PremiumSensex Today | Share Market Live updates: Sensex and Nifty remained around the flat territory throughout the session as earnings report continued to remain the main driving force. NTPC and TechM led the stock charts, while Powergrid and Hero MotoCorp tumbled. Most sectors remain around yesterday's mark with IT gaining the most and Realty dropping.
Manufacturing sector activities in India moderated for the second straight month in July as rates of expansion in output and new orders eased slightly, a monthly survey said on Tuesday.
Auto shares will be under lens today as companies will declare their monthly sales figures, Market participants will also be closely observing the upcoming release of the US manufacturing Purchasing Manager's Index (PMI) data, US services PMI data as well as US non-farm payrolls scheduled between August 1 and August 4.
Indian shares shed marginally on Tuesday as investors digested key earnings. High-weightage information technology (IT) stocks continued to advanced on signs of moderation in U.S. inflation. IT firms earn a significant share of their revenue from the United States.
The Nifty 50 index shed 20 pts to close at 19,733, while the S&P BSE Sensex dropped 70 pts to end at 66,459. Seven of the 15 major Nifty sectoral indexes edged up.
Coal India jumped around 4.5% followed by NTPC which gained 3%. TechM and LTMindtree were other major gainers in Nifty 50. Powergrid droppped more than 5%. Hero MotoCorp more than 3.2% on reports of an ED raid on its Chairman.
IT index jumped more than a per cent, while Realty index shed more than a per cent. Most other indices didn't see any major movements as eight out of 15 broad sectoral indices closed in the red.
Global shares were trading mixed as market optimism set off by a Wall Street rally was balanced by lingering worries about inflation and regional growth.
Japanese shares ended higher on Tuesday, as investors cheered the weaker yen, with gains led by heavyweight chip-related firms and auto maker Toyota Motor, which doubled its quarterly profit. The Nikkei jumped 0.92%, while the broader Topix advanced 0.64%.
China stocks closed down after a sharp rebound in recent sessions, with some investors locking in profits as they remain sceptical on the country's policy measures to aid a weak post-pandemic recovery.
China's blue-chip CSI 300 Index fell 0.4%, while the Shanghai Composite Index was almost flat at close. The Hang Seng Index lost 0.3% and the Hang Seng China Enterprises Index declined 0.7%.
European stocks dropped on Tuesday as earnings season rolled on. UK shares outperformed, helped by gains in BP Plc and HSBC Holdings Plc.
Howden, the global insurance group, today announces the appointment of Amit Agarwal as CEO, Howden India, effective 1st August. The press released said that Agarwal takes over the reins from Praveen Vashista, the former CEO, who will now step up to the position of Chairman.
On Tuesday, Minister of State for Heavy Industries, Krishan Pal Gurjar, announced that the Ministry of Heavy Industries has implemented strict measures against 17 Original Equipment Manufacturers (OEMs) who were receiving incentives under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme phase-II. The actions were taken in response to complaints of non-compliance.
The reported complaints mainly involved issues related to PMP (Performance Monitoring and Evaluation) compliance and violations of ex-factory prices. As a consequence, the incentive payouts for the concerned OEMs have been suspended. (Read More)
India has directed Riemann Labs, a manufacturer linked to cough syrup deaths in Cameroon, to stop manufacturing activities, the country's health ministry said in a statement on Tuesday. (Reuters)
Mahindra & Mahindra Ltd. (M&M) achieved a total of 66,124 vehicle sales in July 2023, marking an impressive 18% increase from the 56,100 units sold in July of the previous year. The company's performance in June 2023 was also commendable, with 62,429 vehicles sold during that month.
In addition to the growth in vehicle sales, M&M experienced positive results in the agricultural sector. The company reported selling 25,175 tractors in July 2023, indicating an 8% increase compared to the 23,307 units sold during the same period in the previous year.
Tata Motors reported a total of 80,633 vehicle sales in both the domestic and international markets for July 2023, which reflects a decrease of 1.4% compared to the 81,790 units sold in July 2022.
