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PremiumDomestic benchmark indices Sensex and Nifty hit record highs on Tuesday. LTI Mindtree, SBI and Titan fell sharply, while Infosys and Asian Paints were the top gainers. Asian stocks were weak as China's sluggish economic recovery led to growth forecast downgrades. The Indian rupee ended flat against the US dollar
Domestic benchmark indices ended in the green on Tuesday after hitting record highs intraday. Sensex ended nearly 205 points higher at 66,795.14, while Nifty ended around 19,750. SBI, Titan, LTI Mindtree were the prominent laggards, while Infosys, Asian Paints, HCL Technologies, Reliance Industries were the top gainers. Adani Ports, Adani Ent, other Adani Group stock gained as chairman Gautam Adani sought to restore investor confidence during the AGM by reasserting the group's solid financial standing.
Deposits remain the highlight
· Robust earnings performance
· CASA q-q decline seasonal; branch additions remain key
· Loan growth slowdown from wholesale loans for the most part
· Retain HDFCB as our top BUY
· Growth seen across almost all Retail sub segments
· HDFC Bank Merged entity core loan book remains strong at 19% y-y
Gold prices rose on Tuesday aided by a weaker dollar, as investors anticipate U.S. retail sales data that could potentially influence the Federal Reserve's policy direction, especially as inflation appears to be slowing down.
Spot gold increased by 0.4%, trading at $1,961.67 per ounce by 0846 GMT. Concurrently, U.S. gold futures saw a 0.5% boost, reaching $1,965.40.
Oil prices saw little change on Tuesday, as investors balanced the potential tightening of U.S. crude supplies with China's underwhelming economic growth. Brent crude witnessed a slight decrease of 1 cent, trading at $78.49 a barrel, while U.S. West Texas Intermediate crude saw a marginal increase of 1 cent, reaching $74.16 a barrel.
On Monday, both contracts saw more than a 1.5% drop, influenced by disappointing Chinese data and the resumption of some oilfields in Libya.
Netweb Technologies India's initial public offering (IPO) is witnessing substantial demand on the second day of the subscription process. The IPO of Netweb Technologies has seen a subscription of 4.74 times, with the issue attracting bids for 4.19 crore shares, significantly more than the IPO size of 88.58 lakh equity shares. The retail category has been oversubscribed 5.84 times, and the Non-Institutional Investors (NII) category has been subscribed 8.38 times. The portion allocated for Qualified Institutional Investors (QIB) has seen a subscription of 0.04 times up until 12:45 pm.
Nuvama Institutional Equities has upgraded Bharat Heavy Electricals Ltd (BHEL) to a ‘buy’, maintaining it on its "braveheart" list due to a lack of significant competition and an anticipated revival in short-term thermal capital expenditures. The brokerage has increased the target price by 47%, raising it from ₹85 to ₹125, suggesting the stock could potentially see an over 30% increase from its current price levels.
The brokerage's research indicates that macroeconomic tailwinds may trigger a potential thermal recovery.
Shares of Rallis India Ltd. soared 4% in early deals on Tuesday, a response to Tata Chemicals Ltd.'s recent acquisition of an additional 4.99% stake, taking its shareholding in the agrochemical company to 55.04%. But that is where the good news ends. The company's June quarter (Q1FY24) results left much to be desired, and the near-term outlook appears equally bleak. (Read more)
Asian stocks witnessed a decline due to disappointing Chinese economic data and a lack of stimulus, which negatively impacted investor sentiment. Market participants are also eagerly anticipating US retail sales figures, which could provide insights into the Federal Reserve's policy direction. The MSCI's expansive index of Asia-Pacific shares excluding Japan registered a 0.56% drop on Tuesday.
