Sensex Today Ends 26 Points Higher; IT Stocks Shine

After opening the day flat, Indian shares turned positive as the session progressed and ended the day higher.

Indian equities ended a range-bound session on a positive note.

At the closing bell, the BSE Sensex stood higher by 268 points (up 0.4%).

Meanwhile, the NSE Nifty closed higher by 69 points (up 0.3%).

Cipla, Coal India, and Britannia are among the top gainers today.

SBI, Hindalco, and Apollo Hospital, on the other hand, were among the top losers today.

The GIFT Nifty was trading at 22,693, up by 75 points, at the time of writing.

The BSE MidCap index and BSE SmallCap index ended flat.

Sectoral indices are trading mixed with stocks in the realty sector, IT sector, and power sector witnessing the most buying. Meanwhile, stocks in the banking sector and the metal sector witnessed selling pressure.

Shares of Linde India, TVS Holdings, and Dixon Technologies hit their respective 52-week highs today.

The rupee is trading at 83.28 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% lower at Rs 73,900 per 10 grams.

Meanwhile, silver prices were trading 0.4% lower at Rs 94,304 per 1 kg.

ICICI Bank Approves ESOP

In news from the banking sector, shares of ICICI Bank fell over 1% to Rs 1,108 per share on 22 May after the bank allotted 6.5 lakh equity shares of the face value of Rs 2 each under the employee stock option plan (ESOP).

So far this year, the stock of this private sector lender has surged over 11%, outperforming a 3% rise in the benchmark Nifty 50 index.

Earlier, ICICI Bank had alloted 1.67 lakh equity shares under ESOP on 11 January 2024.

Apart from that, ICICI Bank also approved the appointment of Rajendra Khandelwal as the Group's Chief Internal Auditor and senior management personnel effective June 1, 2024. Khandelwal will replace Anish Madhavan whose term as GCIA is due for completion on 31 May 2024.

With 29 years of banking and finance experience, Khandelwal handled significant responsibilities in the areas of taxation, wholesale banking planning, operating expense management, and accounts.

Axis Bank vs ICICI Bank chart

Welspun Enterprises Rallies 9%. Here's why

Moving on to news from the realty sector, shares of Welspun Enterprises surged over 9%, hovering close to a 52-week high, after emerging as the lowest bidder to construct an access-controlled multi-modal corridor in Navghar to Balavali, Maharashtra.

In its fiscal fourth quarter, the company reported a 45% year-on-year (YoY) decline in net profit, falling to Rs 780 m. Total consolidated revenue for the quarter decreased by 5% YoY, reaching Rs 867 crore.

Welspun Enterprises' consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) dropped 6% YoY to Rs 1.6 bn. The EBITDA margin contracted by 5 basis points (bps) YoY to 18.1%.

For the financial year ending 31 March 2024, the company experienced a 56% YoY decline in net profit, down to Rs 3.2 bn. However, total income for FY24 increased by 6% YoY to Rs 30.6 bn.

Why GSFC Share Price is Falling

Moving on to news from the chemical sector, Gujarat State Fertilizers & Chemicals shares sank almost 9% in trade on May 22, after the state-run firm posted a 91% fall in net profit for the fourth quarter.

GSFC reported a net profit of Rs 21 crore for the three months ended March, down 91.3% on-year from Rs 2.3 bn in the corresponding period last year.

The firm's total revenue fell 18.2% on-year to Rs 19.9 bn, down from Rs 24.4 bn in the March 2024 quarter in the previous year.

While raw materials prices softened YoY, it was exceeded by the decrease in subsidy rates, thus squeezing fertilizers EBIT margins from 17% to 5%.

The fertilizer segment's topline and bottom line were dampened by a steep downward revision in subsidy rates. Fertilizer sales decreased in value terms despite an increase of 6% in volume terms.

The guidance from the company's management also dampened its prospects. While India will receive above-normal rainfall, which will brighten prospects for the fertilizer industry, the Nutrient Based Subsidy (NBS) rates for Kharif crops announced in March 2024 are broadly non-remunerative for the industry.

Gujarat State Fertilizers & Chemicals, a government entity, manufactures various fertilizers and industrial products like plastics & synthetic rubbers, and man-made fibers.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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