Market highlights: Sensex, Nifty tank; Zee jumps on merger approval with Sony; RBI retains repo rate

Indian shares declined on Thursday, led by financials, after the RBI held its key rates steady for the third consecutive time as expected while raising its inflation forecast.

The Nifty 50 index dropped 90 points to end at 19,543, while the S&P BSE Sensex fell 307 points to close at 65,688.

While the monetary policy committee of RBI left the key repo rate unchanged at 6.5%, the central bank governor Shaktikanta Das said there could be a substantial rise in headline inflation in the near term and flagged uncertainties in the domestic food price outlook. The RBI also raised its retail inflation forecast for fiscal 2024 to 5.4% from 5.2% earlier.

Sectors sensitive to domestic interest rates like Bank, Finance, Auto and Realty fell along with Consumer Durables, FMCG and Pharma. Media jumped more than 3% on the back of NCLT approving Zee-Sony merger. Zee gained 16% after the news broke. Metal was the only other sector to end in green.

Among stocks, Adani stocks led the Nifty stock charts as Adani Enterprises jumped 2% and Adani Ports 1.6%. IndusInd Bank and RIL also had a decent run in today's session. Asian Paints shed more than 2.5%, and ITC and Kotak Bank around 1.5%.

Global benchmarks mostly rose Thursday as investors braced for a highly anticipated United States inflation report.

Japan's Nikkei share average ended higher reversing early losses as strong corporate earnings countered concerns ahead of U.S. consumer price inflation data. The Nikkei index rose 0.84%. The broader Topix advanced 0.92%.

China and Hong Kong shares ended higher reversing losses in early trading, as the lifting of a pandemic-era ban on outbound group tours boosted airline and travel-related stocks and helped improve sentiment.

China's blue-chip CSI 300 Index climbed 0.21%, while the Shanghai Composite Index gained 0.31%. Both indexes snapped three consecutive sessions of losses. Hong Kong's Hang Seng Index inched up 0.01%, rebounding from a two-week low seen.

European stocks extended gains into a second session, as China’s decision to relax travel curbs offered a lift to travel and luxury goods companies.

UK stocks inched higher on Thursday ahead of key U.S. inflation data but lagged a broader rally in Europe after heavyweights such as HSBC and Rio Tinto weighed as their shares traded without the entitlement of dividends.

Grasim Industries Ltd on Thursday reported an 56.1% 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. Sequentially, net profit was up 280% from ₹93.51 crore in Q4FY23. Grasim Industries shares were trading nearly 1% down at ₹1,830.55 apiece on BSE.

Aryaman Vir, Chief Executive Officer, Aurum WiseX

On repo rates and interest rates:

“The RBI highlighted the resilience of the Indian economy, however the risks to inflation still persist which will keep us watchful on the interest rate trajectory."

"We believe that the RBI’s measure to place a transparent framework for reset of interest rates of EMIs and allow borrowers to switch to fixed rate loans or foreclosure of loans will be a great relief for borrowers and encourage further transparency. This surely will also give flexibility to customers as the customer can make a choice between fixed or floating rates depending on factors like loan duration, current economic conditions, and prevailing system interest rates."

Regarding UPI

"RBI’s proposal of ‘conversational payments’ on UPI to enable users to engage in conversation with AI-powered systems to make payments signifies how AI is finding its more use-cases and increasingly getting integrated into digital payments."

"The RBI’s proposal to enhance the transaction limit of Small Value Off-line Digital Payments to Rs. 500 further enhances ease of use of UPI and deepens digital payment ecosystem in India.”

"Enabling NFC technology for UPI Lite will help penetrate the UPI payments in very remote areas where internet connectivity is still a challenge."

Murthy Nagarajan, Head - Fixed income, Tata Mutual Fund: RBI kept Policy rates unchanged in the current monetary policy but has revised the CPI inflation projections for the current year to 5.4% from 5.1% in the previous policy, assuming normal monsoon. RBI governor stated for first quarter of next financial year 2024-25 (Q1FY25), CPI is expected to be 5.2%.

