PremiumShare Market Updates: Global markets remain subdued on Wednesday as investors await the Federal Reserve’s rate decision, with equity futures for the region mixed and currencies holding to narrow ranges.
With the U.S. central bank on track for another 25-basis point interest rate hike on Wednesday, policymakers face a choice over how much weight to put on recent economic data.
Equity benchmark indices Sensex and Nifty climbed in on Wednesday helped by the rally in the US markets ahead of Fed rate hike decision scheduled for later in the day.
The 30-share BSE Sensex climbed 350 pts to close at 66,707. The broader NSE Nifty advanced almost 100 pts to end at 19,778.
Triggered by strong earnings, Larsen & Toubro jumped 3.5%. ITC, Sun Pharma, Reliance Industries and Power Grid were the other major gainers. M&M and SBI Life dragged in today's trading.
Almost all sectoral indices ended in the green with PSU Bank, FMCG and Realty jumping more than a per cent. Consumer Durable was the only sector to end in the red.
Global stock markets were lower Wednesday after Wall Street hit a 15-month high ahead of what traders hope will be the Federal Reserve's final increase in this interest rate cycle.
Japan's Nikkei share average inched lower led by declines in auto and tyre makers, as investors locked in profits ahead of the Bank of Japan's two-day policy meeting this week. The Nikkei index inched down 0.04%. The broader Topix slipped 0.1%.
China and Hong Kong stocks retreated on Wednesday after the previous session's rally, as investors were sceptical about the strength of the prospective stimulus signalled by Beijing to support the economy and boost demand.
China's blue-chip CSI 300 Index dipped 0.21% and the Shanghai Composite Index declined 0.26%. The Hang Seng Index closed down 0.36% and Hang Seng China Enterprises Index fell 0.83%.
European stocks fell on Wednesday, snapping their longest winning streak since January, as earnings season rolled on and investors looked ahead to the FOMC rate decision later today. Europe’s largest company LVMH slumped after its results showed further evidence of a slowdown in spending by wealthy US consumers.
UK's FTSE 100 slipped on Wednesday as negative corporate updates from miner Rio Tinto and bank Lloyds weighed on the blue-chip index, while shares of NatWest dropped after the bank's CEO stepped down.
Bharat Petroleum Corporation Ltd (BPCL) on Wednesday reported a net profit for the fiscal's first quarter ended June (Q1FY24) to ₹10,550.88 crore. The company had reported a loss of ₹6,263.06 crore in the year-ago period. Sequentially, net profit was rose 62.9% from ₹6,477.74 crore in Q4FY23. BPCL shares opened at ₹385.35 apiece on BSE.
The company's total revenue from operations fell nearly 4.3% on year to ₹1,28,256.65 crores during the quarter ended June from ₹1,38,389.60 crore in Q1FY23. Total income dropped to ₹1,28,748.65 crore in the first quarter. It stood at ₹1,38,831.25 crore in the year-ago period. (Read More)
Bajaj Finance Ltd on Wednesday reported a consolidated net profit of ₹3,437 crore in the first quarter of FY24, registering a growth of ₹32% from ₹2,596.3 crore in the corresponding quarter of last year.
Net interest income (NII) of the non-banking finance company (NBFC), on a consolidated basis, in Q1FY24 increased by 26% to ₹8,398 crore from ₹6,640 crore, YoY.
Bajaj Finance’s assets under management (AUM) grew by 32% to ₹270,097 crore as of June 30, 2023, from ₹204,018 crore as of June 30, 2022. (Read More)
The union government on Wednesday said that India is "open" to investments from China despite border tensions, the Financial Times reported.
Rajeev Chandrasekhar, minister of state for electronics and information technology, told FT that despite India's crackdown on Chinese manufacturers and mobile applications, New Delhi is " Open to investment from China".
Chandrasekar told The Financial Times that, " We are open to doing business with any company anywhere as long as they are investing and conducting their business lawfully and are in compliance with the Indian laws". (Read More)
The government and the Reserve Bank of India have taken comprehensive measures to recover and cut non-performing assets (NPAs), including corporate ones. This has facilitated the recovery of around ₹10 trillion of bad debt, the finance ministry informed Parliament, quoting provisional data for FY2022-23.
