Sensex gains 232 points, Stock Market News Aug-07

Sensex gains, closed at 65,953 level: While Nifty at 19,597 level

 Indian Market 

FII AND DII 

 Indian Market News 

1.  Sensex up 232 points, Nifty at 19,600; major gainers include M&M, Sun Pharma, and Bajaj Finserv.
2. Wall Street closes lower following the release of the US jobs report; Apple comments in
3. Although job growth in the United States is declining, pay growth remains strong.
4. Gold rises as the dollar and rates fall ahead of the US inflation test.
5. The GIFT Nifty indicates a flat to positive opening for India’s broader market.
6. Vijay Shekhar Sharma will buy 10.3% of Paytm from Antfin.
7. BHEL’s first-quarter loss rises to Rs 343.9 crore, while revenue rises 7% to Rs 5,003 crore.
8. Adani Green Large Trade | According to CNBC-TV18, 4.7 crore shares (3% equity) worth Rs 4,352 crore changed hands in a block trade.
9. Britannia’s first-quarter profit increased 36% year on year to Rs 455.5 crore, while revenue increased 8.4%.  
10. TVS Supply Chain has established a price band of Rs 187-197 for its public offering on August 10th.
11. Westbridge and Nexus-backed India Shelter Finance applies for an IPO worth Rs 1,800 crore. 
12. State Bank of India’s first-quarter net profit rises 178% to Rs 16,884 crore, as asset quality improves.
13. Bank of Baroda’s first-quarter net profit rises 88% to Rs 4,070 crore, as asset quality improves.
14. CAMS profits increased by 18% in the first quarter, thanks to new mutual fund mandates.
15. ICICI Bank receives RBI approval to increase its stake in ICICI Lombard; stock rises
16. PG Electroplast’s first-quarter profit jumps 106% year on year to Rs 33.8 crore, while revenue rises 26%:
17. Repco Home Loans Profit in the first quarter increased by 43.5% year on year to Rs 89 crore, while operational revenue increased by 21%.
18. Rain Industries’ Q2 profit falls 75% year on year to Rs 165.7 crore, while revenue falls 16.5%.
19. Bank of Baroda profit jumps 88% YoY
20.  

 Indian Market Today  

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• Reliance seeks shareholder nod to appoint Mukesh Ambani as head for another 5 years at nil salary

  Reliance Industries Ltd, India’s most valuable company, has sought shareholder approval to appoint Mukesh Ambani as chairman and managing director for another five-year term until 2029. Ambani, 66, will cross the company’s 70-year age limit and requires a special resolution from shareholders to be appointed beyond that age bar. Reliance sought the approval of shareholders to appoint Ambani as the head of the company until April 2029. Ambani has been on the board since 1977 and was elevated as chairman after his father’s death in 2002.

• Mcap of seven of top-10 most valued firms erode by Rs 1 lakh crore; State Bank biggest laggard

  Last week, the combined market valuation of seven top-10 firms declined by Rs 1,09,947.86 crore, with State Bank of India taking the biggest hit. The BSE benchmark fell by 438.95 points or 0.66 per cent. Reliance Industries, ICICI Bank, Hindustan Unilever, ITC, State Bank of India, Bharti Airtel, and Bajaj Finance were the laggards, while Tata Consultancy Services, HDFC Bank, and Infosys saw additions. State Bank of India’s valuation tumbled from Rs 38,197.34 crore to Rs 5,11,603.38 crore.

• Jio Financial Services to play crucial role in transforming India’s digital finance landscape: Mukesh Ambani

  Reliance Industries’ Chairman and Managing Director Mukesh Ambani stated that Jio Financial Services is uniquely positioned to capture growth opportunities in the financial services sector and transform the digital finance landscape in India. The company’s 2022-2023 annual report expects to list the equity shares of Reliance Strategic Investments Limited (RSIL), which will be renamed Jio Financial Services Limited. Jio Financial Services aims to provide simple, affordable, and innovative digital first solutions. Reliance announced in October 2022 that it would demerge and list its financial services business, Reliance Strategic Investments, which will be renamed Jio Financial Services (JFS).

