Focus Today – (Trend Negative – Gift Nifty is down 167 points or 0.7%. US Index declined 0.3%).US market declined 1% due to weak demand US 10-Year Treasury auction. Silver fell to 3-month low. Geo-political tension lifted oil price by 3%. Focus on RBI policy at 10.00am and his commentary. Yesterday Results performance – BSE, Pidilite, BASF, ABFRL, Venkay’s Food, Lalpath Lab, Godawari Power announced impressive Q1 results. Results Today – LIC of ndia, ABB India, RVNL, Oil India, Container Corporation, MRF, Page Industries, Biocon, Timken India, Bayer CropScience, JB Chemicals Ircon International, Alembic Pharma, IFCI, HBL Power , GSPL
Market Outlook for Today – A significant drop in the US market from its peak during the day, combined with geopolitical unrest between Iran and Israel, and a sluggish start in Asian markets, could result in a soft opening for the domestic equity market. The Dow Jones Index in the US fell by more than 700 points, or 2%, from its peak during the day, due to apprehensions about a lack of demand in a $42 billion 10-year Treasury auction, which negatively impacted market sentiment. On a brighter note, the US VIX (Volatility Index) remained steady at the 27 level.
The market’s focus will be on the announcement of the RBI credit policy today at 10 AM, with the anticipation that the RBI will keep the current interest rates unchanged. The commentary from the RBI will be pivotal for the market. The GIFT Nifty has decreased by 170 points, or 0.7%. Yesterday, the Nifty saw an increase of over 1% due to a surge in global markets, and traders are holding off on bargain hunting until a clear trend emerges.
Domestic Market Trend and sector to be focus – Global market volatility is expected to impact domestic markets. It is advisable to avoid aggressive buying until a clear trend emerges. Momentum is expected in auto, real estate, and banking stocks ahead of the RBI policy outcome today. Profit booking is anticipated in metal stocks due to a sharp decline in base metal prices on the LME. Conversely, oil companies may see positive movement after ONGC reported strong quarterly results.
US Market Update –U.S. stocks ended lower, reversing early gains, as the market’s rebound faltered. Weak demand in a US 10-year Treasury auction negatively impacted in the US market. As a result, US Market decline over 2% from the intra-day high and ended 1% lower . The dollar strengthened after the Bank of Japan walked back talk of rate increases. US 10-Year Bond Yield fell to below 4%.
Asian Market –Japanese stocks led declines in Asian equity markets Thursday, extending the volatile trading of the past week as investors digest signals from central banks on the path
ahead for interest rates. Japan, South Korea, Taiwan and Australia Index declined up to 1.5%.
Gold – Gold is trading flat at $2385/ounce as traders took stock of the mood across wider financial markets, with a global selloff earlier in the week followed by a partial recovery.
Brent Crude – Brent Crude surged 2.5% to above $78/bbl on account of geo-political tension, possible retaliatory strike by Iran on Israel as payback for assassinations of Hamas and Hezbollah leaders.
Nifty Technical Levels –Nifty formed a Doji sort of candle on daily frame and managed to close above its opening levels. Now it has to hold above 24200 for the index to again gain momentum towards 24500 then 24650 zones whereas supports are placed at 24150 then 24000 zones.
Bank Nifty Technical Levels – Bank Nifty formed an Inside bar on daily scale but is still forming lower highs from the last four sessions which suggests some pause at higher level. Now till it holds below 50350 zones some weakness could be seen towards 49750 then 49500 levels while on the upside hurdle is seen at 50500 then 50750 zones.
Previous Day Market Summary – After ending a three-day losing streak, the equity benchmark Nifty climbed over 1%, closing near the 24,300 level. This rise was driven by positive market sentiment following a global market rally and a boost from US Index Futures. The Nifty increased by 304 points, or 1.3%, to close at 24,297, up from the previous day’s close. Beaten-down sectors such as metals, capital goods, mid-caps, small caps, PSUs, and upstream oil companies posted significant gains. FIIs were net sellers Rs3314cr while DIIs were net buyers Rs3801cr
Events Today – RBI Credit Policy at 10am. Celgell India listing Today
Brokers Radar – CLSA TGT on Lupin at 1950. Godrej Consumers – Jefferies TGT at 1580, Morgan Stanley TGT at 1325. ADITYA Birla Fashion (ABFRL)- CITI TGT at 260. Pidilite TGT by Jefferies at 3310, Lalpath Lab TGT by CLSA at 3030 and Goldman Sachs TGT at 2450. Lupin TGT by Jefferies at 1900 and Goldmans Sachs TGT at 1900.