Minister of state for finance Bhagwat Karad said in a reply in the lower house that various legislative and institutional mechanisms have played a key role in cleansing banks' balance sheets. He credited the 2016 Insolvency and Bankruptcy Code, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act's amendments, and the establishment of the National Asset Reconstruction Company Limited, among other measures. (Read More)
Gaurav Verma, smallcase manager, Director 21G Investment Advisers Pvt Ltd
“Our market view is very positive, specially as Nifty is nearing to much awaited 20,000. Good thing is that we have seen a very bullish up move from 19000 towards 20000. Why? Because this up move is very steady and not very not fast; it tells us it’s going to stay for long, and every sector is rotating, going up, consolidating, and another sector is going up; it’s going to carry on."
Sonam Srivastava, smallcase manager & Founder of Wright Research
“The durability of this rally is contingent upon global and domestic economic recovery, corporate performance consistency, and monetary policy steadiness. Historically, Nifty's landmarks - 1K, 5K, 10K, and 15K, were achieved due to economic liberalization, global liquidity, structural reforms, and digitization due to the pandemic. The current scenario mirrors these favorable conditions with buoyant markets, positive macroeconomic and global outlooks, coupled with potential for volatility and short-term price corrections."
The Indian civil aviation regulator Directorate General of Civil Aviation has suspended the pilots involved in a tail strike incident at Ahmedabad airport on 15 June. While the pilot-in-command has been suspended for three months, the co-pilot has been suspended for a month.
“On 15.06.2023, an Airbus 321 aircraft was involved in a tail strike while landing at Ahmedabad. DGCA investigation has revealed that the crew carried out the landing in deviation of established standard operating procedure," the regulator said. (Read More)
Jignesh SHIAL and Mayank AGARWAL of InCred views on SBI Life Insurance: Rising concerns over growth and margins
HOLD - Downgrade | INR1,301 tp:INR1,400
■ We downgrade SBI Life to HOLD (from ADD) amid rising concerns over the growth of profitable non-par products and the pressure increasing on margins.
■ SBI Life posted VNB of Rs8.7bn (~1% yoy) amid slowing demand for non-par savings & VNB margin declining qoq to ~28.8% vs. ~30.9% in the last quarter.
■ With tax implication for large-ticket premiums, a slowdown likely in savings with margin pressure. Downgrade the rating to HOLD with a target price of Rs1,400.
The export of India's pharmaceutical products has surged this year despite reports related to deaths caused by Indian-made cough syrup.
According to a report by Reuters, the export of pharmaceuticals has grown nearly twice as fast as last year to hit sales of $27 billion, driven by strong US demand.
Last year, the death of 89 children in Gambia and Uzbekistan due to Made in India cough syrup dented country's image as the "pharmacy of the world" providing affordable drugs globally. (Read More)
Punjab National Bank (PNB), the state-run lender, delivered an impressive performance in the first quarter of FY24. The bank's standalone net profit stood at ₹1,255.4 crore, marking a significant surge from ₹308.4 crore reported in the corresponding quarter of the previous fiscal.
The bank's Net Interest Income (NII), a key indicator of its financial health, witnessed a remarkable 26% increase, reaching ₹9,504.3 crore in Q1FY24 compared to ₹7,542.8 crore in the same period last year, meeting the expectations of the street.
In addition to a strong financial performance, PNB also showcased improvement in its asset quality during the April-June 2023 quarter. Gross non-performing assets (NPA) as a percentage of gross advances in Q1FY24 declined to 7.73%, a notable drop from 8.74% in the previous quarter. (Read More)
The Yatharth Hospital IPO opened for subscription on Wednesday, 26 July, and has garnered a 36% subscription so far. The response from retail investors and Non-Institutional Investors (NIIs) has been encouraging, with the retail investors' portion witnessing a subscription of 55% and the NIIs' portion reaching 40%.
However, the Qualified Institutional Buyers (QIBs) and employees' portions have yet to receive any subscription. The overall response on the first day has been deemed decent, indicating a cautious but positive interest from investors. (Read More)
Nissan Motor, the renowned auto manufacturing company in Japan, revealed an impressive 98% rise in its first-quarter operating profit, reaching $913.35 million in the current financial year. This remarkable performance surpassed market expectations, as analysts had predicted an average estimate of 120.33 billion yen in a Refinitiv poll, compared to the 64.9 billion yen operating profit in the same period last year.
