Focus Today – (Trend positive – Gift Nifty is up 122 points or 0.5% and stable US Future after US Vix slipped 28% yesterday). Japan Index is up 2% after Japan government announced today that won’t rise interest when market is unstable. US market gained 1% and Asian markets witnessed smart rally today. Focus on RBI credit policy tomorrow as RBI policy meeting second day today. Focus on real estate stocks as Centre makes revisions In LTCG Indexation Proposal on Real Estate – LTCG had been slashed to 12.5% from 20%. Good results announced yesterday – Lupin Labs Blue Star, Solar Energy, Graphite India, Cummins India, Tata Power, Vedanta, Chambal Fertilizer announced impressive quarterly results. TVS Motor reported in line with expected Q1 results. Shree Cement.Results today – Pidilite Industries, Godrej Consumer, NHPC, BSE Limited, ABFRL, Radico Khaitan, Aadhar Housing .
Today’s Market Outlook – The market is expected to open positively today, driven by strong performances in Asian and US markets. Japan’s index surged 2% and recovered from earlier losses after reports that the government will not raise interest rates due unstable market. In the US, stocks rose 1% due to bargain hunting following recent declines, while the volatility index (Vix) dropped significantly, closing at 33. US index futures are stable after recent volatility. The Nifty is forecasted to open higher by 123 points or 0.5%, rebounding from previous global market uncertainties that caused it to close slightly lower yesterday below the 24,000 mark.
Domestic Market Trend and sector to be focus – Expectations are for stability in the global market, which should positively influence market sentiment. Recently, banking, auto, metal, IT, and PSU stocks have experienced corrections of 10-15%. This presents a favorable buying opportunity following the recent downturn. Additionally, strong quarterly results and robust domestic economic data are expected to bolster market sentiment. Real estate stocks may see gains following news that the government has revised the LTCG (Long-Term Capital Gains) Indexation Proposal for real estate, reducing the LTCG rate from 20% to 12.5%.
US Market Update – US stocks bounced back after selloff that erased about $6.5 trillion from global equities in the past few weeks left the market near technically oversold levels.
Equities advanced after the worst S&P 500 rout in almost two years. Dow Jones, S&P 500 and Nasdaq Composite gained 1% each. Buying US stocks after a slump of the scale witnessed over the past month has usually been profitable, according to a Goldman Sachs Group Inc.
Asian Market – Stocks in Asia are witnessing mixed bag today. Japan Index slipped 0.6% while declined by 18% last one month. South Korea and Taiwan Index marginally gained, The Japan government and the Bank of Japan agreed to closely monitor developments in the economy and financial markets with a sense of urgency, Vice Finance Minister for International Affairs Atsushi Mimura said after a meeting between the Finance Ministry, the BOJ and the Financial Services Agency.
European Market – European market recovered from the intra-day low on account of bargain hunting. UK and Germany Index bounced back into positive territory while France Index marginally declined.
Gold – Gold steadied at $2400/ounce as global stock markets normalized after Monday’s selloff. A rebounding US dollar and a pullback in expectations of rate cuts by the US Federal Reserve weighed on the yellow metal.
Brent Crude – Crude oil futures fell at $76/bbl for the fourth session in a row Tuesday, as recession fears continue to overshadow the risk of a major escalation in the Middle East.
Nifty Technical Levels – Nifty formed a Bearish candle on daily frame and negated its lower highs – lower lows of the last two sessions. Now till it holds below 24200 zones, weakness could continue towards 23850 then 23750 zones whereas hurdles are placed at 24200 then 24400 zones.
