Stock Market Trend
Gift Nifty Rises, US Index Futures Flat Ahead of Inflation Data
Gift Nifty is up by 75 points or 0.3%, while US Index Futures trade flat ahead of the crucial US inflation data release today. Yesterday, US stocks surged over 2% as cooler Producer Price Index (PPI) data boosted hopes for rate cuts.
Q1 Results Highlights:
Hindalco, IPCA Labs, and Nykaa reported impressive Q1 results.
Hero Motocorp’s Q1 results were in line with expectations.
Results to Watch Today:
Hindustan Aeronautics
Mazagon Dock
Glenmark Pharma
EID Parry
RHI Magnesita India
Ethos
Gabriel India
Lux Industries
Suprajit Engineering
PC Jeweller
Polyplex Corporation
Hinduja Global Solutions
ADR/GDR Performance:
Tata Steel, Wipro, Dr. Reddy’s, and Infosys gained up to 1.5%.
Foreign Institutional Investors (FIIs) were net sellers, offloading over ₹10,000 crore in both cash and F&O segments. Note that the market will be closed tomorrow due to a holiday
Today’s Market Outlook:
Strong Opening Expected Amid Global Rally
Expect the market to open on a strong note today, driven by a rally in the global markets. Cooling July wholesale inflation data (PPI) in the US has bolstered global market optimism, raising hopes for an interest rate cut by the US Federal Reserve. This optimism led to a notable 2.5% gain in the US market, a drop in the US VIX to 18 from the previous week’s peak of 65, and a decrease in the US 10-year bond yield to 3.8% from 3.9% the previous day. Consequently, Asian markets rose by up to 1% in anticipation of a potential Fed rate cut in September. The Gift Nifty is up by 75 points, or 0.3%, indicating a positive start, while US index futures remain flat as they await today’s inflation data release. Yesterday, both the Sensex and Nifty fell nearly 1%, with the Sensex closing below 79,000 and the Nifty dropping below 24,200, driven by a broad-based sell-off in banking, metals, and auto stocks amid foreign fund outflows and mixed global trends.
Domestic Market Outlook:
The decline in domestic inflation to a five-year low, along with favorable US PPI data and strong quarterly corporate results, is expected to positively impact market sentiment.
FMCG, auto, and pharma stocks could benefit from these positive results.
Some intra-day volatility might occur due to global market fluctuations.
Sugar stocks are likely to perform well following news that the government is considering raising ethanol prices to boost production and achieve a 20% blending target by 2025-26.
Gold –Gold gained 1% to nearly record high of $2467/ounce as investors shifted focus to key inflation data due later on Wednesday that may offer more clues on the Federal Reserve’s interest-rate path.
Brent Crude – Oil rose, after falling more than 2% on Tuesday, as an industry report pointed to a sizable drop in US crude stockpiles and tensions simmered in the Middle East. Brent crude climbed to around $81 a barrel
Events Today – Indus Tower share buy-back from today at Rs465 a share. Wholesale Inflation.
Corporate Action –– TTK Prestige BuyBack, Dhunseri Investment 2.5, EPL Rs2.3, Gujarat Pipavav Port Rs3.7, Kalyani Steel Rs10, Maharashtra Seamless Rs10, Mahanagar Gas Rs18, Hitachi Energy India Rs4, Sprayking Bonus 1:1, TTK Pprestige Rs6 and buy back,
Results Today – Hindustan Aeronautics, Mazagon Dock, Glenmark Pharma, EID Parry , RHI Magnesita India, Redtape, Rajesh Exports, Ethos, Gabriel India, Lux Industries, Suprajit Engineering, National Fertilizers, Kirloskar Industries, PC Jeweller, KDDL, Pitti Engineering, Polyplex Corporation, Hinduja Global Solutions
SBI – Reports that State Bank of India (SBI) may offload its 24-per cent stake in the former by March end. According to a Reuters report. SBI is planning to sell its 24% stake in YES Bank, worth Rs 18,420 crore ($2.2 billion) by the end of March 2025. “Japanese lender Sumitomo Mitsui Banking Corp and Dubai-based Emirates NBD are in advanced talks to acquire a majority stake in YES Bank. Both the bidders are interested in acquiring a majority 51 per cent stake in YES Bank to get sizable control of the bank’s business,” the report said. – positive as SBI Bought on Yes Bank share at Rs10 a share
Maruti Suzuki India – Company has began exports of its newest sports utility vehicle (SUV) Fronx from India to Japan, The first consignment of more than 1,600 SUVs departed from Pipapav Port (Gujarat), to Japan, making it Maruti Suzuki first SUV to be launched in Japan, the statement added. It is the second car after the Baleno in 2016 to be exported to Japan from India.
