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PremiumShare Market Updates: Sensex and Nifty struggled on Friday and continued to slide as they shed around 0.5%; however, PSU Bank index jumped around 1.5%. Pvt Bank, Pharma, and FMCG dragged.
Asian stock markets declined Friday after U.S. inflation edged higher, fuelling unease about the outlook for the biggest global economy.
Shanghai, Hong Kong, Seoul and Sydney declined. Japanese markets were closed for a holiday. Oil prices edged lower.
Indian shares fell on Friday dragged by financials on the central bank's move to mop-up excess liquidity as well as consumer stocks on near-term domestic price concerns, offsetting optimism over moderating U.S. inflation.
The Nifty 50 index closed 115 points down at 19,428, while the S&P BSE Sensex fell 365 points to close at 65,322. Ten of the 13 major sectoral indices logged losses. On a weekly basis, Nifty lost 0.6% and Sensex around 0.7%.
HCL Tech jumped more than 3% and topped the charts. Titan and Powergrid also had a decent run on today's session. SBI Life, IndusInd Bank and Hindalco shed more than 1.5% each and were among the biggest laggard.
Among sectoral indices, eleven out of 15 broad-based Nifty sectoral indices closed in the red with FMCG, Pharma and Pvt Bank indices leading the downward trend. PSU Bank index rose more than 1.5% with IT and Consumer Durable indices also ending with marginal gains.
Asian stock markets declined Friday after U.S. inflation edged higher, fueling unease about the outlook for the biggest global economy.
Japan's Nikkei was closed for a holiday. South Korean shares ended lower weighed by a rise in bond yields after U.S. inflation data, and posted a fourth straight weekly loss. The benchmark KOSPI closed down 0.40%. It ended the week with a 0.44% loss.
Chinese stocks slumped on Friday and logged their worst week since March, as investors were disappointed by authorities' latest stimulus measures, amid fresh data showing that the post-pandemic recovery is continuing to lose steam.
China's blue-chip CSI 300 Index closed down 2.3%, while the Shanghai Composite Index lost 2%. Hong Kong's Hang Seng Index fell 0.9%, and the Hang Seng China Enterprises Index declined 1.3%.
European equities fell, tracking markets lower in Asia, as concern about local government debt in China and hawkish language from a US central banker put traders in a risk-off mood.
London's exporter-heavy FTSE 100 index opened lower pressured by a stronger pound after data showed the UK's economy surprisingly grew higher than expected in the second quarter.
Land purchases by China's local-government financing vehicles (LGFVs) fell as a percentage of state land sales across the country in July, according to a private report on Friday, putting more revenue pressure on debt-laden municipalities.
Many Chinese cities and local governments count on land sales to raise money for infrastructure projects critical to the country's development, selling plots to LGVFs and property developers.
But a severe downturn in the real estate sector in the past year, sky-high debt levels and slowing economic growth have seen developers and financing vehicles cutting back on their purchases to conserve cash.
LGFVs' land purchases totalled 91.6 billion yuan ($12.66 billion) in July, accounting for 34% of state land sales, down 2 percentage points from June, according to a report from GF Securities. (Reuters)
The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) has taken action to temporarily halt the progression of a corporate insolvency case initiated by the National Company Law Tribunal (NCLT) in Bengaluru against Cafe Coffee Day (CCD), a coffee chain firm. This development occurred on Friday.
The NCLT's decision concerning CCD's case has been suspended until the next hearing of the appeal lodged by Malavika Hedge, a former director of CCD. The stay order was issued by Justice Rakesh Kumar Jain, a judicial member, and Shreehsa Merla, a technical member, as indicated in the NCLT's notice released on Friday.
IndusInd Bank, the financial creditor responsible for filing the application upon which the NCLT order was based, also received a notice at the same time. The interim order to stay proceedings was enacted on Friday morning, suggesting a temporary halt in the legal process involving CCD's case. (Read More)
Info Edge (India) announced its standalone net profit for the first quarter of FY24 on Friday, recording a substantial growth of 34.7%. The net profit stood at ₹200 crore, as compared to ₹148 crore in the corresponding quarter of the previous fiscal year.
This performance comes after the company reported a net loss of ₹503 crore in the preceding quarter (Q4FY23).
