Closing Bell: Sensex, Nifty end higher amid volatility; IT shines

Indian benchmark indices ended marginally higher in the volatile session on August 14. At close, the Sensex was up 149.85 points or 0.19 percent at 79,105.88, and the Nifty was up 4.80 points or 0.02 percent at 24,143.80.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Friday morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

After showing sharp weakness on Tuesday, Nifty shifted into a narrow range movement on Wednesday and closed the day higher by 04 points. After opening with a positive note, the market shifted into a small high low range of around 96 points, that lasted for the entire session.

A small negative candle was formed on the daily chart, which is indicating a probable halt in downside momentum that triggered on Tuesday. This market action could be considered as a down trend continuation pattern. After the formation of series of bullish patterns like higher tops and bottoms on the daily chart over the last few months, Nifty seems to have formed a new lower top on Monday at 24472. Hence, further weakness from here could confirm this formation.

The immediate support of ascending trend line has been broken on the down side recently and the significant opening downside gap of 5th August remains unfilled. This is negative indication. A decisive move below 23900 could trigger near term downward correction in the market. Immediate resistance is placed at 24250-24300 levels.

Nifty remained sideways ahead of the US CPI inflation data release and the public holiday on Thursday. The overall trend is likely to remain weak, as the index continues to trade below the initial resistance level of 24,250.

Additionally, the index has been sustaining below the middle Bollinger Band, confirming a weak near-term trend.

This weakness might push the index towards 23,900/23,700. On the higher end, resistance is expected at 24,250/24,500.

The markets remained lackluster and closed flat, taking a pause after Tuesday’s decline. Following a subdued start, the Nifty traded within a narrow range and ultimately ended at the 24,143 level. Sector-wise, metal and pharma stocks were the top losers, while resilience in the IT sector helped limit the overall decline for the second consecutive session. The broader indices also slipped, losing over half a percent each.

With no major domestic triggers, participants are now looking to global markets for direction. An intermediate recovery in the US markets is providing some relief, but ongoing pressure in select heavyweight stocks across sectors is limiting the recovery. In light of the uncertain outlook, we recommend maintaining a cautious stance and adopting a hedged approach until there is more clarity on the market’s next move.

Markets snapped two session falls aided by positive cues from global markets. Although broader markets were subdued to weak, strong gains in IT and select auto stocks helped benchmark indices rebound. Investors maintained a cautious approach ahead of the US CPI data to be released later and refrained from taking bullish bets to avoid any risk emanating from global markets.

The domestic market traded within a narrow range; even as global markets saw a positive turnaround. Investors adopted a cautious stance due to weak domestic sentiment and the risks of earnings downgrades. Meanwhile, a decline in WPI inflation, driven by lower food prices, signals that the RBI is progressing towards its price stability target. The IT index edged up, reflecting optimism for improved US CPI data expected later today, which could increase the scope of a loose monetary policy from the Fed.

Lacklustre trade ended marginally higher at 24,143.75. Barring IT and Auto, all other sectors ended the day in red with Metal and Media being the major laggards.

Broader markets underperformed the Frontline Index as Mid and Smallcaps ended the session with a loss of over 0.50%.

Nothing has changed i.e. the Index remained in its well-maintained range of 23,970-24,400, awaiting a breakout on either side.

Indian rupee ended higher at 83.94 per dollar on Wednesday against Tuesday's close of 83.97.

Indian benchmark indices ended marginally higher in the volatile session on August 14.

At close, the Sensex was up 149.85 points or 0.19 percent at 79,105.88, and the Nifty was up 4.80 points or 0.02 percent at 24,143.80. About 1247 shares advanced, 2141 shares declined, and 91 shares unchanged.

Top Nifty gainers included TCS, HCL Technologies, Infosys, Tech Mahindra and BPCL, while losers were Divis Labs, Hero MotoCorp, Coal India, ONGC and UltraTech Cement.

Among sectors, except IT (up 1.5 percent), all other sectoral indices ended in the red capital goods, healthcare, oil & gas, metal, realty, pharma, media down 0.5-1 percent.

The BSE midcap and smallcap indices down 0.5 percent each.