LTTS – Company announced that it has signed a long-term framework agreement with Shell, one of the world’s largest energy companies. The multi-year framework agreement will see LTTS providing integrated Engineering and Procurement Services along with Digital Engineering Services, Data Governance for Capital Projects and Digital Project Management Consultancy for Shell’s global assets as necessary. – positive
Vedanta – Company said that its board has approved to sell 1.1 crore shares or 2.6% stake in Hindustan Zinc Ltd., through an offer for sale, according to its statement to the exchanges. The details of the floor price and date were, however, not disclosed. Company is holding nearly 65% stake of Hindustan Zinc – Positive if Vedanta stake sale proceed to repay debt.
Vodafone Idea – Company said it is witnessing a rise in subscribers port-outs to BSNL after recent tariff hikes and closely monitoring the situation.- Positive
SJVN – The Board of SJVN approved monetisation through securitisation of partial future revenue/return on equity of Nathpa Jhakri Hydro Power Station (NJHPS),also diluting stake in arm SJVN Green Energy.
GST Council to hold meeting on September 09 – “The 54th Meeting of GST Council will be held on 9th September, 2024, at New Delhi,” said the council posted on the social media platform X. The meeting is expected to start discussion on rate rationalisation, reducing tax slabs, besides removing duty inversion under GST, PTI reported.
Mahindra & Mahindra: The company reported total production down by 1.2% at 69,138, total sales up 2.1% at 64,929, and total exports down by 40% at 1,515. – positive
Five-Star Business Finance: The company should consider raising funds via securities – positive
Bombay Dyeing: The company completed the sale of a Worli land parcel in Mumbai to Sumitomo Realty for Rs 538 crore.- positive
GE Power – Company wins Rs47.27cr order for 600MW boiler R&M cost from Steag Energy Service – positive
Dixon Tech – Company buys 50.1% stake in Ismartu for Rs275cr
Intellect Design ,- Company’s AI unit of fintech company Intellect Design Arena, has launched an artificial intelligence platform called Purple Fabric for financial institutions. With the launch of the AI platform, the company aims to accelerate its revenue growth. “In three-five years we would work upwards of 50 clients, and start helping with Purple Fabric as a standalone platform and we would at least be able to achieve $100 million revenue. – Company said – Long term positive
Bajaj Finance – Company is to borrow up to $500 million offshore, according to news reports, becoming the latest shadow financier to seek global capital after stiffer laws limited local choices. Bajaj Finance Ltd. is negotiating the facility’s terms with a group of at least four foreign banks, according to news reports. – positive
Wipro – Company’ s Chief Technology Officer Subha Tatavarti resigning from her post. “Subha Tatavarti will be stepping down as Chief Technology Officer with effect from the close of business hours on August 16, 2024,” the IT major told the exchanges on Monday.
Patanjali Foods – The Supreme Court on Tuesday closed a contempt case against Swami Ramdev and Patanjali Ayurved MD Acharya Balakrishna in a misleading ads case – positive
Alembic Pharma – Company gets USFDA approval for Pradaxa Capsules generic. Dabigatran Etexilate capsules are a generic of Pradaxa capsules and are indicated for prophylaxis of deep vein thrombosis and pulmonary embolism following hip replacement surgery – positive
Vascon Engineering – Company won domestic order – positive
Indus Tower – Company’s share buy-back will be open from August 14 and close on August 21. Buy-back price at Rs465 a share
Man Industries – Company to set up new plant at Dammam, Saudi Arabia with project cost of Rs 600 crore Plant to include line pipe manufacturing & coating facility, to cater Saudi Arabia’s growing demand
Bikaji Food – Company’s Board of Directors will be held on Friday, August 23, 2024, to discuss and approve the acquisition of a stake in Ariba Foods Private Limited, a company involved in the manufacturing and sale of frozen food products.
