Markets Today –
Gift Nifty is up 255 points or 1%. US Index is trading flat. US market gained 3% yesterday after Jobless claim fell to 11-month low). According by JP Morgan that the 75% of global carry trades have now been unwound – may reduce US and Japan market volatility.
Eicher Motor, ABB, PCBL, Cochin Shipyard, MRF, Bharat Forge announced good quarterly results.
- Results today – Grasim, Siemens , Trent, Zydus Lifesciences, Info Edge, Berger Paints, Alkem Labs, SJVN, Cholamandalam Financial, Honasa Consumer, Engineers India, SCI . FIIs sold Rs15000cr both cash and F&O yesterday.
Today’s Market Outlook –
“The global markets are expected to open strong, driven by a rally in the US markets due to a decrease in jobless claims and anticipation of a larger-than-expected interest rate cut by the US Federal Reserve. This has led to a 3% boost in the US markets and a 2.5% surge in the S&P 500 Index. JP Morgan reports that 75% of global carry trades have been unwound, reducing global market volatility. Asian markets have also risen by over 1%. Commodity markets saw a rally in gold, oil, and metals, easing fears of a severe economic slowdown. The Gift Nifty is up nearly 1%, while the Nifty declined by over half a percent due to a hawkish statement from the Reserve Bank of India (RBI) and global market weakness.”
Indian market outlook of day –
Positive market sentiment is anticipated due to a global market rally, robust quarterly results, and the Reserve Bank of India’s (RBI) upward adjustment of the FY25 GDP growth forecast from 7% to 7.2%. Sectors such as pharma, IT, FMCG, oil, and auto, which have posted strong quarterly results, may present attractive buying opportunities for investors. Metal stocks also appear promising following a significant drop in recent sessions.
Asian Markets
Asian equities saw a rise on Friday, buoyed by signs of resilience in the US labor market. Stocks in Japan, South Korea, and Australia climbed over 1% each, along with Hong Kong share futures. The Topix index in Tokyo saw further reductions in the steep declines earlier in the week, aided by Friday’s movements in tech and bank stocks.
US markets
There was a surge of up to 3%, with the S&P 500 experiencing its best day since November 2022 and the Nasdaq advancing by 3.1%. This boost in sentiment came after data revealed a significant drop in US initial jobless claims, the most substantial decrease in nearly a year, with figures also coming in below estimates.
European stocks had a mixed performance but recovered nearly 1% from the intra-day low after the latest data on the US labor market alleviated fears of a more pronounced slowdown in the world’s largest economy. Indices in Germany, France, and the UK rebounded into positive territory.
Gold
Gold traded higher for a second day early on Thursday even as the dollar and yields climbed after U.S. initial jobless claims rose less than expected last week, easing worries over the health of the country’s labor market. Gold gained 1% to $2423/ounce
Brent Crude
Oil edged to above $79/bbl higher early on Thursday, rising for a third day as strong summer demand in the United States and geopolitical risks top concerns over slowing economies in the U.S. and China.
Major events of the day – Ola Electric listing. Indus Tower share buy-back
IPO Update – Brainbees Solutions: The public issue was subscribed to 12.22 times on day 3 and Unicommerce eSolutions: The public issue was subscribed to 168.39 times on day 3.
Corporate Action –– Kapston Service Stock split from Rs10 to Rs5. Filatex Fashion stock split from Rs5 to Re1, Indus Tower share Buy-Back. Aartech Solonics Stock split from Rs10 to Rs5 and bonus 1:2, Balmer Lawrie stock split from Rs10 Re1. BPCL Rs10.5, Caspain Corporate Bonus 2:1, CEAT Rs30, Citi Union Bank Rs1.50, Hindalco, Rs3.50, HPCL Rs16.50, International Travel Rs5, J&K Bank Rs2.1, Kaycee Industries Rs60 and Special Dividend Rs40, KEC International Rs4, KPIT Tech Rs4.
Brokers Radar – Syrma Technology TGT by Morgan Stanly at 309. Lupin Labs TGT by JP Morgan at 2400. Ecicher Motor – Jefferies TGT at 5500, Goldman Sachs TGT at 5600 and JP Morgan TGT at 4435. Morgan Stanley TGT on PAGE Industries at 44645 and Citi TGT at 33100. Bharat Forge TGT by Jefferies at 1200, JP Morgan TGT at 1750. ABB TGT by Nomura at 7610 and Macquaire TGT at 7250
Results Today –. Trent, Zydus Lifesciences, Info Edge India, Berger Paints India, Alkem Laboratories, SJVN, Cholamandalam Financial Holdings, MMTC, Honasa Consumer, Engineers India, Shipping Corporation of India, Inox India, Paisalo Digital Ltd., Kennametal India, Banco Products (India), Muthoot Microfin, Sundaram-Clayton, Thejo Engineering, Dredging Corporation India, Kovai Medical Center and Hospital
Stocks of the day (Trends) –
Gail: The company and Rajasthan Rajya Vidyut Utpadan Nigam joined hands to optimise the operations of RRVUNL’s gas-based power plants in Rajasthan. – POSITIVE
LIC: The company has partially resumed its operations in Bangladesh from today. The situation has not reached normalcy and may continue to hamper operations the company added.- Company reported good Q1 results.