Bank Nifty Technical Levels – Bank Nifty formed a Bearish candle on daily scale and ended with losses of around 340 points below 49750 levels. Now till it holds below 50000 zones 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 Nifty erased its entire 1% gain and closed marginally lower, falling below the 24,000 level due to global market volatility. Nifty declined by 63 points, or 0.25%, to close at 23,993. This was a significant drop from the morning session when it had surged by 232 points, or 1%. This marks the lowest closing level since June 26. The market sentiment was dampened by recession fears in the US and rising tensions in the Middle East. Consequently, US Index Futures dropped from their earlier highs, and European markets opened weak as investors grew concerned about the outlook for US economic growth. Domestically, traders adopted a cautious approach, engaging in profit booking from higher levels. A positive development was the India VIX cooling down by 8%, closing below the 19 level. Most sectors, including auto, metal, banks, and IT, declined from their intra-day highs. FIIs were net sellers Rs3531cr while DIIs were net buyers Rs3357cr
Actionable BUY – Blue Star. BLS International, Bikaji, Godrej Properties, DLF, Lupin Labs
Events –RBI MPC meeting –Tomorrow RBI Credit policy. Godawari Power board meeting for stock split. NHPC board meeting for asset monetarization.
IPO Update – Ola Electric Mobility IPO subscribed 4.25 times. Unicommerce eSolutions’ initial public offering (IPO) sold out within the first three hours of the bidding process on Tuesday,
Corporate Action –Bombay Oxyzen Rs25, Grasim Rs10, IPCA Lab Rs2, Morganite Crucible Rs12, TCI Express Rs2, 360One Rs2.50. Bharti Airtel Rs8, Castrol Rs3.50, Eicher Rs51, Gabriel Rs2.50, NTPC Rs3.2, Nuvama Wealth Rs81.
Brokers Radar – Lupin TGT by Nomura at 1952 and Macquarie TGT at 1785. Jefferies TGT on Shree Cement at 30300 and Morgan Stanley TGT at 27000. Cummins India TGT by HSBC at 3700. Citi TGT on IndiGo at 5200, Bharti Hexacom TGT by JP Morgan at 1280 and Jefferies TGT at 1260 from 1230.
Results –.Pidilite Industries, Godrej Consumer Products, NHPC, Abbott India, NLC India, BSE Limited, Aditya Birla Fashion & Retail, BASF India, Radico Khaitan, Aadhar Housing Finance, Kirloskar Oil Engines, Krishna Institute of Medical Sciences, Godawari Power, Lemon Tree Hotels, Gujarat Pipavav Port, Esab India, ITD Cementation India, CCL Products India, FDC, Balaji Amines
Global Data Today – US – MBA Mortgage applications. Industrial orders (Germany) Trade Balance(Germany). China – Trade Balance
Market Summary – Centre Makes Revisions In LTCG Indexation Proposal On Real Estate. LTIMindtree Wins Exyte IT Services Deal . Skanray selects Tata Elxsi for transformation in diagnostic imaging and critical care solutions . Blue Star, Solar Energy, Graphite India, Tata Power, Lupin, Vedanta, Chambal Fertilizer announced impressive quarterly results. TVS Motor reported in line with expected Q1 results. Shree Cement announced marginally lower than expected Q1 results. Motherson JV set to join Apple vendors’ family circle in India.
Real Estate stocks Focus – The government has moved an amendment to the Finance Bill, 2024, to let taxpayers select either a 12.5% long-term capital gains tax rate without indexation or a 20% rate with indexation for property acquired before July 23. Finance Minister Nirmala Sitharaman, while presenting the Union budget 2024 last month, announced that the tax on LTCG had been slashed to 12.5% from 20%. However, the indexation benefit on real estate transactions for properties bought in and after 2001 was scrapped.- expect Positive for Oberoi Realty, DLF, Godrej Properties, Sobha
Hindalco Industries: The Central Bureau of Investigation booked the company for alleged corruption in getting environmental clearances for coal mining between 2011 and 2013. – Any sharp decline will be long term buying opportunity
Welspun Living: The company’s Rs 278 crore buyback will open on August 9 and close on August 16. – positive
Tata Power: The company is to acquire a 40% stake in Khorluchhu Hydro Power for Rs 830 crore and company to terminate the Global Depository Shares program. – POSITIVE
Cupid: The company will set up a new unit in the UAE to capture market share in the GCC region. – positive
G R Infraprojects: The company emerged as the lowest bidder for the transmission project in Karnataka. – positive
Aurobindo Pharma: The company has US FDA approval for Estradiol vaginal inserts. The product is to be launched in Q2FY25. Suzlon Energy: The company bought a 76% stake in Renom Energy Services for Rs 660 crore.
