PremiumShare Market Updates: Nifty and Sensex dragged in today's session as they shed around 0.8% each with most sectors ending in the red. Pharma and Media remained the only sector that could end in green.
Titan, ONGC and Bajaj Finserv were the biggest laggards in Nifty 50, while Adani stocks and Sun Pharma jumped.
A day after Fitch's downgrade of the United States to AA from AAA, Morgan Stanley has upgraded India to an ‘Overweight’ rating, while it has downgraded China to an ‘Equal-weight’ rating.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said on this, “In this scenario, India is likely to attract more FPI flows than any other emerging market. Even though Indian market valuations are high in the short-term, for long-term investors, valuations are fair."
The coal ministry on Thursday said it has transferred an upfront amount of ₹704 crore to six coal-bearing states - Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and West Bengal.
The payout represents the first instalment of upfront amount for 18 coal mines that were successfully auctioned under the sixth round and second attempt of fifth round of commercial coal mine auctions, it added. (Read More)
MRF Q1 Results: Net profit zooms 376% to ₹588 crore, revenue up 13% YoY
According to S&P Global Commodities, the demand growth for oil in India for the year 2023 has been revised higher by 14,000 barrels per day, bringing it to 260,000 b/d. This level of demand will be approximately seven per cent higher than the oil demand recorded in 2019. (Read More)
In the quarter ended June 2023, Dabur India, a leading FMCG (Fast-Moving Consumer Goods) company, reported a net profit of ₹456.6 crore, which marks a 3.5% increase compared to ₹441 crore in the year-ago period.
Additionally, Dabur India's revenue for Q1FY24 witnessed a notable growth of 11%, reaching ₹3,130.5 crore, up from ₹2,822.4 crore in the corresponding period of the previous year.
Capital markets regulator Sebi has cancelled the registration of MMTC Ltd as a stock broker for its involvement in illegal "paired contracts" in a case pertaining to now defunct National Spot Exchange Ltd (NSEL).
While cancelling the licence, Sebi directed MMTC to allow its existing clients to withdraw or transfer their securities or funds held by it within 15 days.
In case a client fails to do so, the broker will transfer the funds and securities of such clients to another registered broker in the next 15 days under advice to the said clients, Sebi said in its order on Wednesday.
Going by the order, MMTC is a commodity derivatives broker registered with Sebi, from December 2015 and is currently a member of the Multi Commodity Exchange of India Ltd (MCX). (PTI)
Shri Techtex IPO share allotment was finalised on Wednesday, August 2. For those individuals who were not allotted shares, the initiation of refund process will began on Thursday, August 3. Those individuals who have been allotted Shri Techtex IPO shares, will receive in their demat accounts on Friday, August 4.
Shri Techtex IPO shares will get listed on the NSE SME on Monday, August 7.
Shri Techtex IPO subscription status was 148.44 times as on day 3. (Read More)
Morgan Stanley Upgrades India's Rating to Overweight and Downgrades China - Implications for India and China from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: There is a high probability that India will be the fastest growing large economy in the world for many years to come. India’s demographic dividend, entrepreneurial talent, macro stability and vibrant democratic system can drive sustained high growth and consequent impressive corporate earnings. This near consensus is already baked into market valuations in India which are high compared to peers.
In contrast to the rosey outlook for the Indian economy, China’s growth prospects appear bleak. Declining population, crisis in the property market, high debt-GDP ratio and very high youth unemployment are serious headwinds for China.
In this scenario India is likely to attract more FPI flows than any other emerging market. Even though Indian market valuations are high in the short-term, for long-term investors, valuations are fair.
Varun Beverages Ltd, PepsiCo's largest franchise bottler, on Thursday reported an increase of 25.36 per cent in consolidated net profit at ₹1,005.42 crore for the quarter ended June, 2023, supported by revenue growth and improvement in margins.
The company, which follows the calendar year as its financial year, had posted a net profit of ₹802.01 crore during the April-June quarter a year ago.