In terms of standalone revenue from operations, Info Edge achieved a 15.1% increase in Q1FY24, reaching ₹584.2 crore. This compares to ₹507.6 crore in the same year-ago period. The results indicate a positive trajectory for the company's financial performance. (Read More)
Oriana Power had a highly successful debut on the NSE SME exchange, with its shares listing at ₹302 per share. This marked an impressive increase of over 155% from the upper price band of the public issue, which was in the range of ₹115 to ₹118 per equity share. Consequently, lucky applicants who received share allotments saw their investments double on the listing day, benefiting from the substantial 155% listing premium.
Oriana Power's share price commenced trading on the NSE SME exchange at ₹302 and reached an intraday high of ₹317.10. However, profit-taking activities soon ensued, causing the share price to dip to an intraday low of ₹286.90. Currently, Oriana Power's share price is trading around ₹307 per share. (Read More)
The Board of Directors of Sigachi Industries Ltd convened a meeting on Thursday during which they approved a stock subdivision. The small-cap company's board decided to carry out a stock split in a ratio of 1:10. This signifies that one stock, which has a face value of ₹10, will be divided into 10 shares, each with a face value of Re 1 per equity share.
Sigachi Industries Ltd informed the Indian stock exchanges about this decision to implement a stock split and revealed that the record date for the stock split will be announced in the near future. (Read More)
Adani Ports and SEZ, along with Adani Airport Holdings, both companies under the Adani Group, are reportedly in discussions with merchant bankers to raise up to ₹1,500 crore each through local currency bonds, according to a report by Reuters.
These two entities are expected to become the first Adani Group companies to access the bond market as part of the conglomerate's strategy to raise ₹10,000 crore during the fiscal year 2023-24. A company official and banking sources cited by Reuters shared this insight.
Sources have indicated that these companies are considering issuing bonds with maturities of up to five years, with potential plans to do so as early as September. This move is in line with the Adani Group's broader financial objectives for the fiscal year. (Read More)
Lincoln International, a global investment banking advisory firm, has acquired EthiQuant Analytics, a valuations services provider, enhancing the firm’s ability to offer a well-rounded financial solution to its clients.
“The acquisition significantly expands Lincoln’s product offering in the country," a joint release from the companies said.
Lincoln’s valuations services vertical now has around 150 professionals across the Americas, Asia and Europe. The terms of the deal were not disclosed. (Read More)
Fintech company Angel One Limited's growth momentum continued as its client base expanded to 15.65 million, a 45.5% YoY growth, with gross client acquisition of 0.61 million, a 78.4% YoY rise, in July 2023. According to the statement released:
he UK economy delivered its strongest quarterly growth in more than a year, a surprising show of resilience that will keep pressure on the Bank of England to raise rates further.
Gross domestic product rose 0.2% from the first quarter, the biggest increase since the start of 2022, the Office for National Statistics said Friday. The Bank of England had expected a 0.1% expansion. Output in June jumped 0.5%, more than double the 0.2% pace expected by economists.
Manufacturing and construction output were both stronger than expected in June, rebounding from the loss of a working day in May for King Charles III’s coronation. The figures point to momentum in the economy that’s likely to fan upward pressure on wages and prices, underpinning the case for more rate hikes.
“This is an encouraging set of data," said Kitty Ussher, chief economist at the Institute of Directors. “There was decent growth in both retail and manufacturing." (Bloomberg)
Recycling player Vikas Ecotech Ltd (VEL) on Friday announced bagging a ₹50-crore order for supply of multiple materials including flame retardant aluminum trihydrate.
The city-based company is engaged in the business of specialty polymers for applications in sectors like electrical, infrastructure, packaging, and automotive, among others.
The company is also expanding its business portfolio by manufacturing steel pipes and MDPE (medium-density polyethene) pipes.
In a statement, the company said it has "garnered orders grossing to more than 1,000 tonnes for the niche grades of thermoplastic elastomers, rubber, vulcanizates, organotin heat stabilizers and flame retardant aluminum trihydrate (ATH) compounds." (PTI)
Shares of Max Financial Services Ltd are trading lower by around 2% on Friday. The stock pared its gains after touching a 52-week high on Thursday, closing 8% higher after Axis Bank raised its stake in Max Life Insurance Co. Ltd (Max Life), a subsidiary of Max Financial Services.