The surge in profit can be attributed to increased production and sales in both North America and Japan, which played a significant role in boosting the company's financials. Additionally, the weaker yen further contributed to Nissan's success and allowed the company to raise its full-year outlook. (Read More)
CEAT's share price witnessed a remarkable surge of over 4% on Wednesday following the release of its financial results for the quarter ended June 2023. The tyre manufacturer reported an extraordinary increase in net profit, rising from ₹9.25 crore in the corresponding period last year to a consolidated net profit of ₹144 crore in Q1FY24.
The positive financial performance was also reflected in the company's revenue from operations, which saw a growth of 4.1% during Q1FY24, reaching ₹2,935.2 crore, compared to ₹2,818.4 crore in the year-ago period.
This impressive financial report garnered investor confidence, driving CEAT's share price to reach as high as ₹2,592.50 apiece on the BSE. (Read More)
According to reports from the Financial Times, Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar, is in discussions to acquire a minority stake in Reliance Retail Ventures Limited (RRVL), the retail arm of billionaire Mukesh Ambani's conglomerate. The potential investment is estimated to be around $1 billion, and if realized, it would grant QIA a 1% ownership stake in RRVL. The retail venture is spearheaded by Mukesh Ambani's daughter, Isha Ambani. This move could signify another significant minority stakeholder joining the ranks of RRVL as it continues to attract investment interest from global investors.
CNBC-TV18 reports that Mahindra Group has acquired approximately a 4% stake in RBL Bank through the open market. The group is expressing interest in further increasing its strategic stake in the bank to a range of 15-25%.
Shree Cement delivered an impressive performance in the quarter ended June 2023, with a substantial 84.2% year-on-year growth in net profit. The cement manufacturer recorded a net profit of ₹581.1 crore during Q1FY24, compared to ₹315.55 crore in the same quarter of the previous fiscal year.
Furthermore, the company's revenue from operations also demonstrated strong growth, increasing by 18.9% to ₹4,999.1 crore in Q1FY24, as opposed to ₹4,202.69 crore in the corresponding quarter of the previous year.
In addition to its core operations, the company generated ₹161.7 crore as other income in the April-June 2023 quarter. (Read More)
Gold prices inched up in the morning trade domestic futures markets on Wednesday (July 26) but the gains were capped due to weak global cues as traders restricted their bets ahead of the US Federal Reserve's policy decision due later in the day.
The Fed is expected to raise rates by another 25 bps later today, but investors seek clarity on whether the central bank will stop the tightening campaign or will raise rates beyond July.
Gold and silver prices were modestly up on Tuesday, as caution prevailed ahead of the US Fed's monetary policy meeting. (Read More)
Asarfi Hospital's shares made their debut on the BSE SME exchange on Wednesday, listing at a significant premium of ₹98.80 per share. This price was a remarkable 90 percent higher than the issue price of ₹52 during the IPO.
The Asarfi Hospital IPO had opened for subscription on Monday, July 17, 2023, and concluded on Wednesday, July 19, 2023. The company had set the price band for the IPO at ₹51 to ₹52 per equity share, indicating strong demand and investor interest in the offering. (Read More)
Ashutosh Somani of JM Financial Institutional Securities views on Tata Steel: BUY INR 140
Tata Steel reported consol. EBITDA at INR62.4bn, significantly ahead of JMfe INR49.5bn. The beat was largely on account of higher-than-expected realisations. India business reported a marginal decline in earnings (INR16 k/t) QoQ as higher raw material costs were partially offset by higher realisations. Europe margins remained flat (-US$96/t) as increase in realisation was offset by lower volumes /elevated RM costs. The company delivered a profit of INR6.7bn during the quarter. Net debt during the quarter increased sequentially to INR714bn (up INR36bn QoQ) on account of higher working capital requirement. Key takeaways from the call are – 1) realisations across India / Europe to decline by INR3.1k/t and EUR35-40/t in 2QFY24 2) coking coal cost across India and Europe is expected to come lower by ~USD50/t in 2Q 3) Kalinganagar capex progressing on track with BF commissioning expected by March’24 4) 2.2 MTPA CRM complex is being progressively commissioned with CAL & CGL lines work underway 5) BF 6 (Netherlands) relining expected to be completed by end 1H 6) Netherlands business likely to turn profitable in 2H driven by lower energy costs; UK losses to reduce 7) Net Debt/EBITDA target maintained at 2-2.5x with deleveraging target of US$1bn annually Tata steel plans to increase capacity to ~40 mn tons by FY30, with immediate focus on Kalinganagar and NINL. Lower losses in Europe during 2H driven by declining energy costs and strong Indian margins remain key triggers. Re-iterate BUY.