Inox Wind – Company has announced a 51 MW equipment supply order from Everrenew Energy Private Ltd. for wind turbine generators in Tamil Nadu. – positive
Veefin Solution (BSE Listed) – Company to acquires Nityo Tech to lead digital transformation in the BFSI sector. Nityo Tech is the India arm of Nityo Singapore – positive
Nykaa – Company to buy 39% more stake in DoT and KeY Wellness for Rs265cr. Dot & Key Wellness is a and skincare brand focused on making products with a combination of nature and science – positive
IPCA Labs announced better than expected Ebitda and Ebitda margin. Company reported Q1 Ebitda margin at 18.8% vs 18.5% (YoY) – expectation 17%. Net profit Rs192cr (up 18% YoY) – expectation Rs186cr, Income Rs2090cr (up 31% YoY) – expectation Rs2158cr and Ebitda Rs387cr (up 32% YoY) – expectation Rs366.8cr
Hero Motocorp announced inline with estimates – Company reported Q1 Revenue up 15.7% (YoY) to Rs 10,143.73 crore -(Bloomberg estimate: Rs 10,432 crore). Ebitda up 21% (YoY) at Rs 1,459.75 crore (Bloomberg estimate: Rs 1,541 crore). Ebitda margin expanded to 14.4% versus 13.8% (Bloomberg estimate: 14.80%). Net profit up 36% at Rs 1,122.63 crore (Bloomberg estimate: Rs 1,157 crore).
Patel Engineering Q1 Income Rs1102cr (down 1.7% YoY), Ebitda Rs167.7cr (down 1.7% YoY), Ebitda margin at 15.2% vs 15.3% (YoY) and Net Profit Rs48cr (up 26% YoY)
Dilip Buildcon inline Q1 results. Company reported Q1 Income Rs2360cr (down 9.6% YoY) – Bloomberg estimates Rs2484cr, Ebitda Rs262cr (down 22% YoY), Ebitda margin at 11.1% vs 12.8% (YoY) and Net Profit Rs47.4cr (down 43% YoY)
Gujarat Fluorochem reported weak Q1 results. Company reported Q1 Income Rs1176cr (down 2.7% YoY), Ebitda Rs262cr (down 25% YoY), Ebitda margin at 22.3.vs 28.8% vs 15.3% (YoY) and Net Profit Rs108r (down 46.3% YoY)
Hindalco Consolidated Ebitda and Ebitda margin better than expectation, Company reported Q1 Ebitda margin at 13.2% vs 10.8% (YoY) – expectation 12%. Net profit Rs3074cr (up 25% YoY) – expectation Rs3500cr, Income Rs57013cr (up 7.6% YoY) – expectation Rs58300cr and Ebitda Rs7503cr (up 31.3% YoY) – expectation Rs7000cr
Samvardhana Motherson reported marginally above Ebitda and Ebitda margin. Company reported Q1 Net profit Rs994.2cr (up 65.4% YoY) – expectation Rs933.6cr, Income Rs28868cr (up 28.5% YoY) Expectation Rs29097cr Ebitda Rs2775cr (up 44.5% YoY) – expectation Rs2690cr and Ebitda margin at 9.6% vs 8.6% (YoY) – expectation 9.4%
SKF India announced weak Ebitda margin. Company reported Q1 net profit Rs159cr (down 3% YoY), Income Rs1206cr (up 5% YoY), Ebitda Rs194cr (down 7% YoY) and Ebitda margin at 15.1% vs 18.1% (YoY)
IRCTC reported Q1 net profit Rs308cr (up 32.5% YoY) – one time gain Rs2.2cr– Bloomberg estimates Rs296cr, Income Rs1120.2cr (up 11% YoY) – Bloomberg estimates Rs1175cr, Ebitda Rs375cr (up 9.3% YoY) and Ebitda margin at 33.5% vs 34.2% (YoY)