Its revenue from operations during the quarter under review stood at ₹5,699.73 crore, up 13.6 per cent, as against ₹5,017.57 crore of the corresponding period last fiscal, Varun Beverages Ltd (VBL) said in a regulatory filing.
Increase in revenue was "driven by an increase in net realization," VBL said in its earnings statement.
While "PAT increased by 25.4 per cent to ₹1,005.42 crore from ₹802 crore in Q2 2022, driven by growth in revenue from operations and improvement in margins," it said. (PTI)
Despite weak global market sentiments following the US credit rating downgrade by Tich, the Indian stock market experienced a second consecutive day of sell-off on Thursday. However, amidst the overall weakness in the market, Indian Railway Finance Corporation (IRFC) has managed to attract buying interest from Wall Street bulls. The IRFC share price opened on the upside and surged to an intraday high of ₹44.65 apiece on the National Stock Exchange (NSE), registering a remarkable increase of approximately 12.50% during Thursday's trading.
During this rally, the stock of Indian railways' PSU also reached a new all-time high. Stock market experts attribute the rise in IRFC share price to the buzz about Indian Railways' plans to float a tender worth ₹25,000 crore for the procurement of 60,000 wagons during the July to September 2023 quarter. This move is expected to benefit various companies, including RVNL, Ircon International, JSL, Rites, BHEL, RailTel, and others. (Read More)
Mahindra & Mahindra Ltd. (M&M) made an announcement on Thursday regarding an investment of ₹1,200 crore in its electric vehicle subsidiary, Mahindra Electric Automobile Ltd (MAEL), by global investment firm Temasek.
The agreement for the investment in the four-wheeler (4W) passenger electric vehicles company has been officially executed between M&M and Temasek Holdings, which is headquartered in Singapore. The investment will be made in the form of Compulsorily Convertible Preference Shares (CCPS) at a valuation of up to ₹80,580 crore. (Read More)
According to a survey of FX strategists conducted by Reuters, the US dollar is expected to hold its ground against most foreign currencies over the next three months. This prediction is driven by expectations that interest rates in the US will remain higher for an extended period due to the strength of the domestic economy.
Despite net short positions on the US dollar reaching their highest level since March 2021, the dollar has managed to bounce back, appreciating by almost 3% (based on the DXY index) after hitting its lowest level in over a year on July 14. This rebound occurred as the market's expectations for a reduction in Federal Reserve interest rates diminished. (Read More)
Despite encouraging developments, investors appear disappointed, resulting in a 2% decline in the stock in early trade on Thursday. There are concerns regarding the progress of monsoon, given that Mahindra Finance primarily serves customers in rural areas. Analysts from Motilal Oswal Financial Services emphasize that asset quality will be a crucial aspect to monitor in this context.
There are also concerns around the compression of net interest margin (NIM). The impact was already evident in Q1, where Mahindra Finance’s NIM dropped 60 basis points sequentially to 6.8%. This was primarily due to increased funding costs and a decline in yields due the company’s strategy to cater to higher-grade customers. (Read More)
Yudiz Solutions IPO: The initial public offering (IPO) of the Yudiz Solutions is going to hit primary markets on 4th August 2023 i.e. today. The public issue will remain open for bidding till 8th August 2023. The book build issue is proposed for listing on NSE SME exchange and the price band of the public offer has been fixed at ₹162 to ₹165 apiece. Meanwhile, shares of Yudiz Solutions Ltd have started to trade in unlisted stock market as well. According to market observers, shares of Yudiz Solutions are available at a premium of ₹30 in grey market today. (Read More)
On Thursday, the Indian government issued a notice imposing immediate restrictions on the import of laptops, tablets, and personal computers.
"Their import would be allowed against a valid licence for restricted imports," said the notice issued by the Ministry of Commerce and Industry, Department of Commerce, Government of India.
