Sensex gains 205 points, Stock Market News July 18th

Sensex gains, closed at 66,795 level: While Nifty at 19,750 level

 Indian Market 

FII AND DII 

 Indian Market News 

1. Sensex up 205 points, Nifty at 19,750, IT gains, metals drag
2. The dollar is approaching a one-year low, while the euro has reached a 17-month high.
3. Oil prices are rising as US oil supplies are expected to tighten.
4. US equities increase on earnings expectations, while global stocks fall on China data.
5.  Asian markets closed unevenly, with the Nikkei up 0.3% and the Hang Seng down 2%.
6.  The fragility of China’s second-quarter GDP growth underscores the need for additional policy support.
7. ICICI Prudential’s net profit increases 32.7% to Rs 207 crore as a result of new business.
8. IndusInd Bank Q1 forecast: Net profit could increase by 34% due to good loan growth.
9. After beating expectations, Polycab India’s stock climbs by 6%.
10. US-based Cresta Fund sells Jindal Saw shares for Rs. 82.5 crore.
11. Satin Creditcare Network’s 2.23% ownership by the Nordic Microfinance Initiative Fund is sold.
12. As a result of the JV, RPP Infra gains 8%. Order worth Rs 138 crore
13. Tata Elxsi’s first-quarter earnings grew 2.2% year on year to Rs 189 crore, but its operating margin drops substantially.
14. LTIMindtree’s first-quarter profit grew 3.4% to Rs 1,152 crore, with constant currency and dollar revenue growth of 0.1%.
15. Tata Chemicals buys out Rallis India in a block deal.
16.  CNBC-TV18 reported that Rallis India’s 97 lakh shares (4.99% equity) worth Rs 208.6 crore changed hands in the pre-opening.
17. SoftBank sells a 2% interest in Paytm for $250-300 million.
18. Infosys secures a $2 billion five-year contract with an established client.
19. Sheela Foam confirms acquisition of competitor Kurlon, with a 35% stake in furniture maker Furlenco.
20.  On July 18, Clarios ARBL Holding is expected to sell its whole 14% stake in Amara Raja in a block deal.

 Indian Market Today  

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• China’s weak Q2 GDP growth necessitates governmental support.

  China’s economy grew slowly in the second quarter as demand fell at home and overseas, putting pressure on policymakers to provide more stimulus.

  Any excessive stimulus could increase debt risks and structural distortions, making it difficult for the Chinese government to stabilise the economy and reduce unemployment.

  On a seasonally adjusted basis, the National Bureau of Statistics reported that GDP grew 0.8 percent in April-June from the previous quarter, compared to a 2.2 percent increase in the first quarter.

  GDP grew 6.3 percent in the second quarter, up from 4.5 percent in the first three months, but it fell short of the 7.3 percent estimate.

   

• LTIMindtree’s Q1 profit grew 3.4% to Rs 1,152 crore, constant currency & dollar revenue growth 0.1%.

  LTIMindtree’s Q2 FY24 consolidated profit rose 3.4% to Rs 1,151.5 crore, driven by other income and operating margin. Revenue from operations rose 0.13% QoQ to Rs 8,702.1 crore in constant currency and 0.1 percent in dollars. EBIT rose 2.1% sequentially to Rs 1,450.8 crore with a 32 bps margin expansion.

   

• Tata Elxsi Q1 profit grows 2.2% YoY to Rs 189 crore, while operating margin falls drastically.

  Tata Elxsi’s Q2 FY24 profit rose 2.2% to Rs 188.85 crore due to a low operating margin. Operations revenue rose 17.1% at Rs 850.3 crore. EBIT rose 4.1% to Rs 230.1 crore, although margin declined 340 bps to 27.1% for the quarter.

Global Market Update

• Gift Nifty

Tuesday’s 6-point GIFT Nifty increase suggests a flat start for the broader market. Futures were 19,785.50.

•  US market

  US markets rose on Monday on anticipation that corporate results will exceed predictions, while global shares and the dollar were little moved after Chinese economic data showed weaker growth.

  China overnight announced second-quarter growth of 0.8 percent, above the 0.5 percent prediction, but annual growth was 6.3 percent, significantly behind expectations for 7.3 percent. Analysts claimed the data shows China’s post-Covid boom is finished.

  Slower consumer inflation has improved Wall Street’s optimism as corporations report second-quarter results. Inflation remains over the Fed’s 2 percent objective.

  Megacap growth firms like Apple, Nvidia, and Tesla boosted the Nasdaq ahead of industry heavyweights’ quarterly releases later this week.

  Wall Street rose 0.22 percent, 0.39 percent, and 0.93 percent.