The company's total domestic wholesales for the same month slightly declined to 78,844 units from 78,978 units in the previous year.
Specifically, the total Commercial Vehicle (CV) sales for Tata Motors in July fell by 4% to 32,944 units from 34,154 units in the corresponding month of the previous year. (Read More)
Oberoi Realty, a Mumbai-based real estate developer, reported a 20% decline in consolidated net profit at ₹321.64 crore for the June quarter. This decline was attributed to higher expenses, even though the revenue remained stable. In the corresponding period last year, the company had a net profit of ₹403.08 crore.
Total income for the April-June period in the current financial year slightly decreased to ₹933.56 crore from ₹934.81 crore in the same period the previous year, as per the regulatory filing.
During the quarter, the company's expenditure increased to ₹509.07 crore, compared to ₹463.32 crore in the year-ago period. (PTI)
On Tuesday, Laser Digital, the crypto arm of Japanese investment bank and brokerage Nomura, announced that it had obtained an operating license in Dubai. This move follows a trend of mainstream financial institutions entering the crypto sector this year.
Headquartered in Switzerland and with offices in Dubai and London, Laser Digital stated that it received the license from Dubai's Virtual Asset Regulatory Authority. The license permits the company to offer crypto-related broker-dealer, management, and investment services.
Laser Digital plans to launch its trading and asset management business in the upcoming months, providing institutional investors with access to over-the-counter crypto trading and other investment products.
Gold prices in India witnessed a decent rally of nearly 2% in July. On Multi Commodity Exchange of India (MCX), gold got costlier by around ₹1,400 per 10 grams during the month.
The rally was driven by multiple factors that came in support of the yellow metal in the international market. The primary reason being the increasing expectations that major global central banks, including the US Federal Reserve and the European Central Bank, may be nearing the end of their current monetary policy tightening cycles.
Additionally, a softer US dollar after slower-than-expected rise in US inflation also lifted appeal for the yellow metal. (Read More)
Reliance Jio has once again outpaced its competitor Airtel in net subscriber addition. According to the latest data released by Telecom Regulatory Authority of India (TRAI), Jio added 30.4 lakh new users in the month of May. Airtel, on the other hand, added 13.3 lakh users during the same period.
Vodafone Idea continues to lose its subscriber base in the country. As per TRAI’s latest subscriber data, the telecom operator lost 28 lakh users in the month of May, 2023.
Jio’s net subscribers in May stood at 43.6 crore. Airtel’s net subscribers were at 37.2 crore in the month of May, while Vodafone Idea’s user base decreased to 23 crore. (Read More)
HSBC Holdings announced a new $2 billion share buyback on Tuesday, driven by the positive impact of increasing central bank interest rates globally, which led to a more than doubling of its income in the first half of the year, according to Reuters reports.
To enhance its profitability, the financial services company raised its near-term return on tangible equity target to at least mid-teens for the years 2023 and 2024, surpassing its previous target of at least 12% from 2023 onwards. In 2022, it reported a return on tangible equity of 9.9%. (Read More)
SBFC Finance Ltd initial public offering (IPO) opens for subscription on Thursday, August 3. SBFC Finance specialises in providing loans to entrepreneurs, self-employed people, small business owners, and salaried people. The company generated sales of ₹525 for the nine months ending in December. During that time, the company made profit of ₹107.
It has 137 branches spread throughout 105 locations, and as of December 2022, it had 94,997 customers, up from 40,432 in FY20.
SBFC Finance IPO's floor price is 5.4 times the face value of the equity share and the cap price is 5.7 times the face value of the equity shares. The price to earning ratio for fiscal 2023 based on diluted EPS at the floor price is 33.33 times at the cap price is 35.19 times. (Read More)
Religare Broking views on Maruti Suzuki: Strong topline and bottom-line growth, however margins a slight miss!