As per the notice issued by the government, “Exemption from Import Licencing requirements is provided for Import of All-in-one Personal Computer, or Ultra small form factor Computer, including those purchased from e-commerce portals, through post or courier. Imports shall be subject to payment of duty as applicable." (Read More)
Adani Ports and Special Economic Zone Ltd, part of the Adani Group, said that it recorded bumper cargo volumes of 34 MMT in July this year--a 7% jump year-on-year (YoY).
According to a statement on the stock exchange, APSEZ said that growth was observed across most ports, with containers over 23% and liquid & gas more than 27% in the previous month, respectively.
During the initial four months of FY 2024 (April-July), APSEZ handled 135.4 MMT of total cargo--recorded 11% YoY growth, the company said. (Read More)
Jinesh Joshi - Research Analyst, Prabhudas Lilladher Pvt Ltd views on InterGlobe Aviation (INDIGO IN) -
Rating: BUY | CMP: Rs2,565 | TP: Rs2,855
§ Reported highest ever Revenue/PAT of Rs166.8bn/Rs30.9bn.
§ Placed a new order of 500 aircrafts during the quarter leading to an outstanding backlog of ~1,000 aircrafts.
InterGlobe Aviation (IndiGo) reported a record quarter with all time high Revenue/PAT of Rs166.8bn/Rs30.9bn respectively aided by strong load factor of 88.7% (PLe 88.0%) and yield of Rs5.1 (PLe Rs4.9) coupled with 26.6% YoY decline in fuel CASK to Rs1.6 (PLe Rs1.7) amid fall in crude prices. We believe IndiGo is well placed to strongly benefit from 1) capacity deployment (north of mid-teens capacity guidance remains intact for FY24E, despite escalation in engine issues at P&W), 2) network expansion in domestic as well as international markets and 3) superior balance sheet ( ₹157bn of free cash). Despite a record quarter, we cut our EBITDAR estimates by ~7% each for FY24/FY25E as yields are witnessing higher pressure on sequential basis (as compared to past) while ATF prices have increased by ~11% in last 2 months. We expect revenue CAGR of 15% over next 2 years with EBITDAR margin of 25.4%/28.1% in FY24E/FY25E. Retain ‘BUY’ with a TP of Rs2,855 (EV/EBITDAR multiple of 7x Dec-24E; no change in target multiple).
In July, India's services sector experienced rapid expansion, reaching its highest growth rate in 13 years, despite facing elevated inflationary pressures. According to S&P Global's India services purchasing managers’ index (PMI), the index rose to 62.3, the highest level recorded since June 2010. This impressive growth came after the services PMI stood at 58.5 in June, maintaining its position above the 50-mark for two years, which indicates expansion rather than contraction.
The July reading of 62.3 surpassed expectations, as it was well above the projection of 58.0 in a Reuters poll. (Read More)
On Thursday, Vedanta's share price experienced a significant decline of nearly 9% following a block deal on the exchanges. Approximately 16.5 crore equity shares of the company, valued at ₹4,270 crore, changed hands in this transaction.
The sharp drop caused Vedanta shares to reach as low as ₹247.80 apiece on the Bombay Stock Exchange (BSE). The stock is currently slightly above its 52-week low of ₹245.85 apiece, which was recorded on August 04, 2022.