On Wednesday, Service Care shares made their debut on the NSE SME exchange, listing at ₹70.90 per share, which was 5.8 percent higher than the issue price of ₹67. However, the gains were short-lived as the share price could not sustain the initial increase. After listing, the stock price fell and was locked at the lower circuit of 5%, trading at ₹67.35.
The Service Care IPO is aimed at small- and medium-sized enterprises and comprises a fresh equity issue of up to 30.86 lakh shares, with a total value of approximately ₹20.68 crore. The company had set the price band for the IPO offering in the range of ₹63 to ₹67 per share. (Read More)
Ajmera Realty & Infra India Ltd - ARIIL , announced its financial results for the first quarter that ended on 30th June 2023.
Key Highlights for Q1FY24:
⦁ Sales value at INR 225 Crore; up 60% QoQ
⦁ Sales volume at 1,35,460 Sq. ft; up 96% QoQ
⦁ Collection at INR 111 crore; up 8% QoQ
⦁ Revenue at INR 118 crore; up 113% YoY
⦁ PAT at INR 21 crore; up 82% YoY, PAT Margin at 18%
⦁ The debt-equity ratio at 0.97x; achieves a breakthrough at sub 1x
The Indian rupee opened marginally lower against the US dollar on Wednesday amid strength in the American currency. The local unit opened 2 paise lower at 81.89 a dollar as compared to its previous close of 81.87.
The dollar index inched higher, Asian currencies dropped and the two-year US yield reached 4.90% before the US Federal Reserve’ rate decision later on Wednesday. Markets have fully priced in a 25 basis points rate hike.
On Wednesday (July 26), Tata Motors DVR shares witnessed a significant surge, rising by almost 18 per cent to reach a new 52-week high of ₹440 on the BSE (Bombay Stock Exchange). This surge came after Tata Motors made an announcement about converting its DVR (Differential Voting Right) shares to ordinary shares. This conversion will lead to a 4.2 per cent reduction in the number of outstanding equity shares, which is expected to result in increased value for all shareholders.
As per the report by Mint, Tata Motors revealed on Tuesday (July 25) that, following the implementation of the Scheme, the company will issue 7 fully paid-up new ordinary shares with a face value of ₹2 for every 10 'A' ordinary shares, which also have a face value of ₹2. This issuance of new ordinary shares will be used as consideration for the reduction and cancellation of the 'A' ordinary shares. (Read More)
Suzlon Energy's share price continued to plummet for the second consecutive day, opening with a 5% decrease and hitting a lower circuit. The decline in share price came in response to the company's weak financial performance as reported yesterday. In the June quarter, Suzlon Energy declared a substantial 96 percent decline in consolidated net profit, with figures dropping to ₹101 crore from ₹2,433.33 crore in the corresponding period of the previous year.
Furthermore, the company's revenue from operations during the first quarter of the current fiscal year amounted to ₹1,347.52 crore, showing a decline of two percent compared to ₹1,377.58 crore in the year-ago period. The decrease in both net profit and revenue has raised concerns among investors, resulting in the share price experiencing a sharp fall. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Globally market participants will be closely watching Fed chief Jerome Powell’s comments about the disinflation process in the US and the likely trend in interest rates. A 25 bp rate hike, already discounted by the market, will not trigger any market move. But if the Fed chief indicates that inflation is coming under control and, therefore, no further rate hikes are needed, that will be a big trigger for markets to move up. But such an outcome is highly unlikely since the Fed will play it safe even if inflation is coming under control.