• Will Yatharth Hospital debut with decent double-digit premium today?

  Yatharth Hospital & Trauma Care Services is expected to debut with a double-digit premium of at least 20% over the issue price of Rs 300 per share due to strong subscription figures. The hospital chain’s position as a prominent super specialty provider in Delhi NCR, with diverse specialties, a strong payer mix, and consistent operational and financial growth, has led to a healthy response from investors. The Rs 687-crore public issue had a healthy response, with qualified institutional investors buying 85.10 times the allotted quota, followed by high net-worth individuals and retail investors who bid 37.22 times and 8.34 times the portions set aside for them, respectively. Research analyst Prathamesh Masdekar predicts that Yatharth Hospital is likely to make a decent listing on the bourses on Monday, listing shares at around 20% premium to the issue price.

Global Market Update

• Gift Nifty

The GIFT Nifty showed a 43-point gain, closing 135 points higher at 19,517 points on August 4, while futures were at 19,605 points.

•  US market

Stock futures rose modestly on Sunday night as investors prepared for corporate earnings and inflation readings.

Dow Jones Industrial Average futures added 35 points, while S&P 500 and Nasdaq 100 futures advanced 0.2% and 0.3%, respectively.

This follows a losing week on Wall Street, with the Nasdaq Composite and S&P 500 sliding 2.9% and 2.3%, respectively.

Investors will watch corporate earnings from companies like Lucid, Palantir, Beyond Meat, and Paramount on Monday, as they are expected to report better-than-expected quarterly results.

Later in the week, investors will focus on the release of July consumer and producer price index data, which are closely linked to inflation and the economy’s health.

• ASIA Markets

Asia-Pacific markets experienced a decline as investors awaited China’s inflation figures and trade balance.

China’s trade balance and inflation data will provide insight into the country’s recovery trajectory.

Thailand and Indonesia also reported growth data.

Japan’s Nikkei 225 and Topix fell 1% and 0.52%, respectively.

The central bank’s summary of opinions for its July 28 meeting will be released.

Australia’s S&P/ASX 200 slid 0.25%, South Korea’s Kospi was down 0.16%, and the Kosdaq dropped 0.78%.

Hong Kong’s Hang Seng index also fell, with futures at 19,470 compared to the HSI’s close of 19,539.46.

• European  Markets 

European markets closed slightly higher on Friday, following corporate earnings and the Bank of England’s rate hike.

The Stoxx 600 provisionally closed 0.3% higher, with major bourses and most sectors in positive territory.

The benchmark index fell 2.7% this week.

Travel and leisure stocks led gains, up 1.7%, while food and beverages stocks dropped 0.6%.

The Bank of England raised its main interest rate to a 15-year high of 5.25% to tackle high inflation.

Investors are also analysing European banking results and U.S. employment data, which showed slower economic growth in July.

FTSE closed 0.47 percent higher at 7,564 points and DAX 0.37 percent higher at 15,951 points.

• Oil Prices

After major producers Saudi Arabia and Russia extended output curbs through September, adding to fears about undersupply, oil prices increased by more than a dollar a barrel on Friday to mark a sixth straight week of gains.

U.S. West Texas Intermediate crude increased $1.27, or 1.6%, to close at $82.82 a barrel, while Brent crude futures increased $1.10, or 1.3%, to close at $86.24 per barrel. On Friday, both benchmarks reached their highest points since the middle of April.

• Dollar Index

One dollar was trading at around Rs 82.68 in futures trading, while the Dollar index was down 0.53 percent at 102.01.

• Gold Prices

In response to a slightly weaker-than-expected U.S. jobs data that caused the dollar and Treasury yields to decline, gold prices increased on Friday. At the time, bullion was still on course to have its worst week in six.