The block deal involved one of Vedanta's promoter entities, Twin Star Holdings Ltd, selling a 4.3% stake in the Indian mining company. The total number of shares sold in this deal amounted to 16 crore, with a total value of ₹4,136 crore. This move aligns with billionaire Anil Agarwal's strategy to reduce debts and transform the Vedanta group into a pure-play green energy and non-ferrous business. (Read More)
Dayanand Mittal of JM Financial Institutional Securities says BUY with TP of ₹300 for Hindustan Petro: HPCL’s standalone 1QFY24 EBITDA was higher at INR 96.5bn vs. JMFe/consensus of INR 93.7bn/ INR 79.3bn despite reported GRM being slightly lower at USD 7.44/bbl (vs. JMFe of USD 8.4/bbl); hence, the beat seems to be driven by stronger-than-expected rise in marketing margin, as was witnessed in IOCL and BPCL results as well. Our calculations suggest HPCL’s marketing segment EBITDA rose sharper than expected to INR 79.7bn in 1QFY24 vs. JMFe of INR 74.9bn (and vs. INR 12.7bn in 4QFY23). This implies normalised marketing EBITDA of INR 7,091/tn vs. JMFe of +INR 7,000/tn (and vs. INR 6,314/tn for IOCL and INR 8,052/tn for BPCL in 1QFY24). Implied integrated reported EBITDA margin was INR 5,553/tn in 1QFY24 (vs. INR 2,939/tn in 4QFY23). Standalone debt declined by a sharp INR 126bn QoQ to INR 517bn at end-1QFY24; HPCL capex was INR 34bn in 1QFY24. We maintain BUY (revised TP of INR 300) on valuations (trading at 0.8x FY25 P/B); however, earnings will be contingent on volatility in crude price/product cracks and further risk to OMCs’ marketing pricing freedom.
Early-stage venture capital fund pi Ventures, which invests in deep tech-focused startups has raised ₹702 crore ($85 million) towards the final close of its second fund.
The company exercised the green shoe option by raising ₹137 crore more than the base target of ₹565 crore.
The fund is backed by multiple institutional players such as BII, Nippon India Digital Innovation AIF (NIDIA), Accel, Colruyt, Premji Invest and entrepreneurs and family offices such as Binny Bansal, Varun Alagh, Samit Shetty, Rajesh Ranavat, Anupam Mittal, Hemendra Kothari, Hitesh Oberoi, Ullas Kamath, Deep Kalra, senior leaders from IBM, Facebook and Google among others. (Read More)
Bharti Airtel, a major telecom company, is scheduled to announce its Q1 results today. The company's performance in the quarter ending June 2023 is anticipated to be strong when compared to the same period last year. However, on a sequential basis, Airtel's earnings growth may be dampened due to foreign exchange losses.
Analysts' expectations suggest that Bharti Airtel's Q1 net profit is likely to decrease by 19.8% on a quarter-on-quarter (QoQ) basis, amounting to ₹2,410 crore.
Despite the expected decline in net profit, the company's topline in Q1FY24 is projected to increase by 1.70% sequentially, reaching ₹36,623 crore, based on an analysts' poll conducted by Livemint. (Read More)
Delta Corp, a company operating in the gaming and entertainment industry, witnessed a significant drop in its share price, declining over 8% in early trade on Thursday. The decline came in response to the announcement made by Finance Minister Nirmala Sitharaman, stating that a 28% Goods & Services Tax (GST) will be implemented on online gaming, casinos, and horse racing from October 1.
As a result of this news, Delta Corp's shares tumbled as much as 8.04% to ₹181.25 apiece on the Bombay Stock Exchange (BSE).
However, it's worth noting that the Goods and Services (GST) Council, during its 51st meeting held virtually on August 2, decided to review the 28% tax on online gaming, casinos, six months after its implementation from October 1, 2023. This review could potentially bring changes to the tax rate in the future. Investors and stakeholders will closely monitor any developments related to the GST on the gaming industry as it may impact Delta Corp's financial performance and market position. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Often, stock markets are impacted by unexpected events. When market valuations are high, the sell-off will be sharp. This was what happened in global markets after the Fitch downgrade of the US credit rating. Now, the important question from the market perspective is whether this will impact the fundamental factors driving the rally in global markets. The answer is no. The US economy’s soft landing narrative, that is driving the ongoing global rally, is intact and getting stronger. GDP growth in US is strong and inflation is coming down. 80% of US companies have posted better-than-expected quarterly results. The Fitch downgrade doesn’t alter this significant macro construct. The sentimental impact of the rating downgrade is likely to fade away soon.
