News & Impact
Focus Today – ( Trend positive – Gift Nifty is flat to positive. July domestic CPI Inflation Hits Five-Year Low at 3,54% and Net Direct Taxes up 23% to Rs 6.93 Lakh Crore (YoY), Driven By Surge In ITRs. US Index Future trades flat. US PPI (Wholesale inflation) data to be release today and tomorrow Inflation data). Gold nearly record high and Oil above $81/bbl – geopolitical tension. Listing – Brainbees Solutions and Unicommerce Solutions. MSCI August re-balancing Seven stocks addition. : RVNL, Zydus Life, Vodafone Idea, Oil India, Oracle Finance, Dixon Tech and Prestige Estate Among Seven Additions while Bandhan Bank deletion. Results Today – Hindalco Industries, Samvardhana Motherson, Hero Motocorp, Apollo Hospitals, IRCTC , Muthoot Finance, FSN E-Commerce, s Nykaa, Max Financial s, Endurance Tech, Piramal Enterprises, Rategain Tech, Natco Pharma, Subors Ltd, Kaveri Seeds, Balrampur Chini. Rattnindia and AIA Engineering announced impressive Q1 results.
MSCI Rebalancing – MSCI Inc. added seven Indian stocks to its global gauge for emerging markets under its August review, and removed one. The changes will come into effect from August 30 before the markets close. With the latest review, India’s weightage in the MSCI standard index will increase 40 basis points to 19.8%. The upgrade will see index market cap for India increase by $57.26 billion, shows the MSCI statement. RVNL, Zydus Life, Vodafone Idea, Oil India, Oracle Finance, Dixon Tech and Prestige Estate among seven additions while Bandhan Bank deletion
Today’s Market Outlook – Domestic inflation has cooled to a five-year low of 3.54%, while direct tax collections have surged by 23% to nearly Rs7 lakh crore. These positive economic indicators, along with strong quarterly results, have likely set a favorable tone for domestic stock markets. The RBI is expected to consider cutting interest rates following the drop in July’s Consumer Price Index (CPI) to its lowest level since 2019, which is below the RBI’s target of 4%. In international markets, the US ended flat as investors awaited the release of Producer Price Index (PPI) data and upcoming inflation reports. Asian markets are mixed, with Japan’s index rising over 2% after strong economic data. Geopolitical tensions in the Gulf region and anticipation of a US Federal Reserve rate cut have driven gold prices close to a record high of $2467 per ounce, and Brent Crude has spiked above $81 per barrel. Yesterday’s market ended flat with a shift in focus to mid and small-cap stocks. The Nifty and US Index Futures are also trading flat. Today’s market is expected to remain range-bound as investors await key US inflation data. Despite this, sector-specific movements are likely, and any significant declines may present buying opportunities. The overall market sentiment remains bullish due to strong economic data and positive quarterly results.
Domestic market outlook – Upstream oil companies such as ONGC and Oil India are expected to perform well after the government approved a 20% premium price hike for new wells. Mining stocks may see positive movement following impressive Q1 results from NMDC and Hindustan Copper. The auto, banking, and real estate sectors may benefit from anticipated RBI rate cuts. Additionally, seven new companies—RVNL, Zydus Life, Vodafone Idea, Oil India, Oracle Finance, Dixon Tech, and Prestige Estate—have been added to the MSCI index, which may drive momentum in these stocks.
US Market Update –US stocks ended mixed bag ahead of US Inflation data to be release tomorrow and key direction in the market. S&P 500 Index gained 0.2% while Nasdaq composite marginally declined.
Asian Market – Asian market open on a mixed bag. Japan Index surged 2% after reported impressive economy data. Japan’s corporate goods price index rose 3% in July from a year earlier, in line with expectations and climbing at a faster pace compared to 2.9% in June.
European Market –Most European equity sectors traded in the green as the Stoxx 600 index eked out a fifth day of advances. Both UK and Germany Index marginally gained while France Index ended flat
Gold – Gold near a record at $2467/ounce as traders weighed a potential escalation in Middle East tensions, while markets braced for a US inflation report that may prove pivotal in shaping the Federal Reserve’s interest-rate path
Brent Crude – Brent Crude surged 2% to $81/bbl due to geo-political tension in gulf region.
