News & Impact
Focus Today – ( Trend positive – Gift Nifty is down 53 points or 0.2%. US Index is trading flat. Focus on domestic Inflation (CPI) and IIP post market today. US Inflation data to be release on Wednesday). Aarti Industries, Trent, Jubliant Food, Inox Wind, Alkem Labs, Zudus Life, Infoedge, Berger Paints, Wockhardt announced impressive quarterly results. Results Today – Voltas, IRFC, Vodafone Idea, NMDC, HUDCO, SJVN, AIA Engineering, National Aluminium, Hindustan Copper, Natco Pharma, DOMS Industries, Ingersoll Rand, Cera Sanitaryware, Happiest Minds, RCF, Usha Martin, Balrampur Chinis, Rategain Trave and Power Mech Projects. Real estate stocks focus at the cabinet approved 3cr new housing.
Today’s Market Outlook –Positive opening in the Asian markets, modest gained US market on Friday, good quarterly results announced by domestic corporates and falling US volatility index on week on week, may open domestic bourses on a positive note. This week, Looking ahead, key economic data to be watch include the Consumer Price Index (CPI) data for both the U.S. and India (India today in the post market), as well as core Producer Price Index (PPI) data for the U.S. and the U.K. Additionally, GDP figures for Japan, the U.K., and the EU will be released this week.
Domestic market outlook –Stable global market volatility, dovish remarks from the Governor of Japan, SIP inflows surge 10% to cross Rs 23,000 crore for first time and a significant increase in U.S. jobless claims, which have reached an 11-month high will be positive for the market sentiment. Notably, the U.S. VIX index fell by 15% week-on-week, closing at 20, after hitting a record high of 65 previous week. This reduction in volatility is a key positive sign. Real Estate stocks will be focus as Cabinet approves 3 cr new houses worth Rs 3,60,000 cr under PM-Awas Urban 2.0. Expect positive for rail stocks after the news that the Cabinet approves railway expansion: Rs 24,657 crore for 8 projects. Expect positive for FMCG, Retail and pharma stocks after reported strong quarterly results.
US Market Update – Wall Street closed higher on Friday, with the stock market recovering from a bruising rout at the start of the week. The broad-based S&P 500 Index gained 0.5 per cent to 5,344, while the tech-heavy Nasdaq Composite Index also advanced 0.5% ahead of US Inflation data to be announce next week. S&P 500 Index declined less than 1% against the previous week close on a highly volatile trade. Most important factor that the US Vix fell by 15% to close at 20 level against the previous week cloSs after surging to record of 65 level on biggest gain since post covid as worried about US unemployment rate surged to 3-year high. ADR/GDR – Tata Steel, SBI, M&M and Reliance Industries gained between 1-2%.
Asian Market –Shares in Asia market opened higher today as markets shifted focus to key US data prints this week for further insight into the health of the world’s biggest economy.
The yen pulled further off the seven-month high it touched last week. Equity benchmarks for Australia, Taiwan and South Korea Index gained between 0.5% to 1%. Japan Index is shut today.
European Market –European equities rose on Friday to recover the week’s losses as concern that the US economy may be slipping into recession waned. UK, Germany and France Index gained 0.3% each
Gold –Gold gained 1% to close at $2430/ounce with the latest US data easing some concerns about a hard landing for the world’s biggest economy and helping support a broader rally. The rebound was aided by Labor Department data that showed applications for unemployment benefits falling by the most in nearly a year, boosting optimism that the Federal Reserve may be able to thread the needle in easing monetary policy starting next month while avoiding a recession.
Brent Crude –Brent oil is inching up toward $80 a barrel again — driven by the recovery in wider financial markets, another week of declining US stockpiles, potential retaliation by Iran on Israel and Ukrainian incursions into Russia — though the geopolitical risk premium still appears negligible
Previous Day Market Summary –The Nifty equity benchmark rose by 1%, driven by strong overnight gains in the US market, as well as positive performance in Asian and European markets. The markets were buoyed by a significant drop in US jobless claims, which fell to nearly a one-year low, alleviating fears of an economic slowdown in the US. This development has positively impacted market sentiment. Additionally, impressive domestic corporate earnings, increasing domestic fund inflows, and the Reserve Bank of India’s upward revision of the FY25 GDP growth forecast from 7% to 7.2% have further boosted market confidence. There is also expectation that the US Federal Reserve may opt for a larger-than-expected interest rate cut, contributing to the positive market outlook. According to a JP Morgan report, 75% of global carry trades have been unwound, which is expected to reduce global market volatility. Domestic, Systematic Investment Plan (SIP) inflows have surpassed the Rs 23,000 crore mark for the first time, indicating strong fund inflows into the equity market. Both FIIs and DIIs were net buyers Rs406cr and 3979cr respectively
As a result, the Nifty index surged by 250 points, or 1%, to close at 24,367. Various sectors saw gains, including auto, pharma, PSU banks, and upstream oil companies
Actionable BUY –ABFRL, NBCC, STL, Zomato, Mediplus, Mayur Unicoats, Trent, Zydus Life, BEL, PCBL, BSE, MCX,
Events Today – Inflation (CPI) and Industrial Production
Corporate Action –– ICICI Bank Rs10, Styrenix Performance Rs28, Computer Age Management Rs 11 Interim Dividend, GRP Bonus3:1,
Brokers Radar – Nomura TGT on Balkrishna Industries at 3115. Grasim Industries TGT by Jefferies at 3250, and Morgan Stanley TGT at 29990, Alkem Labs – TGT by Jefferies at 5080 and JP Morgan TGT at 5870. Jubliant Food TGT by Jefries at 850 and Goldman Sachs TGT at 545.
