Sensex falls 365 points, Stock Market News Aug-11

Sensex falls, closed at 65,322 level: While Nifty at 19,428 level

 Indian Market 

FII AND DII 

 Indian Market News 

1. Sensex is down 380 points, Nifty is below 19,450, and PSU Banks are up.
2. Wall Street closes flat after the July inflation data fizzles. 
3. The number of Americans seeking for unemployment benefits is increasing, but not to the point of concern.
4. Dollar holds steady after CPI data boosts Fed pause expectations; yen approaches 145.
5.  Gold is weakening as the US dollar and rates maintain steady following inflation data.
6. Asian markets are typically higher; Taiwan is an exception. Weighted down, Straits Times up
7. The GIFT Nifty indicates a flat opening for India’s broader market.
8. Suryoday Small Finance Bank increased 6% after reporting a 6-fold increase in Q1 net profit.
9. SAIL’s Q1 profit fell by 73.6% year over year to Rs 212.5 crore, but revenue increased by 1.4%.
10.  Delhi High Court orders NHAI to pay Rs 1,204 crore in arbitration fees: RELATIONSHIP INSURANCE
11. Despite a two-fold increase in Q1 net earnings, Apollo Tyres fell 5%.
12. Torrent Power’s first-quarter earnings increased by 6% year on year to Rs 532.3 crore, while revenue increased by 13%.
13. Lemon Tree Hotels shares are trading slightly down following the release of Q1 results.
14.  NBCC Ltd shares rose 5% on strong Q1 results.
15.  Mazagon Dock Shipbuilders’ Q1 profit jumps 40% year on year to Rs 314 crore, despite revenue falling 2.6%.
16.  MTAR Technologies’ Q1 profit rises 25.4% year on year to Rs 20.3 crore, while revenue rises 67.6%.
17.  Kirloskar Oil Engines’ Q1 profit climbs 53% year on year to Rs 126 crore, while revenue rises 30%.
18. Biocon’s earnings for the first quarter fell short of expectations. Profit is down 30% year on year at Rs 101.4 crore. 
19.  BNP Paribas Arbitrage purchases 8.39 lakh Piramal Pharma shares.
20. Birla Aditya Sun Life Mutual Fund divests 0.85% of its holdings in Dreamfolks Services. 
21. Sion Investment Holdings sells 19.43% of its holding in CMS Info Systems.
22. Citibank sells Rs 2,085.7 crore in Tata Motors shares. 
23. Hero MotoCorp’s first-quarter profit improves 32% year on year to Rs 825 crore, while revenue grows 4.5%.
24. LIC’s first-quarter profit increased 14-fold year on year to Rs 9,544 crore, while net premium remained unchanged at Rs 98,363 crore.
25. HCL Technologies signs a $2.1 billion mega-deal with a Global 100 business.
26. Elitecast Media will purchase Zee Unimedia from Zee Studios for Rs 2.4 crore.
27.  Oil prices rise on OPEC demand optimism.
28.  TVS Supply Chain Solutions IPO receives 55% booking on its first day.

 Indian Market Today  

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• RBI’s I-CRR will not cause any liquidity shortage for banks, say bankers

  The RBI’s announcement of the Incremental Cash Reserve Ratio (I-CRR) is unlikely to cause a liquidity shortage in the banking industry, which could hinder lending. Bankers are reassured by RBI Governor Shaktikanta Das’ assurance that the central bank will remain nimble in liquidity management and act on both sides. Ashwani Kumar, Managing Director and CEO of UCO Bank, believes there is sufficient liquidity available for credit, indicating no impact.

  Air India unveils new logo ‘Vista’, livery in rebranding push

  Air India Chairperson N Chandrasekaran unveiled a new logo, branding, and plane livery for the multi-million dollar transformation of the former state-run carrier. The modern design features golden, red, and purple colours, replacing the old red swan and orange spokes, inspired by the Ashoka Chakra. The new logo symbol, ‘The Vista,’ is inspired by the gold window frame peak, symbolising limitless possibilities, progressiveness, and the airline’s bold outlook for the future. The aircraft livery features deep red, aubergine, gold highlights, a chakra-inspired pattern, and a custom-made ‘Air India Sans’ font.

  Hero MotoCorp Q1 FY24 PAT up 32% at Rs 825 crore, revenue up 4.5% at Rs 8,767 crore

  Hero MotoCorp Ltd reported a 32% YoY increase in its first quarter standalone net profit to Rs 825 crore, driven by higher prices, improved operating performance, and reversal-of-inventorisation benefits. The company’s revenue also increased by 4.5% to Rs 8,767.27 crore in Q1FY24. Lower commodity costs, price hikes, positive operating leverage, and a richer product mix contributed to the company’s success. Chief Executive Officer Niranjan Gupta emphasised the company’s focus on growth and market share.

