Sensex and Nifty surge on optimism over US trade deal
Buying in IT blue-chip stocks also drove the equity markets higher during the initial trade.
The 30-share BSE Sensex climbed 236.56 points to 83,933.85 in early trade. The 50-share NSE Nifty went up by 66.3 points to 25,608.10.
From the Sensex firms, Infosys, Tech Mahindra, Tata Steel, Sun Pharma, Tata Consultancy Services and Tata Motors were among the biggest gainers.
However, Bajaj Finserv, Asian Paints, Bharat Electronics and Bajaj Finance were among the laggards.
India's manufacturing sector growth rose to a 14-month high of 58.4 in June marked by improved trends in output and new orders, alongside a record upturn in employment, a monthly survey said on Tuesday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index – an indicator of sector performance - was 57.6 in May.
"The market is expected to open on a positive note, supported by strong domestic cues such as a 14-month high in manufacturing PMI, a narrowing trade deficit, and optimism around a potential trade agreement with the US," Vikas Jain, Head of Research at Reliance Securities, said in his pre-market views.
Gross GST collection increased by 6.2 per cent to over ₹ 1.84 lakh crore in June but slipped below the ₹ 2 lakh crore mark recorded in the previous two months.
The GST mop-up stood at ₹ 1.74 lakh crore a year ago, as per government data released on Tuesday.
"After breaking the 24,500-25,000 range Nifty has moved to the new range of 25,200-25,800. Positive news about a possible trade deal between India and the US can help break the upper limit of the range but it would be difficult to sustain the Nifty at higher levels for long. A surprise element is the resilience of the US economy and corporate earnings, which in turn is imparting resilience to the US market, despite the tariffs," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index were trading lower while Hong Kong's Hang Seng index quoted higher.
The US markets ended on a mixed note on Tuesday.
Global oil benchmark Brent crude traded 0.06 per cent up at USD 67.15 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹ 1,970.14 crore on Tuesday, according to exchange data.
In the previous trading session, the Sensex rose by 90.83 points or 0.11 per cent to settle at 83,697.29. The Nifty gained 24.75 points or 0.10 per cent to close at 25,541.80.
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Mint
18 minutes ago
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Stocks to trade today: Trade Brains Portal recommends two green energy stocks for 3 July
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The company, which has a capacity of more than 3.4 GW, has commissioned 17 projects and has 24 projects underway. NGEL reported revenue from operations of ₹2,210 crore for FY25, up 12.5% from ₹1,963 crore in FY24. Ebitda stood at ₹2,173 crore, up 19.4% from ₹1,819 crore in the previous year. Profit after tax rose 38% to ₹474 crore. In the auction conducted by Solar Energy Corporation of India Ltd for the construction of 2,000 MW of inter-state transmission system-connected solar photovoltaic power plants, NTPC Renewable Energy Ltd, a fully owned subsidiary of NTPC Green Energy, secured a 500 MW solar power contract. The installation of energy storage systems with a combined capacity of 1,000 MW/4,000 MWh is also up for auction. To build renewable energy projects in Bihar, such as ground-mounted and floating solar arrays, battery energy storage systems, and green hydrogen mobility initiatives, the company has signed a memorandum of understanding with Bihar's industries department. 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NHPC Ltd Current price: ₹84 Target price: ₹105 in 12-14 months Stop-loss: ₹73 Why NHPC is recommended: NHPC, India's largest hydropower development company, was founded in 1975 and is equipped to handle all aspects of hydro power project development, from planning to commissioning. In addition to developing numerous renewable energy projects, NHPC has expanded into solar and wind energy. It has operations in 15 states and two union territories. Of the company's 24 active projects, 21 are hydro projects, one is wind, and two are solar. The company reported revenue from operations of ₹8,994 crore for FY25, up 7% from ₹8,397 crore in the year before. But profit after tax fell to ₹3,084 crore from ₹3,722 crore. On a combined basis, capital expenditure amounted to ₹11,596 crore in FY25, slightly lower than the projected capex of ₹11,762 crore. The company has 8,140 MW of installed capacity (7,771 MW hydro, and 369 MW renewable energy) through 30 power plants. 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Economic Times
19 minutes ago
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Key strength ratio signals bullish momentum for Indian markets
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Mint
26 minutes ago
- Mint
IT's pay puzzle: Wipro, TechM median salaries drop despite rise in headcount
