Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 were likely to open muted on Thursday, a day of weekly F&O expiry. SGX Nifty 50 Index Futures for July were trading at 16,520, up 22.50 points or 0.2 per cent on Singaporean Exchange. In the previous session, the S&P BSE Sensex closed at 55,397, up 630 points or 1.15%, while the Nifty50 index reclaimed the 16,500-mark to end at 16,521, up 180 points or 1.1%. Analysts say that Q1FY23 results season has begun on a healthy note, indicating that the companies are managing the raw material inflationary pressure pretty well despite the full blown impact of high commodity prices this quarter. “This has provided relief to the investors that the corporate earnings might not be impacted to the extent feared. Even FIIs have turned buyers over last two sessions as valuations turn comfortable while concerns are abating. However given the sharp rally in the last few day, we expect markets may take a pause and consolidate before resuming its upward journey. Investors would pick up cues from the ECB’s MPC on Thursday and US Fed meeting next week,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.

Stocks to watch on Thursday, 21 July 2022

JSW Steel: JSW Steel, the flagship company of the diversified JSW Group, will expand its production capacities in the country to 37 million tonnes per annum (MTPA) by the financial year 2025. The company has also earmarked Rs 10,000 crore to increase the use of renewable energy.

Hindustan Unilever: Prices of certain commodities like that of palm and crude oil may have softened in the last few weeks, but FMCG major Hindustan Unilever (HUL) continues to see inflation as a concern and will keep the price hikes coming, at least in the near term.

Ceat: Tyremaker Ceat on Wednesday posted a consolidated net profit of Rs 9.25 crore for the first quarter ended June, below analyst estimates of Rs 11.6 crore, impacted by rising raw material costs. The company had posted a net profit of Rs 23.98 crore for the same quarter of the last financial year.

Wipro: IT services major Wipro on Wednesday missed analyst estimates, reporting a 17% quarter-on-quarter fall in consolidated net profit to Rs 2,563.6 crore during the April-June quarter, on the back of rising employee-related expenses. The Bloomberg consensus estimate had pegged the net profit at Rs 2,996.6 crore.

AU Small Finance Bank: AU Small Finance Bank on Wednesday reported a 32% year-on-year increase in its net profit for the first quarter of the current financial year to Rs 238 crore as provisions fell. The bank made provisions of Rs 38 crore, lower by 81% YoY because of improvement in the asset quality and Covid-related provisions.

ITC: Diversified conglomerate ITC is looking to ramp up exports of its value-added FMCG products to international markets, chairman and MD Sanjiv Puri said on Wednesday. Addressing shareholders at the company’s annual general meeting, Puri said in recent years, the company has established distribution arrangements abroad, enabling appreciable progress of exports of its “Proudly Indian” brands to over 60 countries.

IndusInd Bank: IndusInd Bank’s net profit rose 61% year-on-year (y-o-y) to Rs 1,631 crore in the April-June quarter on the back of lower provisions and higher income. Provisions were down 30% y-o-y at Rs 1,251 crore.

PVR, Quick Heal: BSE-listed companies such as RBL Bank, CSB Bank, IDBI Bank, Can Fin Homes, CRISIL, Cyient, Elecon Engineering, Embassy Office Parks REIT, Gujarat State Fertilizers & Chemicals, Happiest Minds Technologies, Hindustan Zinc, Himadri Speciality Chemical, IndiaMART InterMESH, ICICI Securities, JSW Energy, Kajaria Ceramics, Meghmani Finechem, Mphasis, Orient Bell, Persistent Systems, Hitachi Energy India, PVR, Quick Heal Technologies, Ramkrishna Forgings, and SRF will be in focus ahead of quarterly earnings on 21 July 2022.