News & Impact
Focus Today – (Trend positive – Gift Nifty is up 160 points or 0.7%. US Index Future trades flat to positive. US Stocks Rise 3% in two days on rate cut hope interest rate cut next month after cooling down US Inflation, declining Jobless data and impressive retail sales data ). Hindustan Zin OFS for non-retail, for Sawn Energy, HAL, Mazagoan Dock announced impressive Q1 results. Glenmark Pharma in line with expectation. ADR/GDR – Tata Steel, GAIL, HDFC Bank and ICICI Bank gained up to 2%.
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Today’s Market Outlook – Domestic equity markets are expected to open on a strong note today, supported by a robust rally across global markets driven by cooling U.S. inflation and solid economic data, including positive retail sales and jobless claims figures. This has strengthened market sentiment, with expectations growing that the U.S. Federal Reserve may implement a larger interest rate cut next month. Over the past three trading sessions, U.S. markets have climbed 5%, buoyed by three key economic indicators: Tuesday’s sharp decline in U.S. wholesale inflation (PPI), Wednesday’s drop in July inflation to a nearly three-year low of 2.9% (against an expected 3%), and Thursday’s better-than-expected U.S. retail sales and falling jobless claims. These developments suggest that the U.S. economy is improving, further fueling expectations of a significant rate cut by the Fed next month. Asian and European markets have also gained 2-5% over the past two days. Gift Nifty is up 160 points, or 0.7%. On Wednesday, the domestic market ended slightly positive, driven by a rally in IT stocks and a surge in U.S. markets following softer U.S. producer price data, which pointed to cooling inflation.
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Domestic market outlook – The ongoing global market rally, positive quarterly results from domestic companies, and strong domestic economic data are expected to boost market sentiment. Moving forward, market trends will likely be influenced by global market performance, domestic news flow, and fund activities post-earnings season. Pharma, FMCG, and IT stocks are expected to perform well, given their strong quarterly results, while banking stocks appear attractive following a recent correction
US Market Update Overnight –US equities rallied to their sixth straight day of gains as consumer discretionary and tech stocks advanced after data showed retail sales rose at a surprisingly fast pace
and initial jobless claims fell, easing recession fears. Nasdaq Composite surged 2.5% and Dow Jones surged over 500 points or 1.4%
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Equity benchmarks in Japan climbed as much as 2.4% or over 1000 points, while shares in Australia increased alongside those in South Korea
Gold – Gold is trading flat at $2455/ounce as traders digested the potential impact of US inflation data on the Federal Reserve’s rate path.
Brent Crude – Oil was steady at $81/bbl as the market weighed strong US economic data and a possible attack by Iran or its proxies on Israel against a lackluster Chinese demand outlook.
Nifty Technical Levels – Nifty formed a small bearish candle on daily frame and forming lower highs – lower lows from last three trading sessions. As long as the index trades below 24200, further weakness could be seen towards 23900 and then 23800 zones while hurdles are seen at 24300 and then 24400 zones.
Bank Nifty Technical Levels – Bank Nifty formed a small Bearish candle on daily scale but remained consolidative in narrow range of 250 points for latter part of the day and ended with some losses below 49800 zones. Index is relatively underperforming and gave lowest daily close in last seven sessions. Now till it holds below 50000 zones some weakness could be seen towards 49500 then 49000 levels while on the upside hurdle is seen at 50000 then 50250 zones.
Previous Day Market Summary –The equity benchmark index closed slightly higher, breaking a two-day losing streak, driven by a rally in IT stocks and a surge in U.S. markets after softer U.S. producer price data suggested cooling inflation. The Nifty moved within a narrow range ahead of key U.S. inflation data set to be released today, ultimately rising by 4.75 points, or 0.02%, to close at 24,143. However, the broader market underperformed due to profit booking in mid-cap and small-cap stocks, with the Nifty 500 advance-decline ratio at 1:2. Metal stocks were the biggest losers, falling 2-4%, after the Supreme Court allowed states to collect royalties on minerals dating back to April 2005. FIIs were net sellers Rs2595cr while DIIs were net buyers Rs2236cr
Actionable BUY – SJVN, Swan Energy, Sunteck Realty , Mazagon Dock, HAL
Events Today – Hindustan Zinc OFS for Non-retail
IPO Update – Saraswati Saree IPO subscribed by 107 times
Corporate Action –– Savita Oil share BuyBack, Dhanuka Agritech BuyBack, Cera Sanitaryware BuyBack, Anuh Pharma Rs2.5, Apollo Hospital Rs10, Bata India Rs10, Bharti Hexacom Rs4, CERA Santaryware share Buyback, Coal India dividend Rs5. Cochin Minerals Rs8, Elcid Investment Rs25, Gland Pharma Rs20, Godrej Consumer Rs5, Godwari Power. Macrotech Developers Rs2.25, Power Grid Rs2.75, Thyrocare Technologies Rs18