Median remuneration to employees at Wipro Ltd and Tech Mahindra Ltd fell simultaneously for the first time in eight years in FY25, despite both companies expanding their workforces. Analysts said that this indicates that the two IT service providers likely added more freshers as well as hired replacements at lower salaries to boost profitability. In FY25, Wipro and Tech Mahindra reported a decline of 0.6% and 6.52% in annual median salary, respectively, according to their annual reports. At Wipro, median salary totalled ₹9.78 lakh (around $11,000), whereas median salary at Tech Mahindra worked out to ₹18.3 lakh for males and ₹15.4 lakh for females. Median salary is the mid-point of a set of salaries arranged in ascending order, where half the salaries are higher and half lower. In contrast, the country's two largest IT outsourcers—Tata Consultancy Services Ltd and Infosys Ltd—increased their median salary to employees by 6.3% and 9.6%, respectively. Median salary at the country's third-largest software services provider HCL Technologies Ltd is not yet known as the company has yet to release its annual report for FY25. Wipro and Tech Mahindra—India's fourth and fifth-largest IT firms—last reported such a simultaneous decline in median salary in FY17. Individually, Pune-headquartered Tech Mahindra has seen its median remuneration decline six times in the past 10 years, whereas it is the third such instance for the Bengaluru-based Wipro. Median remuneration to employees at Wipro does not include whole-time directors. TCS and Infosys reported such a decline only once in the past decade, in FY21 and FY15, respectively. HCLTech is the only company among the country's top five software services firms to have never seen its median salary decline. Emails sent to Wipro and Tech Mahindra remained unanswered till press time. The fall in the median remuneration comes at a time when profitability of the country's largest IT outsourcers has been under pressure. These companies are exploring various ways to improve operating margins and one such way is to hire junior employees at lower costs. Lower median remuneration at Wipro and Tech Mahindra could imply that the companies added more freshers and/or hired candidates at lower salaries to replace talent at mid-management and senior levels, which led to a decline in median salaries, analysts said. 'Firms such as Wipro and TechM are following the lead of TCS by moving work to tier-4 locations and increasingly hiring from universities which are less prestigious. This is significantly lowering the cost of these employees and bringing down the average wages paid," said Peter Bendor-Samuel, founder of Everest Group, a Dallas-based tech research firm. He added that this was done to boost operating margins. 'The relentless focus on reducing cost is having its desired effect of allowing these firms to post higher margins," said Bendor-Samuel. TCS, Infosys and HCLTech reported operating margins of 24.3%, 21.1% and 18.3%, respectively, in FY25, respectively. TCS's margin declined by 30 basis points, while Infosys and HCLTech's margins grew by 40 basis points and 10 basis points, respectively. Wipro and Tech Mahindra improved their profitability the most last year. Wipro increased its operating margins by 100 basis points to 17.1%, whereas Tech Mahindra's profitability jumped 360 basis points to 9.7%. Hiring more employees can increase the median, or the mid-level salary. If a company adds headcount, the median salary is expected to increase because there are more employees in the company. Still, if the median salary goes down, it means that the number of employees earning salaries below the median amount has increased and that middle and senior-level employees have decreased. Both Wipro and Tech Mahindra added headcount last year by 732 and 3,276 employees, respectively. Wipro ended with 233,346 employees whereas Tech Mahindra ended with 148,731 employees. TCS added 6,433 employees to end with 607,979 people, whereas Infosys added headcount by 6,338 to 323,578 people. In contrast, HCLTech reduced staff by 4,061 to end with 223,420 people, becoming the only IT outsourcer of the top five to cut headcount last fiscal. A second analyst said churn at the top may also have contributed to the decline in median salaries at both Wipro and Tech Mahindra. 'The reduction in median remuneration to employees is a reflection of the fact that the companies may have hired more freshers and/or let go of lateral and senior staff," said a Mumbai-based analyst on the condition of anonymity. Both Wipro and Tech Mahindra have seen churn at the top. Mint reported on 26 June that Tech Mahindra saw at least 20 senior management movements at leadership levels, including service lines and geography heads, since March 2024. Even at Wipro, despite chief executive officer Srinivas Pallia's emphasis for promoting internal candidates to top roles, the company has seen significant leadership churn. Over the past two years, at least 30 senior executives at the level of senior vice-president and above have exited, driven either by better opportunities, or limited growth prospects under Pallia's predecessor Thierry Delaporte, who stepped down last year after four years at the helm. However, a third expert attributed the falling median salary to experienced employees accepting roles at lower salaries in a challenging job market. 'Because growth has been flat for these companies, they are refocusing on investing in their experienced staff while also lowering the overall wage bill. During this challenging market, there are also many experienced workers available, and it's easier to hire experienced talent at lower wage levels," said Phil Fersht, chief executive of HFS Research. He added that this trend is not a one-off and that IT outsourcers are looking at hiring employees at lower costs. 'There is a lot of flux in global services at the moment, with many providers laying off staff, which is making the talent pool of experienced people larger and bringing down wage demands," said Fersht. Wipro and Tech Mahindra were the only two companies in the top five Indian IT firms to see a second successive full-year revenue decline in FY25. Wipro and Tech Mahindra reported revenue declines of 2.72% and 0.21% to $10.5 billion and $6.3 billion, respectively, in FY25.
