Sensex fall 440 points, Stock Market News July 27

Sensex fall, closed at 66,707 level: While Nifty at 19,778 level

 Indian Market 

FII AND DII 

 Indian Market News 

1.  Sensex declines 440 points, Nifty hovers at 19,650, while automobiles, pharma, and real estate gain.
2. The US Federal Reserve raises interest rates to their highest level since 2001. 
3. As the Fed keeps the door open, US stocks close barely altered.
4. Oil is rising as a tight supply outlook outweighs fears about rate hikes.
5. The GIFT Nifty indicates a positive start for India’s broader index.
6. Yatharth Hospital IPO was completely subscribed on its first day, with the retail part being 1.25 times oversubscribed.
7. M&M falls 6% as the RBL stake purchase disappoints the market.
8. RVNL falls nearly 7% when an offer for sale is made.
9.  Syngene International rises 6% on the back of strong first-quarter results.
10. Netweb Technologies makes its debut with an 88 percent premium.
11. Tata Consumer Products’ first-quarter earnings rises 22% year on year to Rs 338 crore.
12. Mahindra and Mahindra shares are under pressure, and they are among the top losers on the NYSE. 
13. The Nifty rose after the company disclosed that it had purchased a 3.53 percent share in private lender RBL Bank for Rs 417 crore.
14. Dr. Reddy’s net profit in the first quarter increased 18% to Rs 1,402 crore.
15. Axis Bank’s net profit increased by 40% in the first quarter.
16. Tata Consumer Products’ first-quarter earnings rises 22% year on year to Rs 338 crore.
17. Tech Mahindra’s first-quarter net profit fell 38% year on year to Rs 693 crore.
18. Cipla outperforms expectations, with Q1 net profit increasing 45.1% to Rs 996 crore.
19.  Kalpataru Projects International receives orders totaling Rs 2,261 crore. 
20. Tata Consumer’s net profit in the first quarter increased 29% to Rs 358.57 crore, while revenue increased 12%.
21. Bags by Kalpataru Projects Orders total Rs 2261 crore, and the stock has reached a 52-week high.
22. Sasken Tech is down 4% on sales declines in the first quarter.
23. Kajaria Ceramics shares climb 16.5% in Q1; brokerages maintain buy rating
24. Sasken Tech is down 4% on sales declines in the first quarter.
25.  Colgate Palmolive’s profit rises 31% year on year to Rs 274 crore, while the stock rises 6%.
26. Bajaj Finserv’s first-quarter net profit increased by 48.4% to Rs 1,942.6 crore.
27. Bajaj Finance raises its long-term projection, but margins and lending costs remain concerns. 
28. Jindal Stainless advances on better-than-expected first-quarter results

 Indian Market Today  

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• US Fed hikes interest rates to highest level since 2001

  The US Federal Reserve raised its benchmark lending rate to its highest level since 2001 to address inflation and signal potential future increases. The rate ranges between 5.25 percent and 5.5%, and the Fed will continue to assess the implications for monetary policy. The Federal Open Market Committee (FOMC) voted to hold rates steady in June, suggesting policymakers may consider a pause at their September meeting. The Fed will assess various data points to determine the extent of additional policy firming and monetary tightening, aligning with the median forecast of two additional rate hikes this year at the last FOMC meeting.

• Dr Reddy’s Q1 Results: Net profit rises 18% to Rs 1,402 crore, beats estimates

   

  Dr Reddy’s Laboratories reported a 18.1 percent increase in net profit for the quarter ending June 30, 2023, compared to a high base of Rs 1,187.6 crore a year ago. The company received a $72 million gain from Indivor as a settlement for a patent litigation for Suboxone, and the net profit exceeded the Street’s estimate of Rs 944.1 crore. Revenue rose 29.2% to Rs 6,738.4 crore, compared to the previous corresponding quarter. EBITDA was Rs 2,137.2 crore, with an EBITDA margin of 31.7 percent for April-June.Drugmaker’s revenue increased 29.2% to Rs 6,738.4 crore, up from Rs 5,215.40 crore in the previous quarter, compared to the Street’s estimated Rs 6,458 crore.

• Axis Bank Q1 Results: Net profit grows 40%, asset quality improves

  Axis Bank reported a 40% increase in net profit for the April-June FY24 quarter, reaching Rs 5,790 crore from Rs 4,125 crore in the previous year. The bank missed analyst expectations, but its net interest income grew 27% YoY to Rs 11,959 crore, and its net interest margin stood at 4.10 percent for Q1FY24. The bank’s gross non-performing assets (GNPA) declined to 1.96% from 2.76% last year, and its net non-performing assets (NNPAs) fell to 0.41 percent.