  LIC Q1 Results: Net profit rises multi-fold on higher income on investments

  Life Insurance Corporation of India reported a 1,299 percent increase in net profit for the quarter ended June 30, 2023, due to higher income from investments. The company’s gross non-performing asset (GNPA) stood at 2.48 percent, compared to 5.84 percent last year. The company’s net NPA was nil, and its income from investments increased to Rs 90,309 crores in the April-June FY24 quarter. The company sold 32,16,301 individual policies in the quarter, compared to 36,81,764 policies in the same period last year

   

Global Market Update

• GIFT Nifty

• The GIFT Nifty shows a 16-point gain after closing 89 points lower on August 10, with futures at 19,556 points.

• US Markets

US stock futures rose on Thursday night as traders analysed the July consumer inflation report and wholesale prices data.

Dow Jones Industrial Average futures rose by 38 points, while S&P 500 and Nasdaq 100 futures climbed 0.1% and 0.2%, respectively.

The Dow added 52.79 points, while the Nasdaq Composite gained 0.12%.

The S&P 500 ticked up just 0.03 percent.

The July consumer price index indicated annual price growth of 3.2%, lower than the 3.3 percent forecast by economists.

However, the core CPI, which excludes volatile food and energy costs, rose 4.7% from the prior year.

James Demmert, chief investment officer of Main Street Research, believes investors have been overly optimistic as they enter this weak period.

The CPI print serves as a reminder that the Fed has done much work, but it remains sticky, indicating higher rates for longer.

• European Markets

European markets closed higher on Thursday due to corporate earnings and a key US inflation print.

The Stoxx 600 index ended the session up 0.8%, with household goods adding 2.2%.

Mining stocks slid 0.9%.

The July US consumer price index rose 3.2% from a year ago and 0.2% month-on-month, slightly below expectations.

Dow Jones polled economists for July CPI growth of 0.2% from the prior month and 3.3% on a year-over-year basis.

Core CPI, which excludes volatile food and energy prices, also gained 0.2% month-on-month for a 4.7% year-on-year increase.

FTSE closed 0.41 percent higher at 7,618 points and DAX 0.91 percent higher at 15,996 points.

•   Asian Markets

Asia-Pacific markets rose on Friday due to lower US inflation, indicating a’soft landing’ in the inflation fight.

Consumer prices in July increased 3.2 percent on an annual basis, below the 3.3 percent consensus.

Inflation increased 0.2 percent on a month-to-month basis, in line with estimates.

Real average weekly earnings remained unchanged.

The core inflation rate was 4.7 percent, the lowest since October 2021 and lower than the expected 4.8 percent.

In Asia, Australia’s S&P/ASX 200 was marginally above the flatline, while South Korea’s Kospi was up 0.34 percent and the Kosdaq gained 0.11 percent.

Japan’s markets are closed for a public holiday.

Hong Kong’s Hang Seng index futures closed at 19,292, reflecting a stronger open compared to the HSI’s close of 19,248.26.

• Oil Prices

Oil prices fell slightly on Thursday, with Brent crude holding near January highs. US interest rate hike speculation faded due to inflation data, and OPEC remained positive on oil demand outlook. Brent crude fell 72 cents to $83.68 a barrel, while WTI fell 46 cents at $87.09. Oil prices were boosted by Saudi Arabia and Russia’s output cuts and supply concerns due to potential conflict between Russia and Ukraine in the Black Sea region.

• Dollar Index

Dollar index traded 0.15 percent higher in futures at 102.46, with one dollar near Rs 82.84.

• Gold Prices

Gold prices rose on Thursday due to moderate increase in U.S. consumer prices in July, indicating the Federal Reserve is nearing the end of its rate hike cycle. Spot gold was up 0.3% at $1,919.49 per ounce, while US gold futures edged up 0.1% to $1,952.10. The consumer price index rose 0.2% last month, matching the increase in June. The CPI advanced 3.2% in the 12 months through July, the smallest year-on-year gain since March 2021.