Monetary Policy members are looking through high food inflation caused by price rise in vegetable and cereals. RBI expect food inflation to come down when the new kharif crops come in the month of September.

MPC members are taking comfort from Core Inflation coming down by 100 basis points from its peak levels in January 2023. Core inflation which excludes food and energy prices are more closely followed by RBI for policy rates setting.

RBI governor reiterated they want to bring CPI inflation to 4% levels on sustained basis. This means withdrawal of accommodation stance will stay and we are in for a long pause in rates.

The ten-year government securities yield is expected to trade in the band of 7.05% to 7.20%.

Omni-channel travel services firm Thomas Cook India on Thursday reported a consolidated net profit of ₹70.9 crore in the June quarter.

The firm had reported a loss of ₹6.9 crore in the year-ago period.

The company's total income from operations grew to ₹1,931.8 crore during the first quarter of the current fiscal from ₹989.8 crore in the year-ago period, a regulatory filing to the BSE showed.

However, its total expenses also rose to ₹1,831 crore for the quarter under review from ₹990 crore in the corresponding period last year.

Thomas Cook (India) Ltd (TCIL) Executive Chairman Madhavan Menon said, "On the back of a commendable performance in FY23, the first quarter of FY24 has seen yet another very strong performance by the TCIL Group with operating EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) at ₹1,474 million ( ₹147.4 crore) versus ₹555 million ( ₹55.5 crore) for Q1 FY23." (PTI)

Zee-Sony merger clearance paves the way for the creation of India’s second biggest media and entertainment conglomerate

India’s new regime for handling data transfers abroad is intended to help the domestic industry flourish and shouldn’t increase the burden on Big Tech companies from Google to Meta Platforms Inc. operating in the world’s most populous nation, the country’s technology minister said.

The Digital Personal Data Protection Bill, 2023 is aimed at establishing long-term rules to protect users while guiding the operations of foreign multinationals as well as domestic firms, Technology Minster Ashwini Vaishnaw told Bloomberg Television.

Years in the making, the new regulations passed this week and allow companies to export data to any country except those singled out by New Delhi. The move is considered a boon for global enterprises such as Alphabet Inc.’s Google and Meta as it eases data flows and reduces their compliance burdens. But it also requires companies to get consent before collecting personal data, and prevents them from using it for purposes not specified in the terms of use. That means companies can’t anonymize personal information for advertising or products such as artificial intelligence models. (Bloomberg)

Finance Minister Nirmala Sitharaman spoke about the steps taken by the central government to combat the rise in prices of tomatoes in the country. The Union Minister informed in Lok Sabha that the tomatoes will be sold at a price of ₹70 by the National Cooperative Consumers' Federation of India Limited (NCCF) in the Delhi-NCR region.

“NCCF is planning a sale of tomatoes in Delhi-NCR region at a subsidized rate of ₹70 this weekend and covering all the nooks and corners of Delhi" Finance Minister said in parliament.

Fast-moving consumer goods company Godrej Consumer Products Ltd. (GCPL) on Thursday said it has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to set up a manufacturing facility in the state at an investment of ₹515 crore over the next five years.

The proposed unit to be located in Thiruporur Taluk, Chengalpattu, near Chennai, will provide the maker of soaps and hair colours greater access southern markets. The plant will manufacture the company’s core brands such as Cinthol, Godrej Expert Rich Crème, Godrej Selfie shampoo hair Colour, and Goodknight. (Read More)

India's consumer price index (CPI) inflation likely accelerated above the 6 per cent-mark on high vegetable prices in July, after rising to 4.81 per cent in June -before which it had a 25-month low in May on high base effect. The pressure on vegetable prices has been a result of the El Nino impact in India. The uneven monsoon rains have damaged crops of some perishable foods during the summer season and hindered the movement of goods, resulting in shortages of basic ingredients for cooking, such as tomatoes, chillies and onions.