Outlook & Valuations: The domestic PV industry grew by ~6-7% for the quarter while MSIL domestic volumes were up by 12.4% (excluding sales to Toyota). We anticipate MSIL to continue to lead the industry growth with its new embark in the SUV space garnering strong response from the customers as it now maintains more than 20% market share in the segment. Additionally, it has a strong presence in the CNG space with 15 models on the offering with a market share of ~65% while its portfolio operates on petrol fuel; indicating it has a wide range of offerings to cater diverse needs of customers. We remain optimistic on the growth prospects of the company and estimate its revenue/EBITDA/PAT to grow at a CAGR of 15.2%/27.1%/28.8% over FY23-25E. Hence, we remain overweight and maintain our Buy rating with a target price of ₹11,501 valuing the company at 26x on FY25E EPS.
As per CNBC-TV18, the Enforcement Directorate (ED) has conducted raids at the residence of Hero MotoCorp Chairman Pawan Munjal. The action was taken in connection with the Directorate of Revenue Intelligence (DRI) case. Earlier, the DRI had apprehended a close aide of Pawan Munjal with undeclared foreign currency.
On Tuesday, the Aditya Birla Group revealed that it has acquired full ownership of KA Hospitality. As a result of this acquisition, the Aditya Birla Group has added four new restaurant brands to its portfolio. These brands include Hakkasan, Yauatcha, Nara Thai, and CinCin.
KA Hospitality, established in 2011, owns the home-grown brand CinCin and holds the franchise rights for the other three renowned global restaurant brands. Their first venture was Hakkasan Mumbai, an award-winning establishment from London with additional locations in the Middle-East, Asia, and the USA. (Read More)
Developing countries like India will flag serious concerns over the impact of European Union's (EU) regulations on climate change and trade such as carbon tax, on their domestic industry, during WTO ministerial meeting next year, an official said.
The four-day 13th ministerial conference (MC) of the World Trade Organization (WTO) is scheduled for February 26 next year in Abu Dhabi. MC is the highest decision making body of WTO.
“These issues will come up in the WTO in a big way. Countries like India will oppose these measures in the WTO," the official said.
In the first seven months of this year, the EU has introduced four regulations on climate change and trade. These are carbon border adjustment mechanism (CBAM); deforestation regulation; including shipping in the EU's emissions trade system; and Foreign subsidies regulation. EU member Germany too has announced a supply chain due diligence act (SCDDA). (PTI)
Oriana Power Ltd's initial public offering (IPO) has opened for subscription on Tuesday, August 1.
Oriana Power specializes in providing solar energy solutions to industrial and commercial clients. The company offers on-site solar projects, including rooftop and ground-mounted systems, as well as off-site solar farms like Open access, to offer low carbon energy alternatives. The majority of the company's operations fall under two sectors: Capital Expenditure (CAPEX) and Renewable Energy Service Company (RESCO). (Read More)
Chintan Mehta CEO-Commodity, Abans Group: The overall market participation in gold and silver remains low as the focus shifts towards crucial U.S. nonfarm payrolls data, scheduled for release this Friday. The U.S. labor market has shown strength throughout the year, which has supported the Federal Reserve in implementing sharp rate hikes. However, there are some indications of weakness in the labor market, and a stronger-than-expected data release could prompt the central bank to adopt a more hawkish stance.
This morning, China's Caixin PMI was released, showing signs of contraction, with a slip to 49.2 in July from 50.5 in June due to slower output and weaker demand.
Despite comments from major central banks and signs of stability in the global economy, it is crucial to keep an eye on the final manufacturing PMI figures from European economies, which are due today. These figures will help gauge the strength of the global economy.
In the near future, precious metals face a two-way risk. The price gold and silver could rise on signs of weak US labor markets and expectations that the FED won't change its policy rate this year. On the other hand, if the US economy proves to be resilient and labor market conditions remain tight due to a soft landing, Gold and Silver may struggle to fend off the bearish pressure. This could result in a higher probability of a further rate hike in November or December, which will be more heavily discounted in the bullion market.
Currently, Gold is holding above crucial support levels of around ₹59,400. However, a decisive break below this support could expose a downside and bring prices around ₹58,400 levels.