Rites – Company signed MoU with HUDCO for consultancy projects or services in the infrastructure space. RITES to also provide consultancy to projects being financed by HUDCO – positive
Samvardhana Motherson – The Motherson Group is poised to enter the growing Apple supply chain network in India along with Hong Kong-based BIEL Crystal Manufactory, one of the world’s largest suppliers of glass for smartphones. – positive
PFC – Company announced dividend Rs3.25 a share, Bata India Rs10 a share
Brigade Enterprises – Company signed a limited liability partnership agreement to develop a 1.4 million-square-feet leasable office space in Bengaluru, with an investment of close to Rs750cr – positive
Jio Finance – Company has made its international debut by launching its JioFinance app in Paris, allowing Indian travelers to make digital payments at popular tourist destinations and stores. The move comes as Paris hosts the summer Olympics – Positive
Confidence Petroleum – Company commissioned thirteen additional Auto LPG Dispensing Stations, bringing the total to 274 stations – positive
Tata Elxsi – Skanray, a global medtech company, has announced a partnership with Tata Elxsi, a design and technology services firm, to develop advanced surgical imaging technology and innovative healthcare solutions, combining Skanray’s expertise in medical devices with Tata Elxsi’s prowess in software development and digital capabilities..- positive
Patel Engineering – Company announced that the Government of Maharashtra has awarded along with its JV Partner, a Rs 317.60 crore construction contract. – positive
LTI Mindtree – Company has been selected as the global IT service provider for Exyte. Exyte is renowned for its design, engineering, and delivery of ultra-clean and sustainable facilities for high-tech industries. – positive
IPCA Lab– company announced the launch of a patented novel drug branded “Diulcus” in the Indian market to treat Diabetic Foot Ulcers – positive
Symphony – Company approved share buy-back upto 71.4cr share buy-back at Rs2500 a share (CMP 1462) – positive – Stock gained 20% yesterday
Savita Oil – Company approved share buy-back 5.4 lakh share buy-back at Rs675 a share (CMP 685)
PNB Gilts – SEBI approves surrender of PMS License – long term positive
Nazara Tech – Company signed an asset purchase agreement to acquire the assets of US-based DeltiasGaming.com for about Rs7.5 crore.- mpositive
Rattanindia Enterprises – Company’s subsidiary Revolt Motors, inaugurated a new dealership in Najafgarh, Delhi.
Inox Wind – Company has bagged an order for 201 MW from Integrum Energy Infrastructure Ltd, a leading C&I player. The project will be executed across four states — Madhya Pradesh, Rajasthan, Karnataka and Maharashtra – positive
Rajshree Polypack – Company approved stock split each share into two
Angel One -July Update – July average client funding book up 216.4% YoY at Rs 3,732 crore, July client base at 64.8% YoY at 2.58 crore and July Gross Client Acquisition up 85.7% YoY at 11.4 lakh
Tata Power -announced strong Q1 results of all fronts. Company reported Q1 Revenue up 13.7% (YoY) to Rs 17,293.62 crore – (Bloomberg estimate: Rs 16,855.39 crore). Ebitda up 22% (YoY) to Rs 3,586.66 crore – Bloomberg estimate: Rs 3,004 crore. Ebitda margin expanded 20.7% versus 19.3% (YoY) – (Bloomberg estimate: 17.8%). Net profit up 4% (YoY) to Rs 1,188.63 crore – (Bloomberg estimate: Rs 957.23 crore).
