Latest Stock Market News

Revenue rose 9.7% to $4.83 billion from a year ago; analysts expected $4.83 billion.

The US dollar index, which measures the currency against six major rival currencies, nursed its sharpest monthly fall on Thursday after the policy statement. The index was last at 102.64 as against 102.55 at previous close.

The valuation of the broader markets are at the marginally higher end of the long-term ranges. The Nifty 50, post the recent correction, is trading at close to 18-19x Fwd. PEs are still higher than long-term averages on the positive side; earnings growth has revived and is expected to be 18%+ in FY23. A small correction in the markets post the sharp rally over the last 24 months is part and parcel of the cycle.

While the Fed hiked rates by 50 basis points, the most since 2000, and flagged similar moves in coming months, Powell said 75 basis points was “not something that the committee is actively considering,” spurring a rally in stocks and bonds.

“Apart from one or two companies, across all sectors, we are going to see large scale downgrades because one cannot keep passing on input prices because consumers start to trade down and do not buy. That is what the problem is going to be. Margin pressure will be there and if that is accompanied by any kind of reduction in sales.”

JM Financial Institutional Securities’ MD & Chief Strategist Dhananjay Sinha suggests a few key themes for portfolio management.

Asset quality continued to improve with credit cost coming off YoY and NPA ratios declining further QoQ. SMA numbers seem under control, indicating positive asset quality outlook.

The IPO is entirely an offer for sale (OFS), wherein existing shareholders will be offloading 85,49,340 equity shares. Wagner Ltd, an entity of TA Associates, will offload 82,81,340 equity shares and Shirish Patel, Whole Time Director and Chief Executive Officer of Prudent, will sell up to 2,68,000 equity shares.

Earlier in the year, TCS completed a Rs 18,000-crore buyback process, the fastest in recent history, while Infosys wrapped up a Rs 9,200-crore buyback last year.

The sanctions proposal, which was announced by European Commission President Ursula von der Leyen and needs unanimous backing by the 27 EU countries to take effect, includes phasing out supplies of Russian crude in six months and refined products by the end of 2022.