Wipro: The company announced a partnership with Cyble to enhance Cyble’s enterprise cybersecurity risk management through AI-driven threat intelligence solutions.- positive
Exicom Tele-systems – Company to acquire assets & business of Tritium Group in US & Australia via co’s arms. Company pact with Tritium Group to expand co’s EV charger business globally – positive
JSW Energy – Company gets letter of award from Solar Energy for supply of 230 MW firm & dispatchable renewable energy – positive
The Reserve Bank of India (RBI) announced an increase in the limit for UPI tax payments. Starting now, taxpayers can use UPI to make payments of up to Rs 5 lakh per transaction from earlier Rs1 lakh.- Positive
Bharat Forge – Company approved fund raising worth Rs2000cr via equity/debt. Board approves conversion of $12 million loan given to arm Bharat Forge America into equity Board approves transfer of 39.43% stake in TMJ Electric Vehicles to arm Bharat Forge International To transfer stake in JV Refu Drive GmbH to Kalyani Powertrain for a consideration of €11.5 million – positive
Paramount Communications: The company approved raising funds up to Rs 400 crore via QIP or other means.- positive
Fitch Ratings on Adani Energy Solutions – Recent equity fund raise to reduce leverage below previous forecast. Sustenance of lower leverage, demonstrated access to equity, debt markets to support firm’s credit profile. Expect additional equity to bring EBITDA net leverage in FY25 to 5.5 times vs previous estimate of 6.0 times. Expect FY25/26 capex to rise to Rs 15500 crore per year
Metro Brands – Company in pact with New York-based New Era Cap for expansion in athleisure market – positive
Intellect Design – Company gets deal from UAE’s National Bank of Fujairah for digital banking transformation – positive
Ceigall India – Company Emerges as lowest bidder for project worth Rs 899 crore by Delhi Metro Rail Corp. Company to develop Bhubaneswar Metro over 3 years. Company emerges as preferred bidder for Rs 143 crore project to develop Kanpur Central bus terminal – positive
GRM Overseas – Company pact with Morocco-based Solariz Invest to expands global presence. Company Introduces flagship basmati rice brand in Morocco via Solariz Invest’s distribution network – positive
NMDC – Company reduces prices of lump ore to Rs 5,350/ton and Reduces price of fines to Rs 4,610/ton – we are long term positive on the stocks
Nazara Tech – Company gets in-principal approved to buy UK’s Fusebox games for $27.2mn or Rs229cr – positive
SJVN – Company to consider selling stake in SJVN Green Energy on August 13 – positive
Dividend – Page Industries announced dividend Rs300 a share, ABB India Rs10.66 a share
RVNL announced weak Q1 results. Company reported Q1 Net profit Rs224cr (down 34.7% YoY), Income Rs4074cr (down 27% YoY), Ebitda Rs182cr (down 41% YoY) and Ebitda margin 4.5% vs 6.3% (YoY)
India Shelter Finance Q1 Total income up 38.7% (YoY) at Rs 260 crore vs Rs 188 crore and Net profit up 77.5% (YoY)at Rs 83.3 crore vs Rs 46.9 crore
Nava Q1 Net profit Rs446cr (up 30% YoY), Income Rs1222cr (up 17.3% YoY), Ebitda Rs590cr (up 10% YoY) and Ebitda margin 48.3% vs 51.4% (YoY)
Deamfolks Q1 Net profit Rs17.1cr (up 31.5% YoY), Income Rs321cr (up 20.5% YoY), Ebitda Rs23cr (up 31% YoY) and Ebitda margin 7.1% vs 6.6% (YoY)
Nocil reported weak Q1 results. Company reported Q1 Net profit Rs27.1cr (down 21.1% YoY), Income Rs372cr (down 6.2% YoY), Ebitda Rs41cr (down 26.5% YoY) and Ebitda margin 11% vs 14.1% (YoY)
Minda Corp announced impressive Q1 results. Company reported Q1 Net profit Rs42cr (up 64.2% YoY), Income Rs1192cr (up 11% YoY), Ebitda Rs131cr (up 15.1% YoY) and Ebitda margin 11% vs 10.6% (YoY)