Brokers Radar –Hindustan Aeronautics – Nomura TGT at 5400 and Jefferies TGT at 5725. Bharti Airtel TGT by Macquarie at 1471. OLA Electrics TGT by HSBC at 140. Bharti Hexacom TGT by Macquari at 1480. Hindalco TGT by Phillips Securities at 709
Global Data Today – US – Housing starts and Building Permit
Market Summary – Supreme Court allows states to collect dues on royalty on minerals from April 2005 Mining stocks. Gensol, Matrix Consortium Win 237 MW Hydrogen Electrolyser Bid. Sunteck Realty settles legal disputes with Grand Valley General Trading LLC. ONGC, JSW, Sembcorp shortlisted for majority stake in $800 mn Ayana deal. Sawn Energy, HAL, Mazagoan Dock announced impressive Q1 results. Vedanta Approves stake Sale Of Hindustan Zinc Via OFS at 15% discount from August 16 to August 19. UltraTech Eyes 200 MTPA Capacity By FY27 With Strategic Expansions: Kumar Mangalam Birla. MTNL Approves 10-year Service Agreement With BSNL
UltraTech Cement – Leading cement maker UltraTech is expected to cross 200 million tonne per annum capacity by fiscal 2026-27 helped by recent acquisitions and expansion projects, Chairman Kumar Mangalam Birla said on Wednesday. The Aditya Birla Group flagship firm has embarked on a capacity expansion drive ‘on a scale that is globally unprecedented’ in the cement sector, he said – positive
MTNL – Company’s board on Wednesday approved a 10-year service agreement with BSNL, along with several other proposals, including the sale of shares in its overseas subsidiary, Mahanagar Telephone (Mauritius).
Gansol Engineersing – Consortium of Gensol Engineering Ltd. and Matrix Gas and Renewables Ltd. won bid to build 237 MW hydrogen electrolyser manufacturing capacity through a govt incentive – positive
Sunteck Realty – Company’s wholly-owned step-down subsidiary of Sunteck Realty, has settled all the existing legal disputes and claims with its joint venture partner Grand Valley General Trading LLC. Both the companies had formed GGICO Sunteck, a joint venture company, to develop a real estate project in Dubai. There is no compensation/ penalty to be paid as part of the settlement process – positive
Swan Energy to sell triumph offshore assets to Botas for $399M – Company’s board has approved selling assets of its unit Triumph Offshore to BOTAS Trading for $399 million in tranches – state-owned crude oil and natural gas pipelines and trading company in Turkey – positive
Vedanta and Hindustan Zinc – Vedanta approved in the stake sale of Hindustan Zinc from 11 crore shares to 14 crore shares or 3.31% stake August 16 to August 19 with floor price set at Rs486 or 15% discount with CMP at Rs571 Vedanta held a 64.92% stake in Hindustan Zinc as of June. – Good buying opportunity of lower level on Hindustan Zinc while Vedanta will be positive to repay debt from stake sale on Hindustan Zinc.
SBI and Punjab National Bank: The Karnataka state government ordered all departments to close their accounts with the State Bank of India and Punjab National Bank, citing alleged financial irregularities. All state government departments, public undertakings, corporations, boards, local bodies, universities, and other institutions must withdraw their deposits and investments from these banks immediately – Any sharp decline will be buying opportunity.
Lupin: The company received US FDA tentative approval for ANDA for Brimonidine Tartrate.
Gulf Oil Lubricants – Company announce a significant step in its digital transformation journey with the on-boarding of Global leader, Salesforce as its new Customer Relationship Management (CRM) platform for B2B businesses. – positive
PSP Projects – Company received work orders worth Rs 653.67 crore. This includes civil and structural work for the project Gujarat for International Refreshments worth Rs 484 crore in industrial category and construction of project “Ninety” at Mumatpura, Ahmedabad worth Rs 102 crore – positive
GMR Infra – Delhi Airport will reopen on August 17 with 13 daily flights from SpiceJet, the GMR Group-led Delhi International Airport Limited (DIAL) stated on Wednesday. T1 had been closed since June 28 after a section of its roof collapsed amid heavy rains, resulting in one fatality and six injuries – Positive
Hindalco to Attempt Any Novelis IPO in 2025 – Company which delayed an initial public offering for Novelis Inc., said it’s seeking a premium valuation for its US unit and any attempt to list it will take place in 2025. The plan to raise as much as $945 million by floating Novelis, – long term positive
Power Mech Projects – Company won order worth Rs114cr – positive
Praras Defence – Company receives order worth Rs 305 cr from L&T for manufacturing and supply of Electro-Optics System – positive
L&T – Company has entered into a share purchase agreement with The Wave Development SPC (‘Wave’) for purchase of additional 15% stake in Larsen & Toubro (Oman) LLC (‘L&T Oman’), an existing Joint Venture between LTIFZE and Wave. – positive
ONGC, JSW Group’s JSW Neo Energy, and Singapore’s Sembcorp Industries have been shortlisted to submit binding bids to acquire a majority stake in Ayana Renewable Power Pvt Ltd. This potential deal, valued at approximately $800 million in equity, could become one of the largest transactions in India’s green energy sector. Ayana aims to build a 10 GW portfolio by 2025, with projects across various Indian states. The company is open to selling up to 100 per cent of its stake.