STOCK IN NEWS

• Hero MotoCorp: The largest two-wheeler manufacturer in the nation reported a standalone profit of Rs. 824.72 crore for the three months ended June FY24, up 32% from the same period a year earlier despite VRS charges of Rs. 160 crore. This increase was fueled by strong other income and improved operational figures. Sales volume decreased 2.6 percent to 13.53 lakh units over the same time, while revenue increased by 4.5 percent to Rs 8,767.3 crore.
• Life Insurance Corporation of India: The country’s largest life insurer reported a massive profit for the quarter that ended in June of FY24 of Rs 9,543.7 crore, including Rs 7,491.53 crore related to the growth in the available solvency margin that was moved from the non-par fund to shareholders account. The sum of Rs 4,149 crore related to the accretion on the available solvency margin was not included in the Q1FY23 profit of Rs 682.88 crore since it was moved from the non-par fund to shareholders’ accounts on September 30, 2022. At Rs 98,362.8 crore compared to Rs 98,351.8 crore over the same period, net premium was unchanged.
• Apollo Tyres: The tyre manufacturer reported a consolidated profit of Rs. 396.9 crore for the three months ended in June FY24, a remarkable increase of 124 percent over the same period in the previous year due to decreased input costs. Profitability was also boosted by higher other income. To reach Rs 6,244.6 crore within the same time, revenue increased by 5% YoY.
• Steel Authority of India: Due to sluggish topline growth, the state-owned steel company’s consolidated profit for the quarter ended in June FY24 was Rs 212.5 crore, a 73.6 percent decrease from the same quarter a year earlier. Higher other revenue and lower input costs and tax charges contributed to the profit. The operating revenue for the quarter was Rs 24,359 crore, an increase of 1.4 percent over the same time last year.
• Suryoday Small Finance Bank: The bank posted a profit of Rs 47.6 crore for the quarter ended June FY24, a dramatic increase of six times over Rs 7.8 crore in the same quarter last year, led by high operational income and other income. Profitability was also helped by lower provisions. Over the same time, net interest income increased by 26.9% to Rs 224.7 crore.
• MTAR Technologies: The maker of precision-engineered systems reported a 25.4 percent year-over-year increase in profit for the quarter ended June FY24 at Rs 20.3 crore, driven by high topline and operating income. For the quarter, revenue increased by 67.6 percent year over year to Rs 152.6 crore.
• Kirloskar Oil Engines: The Pune-based producer of engines, agricultural equipment, and generator sets reported a profit of Rs 126 crore for the June FY24 quarter, up 53% from the same quarter a year earlier due to strong topline and operating results. During the same time period, revenue climbed by 30% to Rs 1,543 crore.
• Tata Motors: Citibank NA sold 3.49 crore shares, or 1% of the country’s equity, through open market transactions for a total of Rs 2,085.7 crore, or an average price of Rs 598.77 per share. As of June 2023, the overseas depositories category (holding depositories), which includes Citibank NA New York, Nyadr Department, included 1.38 percent, or 4.57 crore equity shares, in the Tata Group corporation.
• CMS Info Systems: Promoter Sion Investment Holdings Pte Limited of CMS Info Systems sold 3 crore equity shares, or 19.43% of the firm, through open market transactions at an average price of Rs 357.17 per share. The amount of the share sale was Rs 1,071.51 crore. However, Massachusetts Institute of Technology, Societe Generale, Abu Dhabi Investment Authority Stable, Public Sector Pension Investment Board, Nomura Funds Ireland Public Ltd Coindia Equity Fund, Goldman Sachs Funds – Goldman Sachs India Equity Portfolio, Goldman Sachs Collective Trust Emerging Markets Equity ex-China Fund, and Aditya Birla Aditya Birla Sun Life Mutual Fund A/C More than half of the shares (sold by Sun Life Digital India Fund and ICICI Prudential Mutual Fund) were purchased by these funds.
• Dreamfolks Services: Aditya Birla Sun Life Mutual Fund sold 4.51 lakh equity shares, or 0.85% of the airport service aggregator firm, through an open market transaction, for an average price of Rs. 577.06 per share, according to Dreamfolks Services. As of June 2023, the mutual fund firm owned 2.49% of the business.
• Piramal Pharma: At an average price of Rs 16.09 a share, BNP Paribas Arbitrage purchased 8.39 lakh shares of the pharmaceutical business through open market transactions. Nevertheless, at an average price of Rs 15.65 a share, Life Insurance Corporation of India sold 16.57 lakh shares.
• HCL Technologies: The IT services provider has inked a significant contract with a Global 100 organisation. It anticipates that this agreement will increase income over the course of the following six years, starting in November 2023, with an anticipated new total contract value of $2.1 billion. Additionally, the business has disclosed a global strategic alliance with Verizon Business, becoming Verizon’s principal partner in all MNS deployments for business clients internationally.
• Biocon: The biopharma business reported a profit of Rs. 101.4 crore for the quarter ended in June FY24, a 30% decrease from the same period in the prior year. However, over the same time period, revenue increased by 60% to Rs 3,422.6 crore, driven by Biocon Biologics, a subsidiary, which increased by 106% to Rs 2,015 crore YoY on the acquisition of Viatris biosimilars business and expansion in market shares for products in the US and Europe. For the quarter, licencing fees totaled Rs 167.4 crore in revenue.
• Torrent Power: For the quarter that ended in June of FY24, the Torrent Group company reported consolidated profit of Rs 532.3 crore, up 6% from the same quarter the previous year. This increase was primarily the result of increased merchant power sales in gas-based power plants and licenced distribution businesses, but profit was constrained by lower net gains from LNG trading, lower contributions from renewable businesses, and higher finance costs and depreciation expenses. In Q1FY24, revenue rose by 12.55 percent YoY to Rs 7,327.6 crore.
• Mazagon Dock Shipbuilders: For the quarter that ended in June of FY24, the state-owned shipbuilding firm reported a consolidated profit of Rs 314.3 crore, up 40% over the same period the previous year, in part due to greater other income. For the quarter, operating revenue decreased by 2.6 percent YoY to Rs 2,172.8 crore.

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