earnings on July 24, 2020.
BPCL: The stock price of the oil major ended 1.68% lower at Rs 436.35 today. Recently, the stock has surged amid reports of oil major showing interest in its stake sale by the government. However, due to negative closing in the energy index, that closed 0.04% lower, the stock witnessed profit booking.
Tata Motors: The stock price of the auto major ended 1.36% lower at Rs 104.95 today. The auto heavyweight reported weak Q1 FY21 figures last week, where the group's global wholesales in Q1 FY21 including Jaguar Land Rover, fell down by 64% to 91,594 units YoY.