Bharat Forge announced above estimates Q1 Ebitd and Ebitda margin. Company reported Q1 Net profit Rs269cr (down 14% YoY) – expectation Rs392cr, Income Rs2340cr (up 10% YoY) – expectation Rs2368cr, Ebitda Rs658cr (up 24.5% YoY) – expectation Rs652.3cr and Ebitda margin 29% vs 26% (YoY) – expectation 27.6%
Alembic Pharma reported lower than expected Ebitda and Ebitda margin. Company reported Q1 Net profit Rs135cr (up 12% YoY) – expectation Rs166.6cr, Income Rs1560cr (up 5% YoY) – expectation Rs1567cr, Ebitda Rs239cr (up 20% YoY) – expectation Rs265cr and Ebitda margin 15.3% vs 13.4% (YoY) – expectation 16.9%
Garden Reach Q1 Net profit Rs87cr (up 13% YoY), Income Rs1010cr (up 33.6% YoY), Ebitda Rs56cr (up 22% YoY) and Ebitda margin 5.5% vs 6.1% (YoY)
MRF reported better than expected Ebitda and Ebitda margin. Company reported Q1 Net profit Rs571cr (up 3.3% YoY) – expectation Rs453.4cr, Income Rs7196cr (up 12% YoY) – expectation Rs6386.5cr, Ebitda Rs1159cr (up 2.7% YoY) – expectation Rs967.6cr and Ebitda margin 16.1% vs 17.5% (YoY) – expectation 15.2%
PCBL Q1 Net profit Rs118cr (up 8% YoY), Income Rs2144cr (up 59% YoY), Ebitda Rs358cr (up 70% YoY) and Ebitda margin 16.7% vs 15.6% (YoY)
Carisil Ltd Q1 Income up 42% (YoY) at Rs201, Ebitda up 37% (YoY) at Rs36cr, Ebitda Margin at 17.8% vs 18.4%(YoY) and Net profit Rs15.cr (up 37% YoY)
Page Industries reported lower than expected Ebitda but margin in line with expectation. Company reported Q1 Net profit Rs165.2cr (up 4.3% YoY) – expectation Rs176.7cr, Income Rs1277cr (up 4% YoY) – expectation Rs1318.7cr, Ebitda Rs243.3cr (up 2% YoY) – expectation Rs262.5cr and Ebitda margin 19.1% vs 19.6% (YoY) – expectation 19.9%
ABB India reported strong Q2 results and above estimate Ebitda margin. Company reported Q2 Net profit Rs443.5cr (up 50.3% YoY) – expectation Rs455.2cr, Income Rs2830.9cr (up 12.8% YoY) – expectation Rs3184cr, Ebitda Rs542.5cr (up 55.6% YoY) – expectation Rs555.5cr and Ebitda margin 19.2% vs 13.9% (YoY) – expectation 17.4%.
Cochin Shipyard reported strong Q2 results. Company Q1 Income Rs771.5cr (up 61.1%YoY), Ebitda Rs177cr (up 124% YoY), Ebitda Margin at 23% vs 16.5%(YoY) and Net profit Rs174.2cr (up 76% YoY)
JB Chemical announced impressive Q1 results. Company reported net profit Rs2176.8cr (up 24.2% YoY), Income Rs1004cr (up 12% YoY), Ebitda Rs280.3cr (up 21.1% YoY) and Ebitda margin at 27.9% vs 25.9% (YoY)
Brookfield India Real Estate Trust – Company has reported a 93 per cent jump in its net operating income to Rs 439.9 crore and declared a distribution of Rs 216 crore for the Q1quarter. Its net operating income (NOI) stood at Rs 227.5 crore in the year-ago period. Brookfield declared a distribution of Rs 216 crore or Rs 4.50 per unit for the quarter ended June 30, 2024. The company’s net profit stood at Rs 37.35 crore in the first quarter of this fiscal against a loss of Rs 27 crore in the year-ago period. Total income rose to Rs 590.91 crore from Rs 320.73 crore during the period under review. Brookfield India Real Estate Trust achieved gross leasing of 2,42,000 square feet at Rs 135 per square feet. During the June quarter, the company informed that it has
completed the acquisition of a 50 per cent stake in a 3.3 million square feet commercial portfolio in Delhi-NCR from Bharti Enterprises for Rs 1228 crore.
Govt to Keep Sugar Export Curbs in Blow to Local Producers – Government will retain curbs on sugar exports to ensure adequate supplies for domestic use and to boost the country’s ethanol output. The government wants to make sure there’s enough sugar for the local market at reasonable prices, and on using more cane to produce ethanol. Maintaining the restrictions would be a blow for local sugar mills, who have been asking for them to be relaxed. It should also help support global prices, which have fallen by around 12% so far this year. India is the world’s second-biggest sugar producer.