Nifty Technical Levels – Nifty formed a small bodied Doji sort of candle with equal shadows on either side. Now it has to hold above 24350 zones for an up move towards 24500 then 24650 zones whereas supports are placed at 24200 then 24100 zones.
Bank Nifty Technical Levels – Bank Nifty formed a small bodied candle on daily scale as buying is visible at lower levels but momentum is missing at higher zones. Now it has to continue to hold above 50350 zones for a bounce towards 50850 then 51000 levels while on the downside support is seen at 50250 then 50000 zones.
Previous Day Market Summary –Equity Benchmark Index ended on a flat note ahead of domestic key Inflation and IIP data to be released today in the post market along with mixed bag of global markets. Action shifted to mid-cap and small cap sectors while Rail, oil & gas and realty stocks were among major gainers today. Nifty 500 stocks advance decline ratio was 1:1. After opening in negative with 228 points low at 79,477, the Sensex finished the day flat. Sensex closed at 79,648, down by 57 points. Nifty also closed flat at 24,344 down by 20 points. Sensex and Nifty 50 gained back all of the ground they had lost earlier and continued to rise due to encouraging trends in international stocks and new inflows of foreign money.
Actionable BUY –ONGC, Bakrampur Chini, AIA Engineering, National Aluminium
Events Today – Listing – Brainbees Solutions and Unicommerce Solutions. HEG board meeting for stock split. GMR Infra board meeting for stock split.
Corporate Action –– Dhunseri Ventures Rs5, EIH Associates Rs6 and Bonus1:1, Fine Organic Industries Rs10, Great Eastern Shipping Rs9, Orient Green Power Right issue, Heritage Foods Rs2.5, MILKFOOD Bonus 1:1 and stocksplit from Rs10 to Rs5, Navneet Education Rs2.6 and buyback, Neelamalai Agro Rs50,
Brokers Radar – Nomura TGT on AIA Engineering 3600. Voltas – Morgan Stanley TGT at 1225. Macquarie TGT AT 1390 and Nomura TGT at 1511. NMDC TGT by AT CITI 200 . Aurobindo Pharma – CLSA TGT at 1550, HSBC TGT at 1625. Goldman Sachs TGT at 1525. Honasa Consumers TGT by Goldman Sachs at 570.
Results –. Hindalco Industries, Samvardhana Motherson, Hero Motocorp, Apollo Hospitals, IRCTC , Muthoot Finance, FSN E-Commerce, s Nykaa, Max Financial s, Gujarat Fluorochemicals, Endurance Technologies, Ipca Lab, NBCC (India), Godrej Industries, SKF India, Ratnamani Metals , Piramal Enterprises, Techno Electric
Global Data Today –US – Payroll Data. UK – Payroll, Jobless Claims, Employment Change. Japan – PPI or Production Price Index
Market Summary – July CPI Inflation Hits Five-Year Low At 3.54%. Government Allows ONGC, Oil India To Price Gas From New Wells At 20% Premium. Bharti Enterprises to Buy 24.5% stake in Britain’s Largest Telecom Firm BT Group for nearly $4bn. NCLT approves Oberoi Realty arm’s acquisition of Nirmal Lifestyle Realty. JSW Steel To Buy 66.67% Economic Interest In M Res NSW For $120mn. Reliance advances development of green energy giga complex in Jamnagar. NMDC, Hind Copper. Rategain Tech, Natco Pharma, Subors Ltd, Kaveri Seeds, Balrampur Chini. Rattnindia and AIA Engineering announced impressive Q1 results.
Expects positive for banks, real estate, auto sectors as July Inflation fell to 5-year on rate cut hope – Retail July Inflation or CPI dropped to the lowest since 2019 at 3.54% as compared to 5.08% in June – Bloomberg estimated inflation at 3.6% for the month. – Hope of RBI to cut interest rate due to falling Inflation while RBI target was 4% – Expects positive for banks, real estate, auto sectors
Net Direct Taxes up 23% to Rs 6.93 Lakh Crore, Driven By Surge In ITRs – Net direct tax collections in the current financial year surged 23% to approximately Rs 6.93 lakh crore as of Aug. 11, driven primarily by personal income tax receipts, according to government data released on Monday. – strong tax collection will be positive for economy and reduce fiscal deficit.