A poll of 53 economists recently conducted by news agency Reuters predicted that the retail inflation likely accelerated to 6.40 per cent in July on surging food prices, breaching the upper end of the Reserve Bank of India's 2 per cent-6 per cent tolerance band for the first time in five months. (Read More)

Overall two-wheeler sales registered a degrowth of 7.2 per cent year-on-year in July 2023, according to the Society of Indian Automobile Manufacturers (SIAM).

The association released July sales data on Thursday. A total of 1.28 million units were sold in July 2023 as against 0.38 million units sold in July 2022.

Further, the passenger vehicle sales were at 350,149 units in July 2023 as against 341,370 unit sold in July 2022.

On the contrary, three wheelers posted a decent growth of 78.9 per cent compared to the last year, which is the 2nd highest in the month of July, after the peak of 2018-19. Three-wheeler sales were 56,034 units in July 2023 as against 31,324 units sold in July 2022.

According to the SIAM data, a total of 1.64 million unit vehicles were sold in July 2023 as against 1.70 vehicles sold in July 2022, excluding BMW, Mercedes, JLR and Volvo Auto, whose data were not available. (ANI)

Oil held gains near the highest level in almost nine months ahead of key US inflation data, as traders weighed the potential for tightening supply should hostilities between Russia and Ukraine escalate.

West Texas Intermediate futures traded near $84 a barrel after climbing 3% over the previous two sessions. Investors will be watching the consumer price index read due Thursday for clues on the path forward for monetary tightening. OPEC is also scheduled to release its monthly report.

There’s heightened tension between Kyiv and Moscow after a Ukrainian drone attacked a Russian-flagged oil tanker over the weekend in the Black Sea, a key waterway for the nation’s exports. Oil has rallied since late-June as Saudi Arabia and Russia pledged supply curbs, although headwinds still persist including a sluggish economic recovery from China. (Bloomberg)

India's largest airline IndiGo will send 13 engines to US-based engine manufacturer Pratt & Whitney for inspection as part of the latest issue regarding material anomalies.

Two engines from the operational fleet and 11 engines from the grounded fleet of the airline will be sent to the manufacturer for inspection.

"This implies that there would be little or no impact on the capacity of Indian carriers during the ensuing high season," a senior official said. (Read More)

Real estate major Brigade Enterprises Ltd reported a 22% year-on-year (YoY) increase in its pre-sales, or bookings, at ₹9,960 crore for the June ended quarter (Q1FY24). Pre-sales were, however, fell 33% sequentially in the absence of new project launches during the period.

The June quarter saw the rollout of a single commercial project by Brigade, with residential projects taking a backseat. During an earnings call, the delay in project launches was attributed to prolonged approval processes. So a key takeaway is that this sequential softness in pre-sales is a temporary setback, considering Brigade's robust forthcoming offerings.

In FY24, Brigade is eyeing the launch of a whopping 7.5 million square feet in the residential segment, with a gross development value (GDV) potential of ₹6,000 crore. The management expects the bulk of these launches, particularly 25% from the Mount Road Chennai project, to occur in the latter half of the fiscal year. (Read More)

Aditya Birla Group’s Hindalco Industries Limited has entered into a partnership with Texmaco Rail & Engineering Limited to develop and manufacture aluminium rail wagons and coaches.

The companies will aim to build a world-class manufacturing facility in the country, Hindalco said in a statement on Thursday.

Through this partnership, the two companies will help Indian Railways achieve its emission goals and bolster operating efficiency. (Read More)

Retail major Trent Ltd. maintained its strong performance in the June quarter (Q1F424), with a 53.5% year-on-year (YoY) surge in revenue to ₹2,536 crore, far exceeding analysts’ expectations. Note that, this rise comes despite a slowdown in discretionary consumption, and was led by a 12% growth in same store sales in Trent’s fashion concepts - Westside and Zudio. Westside is Trent’s flagship format, while Zudio is the value-fashion concept.