On 9 August, the board of Max Life approved a proposal to raise capital through a preferential issue of equity shares to Axis Bank for an aggregate investment of up to ₹1,612 crores. With this, Axis Group will collectively hold 19.02%. Analysts from Motilal Oswal Financial Services point out that with the stake increase, a key concern for the stock was addressed and will support Max Life’s solvency ratio which stood at 188% in the June quarter (Q1FY24). (Read More)
In its latest assessment, Knight Frank India noted that Hyderabad recorded registrations of 5,557 residential properties in July 2023, noting a rise of 26% year-on-year (YoY) while the total value of properties registered during the month stood at INR 2,878 crore (Cr) which has also increased by 35% YoY. The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
Key Highlights:
Vinsys IT Services marked an impressive entry into the NSE SME Emerge platform with its IPO listing. The shares debuted with a remarkable premium, soaring nearly 62% above the issue price.
During the listing, Vinsys IT Services shares were introduced at ₹207.25 per share, reflecting an increase of ₹79.25 or 61.91% in comparison to its issue price of ₹128.
Following the successful IPO listing, Vinsys IT Services shares continued to gain momentum, reaching a peak of ₹217.60 per share. (Read More)
Union Finance Minister Nirmala Sitharaman on Friday introduced the Central Goods and Services Tax (Amendment) Bill, 2023.
The Centre is set to push legislation in Lok Sabha to impose a 28 per cent Goods and Services Tax (GST) for online gaming, casinos and horse racing.
FM Sitharaman will also introduce the Integrated Goods and Services Tax (Amendment) Bill, 2023. Both bills will be discussed for consideration and passage. (Read More)
ITC AGM 2023: The recently-announced demerger of ITC Hotels from the parent company will unlock value for ITC shareholders and sharpen capital allocation, said its Chairman and Managing Director Sanjiv Puri.
The FMCG major, ITC held its 112th Annual General Meeting on August 11 where Puri address the company shareholders.
“For ITC, the reorganization of business will sharpen capital allocation, improve asset efficiency ratios, unlock value for shareholders and enable leverage of institutional synergies," Puri said. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services comments on Banking stocks: RBI’s decision to raise the CRR on bank’s incremental NDTL between May 19th and July 28th 2023 to 10% is negative for banks. This will raise their cost of funds impacting their profitability. However, since banks are experiencing good credit growth and their NPAs are declining, they can easily absorb this marginal additional cost.
Grasim Industries Q1 results: Grasim on Thursday reported a 56.1 per cent year-on-year fall in its standalone net profit for the fiscal's first quarter ended June (Q1FY24) to ₹355.27 crore. The company had reported a profit of ₹808.56 crore in the year-ago period. (Read More)
Gaurav Bissa, VP, InCred Equities: IRCTC has been trading in the 610-650 range since the last few weeks. It failed to participate in the rally seen in the PSU space. However, the stock is now witnessing a bullish triangle breakout on the weekly charts which will be confirmed on a close above 670 levels. The volumes have been trading above 20WEMA since the last couple of weeks, which is a sign of strong accumulation. The stock has witnessed strength on the back of breakout in rsi on the weekly charts which can give a fresh thrust to the stock price. Investors can buy the stock at current levels for an upside till 750 with stoploss placed at 625 levels.
Life Insurance Corporation of India (LIC) experienced a robust surge in its share price, soaring over 5% on Friday. This surge was triggered by the state-owned insurance giant's announcement of a substantial increase in its net profit for the quarter ending in June 2023. LIC's share price rose by as much as 5.42%, reaching ₹676.95 per share on the Bombay Stock Exchange (BSE).
LIC reported an impressive net profit of ₹9,544 crore in Q1FY24, marking an almost fourteen-fold increase compared to the profit of ₹683 crore reported in the corresponding period of the previous year.
Furthermore, LIC's total income for the June quarter climbed to ₹1,88,749 crore, showcasing growth from the ₹1,68,881 crore recorded in the year-ago period. (Read More)
Supreme Industries shares stand out as one of the standout performers in recent years among Indian stock market investments. Over the past year, the Supreme Industries' share price has consistently followed an upward trajectory. Having hit a low point of around ₹1,770 per share on the NSE in July 2022, this small-cap plastic company's stock has proven to be an attractive choice for stock market enthusiasts, who see it as a "buy on dips" opportunity.
Maintaining this positive momentum, the Supreme Industries share price opened on an upward note today and swiftly rose to reach an all-time high of ₹4,487 per share on the NSE shortly after the market's opening. This remarkable growth indicates that, within a span of almost a year, the Supreme Industries share price has yielded returns of over 150%. (Read More)
Recovering from the losses incurred in the previous session, shares of Samvardhana Motherson International exhibited a nearly 3% increase during the morning trade on the Bombay Stock Exchange (BSE) on Friday. This surge followed the company's release of its performance report for the June quarter. The stock commenced trading at ₹98.51, surpassing the previous close of ₹95.83. It then climbed by 3% to reach an intraday high of ₹98.66 during Friday's trading session on the BSE.