Godrej Industries announced impressive Ebitda and Ebitda margin. Company reported Q1 net profit Rs641cr (up 121% YoY), Income Rs4248cr (down 5.7% YoY), Ebitda Rs334cr (up 38.2% YoY) and Ebitda margin at 7.9% vs 5.4% (YoY)
Nykaa Q1 announced impressive Q1 results. Company reported Ebitda Rs96cr (up 31% YoY), Net profit Rs31cr vs Rs5cr (YoY) Income Rs746cr (up 23% YoY) and Ebitda margin at at 5.5% vs 5.2% (YoY)
Muthoot Finance Q1 Net Profit Rs1018cr (up 11% YoY) – estimate Rs1581cr and Revenue Rs3660cr (up 24% YoY) – estimate Rs3600cr
Manappuram Finance Q1 Net Profit Rs555cr (up 12% YoY) – estimate Rs575cr and Revenue Rs2390cr (up 23% YoY) – estimate Rs2375cr
Eclerx reported impressive Q1 results. Company reported Revenue up 2% to Rs 782 crore versus Rs 766 crore (Bloomberg estimate: Rs 304 crore). Ebit down 16.8% at Rs 135 crore versus Rs 162 crore (Bloomberg estimate: Rs 42 crore). Ebit margin contracted to 17.2% versus 21.1% (Bloomberg estimate: 13.70%). Net profit up 13.7% at Rs 112 crore versus Rs 130 crore (Bloomberg estimate: Rs 30 crore).
MTRT Tech reported weak quarterly results. Company reported Q1 Revenue down 16.3% to Rs 128 crore versus Rs 153 crore (Bloomberg estimate: Rs 140 crore). Ebitda down 53.3% at Rs 16.3 crore versus Rs 34.9 crore (Bloomberg estimate: Rs 26 crore). Ebitda margin contracted to 12.7% versus 22.8% (Bloomberg estimate: 18.40%). Net profit down 78.3% at Rs 4.4 crore versus Rs 20.3 crore (Bloomberg estimate: Rs 12 crore).
TCI Express reported weak quarterly results. Company reported Q1 Revenue down 3.9% to Rs 292.98 crore versus Rs 304.87 crore (Bloomberg estimate: Rs 304 crore). Ebitda up 29% at Rs 32.72 crore versus Rs 46.38 crore (Bloomberg estimate: Rs 42 crore). Ebitda margin contracted to 11.2% versus 15.2% (Bloomberg estimate: 13.70%). Net profit up 31% at Rs 22.30 crore versus Rs 32.33 crore (Bloomberg estimate: Rs 30 crore).
Apollo Hospital reported in line with expected Q1 results . Company reported Q1 Revenue up 15.1% to Rs 5,085.60 crore versus Rs 4,417.80 crore (Bloomberg estimate: Rs 5,089 crore). Ebitda up 33% at Rs 675.10 crore versus Rs 509 crore (Bloomberg estimate: Rs 698 crore). Ebit margin expanded to 13.3% versus 11.5% (Bloomberg estimate: 13.70%). Net profit up 82% at Rs 315.50 crore versus Rs 173.40 crore (Bloomberg estimate: Rs 300 crore).
HEG reported weak quarterly results. Company reported Q1 Net profit down 83.4% to Rs 23 crore versus Rs 139 crore. Revenue down 14.9% to Rs 571 crore versus Rs 671 crore. Ebitda down 74.4% to Rs 38.7 crore versus Rs 151 crore. Margin at 6.8% versus 22.5%.
Endurance Tech reported in line with expected Q1 results . Company reported Q1 Revenue up 15.3% to Rs 2,825.50 crore versus Rs 2,449.96 crore (Bloomberg estimate: Rs 2,795 crore). Ebitda up 16% at Rs 374.09 crore versus Rs 321.25 crore (Bloomberg estimate: Rs 386 crore). Ebitda margin contracted to 13.2% versus 13.1% (Bloomberg estimate: 13.80%). Net profit up 25% at Rs 203.86 crore versus Rs 163.50 crore (Bloomberg estimate: Rs 201 crore).
