Sensex falls 307 points, Stock Market News Aug-10

 Indian Market 

FII AND DII 

 Indian Market News 

1. Sensex down 308 points, Nifty below 19,550; .
2. As investors await US inflation statistics, Wall Street closes down.
3. Oil prices fall as China’s problems offset a lift from increased US fuel demand.
4. Gold falls as investors brace themselves for a US inflation test.
5. The Reserve Bank of India has revised its FY24 inflation forecast to 5.4 percent from 5.1 percent.
6. The Reserve Bank of India has maintained its FY24 GDP growth forecast of 6.50 percent.
7. The Reserve Bank of India (RBI) retained the repo rate at 6.50 percent and maintained its position of “withdrawal of accommodation.”
8. CMS Info Large Trade: According to CNBC-TV18, 3.2 lakh shares (21.6% equity) worth Rs 1,163.3 crore change hands in a block sale. 
9. TVS Supply Chain Solutions’ IPO receives a 15% booking on its first day.
10. CNBC-TV18 reported that DLF Large Trade | 0.1% equity changed hands in a pre-market block deal.
11. Godrej Consumer Products signs an agreement with the Tamil Nadu State Government.
12. Paytm shares rise following the RBI’s announcement on UPI-lite transactions.
13. CNBC-TV18 reported a large trade involving Tata Motors, with 3.6 crore shares (1% ownership) changing hands for Rs 2,184 crore.
14. The NCLT has approved the merger of Zee Entertainment and Sony India.
15. Basant Maheshwari Wealth Advisers LLP acquires a majority share in MAS Financial Services.
16. Srivari Spices IPO had 418.5 subscriptions on the closing day, the most in 2023.
17. Sebi shortens the timescale for listing shares from T+6 to T+3; required from December 1
18. ITD Cementation’s stock jumps after a joint venture wins a contract in Bangladesh.
19. Bombay Dyeing drops in Q1 as losses deepen 
20. BSE shares fall 6% as positive first-quarter earnings prompt a rush to record profits.
21. GMR Power is down 5% after reporting a loss for the June quarter.
22.  IRCTC shares tumble as net profit falls 7% in the first quarter.
23. Bank will retain 10% incremental CRR; Nifty Bank index falls 0.5 percent 
24. Trent shares climb on a 44% increase in net earnings, but brokerages are divided.
25. Axis increases its shareholding in Max Financial by 10% following a good first quarter.
26. Suzlon Energy shares rise 4% following the company’s decision to raise Rs 2,000 crore through a QIP. 
27. Force Motors declares a profit of Rs 68.6 crore for the first quarter, with revenue increasing by 53% year on year.
28. Zee Entertainment Enterprises’ Q1 profit falls 97% year on year to Rs 3.87 crore, while sales improves 7.6%.

 Indian Market Today  

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• Sebi shortens the listing period from T+6 to T+3 and makes it obligatory starting on December 1

The market authority has shortened the window for listing securities after the close of a public offering from six days to three days. The securities will now need to be listed on T+3 day as opposed to the present T+6 day as T will be the issue-closing date. For public issues starting after September 1, 2023, this will be a choice, and for issues starting after December 1, 2023, it will be a mandate.

• Q1 earnings for Schneider Electric Infrastructure increased to Rs 35 crore.

On August 9, Schneider Electric Infrastructure reported a 32 percent increase in net profit for the June quarter, at Rs 34.92 crore, mostly due to higher revenues. According to a BSE filing, the business reported a net profit of Rs 26.52 crore during the same quarter last year.

In the first quarter of the current fiscal year, the company’s total revenue increased from Rs 371.98 crore to Rs 497.57 crore. Suparna Banerjee Bhattacharyya was appointed as the Chief Financial Officer (CFO) and other key management positions of the firm with immediate effect by the Board of Directors during their meeting on Wednesday.

• Results for V-Mart’s first quarter show a net loss of Rs 21.9 crore and revenue growth of 15.4%.

In contrast to a net profit of Rs 20.45 crore in the same quarter of the prior financial year, V-Mart Retail Ltd. announced a consolidated net loss of Rs 21.94 crore on August 9.

However, the retail chain’s sales in Q1FY24 was Rs 678.52 crore, up 15.4% from Rs 587.88 crore in the same quarter last year, the business reported in a regulatory filing. When compared sequentially to the Rs 593.91 crore recorded in the fourth quarter of the previous fiscal, the revenue increased by 14.2 percent. Retail trade generated income in Q1FY24 of Rs. 661.15 crore, compared to Rs. 17.36 crore for all other segments.

• Results for Zed Entertainment’s first quarter: Profit reduces 97% to Rs 3.9 cr, while ad revenue declines 2.6%.