• ASIA Markets

Tuesday’s Asia-Pacific markets were neutral as investors awaited the Reserve Bank of Australia’s July policy meeting minutes.
As the local market prepared for trade balance and consumer price index data later this week, Australia’s S&P/ASX 200 opened down 0.25 percent, while Japan’s Nikkei 225 rose 0.81 percent and the Topix 0.76 percent.
As South Korea held its first Nuclear Consultative Group meeting with the US today, the Kospi fell while the Kosdaq rose 0.76 percent.

•  Eu Markets 

European stocks fell Monday after a solid run.
Most sectors and major bourses fell, lowering the regional Stoxx 600 index 0.6 percent. Bank equities rose 0.5 percent while household goods fell 2.6 percent.

STOCK IN NEWS

• Reliance Industries:After the demerger of Reliance Industries’ financial services division into Reliance Strategic Investments on July 20, Jio Financial Services will be included in 19 NSE indices. Jio Financial Services will replace Reliance Strategic Investments as the company’s name. There were a number of NSE indices, including the Nifty50, Nifty 100, Nifty 200, Nifty 500, Nifty Oil & Gas, Nifty Energy, Nifty Commodities, and Nifty Infrastructure.

• LTIMindtree: For the quarter ended June FY24, the technology consulting and digital solutions company’s consolidated profit increased by 3.4 percent sequentially to Rs 1,151.5 crore, largely due to other income and operating margin. To reach Rs 8,702.1 crore, operating revenue increased by 0.13 percent on a quarterly basis, while revenue growth in constant currency and dollars increased by 0.1 percent each on a quarterly basis.

• Tata Elxsi: The design-led technology services provider saw a 2.2 percent year-over-year decline in profit for the quarter ended June FY24, coming in at Rs 188.85 crore. In comparison to the same period last year, operating revenue increased by 17.1% to Rs 850.3 crore. Operating EBIT increased by 4.1 percent year over year to Rs 230.1 crore, but the margin for the quarter dropped by 340 bps to 27.1 percent.

• RPP Infra Projects: A letter of acceptance for a new project in Himachal Pradesh with a price tag of Rs 138.24 crore has been received by the RPP-HSEA joint venture, owned by RPP Infra Projects and Hs Engineers Associates. In accordance with their holding capacity, RPP Infra, which has a 51 percent stake, and its JV partner, who has a 49 percent stake, will invest in the project and finish it within the specified time frame.

• Hathway Cable and Datacom: Driven by other income, the cable TV and fibre internet provider reported a 6.7% year-over-year increase in consolidated profit at Rs. 22.36 crore for the quarter ended June FY24. Revenue increased by 11.6% YoY to Rs 499.2 crore, but due to higher pay channel costs, EBITDA decreased by 10.88% to Rs 77.53 crore and margin decreased by 400 bps to 15.5%.

• Jindal Saw: Cresta Fund, a US-based foreign portfolio investor, sold 25 lakh equity shares—or 0.78% of the company’s equity—through an open market transaction at an average price of Rs 330.01 per share, according to Jindal Saw. The sale of the stake brought in Rs. 82.5 crore. By March 2023, Cresta Fund owned 3.55% of the company.

• Sotac Pharmaceuticals: Forbes EMF, a foreign portfolio investor, sold all of its 1.81 lakh shares of Sotac Pharmaceuticals in an open market transaction for an average price of Rs 117 per share, thereby exiting the pharmaceutical company. But in this transaction, Minerva Ventures Fund was the purchaser.

• Satin Creditcare Network:  Nordic Microfinance Initiative Fund III KS, a foreign company, sold 2.23% of its stake in Satin Creditcare Network for Rs 35.82 crore through open market transactions. 15.61 lakh shares were sold by Nordic Microfinance at an average price of Rs. 175.45, and 4.78 lakh shares were sold at an average price of Rs. 176.19. As of July 7, Nordic owned 25.99 lakh shares of the microfinance organisation.

• Sheela Foam: The board has given Sheela Foam the go-ahead to acquire Kurlon Enterprise, a manufacturer of foam and coir-based home comfort products, as well as the furniture manufacturer House of Kieraya (Furlenco). For Rs 2,150 crore, Sheela Foam will purchase a 94.66 percent stake in Kurlon Enterprise, with the transaction expected to close by or before November 30, 2023. For Rs 300 crore, Sheela Foam will purchase a 35 percent stake in Furlenco.

• Amara Raja Batteries: According to sources cited by CNBC-TV18, foreign investor Clarios ARBL Holding LP is likely to exit the automotive battery manufacturer on July 18 through the sale of a stake in a block deal. The share’s floor price has been set at Rs. 651. Clarios ARBL Holding LP owns 2.39 million shares, or 14% of the company.

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