Results –. IRFC, Vodafone Idea, NMDC, HUDCO, SJVN, AIA Engeneering, National Aluminium, Hindustan Copper, Natco Pharma, DOMS Industries, Ingersoll Rand, Cera Sanitaryware, Happiest Minds, RCF, Usha Martin, Balrampur Chinis, Rategain Trave and Power Mech Projects
Global Data Today – US – 1-Year Inflation expectation. Germany – Economy Survey. Inflation (CPI) and Industrial Production
Market Summary –Biocon Eyes Biosimilars Business Expansion With Launch Of New Products In US, Europe. HCL Tech announces intent to acquire France-based Zeenea for Euro 24 million. ONGC gets Govt. nod to invest over Rs10000cr in ONGC-Petro-Opel NBCC won nearly $2bn domestic order, Trent, Inox Wind, Alkem Labs, Zudus Life, Infoedge, Berger Paints, Wockhardt announced impressive quarterly results.
Mazagoon Dock – ONGC has awarded this shipbuilding company a Wellhead Platforms and Associated Pipeline Project (DSF-II) contract. The contract, awarded on an EPC reimbursable basis (OBE), is valued at Rs 4,676 crores – MEDIA REPORT
Mahindra and Mahindra: The company denied media reports of a $3 billion JV with China’s Shaanxi Automobile. – positive
ATUL: The US FDA inspected the unit’s Ambernath facility in Maharashtra and concluded with zero observations. – positive
Anup Engineering: The company received two orders worth Rs 100 crore.- positive
Mutual Fund SIP inflows surge 10% to cross Rs 23,000 crore for first time – Systematic Investment Plan (SIP) inflows have surged beyond the Rs 23,000 crore mark for the first time as per the latest data from the Association of Mutual Funds in India (AMFI). SIP investments rose from Rs 21,262 crore in June to Rs 23,332 crore in July, reflecting a 10% increase as per the AMFI data.- positive for market sentiment as strong retail participation.
HCL Tech – Company announced that it intends to acquire Zeenea, an innovator in data catalog and governance solutions based in Paris, France worth 24mn Euro
ONGC – Company has signed deals with Emirates National Oil Co. Singapore and Gunvor Singapore to buy liquefied natural gas worth Rs10500cr
Biocon – Company is hopeful of expanding its presence in the biosimilars segment on the back of new product launches in the long run, according to Group Chief Executive Officer Peter Bains. Biosimilars, the largest business of the Biocon Group, posted 11% year-on-year revenue growth in the first quarter of fiscal 2025 on a like-for-like basis
Godrej Properties – Company is emerging as the highest bidder for 2 land parcels in Greater Noida, with an estimated revenue potential of more than Rs5,000 crore.- positive
Granules India – Company gets US FDA approval for ANDA of Trazodone Hydrochloride Tablets Trazodone tablets are indicated for treatment of major depressive disorder in adults – positive
Adani Power – Promoter Group cos raises stake in co to 73.19% from 71.14% Promoter Group acquires 2.05% stake in co between Nov-Aug
JSW Steel July Steel Production – Company reported July consolidated crude steel production at 22.15 lakh tonnes. Total crude steel production up 9% YoY and July capacity utilisation at Indian operations at 91% – positive
NBCC – Company gets work order worth Rs 15,000 crore for development of satellite township in Srinagar – positive
Ceigall India (- Company has secured an order worth 10.42 billion Indian rupees for the development of the Kanpur Central Bus Terminal and Bhuvaneshwar Metro Project-Phase I – positive
India Cements Q1 Revenue down 28.5% (YoY) at Rs 1,027 crore, EBITDA loss at Rs 24.7 crore vs EBITDA of Rs 8.3 crore (YoY), Net profit at Rs 58.5 crore vs loss of Rs 87.4 crore (YoY) and Exceptional credit of Rs 241 crore in Q1.