Results Today –.LIC of India, ABB India, RVNL, Oil India, Container Corporation, MRF, Page Industries, Biocon, Timken India, Bayer CropScience, JB Chemicals Ircon International, Alembic Pharma, IFCI, HBL Power , GSPL
Global Data Today – US data- Consumer Credit, Initial Jobless claim.
Market Summary – Govt. considers Cut to Food Weighting in CPI Basket . Pidilite, BASF, ABFRL, Venkay’s Food, Llapath Lab, Godawari Power announced impressive Q1 results. Rating agency Moody’s Ratings upgrades Tata JLR’s ratings. Ramco Systems gets multi-year canadian contract for aviation software. Adani Is Said to Plan Raising $1.2 Billion for Flagship Firm. Raymond To Focus On Real Estate Business, Says Group CFO
Raymond Ltd – Company plans to focus on the real estate business and tap into the opportunities in the aerospace and defence sectors through its engineering division, according to Group Chief Financial Officer Amit Agarwal. – positive
Marico Operations On Gradual Recovery In Bangladesh – Company has reported that operating conditions in Bangladesh are gradually improving. However, the company is watchful of the evolving situation – We are long term positive
Listing Today – Ceigall India: The company’s shares will debut on the stock exchanges on Thursday at an issue price of Rs 401 apiece. The Rs 1,252.66-crore IPO was subscribed 13.78 times
Godrej Consumer Products: The board has approved the entry into the pet care business via its arm and will invest Rs 500 crore over five years in venturing into the pet care business. The company plans to start producing pet care products in the second half of FY26. – POSITIVE
Life Insurance Corporation Of India: The company clarified that the report on the government diluting up to a 5% stake in the company in the financial year 2025 is incorrect.- positive
Phoenix Mills: The company’s unit, Astrea Real Estate, acquired five land-owning entities in Coimbatore for Rs 370 crore.- positive
Adani Enterprises: The company incorporated a subsidiary Global Airports Operator in Abu Dhabi to carry out acquisition and investment operations for operating airports outside India.
UPL: The Australian High Court rules in favour of Unit Advanta in litigation over seed quality. – positive
NTPC: The company’s unit commenced commercial operations of 60 MW capacity at its solar PV project in Gujarat.- positive
Govt. Considers Cut to Food Weighting in CPI Basket – Government panel tasked with revising the nation’s consumer price index is considering a substantial cut in the weighting of food,, a move that could curb inflation spikes. The panel, under the statistics ministry, is discussing a proposal to reduce the weight of food in the consumer price basket by as much as 8 percentage points. The food and beverage category makes up 45.86% of the current CPI basket. – Expect positive if reduce Food Weighting in CPI Basket, RBI likely to space cut on interest rate – Positive for auto, financials, real estate stock
Adani Enterprises – Company is considering raising around Rs10000cr ($1.2 billion) to 120 billion rupees through a share sale. Adani Enterprises. may seek to raise funds through a so-called qualified institutional placement, or QIP.
ONGC – Company’s aims to increase output by 19% to 47 million tonnes of oil equivalent (mmtoe) by FY27. This should be aided by higher production from the KG basin 98/2 block, where the ramp-up has been slow. Oil production from the block is currently 12,000 barrels per day (bpd). – positive
State Bank of India – The Government endorsed the appointment of Challa Sreenivasulu Setty as the new chairman for three years. – Positive
Tata Motor – Global Rating agency Moody’s upgrades Tata JLR’s ratings to Ba2 from Ba3 on consistently strong earnings; outlook remains positive – positive
Karnataka govt allows Bengaluru bars, hotels, clubs to operate till 1 am – expect positive for Liquor stocks – The Karnataka government has issued a directive to extend operating hours for hotels, shops, bars, and licensed establishments until 1 am every day. In 2016, the city allowed hotels, restaurants, and markets to operate beyond usual hours to enhance nighttime business activities. However, due to public opposition, a mandate was issued requiring all commercial establishments to close by 11 pm. – Expect positive for United Breweries, United Spirits.