While the range-bound movement of the Indian market is likely to continue today, individual stock action in response to results and news will happen. Q1 results of Tata Motors and their decision to cancel DVR shares and the good results of L&T and the share buyback news are sentient positive.
The International Monetary Fund (IMF) has advised India to lift the export restrictions on non-basmati rice. The Indian government had imposed a ban on the export of non-basmati white rice on July 20 in an effort to bolster domestic supply and control retail prices during the upcoming festive season. Non-basmati rice constitutes approximately 25% of the total rice exports from the country.
As per an official statement from the food ministry, the export policy for par-boiled non-basmati rice and basmati rice, which account for the majority of rice exports, will remain unchanged. This means that the export of par-boiled non-basmati rice and basmati rice will continue as before, while the restrictions will only apply to non-basmati white rice. (Read More)
As per a news report by the Economic Times (ET), Hero Motors, an auto component manufacturer headed by Pankaj Munjal, who is the first cousin of Hero MotoCorp chairman Pawan Munjal, has selected three investment banks to oversee its upcoming initial public offering (IPO) of shares. The company aims to raise an estimated ₹1,500 crore through the IPO. However, the news has not been independently verified by Mint.
The report suggests that ICICI Securities is likely to take the lead in managing the anticipated public offering for Hero Motors. (Read More)
Beating the market expectations, Alphabet reported a rise in its net profit for the second quarter of the current financial year. The company reported a net profit of $1.44 per share for the April-June period. Company's long time CFO, Ruth Porat is set to take a new role in the company.
The market was estimating the profit to be at around $1.34 per share. Company's revenue for the quarter stood at $74.6 billion against the estimates of $72.82 billion, reported Reuters citing Refinitiv data.
The company results were fuelled by steady demand for its cloud services and a rebound in advertising. (Read More)
Top stocks in focus today:
1. L&T: Q1 consolidated profit up 46% YoY, revenue jumps 34%.
2. Tata Motors: Q1 net profit, will consolidate capital base.
3. ACC/Ambuja Cement: Institutional investors vote against adoption of financial statements.
4. Cyient: Q1 net profit up 45%, misses estimates.
5. SBI Life: Q1 net profit up 45%, net premium income rises 19%.
6. UTI AMC: Q1 PAT up over two-fold, total revenue up 60%.
7. Ceat: Q1 net profit at ₹144 crore, revenue rises 4.1%.
8. Can Fin Homes: Employees commit fraud of ₹38.53 crore.
9. Mahindra Holidays: Q1 net profit down 70.15%.
10. Dixon Technologies: Q1 net profit up 47.89%, revenue rises 14.58%. (Read More)
On July 25, Cyient, an engineering and IT services company, disclosed its financial results for the April-June quarter of fiscal year 2023-24 (Q1FY24). The company reported a notable 45 per cent increase in consolidated net profit, amounting to ₹168.10 crore, in comparison to ₹116.10 crore recorded in the corresponding period of the previous year. While this growth was significant, it slightly missed analysts' estimates due to rising expenses that offset the benefits of a robust order pipeline and demand recovery in certain sectors.
During the first quarter of the current fiscal year, Cyient's revenue from operations reached ₹1,686.50 crore, showcasing an impressive jump of 35 per cent compared to ₹1,250.10 crore in the same period last year. (Read More)
Noida-based solar energy solutions provider Oriana Power on Tuesday said it has set a price band of ₹115-118 per share for its Initial Public Offering (IPO), which will hit the capital market on August 1.
The bidding for anchor investors will open on July 31 and the public issue will conclude on August 3, the company said in a statement.
The company's shares will be listed on SME Emerge platform of the National Stock Exchange.
The IPO of Oriana Power will comprise 50.55 lakh equity shares with a face value of ₹10 each..
The firm will use the IPO proceeds to fund its working capital requirements, investment in subsidiary companies, capital expenditure and general corporate purposes. (PTI)
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt Ltd has recommended three intraday stocks for today, here we list out full details in regard to those day trading stocks:
1) Buy Zen Tech at 631, stop loss 622, Target 665
2) Buy SBI Cards at 876, stop loss 863, Target 920
3) Buy Bharat Forge at 867, stop loss 854, Target 915 (Read More)
On Tuesday, SBI Life, an insurance company, announced a remarkable 45% growth in its net profit for the first quarter of the fiscal year 2024, reaching ₹381 crore. This significant increase was compared to the net profit of ₹263 crore recorded in the same period of the previous year.