CESC – Company reported Q1 Net profit Rs388cr (up 5.4% YoY), Ebitda Rs371cr (up 48.7% YoY), Ebitda margin 7.6% vs 16.8% (YoY) and Income Rs4863cr (up 13% YoY)
General Insurance Corp – Company reported Q1 net profit 43% rise in Q1 in at Rs 1,401 crore in the June quarter, compared to Rs 978 crore in the same period last year. Net premium income increased 16% to Rs 10,098 crore, compared to Rs 8,696 crore in the corresponding period last year.
Trent reported better than expected Ebitda and Ebitda margin. Company reported Q1 Income Rs4104.4cr (up 56% YoY) – expectation Rs3677cr, Net profit Rs391cr (up 164% YoY) – Expectation Rs304cr, Ebitda margin at 15% vs 14% (YoY) – expectation 14.3% and Ebitda Rs612.6cr (67% YoY) – expectation Rs526cr
Concord Biotech Q1 Income Rs216cr (up 10.8% YoY), Net profit Rs59.6cr (up 9.4% YoY), Ebitda Rs27.7cr (down 70% YoY) and Ebitda margin at 8.1% vs 16% (YoY)
Kolte Patil Q1 Income Rs341cr (down 40% YoY), Net profit Rs6.2cr (down 86% YoY), Ebitda Rs81.3cr (up 12.7% YoY) and Ebitda margin at 37.7% vs 37% (YoY)
Zydus Life reported better than expected Ebitda and Ebitda margin. Company reported Q1 Income Rs6208cr (up 21% YoY) – expectation Rs5533cr, Net profit Rs1420cr (up 20.6% YoY) – Expectation Rs1040cr, Ebitda margin at 34% vs 29.8% (YoY) – expectation 27.7% and Ebitda Rs2109cr (up 37.6% YoY) – expectation R1530cr, US sales at $371mn
Alkem Labs reported better than expected Ebitda and Ebitda margin. Company reported Q1 net profit Rs545cr (up 97% YoY) – expectation Rs390cr, Income Rs3032cr (up 2.2% YoY) – Expectation Rs3080cr, Ebitda Rs609cr (up 56.6% YoY) – expectation Rs500cr, Ebitda margin at 20.1% vs 13.1% (YoY) – expectation 16.2%
IRB Infra Q1 Income Rs1853cr (up 13.4% YoY), Net profit Rs140cr (up 4.7% YoY) , Ebitda margin at 46.25% vs 47.6% (YoY) and Ebitda Rs857cr (up 10% YoY)
Inox Q1 Income Rs296cr (up 4% YoY), Net profit Rs52.6cr (up 7.8% YoY), Ebitda margin at 33% vs 32.4% (YoY) and Ebitda Rs70.2cr (down 2% YoY)
InfoEdge (Naukri) impressive Q1 results. Company reported Q1 Income Rs677cr (up 8.1% YoY), Net profit Rs259cr (up 75.6% YoY) , Ebitda margin at 46.25% vs 47.6% (YoY) and Ebitda Rs223cr (up 10.3% YoY)
Berger Paints reported in line expected Q1 resulkts. Company reported Q1 Ebitda margin at 17% vs 18.4% (YoY), Income Rs3091cr (up 2% YoY), Ebitda Rs 522.4cr (down 6.2% YoY) and net profit down 0.3% YoY at Rs353.6cr
Electronics Mart Q1 Ebitda margin at 7.8% vs 7.7% (YoY), Income Rs1975cr (up 17.3% YoY), Ebitda Rs164cr (up 18.4% YoY) and net profit Rs74cr (up 20.2% YoY)
Chola Finance Q1 Ebitda margin at 57.4% vs 54.1% (YoY), Income Rs7633cr (up 35.7% YoY), Ebitda Rs4380cr (up 88% YoY) and net profit Rs1160cr (up 46.4% YoY)
Wockhardt reported strong Ebitda margin after along time. Company reported Q1 Ebitda margin at 12.3% vs 2.5% (YoY), Income Rs739cr (up 15% YoY), Ebitda Rs91r vs Rs16cr (up 88% YoY) and net loss Rs14cr vs loss Rs134cr (YoY) 12.3% vs 2.5%
Honsa Consumer announced impressive Q1 results. Company reported Ebitda Rs46.1cr (up 58% YoY), Ebitda margin at 8.3% vs 6.3% (YoY), Net profit Rs40.1cr (up 63% YoY) and Income Rs554cr (up 19.3% YoY)
Jubliant Food reported inline with Ebitda and Ebitda margin. Company reported Q1 Income Rs1439.6cr (up 10% YoY ), Net profit Rs51.5cr (down 31.4% YoY), Ebitda Rs278.2cr (up 1% YoY) and Ebitda Margin at 19.3% vs 21% (YoY)
Inox Wind reported strong Q1 results of all fronts. Company reported Q1 Income Rs639cr (up 83% YoY ), Net profit Rs50.4cr vs loss Rs60.9cr, Ebitda Rs136cr (up 313% YoY) and Ebitda Margin at 21.3% vs 9% (YoY)