Suzlon Energy: The company will acquire a 76% stake in Renom Energy Services from the Sanjay Ghodawat Group in two or more tranches. The first tranche involves a 51% stake for ₹400 crore, and the second tranche will acquire an additional 25% stake within 18 months for ₹260 crore. – positive
Reliance Industries: Reliance Jio announced the discontinuation of its ₹395 and ₹1,559 prepaid plans, popular for unlimited 5G data and extended validity, following a substantial tariff increase effective July 3, 2024. The base plan will see a 22% increase from ₹155 to ₹189, with similar hikes across various plan categories, including the 1 GB per day plan rising from ₹209 to ₹249, and the 2 GB per day plan from ₹299 to ₹349. – positive
Canara Bank: The government has nominated Rohit Das as RBI nominee director on Canara Bank’s board, replacing R Kesavan, effective immediately. Das, with 26 years of experience, has worked in various central office departments in Mumbai. – positive
AIA Engineering – Company’s board approved buyback of 10 lakh shares or 1.1% equity at Rs 5,000 per share (CMP 4481)
IOC – Company expects 40% growth in gas sales in three months – Positive
TVS Supply chain – Company has secured a new business contract from JCB in India for managing their in-plant warehousing and logistics operations at their facility in Vadodara, Gujarat, for three years.
positive
Cummins India Q1 Concall Highlights – Company maintain double digit growth guidance in FY25. Company says that the gross margins at 5 year high led by higher mix of CBCB IV+ sets. Company said that the margins not sustainable in near term with pricing environment. Product pursuant to CPCB norms contributed to 30-40% of sales in Q1. – Positive after announced double digit growth in FY25.
Godrej Industries – Company’s board approved fundraise of Rs 3,000 crore via unsecured non-convertible debenture. – Positive
Uno Minda Update – Company’s board approved incorporation of a wholly owned step-down subsidiary in Czech Republic, Europe. Board approved acquisition of further stake in Minda Onkyo India. The company’s stake in Minda Onkyo India to be 99% post acquisition. Board approves investment worth Rs 62.69 crore in sunroof project. Minda Onkyo India is a 50:50 JV between co & Japan-based Onkyo Sound Corporation – positive
L&T Technology – Altair and L&T Technology Services have announced the creation of a digital twin center of excellence (CoE) to accelerate digital transformation. – positive
Coforge – Company gets supplementary notice of indemnification from a client in the North America region. Client claims $7.6 million indemnity in-principle settlements. Potential additional claim of $4.3 million for settling demands – Any sharp decline will be long term buying opportunity
Jindal Saw – Company to consider stock split from each share into tow on August 14 board meeting. – positive
Sakssoft – Company approved bonus issue one share for four held – positive
Aurobindo Pharma – Company has received final approval from the US USFDA to manufacture and market Estradiol Vaginal, drug use for the treatment of atrophic vaginitis due to menopause. It an estimated market size of $268 million for the twelve months ending June 2024, according to IQVIA – positive
Ramco Systems – Company said its aviation software was selected as the aircraft inventory and maintenance management system by Transport Canada’s Aircraft Services Directorate.
GE&TD – Company has secured an order worth Rs 305 crore from state-owned Power Grid Corporation of India – positive
Focus on optic fiber stocks ahead of large order from BSNL – Expect momentum on optic fiber stocks like Sterlite Optical and HFCL gained 4% each after the news that the BSNL’s Mega Bharat Net Phase 2 tender will open on August 8. Media reports peg the tender’s total value at Rs65,000 crore.