Graphite India -reported strong Q1 results both Ebitda and net profit. Company reported Q1 other Income Rs194cr (up 162% YoY), Net profit Rs237 vs loss Rs30cr, Ebitda Rs113cr vs loss 91cr, Ebitda margin at 15.5% and Income Rs728cr (up 2.5% YoY)
TVS Motor – announced in line with expected Ebitda and Ebitda margin. Company reported Q1 Net profit Rs577cr (up 23.4% YoY) – expectation Rs584.8cr, Income Rs8376cr (up 16% YoY) – expectation Rs8442cr, Ebitda Rs960.1cr (up 25.6% YoY) – expectation Rs992cr, Ebitda margin at 11.5% vs 10.6% (YoY) – expectation 11.7%
Shree Cement – reported below estimates Q1 Ebitda and Ebitda margin but volume growth above estimates at 8% – expectation 7.1%. Company reported Q1 Net profit Rs318cr (down 45.3% YoY ) – expectation Rs540cr, Ebitda Rs917cr (up 1.7% YoY )- expectation Rs1180cr, Ebitda margin at 19% vs 18.7% (YoY) – expectation 23.3% and Income Rs4835cr (down 3.3% YoY) – expectation Rs5070cr
Bajaj Electricals – announced in line with Q1 results. Net profit Rs28cr (up 24.3% YoY), Income Rs1155cr (up 3.8% YoY), Ebitda Rs75cr (down 2.1% nYoY0 and Ebitda margin at 6.5% vs 6.9% (YoY)
Vedanta – reported marginally above Ebitda and Ebitda margin. Company reported Q1 Net profit Rs5095cr (up 54% YoY) – expectation Rs2600cr, Profit rise due to tax write back Rs735cr. Income Rs35764cr (up 6% YoY) – expectation Rs34500cr, Ebitda Rs9995cr (up 56% YoY) – expectation Rs9500cr, Ebitda margin at 27.8% vs 19% (YoY) – expectation 27.5%
Raymond – Q1 Net profit Rs57cr (up 26.7% YoY), Income 937.7cr (up 98% YoY), Ebitda Rs102cr (up 121% YoY) and Ebitda margin at 10.9% vs 9.7% (YoY)
Imagica World – announced impressive Q1 results both Ebitda and Ebitda margin. Company reported Q1 Revenue up 80.04% (YoY) at Rs 180.62 crore, Ebitda up 114.26% (YoY) at Rs 107.07 crore, Ebitda Margin at 59.27% vs 49.81% (YoY) and Net profit down 88.77% (YoY)at Rs 66.13 crore. Exceptional gain of Rs 564.4 crore in Q1FY24
PFC – Q1 net profit Rs3718cr (up 24% YoY) and Income Rs4328cr (up 23.5% YoY),
Solar Energy – announced strong Q1 results in the Ebitda margin and Ebitda front. Company reported Q1 net profit Rs301cr (up 49% YoY), Ebitda Rs449cr (up 39% YoY), Ebitda margin at 26.5% vs 19.2% 9YoY) and Income Rs1695cr (up 1% YoY).
Bata India – announced better than Bloomberg estimates Q1 net profit. Company reported Q1 Net profit Rs174cr (up 63% YoY) – Bloomberg estimates Rs119cr and Income Rs945cr (down 1.4% YoY)_ – Bloomberg estimates Rs1003cr.
Blue Star – reported better than Bloomberg estimated Ebitda and net profit. Company reported Q1 net profit Rs169cr (up 102% YoY) – Bloomberg expectation Rs145cr, Ebitda Rs and In238cr (up 64% YoY) – Bloomberg estimates Rs225cr, Ebitda margin 8.3% vs 6.5% (YoY) and Income Rs2865cr (up 29% YoY) – expectation Rs2976cr
Chambael Fertilizer – reported impressive Q1 results. Company reported Q1 net profit Net profit Rs448cr (up 32% YoY) – Bloomberg expectation Rs366cr, Income Rs4930cr (down 12% YoY), Ebitda Rs752cr (up 19% YoY) and Ebitda margin at 15.2% vs 11.3% (YoY)
JK Kumar – Q1 net profit Net profit Rs86cr (up 18% YoY), Income Rs1281cr (up 13.3% YoY), Ebitda Rs184cr (up 14.3% YoY) and Ebitda margin at 14.4% vs 14.2% (YoY) – inline
NCC – Q1 Ebitda margin marginally lower than the previous year margin but company has strong order book. Company Net profit Rs222.53cr (up 21% YoY), Income Rs5528cr (up 26.2% YoY), Ebitda Rs478cr (up 17% YoY) and Ebitda margin at 8.6% vs 9.3% (YoY)