IT services firm LTIMindtree Ltd disappointed investors with its June quarter (Q1FY24) results, which were a mixed bad. Sequential constant currency revenue growth of 0.1% was below analysts’ expectations. While hi-tech, media and entertainment, and healthcare saw positive growth quarter-on-quarter, banking, financial services, and insurance (BFSI), manufacturing, and retail registered sequential revenue decline. (Read more)
Adani Group's chairman announced on Tuesday that the conglomerate remains confident in its governance and disclosure standards, following a top court panel's finding of no irregularities within the organization. The statement also addressed the repercussions of a critical report by a US short-seller that significantly impacted the group's stock prices.
Rating: BUY | CMP: Rs1,679 | TP: Rs2,025
Q1FY24 Result Update - Higher opex to offset healthy asset quality
HDFCB saw a mixed quarter. While core PAT at Rs115.4bn was 3.7% short of PLe due to higher opex, asset quality surprised positively with lower GNPA led by lesser slippages, despite Q1 being usually weak. Loan growth was softer at 0.5% QoQ driven by IBPC sell-down since bank would like to manage its PSL requirement in a calibrated manner. Quality of growth was superior as credit offtake QoQ was led by retail and CRB. Bank sounded confident of achieving a 18% YoY loan growth (merged) over medium term though we are factoring 16% due to likely deposit need. Benign asset quality environment may keep opex elevated in near term and for FY24/25E we raise opex by 5% but reduce provisions by 15/9bps, which will not change PAT materially. NII and core PPoP trend compared to peers would be keenly watched. We maintain multiple at 3.0x on FY25E core ABV and TP at Rs2,025. Retain ‘BUY’.
Stock market view: Nifty today is in 19,300 to 19,900 range and it may test 19,900 to 20,000 upside target in near term.
Intraday trading strategy for Tuesday: Overall trend is positive for Indian stock market and Nifty is headed for 19,900 to 20,000 target. Prabhudas Lilladher expert went on to add that Nifty today has strong support now placed at 19,300 levels. On stocks to buy today, Vaishali Parekh recommended three intraday stocks for today and those three day trading stocks are RITES, Adani Enterprises and Axis Bank.
Outlook for Nifty: Nifty has witnessed another session of strong closing after the consolidation phase to strengthen the bias and sentiment to anticipate for further gains with targets of 19,900 to 20,000 in the coming days with support now maintained near the 19,300 zone. There is decent participation witnessed from the heavyweight stocks along with the broader indices which are getting into a positive trend once again.
Bank Nifty has indicated a strong close near the 45,500 zone with major frontline banking stocks getting into positive bias and once a decisive breach above 45,600 is established, we can confirm a breakout to anticipate for fresh upward move till target levels of 47,000 to 47,500 zone. With the support maintained near 44,500 zone, the overall bias has improved significantly to anticipate for further gains.
Sheela Foam Ltd, the maker of Sleepwell mattresses, plans to raise ₹1,500 crore through a mix of debt and equity to fund the twin stake purchases in rival mattress maker Kurlon Enterprises Ltd and House of Kieraya Pvt. Ltd, the owner of furniture rental startup Furlenco
Oil prices in Asia stabilized, after witnessing a nearly 4% decline over the past two sessions, as worries about China's economic status were counterbalanced by Russia's intentions to reduce crude exports.
West Texas Intermediate was traded above $74 per barrel, following a 1.7% decrease on Monday. This was triggered by the resumption of a significant Libyan oil field and China's Q2 growth falling short of expectations.
Patanjali Foods Ltd on Monday said Rajiv Jain’s GQG Partners Llc purchased a 5.96% stake in the company in its offer for sale (OFS), sparking a rally in its shares.
Besides the stocks that are in news, IndusInd Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, CIE Automotive India, Himadri Speciality Chemical, HeidelbergCement India, Polycab India, LT Technology Services and Network 18 Media are some of the companies that will report their earnings on Tuesday.
Asian stocks displayed a mixed performance as China's sluggish economic recovery led to growth forecast downgrades, accompanied by a warning from US Treasury Secretary Janet Yellen about potential ripple effects across the worldwide economy.
While stocks in Japan saw an uptick, those in South Korea and Australia saw a decline. Wall Street rose on Monday with investors remaining watchful of the June quarter results of a slew of companies.