The stock had concluded Thursday's session with a decline of 2.77%, in response to the announcement of the auto components maker's June quarter results.
Over the past three months, Samvardhana Motherson's shares have observed a growth of more than 22%, in contrast to the BSE Sensex, which has achieved a 6% gain over the same period. (Read More)
The Indian rupee opened 4 paise lower against the US dollar on Friday amid a steady American currency. The local currency opened at 82.75 a dollar as compared to previous close of 82.71.
The dollar was steady amid hopes that the Federal Reserve is done with rate hikes after data showed US consumer prices increased moderately in July.
The dollar index, which measures the US currency against six rivals, eased 0.078% to 102.54, but was on course to clock gains for the fourth straight week. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Inflation data from the US indicate that the soft landing narrative is in tact. The Fed is likely to pause in September. This will support global equity markets. The only negative from the RBI’s message yesterday is the hike in CRR to neutralise the excess liquidity created by the withdrawal of the ₹2000 notes. The sentimental impact of this decision is unlikely to last long since it will not impact the banking sector’s bottom line much since the NPAs of banks are coming down and the credit growth in the economy is good. The indication from the RBI is that a rate cut can be expected only in Q1 of FY 25. This will be a headwind for the market. But the market is likely to remain strong. Banks, capital goods and autos are likely to do well, going forward.
China lifted a ban on group tours to a slew of countries including the US, UK, Australia, South Korea and Japan, in a major test of demand for overseas travel from what was once the world’s biggest source of tourists.
Group tours will start immediately on Thursday and the easing applies to all travel agencies and online platforms across the country, the Ministry of Culture and Tourism said in a statement. The move sparked a rush to buy Japanese and Korean tourism stocks, with package tour operator Lotte Tour Development Co. jumping 29% in Seoul and Japan Airport Terminal Co. up as much as 12%.
The relaxation may set the stage for an acceleration in the global tourism industry’s rebound from the coronavirus pandemic, which has been sluggish amid a slow rebound in flight capacity to and from China. But a full return to the pre-pandemic heyday is likely to take time — if it can be achieved at all — amid a weakening economy, a strong desire from Chinese holidaymakers to travel domestically and the enduring damage of geopolitical tensions. (Bloomberg)
The announcement of share allotment to the participants of Concord Biotech Limited's initial public offering (IPO) is anticipated to take place today. According to the tentative schedule, it is likely that the Concord Biotech IPO allotment date is August 11, 2023, which is today. Individuals who have applied for the IPO are advised to remain vigilant regarding the share allocation procedure. Once the share allotment details are revealed, bidders can check their Concord Biotech IPO allotment status online. This can be done by logging in to the official website of the Bombay Stock Exchange (BSE) or the website of the official registrar of the IPO, which is Link Intime Private Limited. (Read More)
Pidilite Industries, a prominent adhesives manufacturer, announced robust financial results for the quarter ending in June 2023. The company's net profit displayed a strong growth of 31.5%, reaching ₹473.7 crore, in contrast to ₹357.5 crore during the same period in the previous year.
Furthermore, Pidilite Industries reported a consolidated revenue increase of 5.6% in Q1FY24, reaching ₹3,275.1 crore from ₹3,101.1 crore in the corresponding year-ago period.
On a standalone basis, the company's net sales reached ₹2,952 crore, indicating a growth of 6% compared to the same quarter of the previous year. Notably, Pidilite Industries experienced a substantial underlying volume growth of 8% during this period. (Read More)
LIC net profit jumps 14-fold in Q1; Reliance shares credited to demat accounts; Hero MotoCorp reports profit growth; Cipla denies stake sale reports; HCL Tech signs $2.1bn deal with Verizon; Minimum sales quota set for sugar mills; Biocon's net profit declines; Apollo Tyres' net profit doubles; Samvardhana Motherson's net profit soars; Pidilite Industries reports strong growth. (Read More)
HDFC Asset Management Company, IDFC First Bank, Ashok Leyland and Power Finance Corporation Ltd. (PFC), are among the eight stocks that will be included in the MSCI Global Standard Index.
The other stocks include REC Ltd, Cummins India, Supreme Industries and Astral.