The company's net premium income also showed positive growth, rising by 19% year-on-year to ₹13,104 crore during the June quarter, compared to ₹11,036 crore in the corresponding quarter a year ago.
In terms of new business premiums, SBI Life achieved an 18% growth in individual new business premiums, reaching ₹4,060 crore in the first quarter. The overall new business premium also experienced an 11% rise, amounting to ₹6,210 crore, aided by an impressive 18% growth in the single premium business segment. (Read More)
More than half of the institutional investors of Adani Group cement companies—ACC Ltd and Ambuja Cement Ltd—voted against adopting the financial statements for the year ended 31 March 2023 after the firms’ statutory auditors raised concerns about certain developments, and at least one proxy advisory firm recommended voting against the resolution.
Sixty-three per cent of large investors voted against ACC’s adoption of financial statements at its annual general meeting on 20 July, according to voting records published on BSE on Tuesday. But a 57% promoter holding helped the resolution secure approval with an 85% vote in favour.
Despite about 54% of institutional investors rejecting the adoption of financial statements at Ambuja Cements in the shareholder meeting on 20 July, the resolution was approved with 89.4% voting in favour, thanks to the Adani group’s 63.2% ownership. (Read More)
On Tuesday, Larsen & Toubro Limited released its financial results for the April-June quarter, showing a notable performance. The company reported a net consolidated profit of ₹2,493 crore, marking a significant increase of 46% compared to the ₹1,702 crore reported during the same quarter in the previous fiscal year.
The revenue from operations also displayed a robust growth of 34%, rising from ₹35,853 crore in Q1FY23 to ₹47,882 crore in the Q1FY24 period.
Regarding Earnings before interest, taxes, depreciation, and amortization (EBITDA), L&T experienced a substantial jump of 23% during the quarter ending in June 2023, reaching ₹4,869 crore from ₹3,953 crore in the corresponding quarter of the previous year. However, the EBITDA margin witnessed a slight decline, settling at 10.2% in the current review period, compared to 11% during the corresponding quarter of the last fiscal year. (Read More)
Tata Motors, a prominent player in the automobile industry, unveiled its financial results for the first quarter of fiscal year 2023-24 (Q1FY24) on July 25. During this period, the company achieved a consolidated net profit of ₹3,202 crore, showcasing its strong financial performance.
The revenue from operations witnessed a remarkable surge of 42 per cent, reaching ₹102,236.08 crore in the June quarter. This remarkable achievement exceeded expectations, surpassing the ₹1 lakh crore-mark, in line with projections made by financial analysts. The impressive earnings were attributed to improved margins and robust sales in the company's luxury division, Jaguar and Land Rover (JLR), based in the United Kingdom.
Tata Motors' consolidated operating profit, calculated as earnings before interest, taxes, depreciation, and amortization (EBITDA), witnessed an astounding year-on-year growth of 177 per cent, amounting to ₹14,700 crore. Additionally, the operating margin expanded by 700 basis points (bps) compared to the previous year, reaching 14.4 per cent in the June quarter, further highlighting the company's significant progress. (Read More)
The tech-heavy Nasdaq closed higher on Tuesday, leading gains on Wall Street amid investor excitement about artificial intelligence before earnings reports from megacap technology companies Alphabet and Microsoft after the bell.
Both Microsoft and Alphabet have launched an array of AI products since OpenAI, backed by Microsoft, released ChatGPT in late 2022. Investors expect the new products will help tech giants offset a slowdown in their cloud businesses.
With the U.S. central bank on track for another 25-basis point interest rate hike on Wednesday, policymakers face a choice over how much weight to put on recent economic data.
A survey showed consumer confidence increased to a two-year high in July, amid continued optimism about the labour market despite worries about a recession.
The Dow Jones Industrial Average rose 26.83 points, or 0.08%, to 35,438.07, the S&P 500 gained 12.82 points, or 0.28%, to 4,567.46 and the Nasdaq Composite added 85.69 points, or 0.61%, to 14,144.56. (Reuters)
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!