“New concepts in ethnic wear and inner-wear may keep the revenue trajectory higher for longer," said analysts at Kotak Institutional Equities in a report on 10 August. Kotak has raised FY2024-26 revenue forecast by 11-32% on account of the strong Q1 performance and sustained growth momentum. (Read More)

Shilpa Pophale, Managing Director & CEO, Electronica Finance: RBI has done well to keep rates unchanged despite the recent US Fed rate hike. We have seen 250 bps rate hike past 2 years and that impact is still permeating into various sectors. While the RBI policy also emphasized on withdrawal of accommodation, its intention to support growth is encouraging and augurs well for overall industry including the manufacturing and the NBFC sector.

Anitha Rangan, Economist, Equirus: While in line with consensus, RBI has kept its policy rate unchanged, in view of the surplus liquidity and perhaps to deliver an implicit hike (of lesser impact), RBI has temporarily increased the CRR levels by 10% of incremental NDTL of banks. This in effect takes out the 10% of surplus in the accumulated from INR 2000 note withdrawal and FX operations (~INR 300-350 bn). Notably, inflation estimates, especially near-term estimates (Q2, Q3) have been revised upwards meaningfully, while growth estimates are retained. Furthermore, Q1FY25 inflation estimate of 5.2% and governor reiterating, commitment to align to 4% on a durable basis, suggests that rate cuts are out of way beyond the near term. Higher for longer is not just for the external world but also for India. Domestic growth resilience is countered by external risks and inflation. RBI is not ruling out hikes if necessary, clearly cuts are out of sight.

Colin Shah, MD, Kama Jewelry: The MPC keeping rates on hold is very much on expected lines. The measures around raising incremental CRR will lead to reduced liquidity in the system ahead of the festive season. This may affect discretionary spending. Largely, the economic activity is expected is stay on track. The RBI's concerns around inflation and the likely steps it may take may affect growth to a certain extent. Going forward the inflation trajectory, system liquidity and the developments in the West will guide economic and industry growth.

Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Company Ltd: MPC has been well-measured and level-headed in delivering today’s policy verdict of ‘A Pause’ while keeping Arjuna’s eye on Inflation and being nimble in its approach and action. MPC has rightly chosen to look through the recent surge in vegetable price inflation and has preferred to remain on a wait-and-watch mode along expected lines. While the nudging of Inflation forecasts higher is on expected lines, it does reflect the probability of an extended pause by MPC. While MPC’s move of scaling back of excess liquidity by way of increase in incremental CRR by banks is sentimentally negative from banks perspective in the interim, it does align with MPC’s policy stance of containing overall inflation. Overall, the undertone of the policy was being cautious and data dependent amid the looming uncertainty around domestic inflation, energy prices and global growth uncertainty. 

Mohit Ralhan, Chief Executive Officer TIW Capital: While risks to the inflation outlook were stated to be evenly balanced, the governor stuck a hawkish tone. Hardening global food prices and higher crude oil prices could pose a risk to containing inflation. Monsson distribution and possible El Nino impact will also be keenly monitored.

George Alexander Muthoot, MD, Muthoot Finance: The RBI commentary in today’s monetary policy was fairly optimistic on the resilience of Indian economy growth. On expected lines, the RBI MPC continued to maintain status quo on repo rate, and maintained its focus on the withdrawal of accommodation. The MPC further retained the GDP projection at 6.5% and set the target to achieve 4% inflation going forward, reflecting a cautiously optimistic outlook for the economy, while also continuing to remain vigilant on the inflation front. Indian economy remains resilient as indicated by the high frequency indicators, domestic demand conditions, improving household consumption and investment activity. 

Twitter Inc. or X was fined $3,50,000 for not immediately complying with a Justice Department search warrant for records pertaining to former US President Donald Trump's account. The social media giant was held in civil contempt by the US Court of Appeals for the DC Circuit.

