Today’s Sensex : In preparation of the release of corporate profits for the June quarter, Indian shares rose on Monday, driven by powerhouse Reliance Industries.
Oil and gas both increased by over 1%, contributing to increases in seven of the 13 key sectoral indices.
The oil-to-retail conglomerate Reliance Industries, which rose more than 4% after the company’s business Reliance Retail authorised a share capital decrease, was the driving force behind the increase in the energy index.
Two international consultants are said to have assessed the retail division at $92 to $96 billion, which could portend a future IPO.
The financial services division’s demerger into Reliance Strategic Investments was likewise planned to take place on July 20 as the official record date by the corporation. Analysts believe that this demerger has the potential to increase the company’s worth.
The gains in benchmarks were capped by a loss of almost 1% in the information technology (IT) index.
While margin pressures will persist, Saptarishi Mukherjee, assistant vice president for research at BOB Capital Markets, predicted that IT firms would report disappointing June quarter earnings.
Following the release of the June quarter results, the brokerage lowered the ratings of HCLTech, Persistent Systems, Coforge, and Affle India from “buy” to “hold” and signalled additional profit downgrades in the sector due to a decline in client.
On July 12, Tata Consultancy Services and HCLTech will release their results for the June quarter, and on July 13, Wipro will announce its results.
The top Nifty 50 losers included HCLTech and Tata Consultancy Services.
While Wall Street shares were muted on Friday due to ongoing fears about future rate hikes in the United States, Asian markets were slightly higher on Monday.