Due to a poor advertising climate, media business Zed Entertainment reported a 97 percent year-over-year decline in profit after tax (PAT) at Rs 3.9 crore for the June quarter of the financial year 2024.

In Q1 FY23, the business declared PAT of 130,1 crore. Analysts had anticipated a profit decline of 80–90%. Domestic advertising income for the firm was Rs 901.8 crore, a 2.6 percent year-over-year (YoY) decrease. Ad income for the business was predicted to decrease by 7 percent YoY.

Due to the Indian Premier League (IPL) being scheduled over the first two months of the quarter, the ad expenditure climate was subdued as the June quarter got off to a slow start. According to the company’s financial presentation, there were hints of improvement towards the end of the quarter, with early indications that ad spending was beginning to increase, headed by FMCG.

Global Market Update

• GIFT Nifty

The GIFT Nifty showed a 30 point gain after closing 61 points higher at 19,632 points on August 9, while GIFT Nifty futures were at 19,624 points.

US Markets

• Overnight trading on Wall Street saw stock futures gain slightly due to a key inflation reading that could impact the Federal Reserve’s next rate move.

  Dow Jones Industrial Average futures climbed 87 points, while S&P 500 and Nasdaq-100 futures added 0.26 and 0.29 percent, respectively.

  Disney gained 2% after announcing an upcoming price hike for ad-free Disney+ subscriptions, while Wynn Resorts advanced 1%.

  The Dow Jones Industrial Average dropped 191 points, while the S&P 500 shaved off 0.7% and the Nasdaq Composite shed 1.17 percent.

  The July consumer price index report could provide insight into how the central bank’s rate moves affect sticky prices and potentially impact the Fed’s next rate decision at its September policy meeting.

• European Markets

  The pan-European Stoxx 600 index closed up 0.4 percent, with oil and gas stocks adding 2.3 percent to lead gains as most sectors traded higher.

  Travel and leisure ended the session down nearly 1 percent.

  Shares of Italian banks took a tumble on Tuesday as a result of the tax, but rebounded Wednesday the Italian government partially backtracked on the measure.

  The finance ministry announced late on Tuesday that the tax on net interest income would be capped at 0.1 percent of risk-weighted assets — just one fifth of the level that Citi had estimated it could reach.

   FTSE closed 0.80 percent higher at 7,587 points and DAX closed 0.49 percent higher at 15,852 points on Wednesday.

    Asian Markets

  Reuters polled economists expecting an inflation rate of 3.3%, slightly higher than the 3.3% seen in June.

  Japan’s Nikkei 225 and Topix fell 0.33 and 0.16 percent, respectively.

  The country’s wholesale inflation rate decreased to 3.6%, down from a revised 4.3% in June.

  Australia’s S&P/ASX 200 traded below the flatline, while South Korea’s Kospi and Kosdaq lost 0.43 and 0.77 percent.

  Hong Kong’s Hang Seng index futures closed at 19,168, reflecting a lower open compared to the HSI’s last close of 19,246.03.

• Oil Prices

  Oil prices reached new highs on Wednesday, with Brent crude reaching its highest price since April. Tighter supply due to Saudi and Russian output cuts offset concerns over slow demand from China and rising U.S. crude inventories. Saudi Arabia extended its voluntary production cut for an additional month, while Russia announced a 300,000 barrel per day cut in September. Brent crude rose by $1.00, or 1.2 percent, to $87.24, the highest price since April 13. U.S. West Texas Intermediate (WTI) crude gained 80 cents, or 1.0 percent, to $83.72, the highest price since November 2022.

  Dollar Index

  Dollar index traded 0.24 percent higher in futures at 102.44, with one dollar near Rs 82.84.

• Gold Prices

  Gold prices struggled on Wednesday as investors remained on the sidelines ahead of U.S. inflation data, which could provide more clues on the Federal Reserve’s monetary policy stance. Spot gold was flat at $1,924.39 per ounce, dropping to its lowest since July 10. U.S. gold futures were unchanged at $1,958.50 per ounce. Daniel Pavilonis, senior market strategist at RJO Futures, said tomorrow’s CPI will be a pivot point for Fed policy. Gold has been an inflationary hedge, but it faces a 10-year yield battle.

  If inflation remains high and the Fed raises rates too quickly, gold may struggle. The upcoming U.S. consumer price index (CPI) data is expected to show inflation slightly accelerated in July to an annual 3.3 percent.

STOCK IN NEWS

• Inox Wind Energy: Through a block transaction, the wind energy producer sold institutional investors more than 1.46 crore equity shares of its subsidiary Inox Wind. The share sale brought in 304.68 crore rupees.