The valuations in India continue to be rich from the short-term perspective, but fair for long-term investors. Weakness in the market may be used to slowly accumulate high-quality stocks which have corrected. Leading stocks in banking, capital goods and construction-related segments look good for long-term investment.
On Thursday, Titan Company's share price opened 1.3 per cent lower at ₹2,940 on the Bombay Stock Exchange (BSE) following the company's June quarter (Q1FY24) scorecard, which indicated a decline in net profit and margin. However, the stock managed to recover some losses and was trading only 0.19 per cent lower at ₹2,972.65 around 9:20 am.
Despite the recent dip, Titan's share price has witnessed significant growth over the past year, surging by approximately 25 per cent. This performance has outpaced the benchmark Sensex, which gained about 13 per cent during the same period. (Read More)
Ambuja Cements said on Thursday it will buy a 56.74% stake in smaller rival Sanghi Industries for an enterprise value of 50 billion rupees ($604.4 million), closing the Adani Group's gap on market leader UltraTech at a time of booming demand for building materials. (Reuters)
Mankind Pharma Ltd reported an impressive 66% growth in profit for the first quarter of the fiscal year 2024, driven by strong domestic sales. The net profit rose to ₹494 crore compared to ₹298 crore in the corresponding quarter of the previous year (2022-23).
The company's total income also saw a significant increase, rising to ₹2,637 crore in the June quarter of the current fiscal from ₹2,196 crore in the year-ago period, as per the exchange filing by Mankind Pharma.
Furthermore, Mankind Pharma's board has approved the re-appointment of Ramesh Juneja as its chairman and Rajeev Juneja as vice-chairman and managing director, as stated by the drugmaker. (Read More)
Hero MotoCorp: ED seizes cash and jewellery worth ₹25 crore in raids against top officials. Titan: Q1 revenue grows 19%, EBIT shows slight decline. InterGlobe Aviation: Reports record quarterly profit and revenue. Vedanta: Promoter entity aims to sell 4.3% stake for ₹4,136 crore. Delta Corp/Nazara Tech: GST Council amends laws on betting and online gaming. L&T Financial Holdings: Bain Capital offers 7.9 crore shares in block trade. HPCL: Reports consolidated net profit of ₹6,765.5 crore in Q1. Rites: Close to signing international contracts for locomotives and wagons. FSN E-Commerce Ventures: Management changes announced at Nykaa. Mankind Pharma: Q1 profit grows 66% on strong domestic sales. (Read More)
Nykaa, the popular online fashion and beauty retailer, made several management changes as announced on Wednesday. Shalini Raghavan, who served as the chief marketing officer (CMO), has stepped down from her position. As a result of this change, Falguni Nayar, the founder and CEO of Nykaa, will now take on the responsibility of leading the marketing function within the company, according to a statement issued by Nykaa.
“As announced in April 2023, marketing leadership at Nykaa has been strengthened over the last year across performance marketing, customer lifecycle management and content charters. Given the criticality of the marketing function to One Nykaa, founder and CEO, Falguni Nayar will guide the function directly," a company spokesperson said. (Read More)
InterGlobe Aviation Limited, commonly known as IndiGo, released its financial results for the June quarter, announcing a record-breaking net profit of ₹3,090 crore for the first quarter of the financial year 2023-24. This marks the airline's highest-ever quarterly net profit.
The significant turnaround can be observed when comparing it to the same period in the previous year (Q1FY23) when IndiGo had reported a net loss of ₹1,064.2 crore, as stated in a regulatory filing.