On the upside, gold faces resistance at ₹60,000 levels, and if this resistance is breached, we may witness a rally up to ₹60,800.
Manufacturing sector activities in India moderated for the second straight month in July as rates of expansion in output and new orders eased slightly, a monthly survey said on Tuesday.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) eased to 57.7 in July from 57.8 in June.
Despite the fall, the Indian manufacturing sector maintained strong growth momentum at the start of the third quarter amid ongoing buoyant demand, the survey said.
The July PMI data pointed to an improvement in overall operating conditions for the 25th straight month. In PMI parlance, a print above 50 means expansion while a score below 50 indicates contraction.
"The Indian manufacturing sector showed little sign of losing growth momentum in July as production lines continued to motor on the back of strong new order growth," said Andrew Harker, Economics Director at S&P Global Market Intelligence. (PTI)
India's gold demand in 2023 could fall 10% from a year ago to their lowest in three years, as record high prices are dampening retail purchases, the World Gold Council (WGC) said on Tuesday.
The lower purchases in the world's second-biggest gold consumer could limit a rally in global prices. Falling demand for gold imports could also help to narrow India's trade deficit and support the rupee.
"We remain cautious about gold demand as it faces uncertainties due to elevated local prices and slowdown in discretionary spending," said Somasundaram PR, regional chief executive officer of WGC's Indian operations.
Demand could fall to 700 metric tons in 2023 from 774.1 metric tons a year ago, he said. (Reuters)
On Tuesday's session, Welspun India's share price witnessed a significant surge of over 5%, reaching a 52-week high. This boost came in response to the company's robust Q1 results. For the first quarter ended June (Q1FY24), Welspun India reported a substantial increase in its consolidated net profit, reaching ₹162.73 crore. This growth was supported by improved margins. (Read More)
On Tuesday, Maruti Suzuki's share price experienced a decline of nearly 2% following the company's announcement of Q1 results and the acquisition of Suzuki Motor's stake in Suzuki Motor Gujarat (SMG). The share price fell to ₹(specific value not provided) apiece on the BSE (Bombay Stock Exchange).
Despite the share price decline, Maruti Suzuki reported impressive Q1 results, with a significant 145% year-on-year (YoY) increase in standalone net profit, reaching ₹2,485.1 crore for the quarter ending in June 2023. This growth was attributed to factors like larger sales volume, improved realization, cost reduction efforts, and higher non-operating income. Additionally, the auto major's standalone revenue in Q1FY24 witnessed a 22% YoY growth, reaching ₹32,326.9 crore compared to ₹26,499 crore in the corresponding period last year. (Read More)
Incred Equities views on Bosch Ltd: 1QFY24 Result First Cut - REDUCE | TP: Rs16,401
1. 1Q EBITDA dip 10% qoq to Rs4.7bn, below our (4%) and Bloomberg consensus estimate (8%). But higher other income, led to 1% qoq rise in EPS to Rs.139.
2. Lower purchase goods (-460bp qoq) was overcome by sustained higher manufacturing expenses (+170bp qoq), leading to EBITDA margin disappointment.
3. Reiterate REDUCE rating on Bosch Ltd for its rich valuation at P/E of 38.7x 1-yr forward.
Niraj Bagri, Partner, Dhruva Advisors on GST queries on ESOPs: The issue of taxability of ESOP being provided by the overseas / parent entity to the employee of Indian subsidiary company is being scrutinized and demand notices have been issued to the Indian company. The GST law expressly excludes transaction in securities from the purview of taxability. Therefore, any such transaction should not be subject to GST. Largely, it can be said that the Indian company is working merely on reimbursement mechanism wherein the amounts remitted to the foreign company is being collected / deducted from the salary paid to the employees. Hence, no service is received by the Indian company which can attract GST liability.
It is important that a suitable clarification is issued by the GST Council to nip the issue at bud. This would help in avoiding unnecessary litigation.
On Tuesday, ONGC (Oil and Natural Gas Corporation) experienced a decline in its share price by over one percent following the Central Government's decision to increase the windfall tax on domestic crude oil. ONGC's shares fell as much as 1.49% to ₹174.30 per share on the BSE (Bombay Stock Exchange).