According to the Labour Department’s closely-followed employment report, nonfarm payrolls rose by 187,000 jobs in the past month. Reuters polled economists, who predicted an increase of 200,000 jobs. By 11:08 a.m. EDT (1508 GMT), spot gold was up 0.3% to $1,938.69 per ounce. However, the price of gold has fallen 1% so far this week. Futures for U.S. gold increased 0.3% to $1,974.10.

STOCK IN NEWS

• Britannia Industries: The bakery food company declared consolidated profit of Rs. 455.45 crore for the quarter ended June FY24, up 35.65 percent from the same quarter the previous year. For the quarter, operating revenue increased 8.4% year over year to Rs 4,010.7 crore.

• Delhivery: The logistics company’s net loss for the three months ending in June FY24 was drastically reduced from Rs 399.3 crore to Rs 89.5 crore as a result of a dramatic decline in operational loss. During the quarter, total operating revenue increased 10.5 percent year over year to Rs 1,930 crore.

• CE Info Systems: The advanced digital maps and deep-tech company CE Info Systems recorded a profit of Rs 32 crore for the June FY24 quarter, up 32.2 percent from the same time the previous year, but with a PAT margin that dropped 120 basis points year over year to 32.7 percent. In Q1FY24, operating revenue increased 37.5 percent YoY at Rs 89.4 crore.

• Bank of Baroda: Despite increased provisions, Bank of Baroda reported a tremendous 87.7% year-over-year increase in profit for the quarter ended June FY24 of Rs 4,070.1 crore, helped by a solid operational income growth of 42.9 percent YoY. Comparing the current quarter to the same period last year, net interest income climbed by 24 percent to Rs 10,997 crore.

• ICICI Bank: The Reserve Bank of India has given permission to ICICI Bank, the second-largest private sector lender in the nation, to expand its investment in ICICI Lombard General Insurance Company in successive tranches up to 4%.

• Punjab & Sind Bank: The public sector lender recorded first-quarter profit of Rs. 153 crore, down 25.4% from the same time last year due to higher provisions (up 121% YoY) and moderate operating revenue growth. In Q1FY24, operating profit increased by 2% to Rs 257 crore. Net interest income increased by 4% year over year to Rs 738 crore, with gross advances up 10.4% and deposits up 12.5% during the same period. Regarding asset quality, net non-performing assets climbed by 11 bps to 1.95% during the quarter while gross non-performing assets decreased by 17 bps QoQ to 6.80%.

• Gujarat Fluorochemicals: Due to weaker topline and operating statistics, the chemicals company’s consolidated profit for the quarter ended in June FY24 fell by 34.3% year over year to Rs. 201.2 crore. The quarter’s operating revenue was Rs 1,209.3 crore, a 9.3% decrease from the same period the previous fiscal.

• Bharat Heavy Electricals: The state-owned manufacturer of power equipment reported a net loss of Rs 343.9 crore for the three months ended in June FY24, up from a loss of Rs 188 crore in the corresponding period last year. In comparison to the same time previous year, operating revenue increased by 7.09% to Rs 5,003.4 crore.

• Adani Enterprises: A subsidiary called Adani Digital Labs has paid Rs 6.8 crore for a 70.19% share in Stark Enterprises. Adani Digital Labs had paid Rs 3.56 crore in July to purchase a 29.81% stake in Stark Enterprises. The strategic acquisition would help the Adani Group grow its travel-related operations.

• Shipping Corporation of India: On the strength of strong operating results, the shipping business reported a consolidated profit of Rs 171.6 crore for the quarter ended June FY24, up 57.1% from the same quarter last year. With lower cost of services provided, EBITDA increased by 21.4% YoY to Rs 363 crore and the margin increased by 980 basis points to 30.2% in Q1FY24, but revenue decreased by 18% to Rs 1,200.1 crore.

