Paytm posted its first-ever quarterly profit, while Tata Motors led index gains.
Indian equity markets ended higher, tracking positive global sentiment after the US signed a trade deal with Japan. The Nifty index reclaimed the 25,200 level, led by buying in financials, auto and healthcare stocks.
Infosys earnings came in post-market hours. Q1 revenue rose 8% to ₹42,279 crore, while profits stood at ₹6,921 crore. The IT major has raised its lower band of the revenue growth guidance to 1% to 3% from 0% to 3%, while margin guidance is maintained at 20-22%.
On Wednesday, the Sensex closed 539 points higher at 82,726, while the Nifty 50 ended 159 points higher at 25,219. Broader markets outperformed, with the Nifty Midcap index rising 0.3% and the Smallcap index ended flat.
However, the retail investor sentiment surrounding the Nifty 50 remained ‘bearish’ by market close on Stocktwits.
Sectorally, barring real estate (-2.7%), media (-1%) and FMCG (-0.6%), all other sub-indices ended in the green.
Paytm shares recouped opening losses to end nearly 2% higher after it reported its first-ever profit for June quarter, amid improvement in operational performance.
Colgate (-4%) hit a new 52-week low after its Q1 earnings missed street estimates. Citi maintained a ‘Sell’ rating and revised its target price lower to ₹2,175 from ₹2,300
The other earnings movers include Dixon Technologies (+3%), IRFC (+3%), CreditAccess (+5%), Dalmia Bharat (-2%) as investors parsed their quarterly performance.
Focus shifts to Dr Reddy’s and Tata Consumer that are set to report Q1 earnings after market close.
Tata Motors was the top Nifty gainer (+2.6%) ahead of the India-UK free trade agreement deal that will be signed tomorrow. Also, sentiment boost coming in from the US-Japan trade deal, which reduced tariffs on Japanese vehicles entering the US market.
Ola Electric surged 7%, while Lodha (-7%) and Oberoi Realty (-3%) shares fell on the back of large block deals.
Globally, European markets traded higher, while US stock futures indicate a positive start on Wall Street.
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