Welspun Living – Company has commenced production at the pillow manufacturing unit in the Ohio, USA. The fully automated pillow manufacturing unit in Ohio, USA, was set up with a capital expenditure of $12.5mn. dispatch of pillows was effected from Aug. 6, 2024, it said.- positive
Godawari Power – Company approves stock split each share into five
Tata Motors – The company has launched the Tata Curvv EV, marking the country’s entry into the mass-market coupe SUV segment at a starting price of Rs 17.49 lakh to Rs 21.99 lakh all-India ex-showroom. – positive
Caplin Point announced impressive Q1 results. Company reported Q1 Net profit Rs125cr (up 20% YoY), Income Rs459cr (up 16.1% YoY), Ebitda Rs152cr (up 20% YoY) and Ebitda margin at 33% vs 32% (YoY)
Safari Industries reported weak Q1 results. Company reported Q1 Net profit Rs44.4cr (down 9.4% YoY), Income Rs450cr (up 5.5% YoY), Ebitda Rs65.8cr (down 7.5% YoY) and Ebitda margin at 14.6% vs 18.5% (YoY)
Harsha Engineering announced impressive Q1 results. Company Q1 Net profit Rs36cr (up 47% YoY), Income Rs343cr (down 1.4% YoY), Ebitda Rs55.2cr (up 32% YoY) and Ebitda margin at 16.1% vs 12% (YoY)
Pidilite Industries announced marginally above Ebitda and Ebitda margin. Company reported Q1 volume growth 8% – expectation 7%, Net profit Rs571.3cr (up 21% YoY) – expectation Rs565cr, Income Rs3395cr (up 3.7% YoY) – expectation Rs3504cr, Ebitda Rs813cr (up 15% YoY) – exptation Rs811cr and Ebitda margin at 24% vs 21.6% (YoY) – expectation 23.2%
Aditya Birla Fashion reported better than expected Ebitd and Ebitda margin. Company reported Q1 Net loss Rs215cr vs loss Rs162cr – expectation loss Rs235cr, Income Rs3427cr (up 7.2% YoY) – expectation Rs3481cr, Ebitda Rs359cr (up 23% YoY) – exaptation Rs319cr and Ebitda margin at 10.5% vs 9.1% (YoY) – expectation 9.1%
Varroc Engineering Q1 Net profit flat at 34cr, Income Rs1899cr (up 5.2% YoY), Ebitda Rs172cr (down 4.3% YoY) and Ebitda margin at 9.1% vs 10% (YoY)
NLC India announced impressive Q1 results. Company Q1 Net profit at 37cr (up 37% YoY), Income Rs3376cr (up 2% YoY), Ebitda Rs1081cr (down 9.4% YoY) and Ebitda margin at 32% vs 36% (YoY)
Venky’s Food announced strong Q1 results. Stock has loched 20% upper circuit after Q1 results. Company reported Q1 Net profit Rs75cr (up 294% YoY), Income Rs976cr (up 21% YoY), Ebitda Rs271cr vs loss Rs137.5cr and Ebitda margin at 27.75%
Lal Pathlab reported imprersive Q1 results both in Ebitda and Ebitda margin. Company reported Q1 net profit Rs107.8cr (up 30% YoY), Income Rs602cr (up 11.3% YoY), Ebitda Rs170cr (up 16.3% YoY) and Ebitda margin at 28.2% vs 27% (YoY)
Godawari Power announced strong Q1 results. Company reported Q1 Net profit at 287cr (up 24.2% YoY), Income Rs1342cr (up 1.2% YoY), Ebitda Rs407cr (up 33% YoY) and Ebitda margin at 30.3% vs 23% (YoY)
BASF impressive Q1 results. Stock locked 20% upper circuit yesterday after announced Q1 results. Company reported Q1 Net profit at 221cr (up 95.6% YoY), Income Rs3967cr (up 17.5% YoY), Ebitda Rs313cr (down 56.5% YoY) and Ebitda margin at 7.5% vs 5.9% (YoY)
Hindalco’s Novelis Q1 Results – Net profit $204mn, excluding special items, Adjusted Ebitda $500mn (up 19% YoY), Net sales at $4.2bn (up 2% YoY) and Q2 Adjusted Ebitda net impact of $30mn on Sierre – we re long term positive on the stock
Godrej Consumer reported lower than expected topline and Ebitda but Ebitda margin in line with expectation. Company reported Q1 Net profit Rs451cr (up 41% YoY) – expectation Rs502cr, Income Rs3332cr (decline 3% YoY) – expectation Rs3621.6cr, Ebitda Rs727cr (up 7% YoY) – exaptation Rs784.5cr and Ebitda margin at 21.8% vs 19.8% (YoY) – expectation 21.7%