Furthermore, the company highlighted that its profit surged by an impressive 236%, reaching ₹3,090 crore, as compared to the profit of ₹919.8 crore in the fourth quarter of the financial year 2022-23 (Q4FY23). This substantial increase in profit signifies the company's improved financial performance during the mentioned quarter. (Read More)
On August 3, the focus will be on shares of Hero MotoCorp after the Enforcement Directorate (ED) conducted raids against top officials of the company and seized cash and jewellery worth ₹25 crore. The law enforcement agency also discovered "incriminating" documents during the raids conducted at the residences and offices of executive chairperson Pawan Kant Munjal and other officials.
These actions by the ED came a day after they conducted searches at Chairman Pawan Munjal's premises in Delhi and Gurugram on August 1. Additionally, the ED registered a case against him under the Prevention of Money Laundering Act (PMLA), as reported by the news agency PTI. (Read More)
According to a report from Bloomberg, Morgan Stanley, a prominent brokerage house, has recently upgraded India's rating to 'Overweight' while simultaneously downgrading China to an 'Equal-weight' rating.
The analysts at Morgan Stanley justified the upgrade for India by stating that the relative valuations are now "less extreme" compared to the situation in October. They also highlighted that India's commitment to reforms and macro-stability provides a solid foundation for a robust capital expenditure (capex) and profit outlook in the country.
“India is arguably at the start of a long wave boom at the same time as China may be ending one," strategists at Morgan Stanley wrote while downgrading China and Taiwan to ‘Equal-weight’, as per Bloomberg report. (Read More)
Hindustan Petroleum Corporation Ltd (HPCL), a state-owned company, reported a consolidated net profit of ₹6,765.5 crore in the first quarter of the fiscal year 2023-24. This is a significant turnaround compared to the same period last year when the company had posted a net loss of ₹8,557 crore.
On a sequential basis, the net profit witnessed an impressive 87% increase, rising from ₹3,608.3 crore in the fourth quarter of the fiscal year 2023. This positive financial performance was announced by HPCL in an exchange filing. (Read More)
The top consumer lifestyle firm in India, Titan Company, announced a 19% increase in revenue for the first quarter of FY 2023–2024. While the consolidated total income for the quarter was Rs. 11,070 crore, the standalone total income for the quarter was Rs. 10,306 crore. Both standalone and combined EBIT for the quarter showed a modest 2% decrease. In a similar vein, the PBT before extraordinary items fell by 7% to ₹1,002 crores for consolidated statistics and by 4% to ₹1,024 crores for standalone figures. Moreover, the PAT showed a decline of 4% to ₹756 crores on a consolidated basis and 2% to ₹777 crores on a standalone basis. (Read More)
The Goods and Services Tax (GST) Council, in a divided decision, decided to amend central and state laws from 1 October to ensure that 28% GST is paid on the full value of amounts deposited by players for betting on online games, casinos, and horse races. However, redeployed winnings will be excluded from the indirect taxation.
The new regime will be reviewed after six months of implementation, finance minister Nirmala Sitharaman said.
However, there would be an income tax on winnings, as per law. The GST Council also decided to amend the Integrated GST Act, which deals with importing goods and services, to require registration of offshore gaming platforms serving Indian consumers and to collect GST from them. Also, offshore online money gaming platforms not complying with this requirement will be blocked. (Read More)
Wall Street finished lower on Wednesday, with the S&P 500 and Nasdaq Composite down for a second straight day as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating.
Fitch downgraded the United States to AA from AAA late on Tuesday, citing expected fiscal deterioration over the next three years as well as growing government debt. Fitch was the second major agency to cut the country's rating. In 2011 Standard & Poor's stripped the country of its triple-A grade.
Reaction to the news pushed major indexes lower, with the S&P 500 recording its biggest daily percentage drop since April 25. It was also the first session since May 23 in which the benchmark declined by more than 1%.
Still, several major brokerages said the downgrade was unlikely to result in a sustained drag on U.S. financial markets, noting the economy was now stronger than it was when S&P cut its rating in 2011.
July was the fifth straight month of gains for the S&P 500 and the tech-heavy Nasdaq Composite, driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy. (Reuters)
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!