The government's announcement late Monday revealed a hike in the Special Additional Excise Duty (SAED) on crude petroleum, raising it to ₹4,250 per tonne from the previous ₹1,600 per tonne. This increase in windfall tax has impacted ONGC's stock price negatively. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The resilience of the mother market US, where the rally is spreading to the broader market, is supporting global markets. But the rally is stretching valuations beyond comfort levels. Sensex is now trading at 25 times trailing one-year earnings. It is important to note that the rally is driven by PE expansion, not commensurate earnings growth. The FY 24 Q1 earnings growth is muted except in banking and refineries. Results indicate that rural demand is yet to pick up in a meaningful manner.
Even though the Indian economy is in a sweet spot and it makes sense to remain invested, investors should be cautious in their fresh investment, particularly in chasing low-grade small-caps.
In 2023, Kamdhenu Ventures has emerged as one of the multibagger stocks in the Indian stock market, delivering an impressive 120% return to its shareholders. Today, the stock is in focus as it is trading ex-bonus. The company's board of directors has declared a bonus issuance in the ratio of 1:1. This means that eligible shareholders will receive one bonus share for every one share they hold in the small-cap multibagger stock. (Read More)
Small is beautiful in India’s market for initial public offerings after the disappointment of hyped mega-share sales.
From finance startup Paytm to the nation’s largest insurer, investors have lost money from those IPOs in the past two years. They’ve turned to companies offering up to just $100 million in stock sales, as India hosted 92 such listings this year, the most in the world, according to data compiled by Bloomberg.
Small firms are selling shares for their financing needs after interest rates surged, as they take advantage of a five-month market rally. While such listings tend to be saddled with poor trading liquidity and have lax disclosure rules, retail investors are ignoring those concerns, bidding more than 100 times what’s on offer for some IPOs.
“IPOs are a product of a bull run in stocks," said Abhishek Sharma, managing director at GYR Capital Advisors. “Greater retail and institutional investor participation is providing tailwinds to these companies." (Bloomberg)
Reliance Industries Ltd (RIL) has signed a Memorandum of Understanding (MOU) with Brookfield for onshore renewable power and decarbonization equipment manufacturing in Australia.
On Monday, Credit Rating agency Crisil Ratings provided a positive forecast for Indian sugar mills, anticipating a consistent operating profitability for integrated mills despite market fluctuations. According to their report, this encouraging outlook is driven by significant factors, such as a notable increase in domestic sugar prices and a rise in ethanol sales.
Crisil Ratings further predicts a stable operating profitability for integrated sugar mills in India, even in the face of challenges. The report emphasizes that the expected surge in domestic sugar prices and the growing sales of ethanol are likely to counterbalance the impact of rising sugarcane costs and reduced exports during fiscal year 2024. (Read More)
Bharti Airtel Ltd prepaid ₹8,024 crore ahead of schedule to clear a portion of its deferred liabilities for the spectrum acquired in 2015. This move is part of the company's cost-saving strategy.
“The said instalments had an interest rate of 10% and have been prepaid by Airtel, leveraging much lower cost financing available to it," the telco said in a statement on Monday, noting that the amount was paid to the department of telecommunications.
Airtel continues to enjoy access to well-diversified sources of capital or financing, allowing it to have enhanced financial flexibility in its capital structure, including the optimized cost of financing using all opportunities for significant interest savings, like this prepayment, the carrier added. (Read More)
In today's trade, top stocks in focus include Maruti Suzuki, Bharti Airtel, SBI, Power Grid Corp, Kotak Bank, GAIL, Adani Green Energy, Castrol India, Dhanlaxmi Bank, and Bosch. Maruti Suzuki's Q2 net profit surged 145%, while Bharti Airtel prepaid ₹8,024 crore. SBI raised ₹10,000 crore via infrastructure bonds. GAIL's Q1 net profit declined 45%, and Adani Green Energy reported a 51% YoY rise in net profit. Castrol India's profit rose 9%. Dhanlaxmi Bank posted a net profit of ₹28.30 crore. Bosch's net profit jumped 22.5%. (Read More)
According to reports from Bloomberg, Gautam Adani's group is planning to access India's bond market to raise funds of up to ₹150 billion during the financial year 2023-24. This move indicates the Adani Group's intention to issue local-currency debt, marking the first such issuance since Hindenburg Research made damaging allegations earlier this year.