• Prestige Estates Projects: Despite reduced revenue and a high base, the south-based real estate developer declared consolidated profit of Rs 267 crore for the quarter ended June FY24, up 30.3 percent from the same period last year, helped by greater other income and a robust operating margin. To Rs 1,681 crore, revenue decreased 13.3 percent from the previous year.

• Zed Entertainment Enterprises: The media and entertainment firm reported a 97 percent year-over-year fall in profit from continuing operations for the quarter ended in June FY24, coming in at Rs 3.87 crore instead of Rs 29.9 crore. This decline was caused by dismal operational results and an extraordinary loss of Rs 70.6 crore rather than Rs 29.9 crore. During the same quarter, operating revenue increased by 7.6% to Rs 1,984 crore.

• Tata Power Company: Tata Power firm, reported a consolidated profit of Rs 972.5 crore for the three months ended in June FY24, up 22.4 percent from the same period last year. This increase was driven by strong operating results and an extraordinary gain (Rs 234.7 crore). To Rs 15,213.3 crore, revenue increased by 5% over the prior year.

• Axis Bank: The board has given the private sector lender permission to invest Rs 1,612 crore in Max Life through preferential allocation. Axis Bank’s direct ownership in Max Life will rise to 16.22 percent with this capital infusion, and the combined ownership of all Axis Entities will rise to 19.02 percent.

• BSE: For the quarter that ended in June of FY24, the nation’s oldest stock exchange reported a consolidated profit of Rs 442.66 crore, a 10-fold increase over Rs 44 crore in the same quarter the previous year. This increase was primarily due to the sale of a 5% interest in associate business CDSL as well as greater investment income and other income. To Rs 215.62 crore, revenue for the quarter increased by 15.4% year over year.

• Bata India: The world’s largest footwear company recorded a consolidated profit of Rs. 106.9 crore for the June FY24 quarter, down 10.5 percent from the same quarter last year, mostly owing to an early start to the end-of-season sale and weak operating results. In comparison to the same quarter last year, operating revenue for the quarter increased by 1.6 percent to Rs 958.15 crore.

• Indian Railway Catering and Tourism Corporation: The state-owned railway firm, Indian Railway Catering and Tourism Corporation, reported a profit of Rs 231 crore for the quarter ended June FY24, down 7% from the same period in the previous fiscal due to extraordinary loss (Rs 51.9 crore) and lower operating margin. For the quarter, operating revenue increased 17.5 percent year over year to Rs 1,001.8 crore.

   

• Eicher Motors: Eicher has established a partnership with Amazon to increase the deployment of electric trucks. The major international online retailer has agreed to buy 1,000 electric vehicles from Eicher Motors. According to CNBC-TV18, Amazon would buy 50 of these vehicles in the initial phase for use in important hubs like Delhi, Manesar, and Gurugram.

• Abbott India: Supported by strong topline and operating performance, the pharmaceutical business reported profit of Rs 290.2 crore for the quarter ended June FY24, up significantly from the same quarter last year by 41.1%. Operations revenue for the quarter were Rs 1,479 crore, up 13.4% on-year.

• MAS Financial Services: At an average price of Rs 816.38 per share, Basant Maheshwari Wealth Advisers LLP purchased 2.93 lakh equity shares, or more than half of one percent of the financial services firm, through open market transactions.

• Sula Vineyards: The top wine producer reported consolidated profit of Rs 13.68 crore for the quarter ended June FY24, up 24.4% from the corresponding quarter a year earlier. This increase was driven by strong topline and operating performance. In Q1FY24, operating revenue increased by 17.7% year over year to Rs 108.5 crore.

• PI Industries: The agri-sciences firm reported a staggering 46% year-over-year increase in earnings for the quarter ended June FY24, totaling Rs 383 crore, due to increased demand for CSM (custom synthesis manufacturing) exports and solid bottom-line and operating results. During the quarter, revenue increased by 24% year over year to Rs 1,910.4 crore.

• Force Motors: The automaker posted a combined profit of Rs 68.6 crore for the quarter ended June FY24, compared to a loss of Rs 16.6 crore in the same quarter last year. At Rs 1,487.5 crore, operating revenue for the quarter grew over the same time last year by 53.2%.

• Bombay Dyeing and Manufacturing firm: For the quarter that ended in June of FY24, the firm reported a consolidated loss of Rs 119.8 crore, up from Rs 76.8 crore in the same period the previous year. Due to weaker growth in the real estate market and decreased polyester business, operating revenue decreased 17.87% year over year to Rs 498 crore. The delisting of GDRs from The Luxembourg Stock Exchange and the termination of the GDR deposit arrangement with Citibank N.A. have both been approved by the company’s board.

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