ONGC and Oil India – The government allowed ONGC and Oil India to price domestically produced natural gas at 20% premium over the administrative price mechanism in a bid to make new gas development projects viable. – positive
JSW Steel – Company’s has approved the acquisition of an economic interest of up to 66.67% in M Res NSW coal mine located Australia an investment amounting to $120 million or Rs 1,007.3 crore.
Bharti Airtel – Bharti Enterprises will acquire 24.5% stake in British telecommunications giant BT Group Plc. for an estimated $4 billion. Bharti Global has reached an agreement to acquire the shares from French telecom tycoon Patrick Drahi-founded Altice UK, the Sunil Bharti Mittal-led company – Positive .
Insurance Premium Data in July – LIC and HDFC Life announcing impressive Life insurance premium in July – LIC – Company reported a 14.2% year-on-year rise in premiums, reaching Rs 31,823 crore in July,. SBI Life – Company reported a total premium of Rs 2,996 crore in July, which is a 26.3% decline year-on-year. HDFC Life – Company reported solid performance with a significant increase in premiums, at Rs 2,699 crore, an increase of 33.8% year-on-year. ICICI Prudential Life – Company reported 7.3% year-on-year to Rs 1,760 crore and Bajaj Finserv – Company reported total premium rose 60.5% year-on-year to Rs 1,196 crore.
Brainbees Solutions listing: The company’s shares will debut on the stock exchanges on Tuesday at an issue price of Rs 465 apiece. The Rs 4,193.73-crore IPO was subscribed to 12.22 times
Unicommerce Solutions: listing The company’s shares will debut on the stock exchanges on Tuesday at an issue price of Rs 108 apiece. The Rs 276.57-crore IPO was subscribed to 168.35 times
Marico: The company’s manufacturing operations in Bangladesh have resumed at normal scale – Positive
Crisil: The company’s unit will form a private entity to serve as an industry association for SEBI-registered ESG rating service providers.- long term positive
Power Grid Corp.: The company received a letter of intent for a 20 GW inter-state transmission line in Rajasthan.- Positive
Kotak Mahindra Bank: The company’s units, Sonata Finance and BSS Microfinance, have approved the merger with each other. – long term positive
KPI Green Energy: The company opened its QIP and set the floor price at Rs 983 per share.- positive
Jindal Stainless: The company has been accredited by BrahMos Aerospace as a qualified vendor for steel sheets. – positive
Dr. Reddy’s Lab – Company received establishment inspection Report from US Food and Drug Administration for manufacturing facilities at Visakhapatanam. US FDA report classifies Visakhapatanam facilities as ‘Voluntary Action Indicated’. – positive
Oberoi Realty – The National Company Law Tribunal (NCLT) has approved the resolution plan proposed by an affiliate of listed property developer Oberoi Realty to acquire real estate development firm Nirmal Lifestyle Realty. The resolution plan of Oberoi Constructions involves paying around Rs 273 crore to financial, operational, and other creditors- – positive
Godrej Properties – Company acquired 90 acres of land in Khalapur, Maharashtra. Land offers development potential of 1.7 million square feet of residential plotted development.- positive
TCS – Company has enabled 100% in-store mobile checkout for all Croma stores, a first in the retail industry in India.- Positive
CIE Automotive India – Company has agreed to acquire a 31.20% stake in renewable energy projects developer and operator ReNew Green for up to Rs3.6cr – positive
VA Tech Wabag – Company secured a contract worth Rs415cr from Chennai Metropolitan Water Supply and Sewage Board. – positive
GR Infra – Company has emerged as L‐1 bidder for establishing “Transmission scheme for integration of Tumkur‐II REZ” in the State of Karnataka, through tariff based competitive bidding (TBCB) process on build own operate and Transfer (BOOT) basis – Positive
AIA Engineering – Company has approved Rs65cr expansion projects in Ahmedabad – positive
IFL Enterprises – Company won significant order from Reliance Jamnagar plant worth Rs61.4cr – positive
NBCC – Company announced that it has secured two orders with a total worth of around Rs 720 crore from Jhansi Development Authority and Institute of Company Secretaries of India – positive
Subex – Company approved green field manufacturing plant at Haryana – positive
SEPC – Shriram EPC FZE, a subsidiary of the SEPC l, got a project for the construction of a cement project for more than $325 million or about Rs 2,700 crore, from JV Ohongron Sement MS LLC in Tashkent, Republic of Uzbekistan. The project involves the construction of a 3 million-tonne greenfield cement plan – Positive
Reliance Industries – Company is making significant progress on the development of the Dhirubhai Ambani Green Energy Giga Complex, which spans 5,000 acres in Jamnagar, Gujarat. The company expects the phased commencement of operations at its Solar PV Giga Factory by the end of 2024, according to its 2023-24 annual report.