Sources familiar with the matter, as cited by Bloomberg, revealed that the bonds are likely to be sold in smaller denominations of 5 billion to 10 billion rupees. The funds raised through these bond sales will be utilized to meet the capital expenditure requirements of the group. As of now, the plans are being kept confidential, and the individuals who provided this information chose to remain anonymous.
Among the companies within the Adani Group, Adani Ports and Special Economic Zone Ltd., Adani Electricity Mumbai Ltd., Mumbai International Airport Ltd., Navi Mumbai International Airport Ltd., and flagship company Adani Enterprises Ltd. are said to be among the first to potentially issue these bonds. (Read More)
Foxconn Technology Group, the main supplier for Apple, has plans to invest nearly ( ₹4,100 crore) $500 million in the construction of two component factories in India, according to a report by Bloomberg News on July 31. The chosen location for these factories will be in the southern state of Karnataka. It is anticipated that at least one of these facilities will be dedicated to manufacturing Apple components, including those used in iPhones.
In March, Karnataka greenlit an investment of ₹8,000 crore ($972.88 million) by a Foxconn subsidiary, becoming the third southern Indian state, after Andhra Pradesh and Tamil Nadu, to welcome Foxconn's ventures. (Read More)
On Monday, Kotak Mahindra Bank (KMB) refuted a news report claiming that the Reserve Bank of India (RBI) has urged the private sector bank to appoint an external candidate as its chief executive after the conclusion of founder Uday Kotak's tenure in December.
“We would like to state that there is no communication, formal or informal, from RBI to Kotak Mahindra Bank or its board members on CEO succession," the bank said in a media statement.
On Monday, Bloomberg reported that RBI is “nudging Kotak Mahindra Bank Ltd to select someone outside the lenders’ ranks to succeed Uday Kotak as the next chief executive officer". (Read More)
Maruti Suzuki India, the leading passenger car manufacturer in the nation, achieved a noteworthy standalone net profit of ₹2,485.1 crore in the quarter ending June 2023. This remarkable performance reflects a remarkable surge of 145% compared to the ₹1,012.8 crore recorded in the corresponding quarter of the previous year.
The substantial increase in net profit can be attributed to several factors, including a rise in sales volume, enhanced realization, diligent cost reduction efforts, and a boost in non-operating income.
Nevertheless, there was a sequential decline in the company's net profit from ₹2,623.6 crore in the previous March quarter. (Read More)
The central government has more than doubled the windfall profit tax on the production of crude oil with effect from 1 August, showed an official order.
The tax, levied in the form of special additional excise duty has been raised from Rs. 1600 a tonne to Rs. 4250 a tonne, showed the order.
The special additional excise duty on the export of diesel has also been raised from zero to ₹1 a litre from 1 August. (Read More)
Wall Street and global stocks edged up on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings and a key employment report due this week.
The Dow Jones Industrial Average rose 0.28% to 35,560.19, the S&P 500 gained 0.15% to 4,589.15 and the Nasdaq Composite added 0.21% to 14,346.02.
Apple Inc and Amazon.com both report on Thursday, while other well-known names with results due include Caterpillar Inc, Starbucks Corp and Advanced Micro Devices.
European shares gained modestly after euro zone inflation fell further in July seeing that most measures of underlying price growth also eased. Markets took this as a comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes.
The pan-European STOXX 600 index rose by 0.12%, a second consecutive monthly gain. MSCI's gauge of stocks across the globe gained 0.15%.
The modest gains came despite China's manufacturing activity falling for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday. (Reuters)
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