Meanwhile, Adani Group cement manufacturer ACC Ltd. will be excluded from the MSCI Global Standard Index. (Read More)
Apollo Tyres announced a significant surge in its consolidated net profit for the June quarter, recording a two-fold increase to ₹397 crore, compared to ₹177 crore in the same period last year.
The company's quarterly profit surpassed expectations, attributed to reduced rubber costs and strong domestic auto sales across various markets.
In terms of revenue from operations, Apollo Tyres reported a 5% growth, reaching ₹6,245 crore in the June quarter, compared to ₹5,942 crore in the corresponding year-ago period. This information was provided in an official statement by the company. (Read More)
Auto components manufacturer Samvardhana Motherson International Ltd (SAMIL) announced a substantial surge in its consolidated net profit for the first quarter ending on June 30, 2023. The company's net profit soared more than four-fold, reaching ₹601 crore, in contrast to the net profit of ₹141 crore reported in the same period of the previous fiscal year.
SAMIL further disclosed that its total revenue from operations experienced a notable increase, amounting to ₹22,462 crore during the June quarter, compared to ₹17,654 crore in the corresponding year-ago period. This information was provided by SAMIL in a regulatory filing. (Read More)
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher has recommended three intraday stocks for today, here we list out full details in regard to those day trading stocks:
1] Can Fin Homes: Buy at ₹751, target ₹785, stop loss ₹740;
2] West Coast Paper: Buy at ₹501, target ₹525, stop loss ₹492; and
3] KRBL: Buy at ₹412.50, target ₹430, stop loss ₹405. (Read More)
Hero MotoCorp released its financial results for the June quarter of FY24 on August 10, revealing a significant uptick in profitability. The company reported a notable 32 percent increase in profit, reaching ₹825 crore in Q1 FY24.
Comparatively, in the corresponding period of the previous year, Hero Moto Corp had posted a profit of ₹624.5 crore during Q1FY23, as outlined in its filing with the stock regulatory authorities.
On a Year-over-Year basis, the company's revenue from operations for the quarter stood at ₹8,767 crore, marking growth from the ₹8,393 crore reported in Q1FY23. Additionally, the total income experienced a 6 percent rise, reaching ₹8,989 crore in Q1 FY24 compared to ₹8,446 crore in Q1FY23. The firm disclosed that it successfully sold 13.53 lakh units of motorcycles and scooters during Q1 FY24. (Read More)
Life Insurance Corporation of India (LIC) unveiled its financial results for the June quarter of FY24 on August 10, revealing a remarkable surge in profitability. The corporation reported a staggering profit of ₹9,544 crore in Q1 FY24, marking a nearly fourteen-fold increase compared to the same quarter of the previous year, Q1FY23. In the corresponding period of Q1FY23, LIC had reported a profit of ₹683 crore, as detailed in its regulatory filing to the stock exchange.
Furthermore, LIC highlighted that its total income for the June quarter reached ₹1,88,749 crore, showcasing growth from the ₹1,68,881 crore recorded in the year-ago period. (Read More)
Yusuf Khwaja Hamied, chairman of Cipla, called all reports of stake sales by the promoters as “speculative". “I would like to inform you as the chairman of Cipla, that all the news that you are hearing is speculative and all the clarifications for this have been made to the stock exchange... And whatever information given to the stock exchange is in the public domain and is public knowledge," said the chairman during the 87th Annual General Meeting on Thursday.
The 87-year-old chairman’s comments come on the back of reports that the company plans to sell 33.47% of its stake in the company to private equity players including Blackstone and Baring Asia. (Read More)
Wall Street's main indexes finished flat on Thursday, giving up most early gains on milder-than-feared inflation data as investors worried about the U.S. economy's longer-term prospects and whether stocks had further room to run.
Data showed headline and core consumer prices both climbed by 0.2% in July, with the headline number notching annual rise of 3.2% and the core up 4.7%.
In the first hour of trading, the three benchmark indexes advanced more than 1% as traders bet the U.S. Federal Reserve would stop further monetary tightening in 2023 and start cutting interest rates early next year.
Stock prices started to sag from late-morning onwards, and bounced between positive and negative territory for much of the afternoon.
"People looked at the headline number first and we had the big upswing, but as the day went on, the rally faded and that was probably the right reaction," said Gregg Abella, CEO of Investment Partners Asset Management.
He noted that while inflation has slowed, a look beyond the headline number revealed that core inflation remained sticky, and as traders parsed the data, the initial positive sentiment became more subdued. (Reuters)