According to the newly unsealed court filings, the district court had issued a search warrant in a criminal case and directed Twitter to produce information related the Twitter account of Donald Trump. The search warrant was issued along with a nondisclosure order that prevented the company from notifying anyone about its existence. (Read More)

Prime Minister Narendra Modi on Thursday morning held a meeting with Defence Minister Rajnath Singh, Parliamentary Affairs Minister Pralhad Joshi and Union Ministers Piyush Goyal and Arjun Ram Meghwal to discuss the government's strategy in Parliament

Prime Minister Narendra Modi is set to address the Lok Sabha on Thursday in response to the Opposition's no-confidence motion against the NDA government.

Defence Minister Rajnath Singh confirming the PM's presence at the Parliament on Wednesday, said, “The PM will be present in the House on Thursday to reply to the no-confidence motion."

Nitin Bavisi, CFO, Ajmera Realty and Infra India Ltd: Buoyancy in demand conditions, focus on aligning inflation to target of 4% and overall economic conditions in India continues to be positive for the economy.

The RBI’s move to maintain the status quo on the repo rate is expected and welcome. This will foster sustained demand-led growth for the real estate sector. The withdrawal of the accommodative policy will effectively keep a check on inflation and gradually cool down the economic heat, leading to a coveted growth in housing demand.

This will have a positive outcome on the pre-bookings of real estate ahead of the festive season, and we are looking forward with sheer positivity for this momentum to further strengthen as we progress in the year.

Shishir Baijal, Chairman & Managing Director, Knight Frank India: The central bank remains watchful on inflationary expectations and is focused on bringing the inflation level to its 4% target. Measures to reduce excess liquidity, with temporary tightening through incremental Cash Reserve Ratio at 10%, aligns with price stability goals of the central bank. Maintaining policy rates will bolster consumer demand amid moderate inflation, further promoting economic growth. This stance will likely boost homebuyers’ confidence as affordability remains stable. Since the interest rate upcycle, the repo rate has been hiked by 250bps, resulting in 160bps rise in home loan rates. We remain cautious about the housing market, especially the affordable and the mid segment that is price sensitive and has seen some impact of the previous rate hikes. However, a long pause in the policy rate will be supportive to the housing market.

Amit Jain, CMD, Arkade Group: The RBI's decision to retain the repo rate at the same level is welcomed and anticipated. This will further pave the way to having a stable interest rate regime over the medium term helping the positive growth momentum in the housing space. Through demand-driven methods, this action will encourage the present growth momentum in the residential real estate sector. A planned move to control inflation may see the RBI stepping away from its accommodating policy and this would eventually result in some change in momentum. Today’s move is encouraging for early real estate bookings leading up to the upcoming festive season, and we expect that this upward trend will continue to gather strength as the year progresses.

Arun Sharma, AVP, Sales & Marketing, Viceroy Properties: The upcoming festive season demand and completion of key infra projects across regions are likely to push demand and create new micro markets. The MPC is widely expected to start easing rates from CY24. This move is likely to boost demand for the luxury real estate sector and we foresee this trend to sustain in the long run.”

Tribhuwan Adhikari, MD & CEO of LIC Housing Finance: As widely anticipated, RBI in today’s monetary policy has maintained a status quo for the third time with rates steady at 6.5%. This ensures that a stable rate environment is here to stay for some more time. India's consumption story remains strong, and the festive season ahead will add further buoyancy to the realty market. Good news for property buyers to take the plunge when sentiments are benign.

Ram Raheja, Managing Director at S Raheja Realty: In spite of mild inflation, keeping policy rates steady will boost consumer demand and further the economy's expansion. Since the interest rate upcycle, the repo rate has been hiked by 250bps, resulting in 160bps rise in home loan rates. Despite the rate hike, consumer sentiment is optimistic as reflected by the sales and launches. A protracted halt in the policy rate will further assist the housing market.