Global Market Update

• Gift Nifty

GIFT Nifty starts flat with 21 points gain, futures at 19,827 points.

•  US market

  The S&P 500 futures remained unchanged after the Federal Reserve’s quarter percentage point hike, bringing interest rates to their highest level in over 22 years.

  Futures linked to the S&P 500 traded flat, while Dow Jones Industrial Average futures lost 48 points or 0.13 percent.

  Nasdaq-100 futures rose 0.2%.

  Meta Platforms shares grew nearly 7% in extended trading, while Chipotle Mexican Grill plunged about 9% due to sales falling short of estimates.

  The Dow Jones Industrial Average rose for a 13th consecutive session, gaining 82.05 points or 0.23 percent.

• ASIA Markets

Asia-Pacific markets were mostly down as investors awaited the U.S. Federal Reserve’s rate decision on Wednesday.

The Fed is expected to approve the 11th interest rate increase since March 2022, pushing the upper boundary of the federal funds rate to its highest level since January 2001.

The S&P/ASX 200 climbed 0.78 percent and closed at 7,396.8, its highest point since February 2023.

South Korea’s Kospi led losses in the region, falling as much as 2% due to tech and consumer services stocks.

The Kosdaq saw a larger loss of 4.18 percent.

Japan’s Nikkei 225 was down marginally, while the Topix also sunk 0.1%.

Hong Kong’s Hang Seng index retreated from Tuesday’s rally, and mainland Chinese markets also fell.

• European  Markets 

European stock markets closed lower on Wednesday, amid earnings reports and the US Federal Reserve’s monetary policy update. The Stoxx 600 index closed down 0.6 percent, with most sectors in negative territory. France’s CAC 40 fell 1.4 percent, while LVMH dropped over 5% after a surprise slowdown in US sales. Banks were down 0.3 percent, while Rolls-Royce soared over 20% after raising its profit forecast. The FTSE 100 lost 0.19 percent and the DAX lost 0.49 percent.

STOCK IN NEWS

• Axis Bank: For the quarter that ended in June of FY24, the private sector lender reported a profit of Rs 5,797.1 crore, which was less than experts’ projections. Despite a significant increase in provisions, the profit increased 40.5 percent year over year because to a boom in other revenue and pre-provision operational profit. In comparison to the same time last year, net interest income increased by 27.4% to Rs 11,959 crore, while the net interest margin increased by 50 bps to 4.1%.

• Dr. Reddy’s Laboratories: Despite a decline in operating margin, the pharmaceutical giant reported an 18% year-over-year growth in consolidated profit to Rs. 1,402.5 crore for the June FY24 quarter. Operations’ revenue increased by 29% YoY to Rs 6,738.1 crore, with significant double-digit growth in North America (up 79% YoY), Europe (up 22%), and Emerging Markets (up 28%).

• Tech Mahindra: Techno Mahindra The IT services provider’s profit plunged 38 percent sequentially to Rs 692.5 crore, marking a poor start to the fiscal year 2023–24. The quarter was difficult, according to Rohit Anand, chief financial officer, as sales growth encountered significant headwinds that had an effect on profitability. To Rs 13,159 crore, revenue decreased 4% quarter over quarter.

• Tata Consumer Products: For the quarter that ended in June of FY24, the FMCG company’s consolidated earnings increased by 22% year over year to Rs 338 crore, driven by significant growth in its India-based branded business and improved results in its overseas and non-branded operations. To Rs 3,741.2 crore, operating revenue increased by 12.5% year over year.

• RBL Bank: Mahindra & Mahindra announced that it had paid Rs 417 crore for a 3.53 percent interest in RBL Bank. The company stated it may consider increasing its stake in the bank, but it won’t go above 9.99 percent. The purchase price per share was Rs 197.

• Poonawalla Fincorp: The non-banking financing firm disclosed the completion of the sale of its majority stake in its housing finance subsidiary Poonawalla Housing financing (PHFL) to Perseus SG Pte Ltd, a business connected to TPG Global LLC. With the sale of this interest, PHFL was no longer a PFL subsidiary and Perseus SG Pte Ltd now has a majority equity stake in the company. For the sale of its shares, PFL received a post-tax value of Rs 3,004 crore.