Cera Ceramics announced weak Q1 results. Company reported Q1 Net profit Rs47.5cr (up 45.3% YoY), Income Rs401cr (down 6.5% YoY), Ebitda Rs58.1cr (down 17.5% YoY) and Ebitda margin at 14.5% vs 16.5% (YoY)
Dhanlaxmi Bank announced weak Q1 results. Company reported Q1 Net loss Rs8cr vs. profit Rs28.3cr (YoY), GNPA 4.04% vs. 4.05% (QoQ), Provision Rs4.71cr vs recovery Rs28.15cr and Interest income Rs306cr (up 6% YoY)
Natco Pharma reported strong Ebitda and Ebitda margin. Company announced Q1 net profit up by 59% (YoY) to Rs688.5cr, Income up by 19.5% (YoY) to Rs1362cr, Ebitda at Rs804cr (up 52.4% YoY) and Ebitda Margin at 59.1% vs 46.3% (YoY)
Juniper Hotels announced impressive Q1 results. Company reported Q1 Net profit at Rs 12 crore vs loss of Rs 11 crore (YoY), Revenue rose 19% (YoY) at Rs 200 crore, Ebitda flat at Rs 63 crore and Ebitda Margin at 31.5% vs 37.5% (YoY)
National Aluminum reported lower than expected Q1 Ebitda and net profit but Ebitda margin ahead of expectation. Company reported Q1 Net profit Rs601cr up (72%) – expectation Rs741.4cr, Income Rs2860cr (down 10.2% YoY) – expectation Rs3882.1cr, Ebitda up by 57% (YoY) at 934cr – expectation Rs1137.8cr and Ebitda margin at 32.7% vs 18.7% (YoY) – expectation 29.3%
Rategain Technology announced impressive Q1 results. Company reported Q1 Net profit up 82% (YoY) at Rs45.3cr, Ebitda up 31.5% (YoY) at Rs49.7cr, Ebitda margin at 19.1% vs 17.6% (YoY and income 260cr (up 21% YoY)
Kaveri Seed announced impressive Q1 results. Company reported Q1 Ebitda margin at 36.7% vs 37% (YoY), Income up 9% (YoY0 at Rs803cr, Income Rs803c5r (up 9.1% YoY) and Ebitda up 6% (YoY) at Rs295cr
Subors Q1 announced impressive Q1 results. Company reported Net profit Rs35cr vs 13.6cr (YoY), Ebitda Rs78cr (up 68% YoY), income Rs810cr (up 17% YoY) and Ebitda margin at 9.4% vs 6.8% (YoY)
Balrampur Chini announced impressive Q1 results. Company reported Q1 Net profit down 4.5% (YoY) at Rs70.2cr, Income at Rs1421.5cr (up 2.3% YoY), Ebitda 3.6% (YoY) at Rs169cr and Ebitda Margin at 11.9% vs 11.7% (YoY)
AIA reported better than Bloomberg estimates Q1 Ebitda. Company reported Q1 Net profit Rs259cr (down 5% YoY) – Bloomberg expectation Rs286cr, Ebitda Rs372cr (down 8% YoY) – Bloomberg expectation Rs330cr and Income Rs1020cr (down 18% YoY) – Bloomberg expectation Rs1266cr
Rattanindia announced strong Q1 results. Company reported Q1Net profit Rs851cr vs Rs178cr (YoY), Income at Rs2494cr (up 69% YoY), Ebitda 1031cr (up 400%YoY) and Ebitda Margin at 41.3% vs 13.9% (YoY)
USHA Martin Q1 Net profit up 3% (YoY) at Rs104cr, Income at Rs826cr (up 1.5% YoY), Ebitda 5% (YoY) at Rs154cr and Ebitda Margin at 18.6% vs 17.9% (YoY)