Ajit Kabi, Banking analyst at LKP Securities: RBI has kept the policy rate unchanged at 6.5% in the recent MPC meet. The inflation may not cause worries (excluding CPI). The CPI forecast for FY24 has raised to 5.4% from 5.1% estimated earlier. Moreover, the real GDP growth forecast was pegged at 6.6%. RBI MPC remains resolute in its commitment to align inflation with the 4% target and anchor inflation expectations.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The MPC has delivered in line with market expectations on rates, stance and tone, with retention of rates and stance and the tone turning hawkish. The significant change is the upward revision in FY24 CPI inflation projection from 5.1% to 5.4%. This means the high policy rates will remain high for long and, therefore, a rate cut can be expected only in Q1 FY25. From the market perspective, there are no positive or negative surprises in the policy.

LKP Securities: In 1QFY24, Bank of Baroda (BOB) has delivered an expected result on operating and asset quality front. The fresh slippages were slightly higher at ₹24.5bn v/s ₹22.4bn in 4QFY23. Furthermore, the reduction (up-gradation & recovery) stood ₹47bn v/s ₹78bn in the previous quarter. It reported GNPA (3.51% v/s 4.79% in 4QFY23) and NNPA (0.78% v/s 0.89% in 4QFY23) declined substantially along with higher PCR (incl. TWO) of 93%. The bank has witnessed robust growth in net advances (20.5% YoY, 2.4% QoQ) and deposit growth (16.2% YoY, flat sequentially) with better liquidity position (LCR of 143.6% +). Moreover the bank has reported net profit of ₹40.7bn on the back of higher loan loss provision ( ₹16.9bn v/s ₹3.2bn in the previous quarter). SMA1/2 pool reduced sequentially to ~29bps. We believe the inexpensive valuation (P/ABVPS: 1.0x) makes BOB lucrative. Thus reiterate BUY with target price of ₹239.

CPI inflation forecast for FY2023-24 has been raised to 5.4% from 5.1%, says RBI Governor Shaktikanta Das.

- CPI inflation forecast for Q2FY24 raised to 6.2% from 5.2%

- CPI inflation forecast for Q3FY24 raised to 5.7% from 5.4%

- CPI inflation forecast for Q4FY24 retained at 5.2%

GDP growth projection for FY23-24 retained at 6.5%

- GDP forecast for FY24 is at 6.5%

- GDP forecast for Q1FY24 at 8%

- GDP forecast for Q2FY24 at 6.5%

- GDP forecast for Q3FY24 at 6%

- GDP forecast for Q4FY24 at 5.7%

India’s strong macroeconomic fundamentals have led to strong growth and the country is contributing approx 15% to global growth, said RBI Governor Shaktikanta Das.

The Reserve Bank of India on Thursday kep the repo rate unchanged at 6.5%, maintaining status quo for the third time in a row.

Murthy Nagarajan, Head- Fixed Income, Tata Mutual Fund views on AMFI data for July 2023: Liquid fund inflow is due to quarter-end money which exits due to capital adequacy consideration coming back . Debt flows is due to surplus liquidity of ₹2 lakhs in the system. For the most part of this month call money rates have traded around the reverse repo rate of 6.25% which has led to investors shifting money from overnight funds to liquid funds and part of liquid fund investors moving into ultra-short, money market and low duration fund due to low returns in liquid funds.

Ranjeet Mahtani, Partner, Dhruva Advisors shares his perspective on the impact the 28% GST on deposits would have on the entire online gaming sector:

The GST is now recommended on deposits and not face value of bets. This will make the collection and administration efforts easier.

The high rate of 28% , on the amount deposited has the following implications:

- make the sector loose it's sheen and attraction for investors.

- reduce the play amount (due to the tax outgo) that will leave players disenchanted {from a social perspective, this is an upside}

- perhaps it may drive players to overseas websites/intermediaries that won't pay the high GST and Income Tax

- has already caused layoffs and more could follow

- constitutional challenge being mounted in courts, on various aspects.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The market today will be focussed on the MPC’s decisions on rates, stance and communication on tone. The near-market consensus is that the rates and stance will remain unchanged and the tone will be hawkish in view of the high inflation. Any deviation from these expectations can move the markets.