• Rail Vikas Nigam: Through an offer for sale (OFS), the Government of India may sell up to 7.09 crore equity shares, or 3.4 percent of Rail Vikas Nigam, with an option to sell an additional 4.08 crore shares, or 1.96 percent. On July 27 for non-retail investors and July 28 for retail investors, the OFS will take place. The floor price for each share has been set at Rs 119.

• India’s Netweb Technologies: On July 27, equity shares will be listed on the stock exchanges. At Rs 500 per share, the final offer price has been established.

• Marico: The FMCG business has signed binding contracts to buy up to a 58% share in Satiya Nutraceuticals. The Plant Fix-Plix brand is owned by Satiya in the health and wellness industry. As a result of the deal, the firm now has a 32.75% ownership in Satiya Nutraceuticals and the necessary majority control over its board of directors and total voting rights. Satiya Nutraceuticals has also been incorporated as a subsidiary of the company. By May 2025, the remaining 25.25% of the stock will be fully acquired. The price of the acquisition is Rs. 369.01 crore.

• Colgate Palmolive: For the quarter that ended in June of FY23, the oral care company’s revenue from operations increased by 10.6% on a year-over-year basis to Rs 1,323.67 crore, with domestic sales increasing by 12.3% and toothpaste sales increasing by double digits. Profit increased by 30.5% to Rs 273.7 crore over the same time last year, driven by solid topline and operating results.

•  

  Jindal Stainless: With significant topline and operating growth, Jindal Stainless, a manufacturer of stainless steel, reported consolidated profit of Rs. 745.81 crore for the quarter ended June FY24, up over 50% from the same quarter a year earlier. Operating revenue increased by 25.4% year over year to Rs 10,184 crore during the quarter, and EBITDA increased by 34% to Rs 1,192 crore compared to the same period last fiscal year. Despite the worldwide sales downturn and market instability, the quarter’s sales volume on a standalone basis totaled 5.48 lakh metric tonnes (MT), an increase of 54% YoY.

• REC: The public sector organisation reported consolidated profit of Rs 2,968 crore for the three months ending June FY24, up 20.9% over the same time last year. Operations’ revenue for the quarter were Rs 11,087.6 crore, up 16.7% from the equivalent period in the previous year. In addition to receiving board approval for raising up to Rs 1.05 lakh crore through a private placement of NCDs, the company has declared an interim dividend of Rs 3 per share for FY24, and the board has asked shareholders for their approval to raise the company’s overall borrowing limit from Rs 4.5 lakh crore to Rs 6 lakh crore.

• Aditya Birla Sun Life AMC: The asset management firm reported a profit of Rs 184.6 crore for the June FY24 quarter, up 79% year over year on the strength of other income and decreased depreciation. The quarter’s operating revenue was Rs 311.2 crore, up 2% from the same period last year.

• Oracle Financial Services Software: The Oracle subsidiary recorded profit of Rs. 501 crore for the quarter ended June FY24, up 2% from the equivalent period in the prior fiscal year. The quarter’s revenue increased by 4% YoY to Rs 1,462 crore, with the products business growing by 4% to Rs 1,318 crore and the services business growing by 6% to Rs 145 crore. Operating income for the quarter was Rs 606 crore, down 4% YoY.

• HFCL: The manufacturer of optical fibre cables and communications equipment announced a 33% year-over-year increase in consolidated profit at Rs 68.09 crore for the quarter ended June FY24, supported by strong operating results. However, sales for the quarter decreased by 5.3% year over year to Rs 995.2 crore. As of June FY24, the order book totaled Rs 6,584.71 crore.

• Schaeffler India: The industrial and automotive supplier reported a 5.1% year-over-year increase in profit for the quarter ended June 2023 at Rs 237.3 crore, with a net profit margin of 10 basis points (bps) to 13% as a result of volume growth and stable input costs. Compared to the same period last year, operating revenue climbed 4.6% to Rs 1,829 crore.

• Ion Exchange: Supported by topline and operating performance, the water and environment management solution provider reported a profit increase of 18.9% year over year to Rs 33.32 crore for the quarter ended June FY24. In comparison to the same time in the previous year, revenue increased by 25.3% to Rs 479.2 crore.

• Sasken Technologies: Backed by other income, the technology company announced a tremendous 68.7% year-over-year increase in profit at Rs 25.7 crore for the quarter ended June FY24. However, compared to the same period last year, operating revenue dropped 2.8% to Rs 98.5 crore.

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