• Rain Industries: The manufacturer of coal tar pitch and calcined petroleum coke reported a profit of Rs 165.7 crore for the quarter that ended in June 2023 (Q2CY23), a decrease of 75.2% from the same quarter a year earlier. Revenue fell by 16.5% YoY to Rs 4,627.1 crore, while EBITDA fell by 46.3% YoY to Rs 650 crore. During the same time span, the margin significantly declined by 775 bps to 14.05%. Lower realisations and lower volumes in the carbon segment had a significant negative impact on operating performance, while the advanced materials segment’s EBITDA was negatively impacted by lower volumes due to temporary facility outage.

• Repco Home Finance: The housing finance firm posted a profit of Rs 89 crore for the three months ended in June FY24, up 43.5% from the same period last year. Comparing the quarter to the same period in the previous fiscal, net interest income increased by 18.2% to Rs 162 crore, while the net interest margin increased to 5.1% from 4.6%. Operating income climbed by 21% YoY to Rs 364.5 crore, while loan sanctioning increased by 5% and disbursements increased by 7% YoY to Rs 684 crore.

• PG Electroplast: The provider of electrical manufacturing services and plastic moulding solutions saw a 106% increase in profit from the same quarter last year, to Rs 33.8 crore, while revenue increased by 26.3% to Rs 676 crore. In Q1FY24, quarterly EBITDA increased by 78.3% at Rs 67.1 crore. In comparison to FY23, the company anticipates a 30% increase in revenue to Rs 2,800 crore and a 28% increase in operating profit to Rs 210 crore in FY24.

• Radiant Cash Management Services: Societe Generale, a European financial services company, sold 19.61 lakh equity shares in Radiant Cash Management Services through open market transactions at an average price of Rs. 105.27 per share. As of June 2023, Societe Generale owned 24.32 lakh shares, or 2.28% of the firm.

• APL Apollo Tubes: The producer of structural steel tubes has announced strong revenue increase of 32.2% and profit growth of 60.4% YoY to Rs 193.6 crore. Sales volume increased by 56.5% to 6.62 lakh units during the quarter, and EBITDA per tonne rose by 1.26% to Rs 4,645 over the same time frame. Operating-wise, EBITDA in Q1FY24 increased by 58.4% to Rs 307.2 crore and the margin increased by 120 bps to 6.8% compared to the same period in the previous year.

• Meghmani Finechem: Due to a decline in realisations, the chemical manufacturer’s profit for the quarter ending June FY24 fell dramatically by 71% YoY to Rs 32 crore. Nevertheless, it managed to increase volume by 11% YoY, supported by the derivatives and specialty chemical market. When compared to the same quarter last year, revenue decreased by 15% to Rs 455 crore, while EBITDA fell by 49% to Rs 95 crore and the margin dropped by 1,420 bps to 20.9%.

• Affle (India): The IT company’s profit for the quarter ending in June FY24 was Rs 66.2 crore, up 21.4% over the same period the previous fiscal. To reach Rs 406.6 crore, operating revenue increased by 17% YoY, driven by growth in both CPCU and non-CPCU business across Indian and international markets. Operating-wise, EBITDA increased by 13.7% year over year to Rs 78.1 crore, but the margin decreased by 60 bps YoY to 19.2% in Q1FY24.

• Balrampur Chini Mills: Backed by strong operating results, the sugar producer reported a standalone profit of Rs 69.33 crore for the quarter ended June FY24, up six times from Rs 11.6 crore in the same period last year. In Q1FY24, revenue increased by 28.7% YoY to Rs 1,389.6 crore, while EBITDA increased by 267.4% to Rs 163.2 crore during the quarter and margins increased by 759 bps to 11.7% YoY.

• Balkrishna Industries: The tyre manufacturer recorded consolidated profit of Rs 331.9 crore for the quarter ended June FY24, up 8.1% over the same quarter last year. This increase was driven by good operating results and a dramatic decline in input costs as well as freight and forwarding costs. While EBITDA increased by 10.4% year over year to Rs 605.6 crore and the margin increased by 710 basis points to 28.05% for the quarter, revenue decreased by 17.6% year over year to Rs 2,159 crore. A interim dividend of Rs 4 per share was issued by the firm.

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