Globally markets would be focused on the U.S. CPI numbers to be released today. The Fed’s rate action will be based on that. The disinflationary process in the US is likely to continue.

A major development which is significant for global markets in general and India, in particular, is the news of the Chinese economy tipping into deflation. This is bad news for global growth but from India’s perspective the positive likely fall out is that there can be more FPI outflows from China to India. Stocks which FPIs have been buying will benefit.

The allocation of shares for the initial public offering (IPO) of SBFC Finance Ltd is expected to occur on August 10th, 2023, which is today. Individuals who have applied for the IPO are advised to verify their SBFC Finance IPO allotment status online. This can be done by logging into the official BSE website, bseindia.com, or by visiting the website of the registrar, KFin Technologies Limited.

Leading up to the share allotment, the grey market sentiment has exhibited a positive outlook towards the public issue. As per market experts, SBFC Finance Limited shares are currently trading at a premium of ₹40 in the grey market today. (Read More)

Vaishali Parekh, 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] GRSE: Buy at ₹592.50, target ₹625, stop loss ₹584;

2] RVNL: Buy at ₹127, target ₹133, stop loss ₹125; and

3] BHEL: Buy at ₹101.20, target ₹106, stop loss ₹99. (Read More)

IRCTC profit down 5% in Q1, SpiceJet faces legal action, Zee Entertainment reports net loss, Axis Bank invests in Max Life, SJVN net profit dips, Bata India net profit declines, Tata Power Q1 profit up 29%, Berger Paints net profit rises, surge in travel boosts luggage makers, Sula Vineyards Q1 profit rises, Dreamfolks reports revenue growth. (Read More)

TVS Supply Chain Solutions Ltd is set to launch its initial public offering (IPO) in the primary market today, with the bidding process scheduled to continue until August 14th, 2023. The price range for the TVS Supply Chain IPO has been established at ₹187 to ₹197 per equity share. This book build issue seeks to raise ₹880 crore from its public offering. Notably, market analysts have noted that shares of TVS Supply Chain Solutions are currently trading in the grey market at a premium of ₹30. (Read More)

Bata India Ltd has disclosed its financial results for the April-June quarter of the fiscal year 2023-24 (Q1FY24), revealing a decrease of 10.3% in its consolidated net profit, which amounted to ₹106.8 crore, down from ₹119.3 crore during the corresponding period in the previous year. The company's revenue from operations exhibited a slight upturn of 1.6%, standing at ₹958.1 crore, in contrast to the figure of ₹943 crore recorded in the same period the prior year.

In terms of operations, the company's earnings before interest, tax, depreciation, and amortization (EBIDTA) for the June quarter reached ₹239.3 crore, indicating a reduction of 2.2% when compared to the previous year's ₹244 crore. The EBIDTA margin experienced a decline of 100 basis points, settling at 25%, as opposed to the 26% achieved in the corresponding period of the preceding year. (Read More)

India's Axis Bank on Wednesday said it will raise its stake in insurer Max Life to 16.2% from 9.99% by infusing 16.12 billion rupees ($194.6 million) through a preferential allotment of shares.

Axis Bank along with its entities acquired a 12.99% stake in Max Life in 2021, and through this new investment, they will own 19.02% in the insurer.

Max Financial Services, the holding company of Max Life, will hold about 80.98% in the insurer.

The proposed infusion by Axis Bank in Max Life will help it to support its future growth ambitions, Max Financial Services said in a statement.

The investment is subject to regulatory approvals and will strengthen the lender's position in the life insurance business, Axis Bank said, adding that Axis Entities would have the right to appoint the chairman. (Reuters)

The Finance Ministry has conveyed to the Rajya Sabha that a cumulative sum of over ₹35,000 crore has been amassed by public sector banks and five prominent private banks in India since 2018. These charges have been accrued due to instances of not maintaining the minimum balance, extra ATM transactions, and SMS services.