Trade deficit widened in July as strong domestic demand drove the nation’s import bill. The gap between exports and imports stood at $23.5 billion in July. The reading is higher than the $21.5 billion deficit forecast by economists in a Bloomberg survey and compares with a reading of $20.98 billion in June. – Not yet any adversely impact in the market
MTNL – Company will sign a 10-year service agreement with Bharat Sanchar Nigam. Additionally, MTNL approved a plan to close its unit Millennium Telecom – Avoid due poor balance sheet
Wholesale Inflation for the month of July at 2.04% against 3.36% previous month – Bloomberg expectation 1.86%
Power Mech Projects – Company will consider to bonus proposal on Aug 22 board meeting – positive
Sun Pharma – Company has entered into an agreement with Pharmazz Inc., based out of Delaware, US, to acquire a more than 5% stake in the company for an aggregate investment of up to $15 million in cash. – positive
Balaji Amines – Company received government clearance for greenfield project of manufacturing specialty chemicals in Solapur, Maharashtra.- positive
Hindustan Zinc – Company to consider second interim dividend on
NBCC – has bagged a contract worth Rs528cr from the Directorate of Medical Education & Research, Haryana – positive
EPL – Company is expecting to sustain double-digit growth with a 20%+ margin; added that Europe and Americas initiatives have started yielding results.- stock gained 15% on Wednesday – positive
Ashok Leyland – Company appoints Sanjay K Asher as additional director – positive
Shriram Properties – Company appointed Ravindra Kumar Pandey as CFO.- positive
Epigral- Company approved raising up to Rs 500 crore via QIP or other means.- positive
Mining stocks focus – The Supreme Court’s recent ruling on the mining royalty case is expected to have significant financial implications for India’s mining industry, potentially leading to arrears between Rs 1.5 lakh crore and Rs 2 lakh crore. The verdict, which upholds the power of states to levy taxes on mineral rights and mineral-bearing land, will further strain the sector, reported PTI, citing industry players as saying. – Expects negative for NMDC, Hindustan Copper, Nalco
State-run ONGC, JSW Group’s JSW Neo Energy, and Singapore’s Sembcorp Industries have been shortlisted to submit binding bids to acquire a majority stake in Ayana Renewable Power.
Gabriel India announced impressive Q1 results. Company reported Q1 Net profit Rs58cr (up 37% YoY), Ebitda margin at 9.6% vs 8.5% (YoY), Ebitda Rs91cr (up 32.4% YoY) and Income Rs945cr (up 17.5% YoY)
Swan Energy reported strong Q1 results both in the Ebitda and Ebitda margin. Company reported Q1 Net profit Rs268cr (up 85% YoY), Ebitda margin at 33.8% vs 29.5% (YoY), Ebitda Rs388cr (up 64% YoY) and Income Rs1148cr (up 43% YoY)
Mazagon Dock announced strong Q1 results of all fronts. Company reported Q1 Net profit Rs696cr (up 121% YoY), Income Rs2357cr (up 8.5% YoY), Ebitda Rs642.3cr (up 273% YoY) and, Ebitda margin at 27.2% vs 7.9% (YoY)
EID Parry reported weak Ebitda and Ebitda margin. Company reported Q1 Net profit Rs226cr (down 30% YoY), Income Rs6747cr (down 4% YoY), Ebitda Rs484cr (down 28% YoY) and, Ebitda margin at 7.2% vs 9.5% (YoY)
Ola Electric Q1 reported weak Q1 results. Company reported Q1net loss Rs347cr vs Net loss (YoY)., Income Rs1644cr (up 32% YoY), Ebita loss Rs205cr vs loss of Rs218cr (YoY)
Spicejet reported weak Q1 results. Company reported Q1 Net profit Rs150cr (down 27% YoY), Ebitda Rs401cr (down 24% YoY), load factor 91% vs 90% (YoY) and Income Rs1700cr (down 15% YoY)
Glenmark Pharma reported in line with expected Q1 results – Revenue up 6.85% at Rs 3,244 crore versus Rs 3,036 crore (Bloomberg estimate: Rs 3,295 crore). Ebitda up 34.38% at Rs 588 crore versus Rs 438 crore (Bloomberg estimate: Rs 599 crore). Ebitda margin up 371 bps at 18.13% versus 14.41% (Bloomberg estimate: 18.2%). Net profit up 96.53% at Rs 340 crore versus Rs 173 crore (Bloomberg estimate: Rs 313cr