Dr Bhagwat Karad, the Minister of State, elucidated that the non-maintenance of the minimum balance contributed ₹21,000 crore, while an excess of ATM transactions generated ₹8,000 crore, and the provision of SMS services added ₹6,000 crore to this total. Among the notable banks included in this scenario are Axis Bank, IDBI Bank, HDFC Bank, IndusInd Bank, and ICICI Bank. (Read More)

Eicher Trucks and Buses, a division of VE Commercial Vehicles Ltd, has unveiled a strategic alliance with Amazon, designed to revolutionize the middle-mile and last-mile delivery procedures for the renowned e-commerce behemoth in India.

According to an official statement, the partnership's objective involves the integration of up to 1,000 zero-emission electric trucks across diverse payload categories into Amazon's delivery framework within the upcoming five years. This extensive deployment will be facilitated through Amazon's transport service partners, specifically VE Commercial Vehicles (VECV). (Read More)

Berger Paints India announced a notable upswing of 40% in its consolidated net profit, amounting to ₹354.91 crore for the June quarter. In comparison, the company had recorded a consolidated net profit of ₹253.71 crore during the same period in the previous fiscal year. The company's board has given the green light for the issuance of one bonus equity share with a face value of Re 1 each, in exchange for every 5 equity shares with a face value of Re 1 each. However, this action is contingent upon the approval of the shareholders.

According to a regulatory filing by Berger Paints India, the consolidated revenue from operations in the initial quarter of the present fiscal year reached ₹3,029.51 crore. This demonstrates an increase when compared to the previous year's same period, during which the figure stood at ₹2,759.7 crore. (Read More)

The Delhi high court has issued SpiceJet a notice directing it to submit its accounts statement and asset-liability affidavit within a week. The court has also summoned the airline’s chairman and managing director Ajay Singh, to appear in person on 24 August for the hearing.

The court’s action comes on a plea filed by Kalanithi Maran, the chairman of Sun group and former promoter of SpiceJet, seeking the attachment of 50% of SpiceJet’s weekly cash revenue to settle the airline’s ₹393 crore debt owed to him. (Read More)

IRCTC, the provider of catering services for Indian Railways, has unveiled its financial results for the initial quarter of the current fiscal year. The company recorded a profit of ₹232.22 crore, reflecting a 5% decrease when compared to the same period last year. Notably, the profit achieved in the final quarter of the previous fiscal year amounted to ₹279 crore.

Analyzing its performance by segments, IRCTC encountered a 4% reduction in revenue from its internet ticketing business, settling at ₹290 crore for the April-June quarter as opposed to ₹302 crore during the corresponding period in the prior year. Conversely, the revenue generated from its tourism business witnessed a substantial surge of 58%, reaching ₹130 crore in the June quarter from a previous figure of ₹82 crore during the same period the prior year. (Read More)

Stocks slipped Wednesday, as Wall Street braced for a highly anticipated report on inflation that's on the way.

The S&P 500 fell 31.67, or 0.7%, to 4,467.71 for its sixth drop in the last seven days. The Dow Jones Industrial Average lost 191.13, or 0.5%, to 35,123.36, and the Nasdaq composite sank 162.31, or 1.2%, to 13,722.02 as Big Tech stocks led the declines.

A report on Thursday will offer a big clue on how warranted those hopes are. The U.S. government will give the latest monthly update on inflation that consumers are feeling across the country, and economists expect to see an acceleration to 3.3% in July from 3% in June.

Such a reading would be down sharply from its peak of more than 9% last summer, but economists say the last bit of improvement to get inflation down to the Fed’s 2% target may be the toughest part.

Fed officials have said repeatedly recently that their upcoming decisions on interest rates will depend on what the data tells them, and they've pointed to reports on inflation and the job market in particular. (AP)