#1 Q1 was a muted quarter

#2 1 percent PAT miss due to higher credit costs in standalone & MFI subsidiary

#3 Standalone NIM missed estimates owing to higher borrowings during quarter

#4 Yields were in-line with estimates even as gold loan yields fell 30 bps QoQ to 22.2 percent

#5 Management raised its guidance for gold loan growth from 12-13 percent to 15 percent for FY25

#6 Management also guided that credit costs at Asirvad Microfinance likely to remain elevated

#1 Q1 profit grew 11 percent YoY to Rs 1,080 crore (7 percent Miss) as beat in PpOP was offset by higher provisions

#2 Loan growth surprised positively, aided by higher gold prices

#3 Customer & tonnage growth improved QoQ

#4 NIMs fell QoQ, but held up better than estimates

#5 Gold gross NPA rose 70 bps QoQ

#6 Provision surprised negatively, but with LTV on gross NPA at 54 percent, loan losses should be limited

#1 Strong momentum across businesses; investment in growth continues

#2 Q1 broadly in-line

#3 Maintaining a healthy balance between leverage, RoCE and growth capex

#4 Management reiterated their commitment to remain <2.5x net debt/EBITDA

#5 Raise FY25-27 EPS by 9-19 percent

Indian Rupee gained on Wednesday on overnight decline in the US Dollar and elevated crude oil prices. a mixed to positive tone in the domestic markets also supported the Rupee. However, FII outflows and geopolitical tensions in the Middle East capped sharp gains. India’s WPI inflation rose 2.04% in July vs 3.36% in June and forecast of 2.39%. US Dollar fell as US PPI fell lower than expectations at 0.1% in July vs forecast of 0.2% and core PPI rose 0% in July vs forecast of 0.2%.

We expect Rupee to trade with a slight negative bias on elevated commodity prices and heightened geopolitical tension in the Middle East between Israel and Iran. However, weak Dollar and rising odds of a rate cut by Fed may support the Rupee. Positive global markets may also support the Rupee at lower levels. Traders may take cues from US CPI data today and retail sales data from. USDINR spot price is expected to trade in a range of Rs 83.75 to Rs 84.20.

#1 Q1 EBITDA rose 32 percent YoY & in-line with estimates

#2 India business is delivering well with good cost control in aluminum

#3 India business is delivering better margins in copper

#4 The recent slide in aluminium price poses some headwind

#5 Novelis is benefiting from improved beverage can demand

#6 The flooding issue at Swiss plant should normalise in H2

#7 Company’s 1.2x FY25 PB is reasonable

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#1 Revenue Rs 4350 crore, up 11% YoY

#2 Total costs Rs 3500 crore, up 8% YoY

#1 Exports fell 1.5% y/y

#2 Imports rose 7.5% y/y

#3 Exports were $33.98 bln

#4 Imports were $57.48 bln

#5 Services exports was $28.43 bln

#6 Services imports was $14.55 bln

The company board approved the proposal for the sale of the asset of the material subsidiary company Triumph Offshore subject to the approval of the shareholders of the company by way of postal ballot, completion of customary closing conditions under definitive documents and receipt of regulatory approvals, if any.

#1 Q1 revenue & PAT largely in-line

#2 Q1 EBITDA missed estimate by 6 percent

#3 Overall, EBITDA margin of 13.3 percent came below estimate of 14 percent

Sun Pharmaceutical Industries has entered into an agreement with Pharmazz Inc. Delaware US, to invest upto USD 15 million investment resulting in more than 5%holding in Pharmazz Inc.

#1 Company saw negative credit costs due to lower provisions on stage 1/3 assets

#2 Negative credit costs due to one-off gains supported otherwise weak operating profit

#3 AUM growth of 10 percent YoY was primarily driven by 43 percent YoY growth in retail book

#4 Some segments of its retail book are continuing to see a deteriorating 90+ DPD trend

#5 Believe this could put pressure on both growth and credit costs

#6 Management indicated near-term pressure on its cost of funds

#1 Profit increases 13.2 percent to Rs 23.6 crore Vs Rs 20.86 crore, YoY

#2 Revenue falls 1.7 percent to Rs 250.1 crore Vs Rs 254.4 crore, YoY

#1 Profit grows 34.1 percent to Rs 118 crore Vs Rs 88 crore, YoY

#2 Revenue increases 22.3 percent to Rs 2,021 crore Vs Rs 1,652 crore, YoY

#1 Q1 EBITDA & recurring PAT grew 19-21 percent YoY but were 6 percent below estimates due to lower-than-expected ASP & margin

#2 Volumes grew 13 percent YoY (+10 percent QoQ) but ASP declined 3 percent QoQ

#3 Gross margin contracted 130 bps QoQ

#4 EBITDA margin rose 10 bps QoQ to 14.4 percent on operating leverage benefit

#5 EBITDA/vehicle fell 3 percent QoQ

#6 Press release mentions that company has slew of launches in pipeline in both EV & ICE categories

#1 Increased priority sector lending (PSL) requirements to have marginal NIM impact

#2 NIM improvement led by better funding mix remains key RoA driver and will come at cost of loan growth

#3 Balancesheet course correction will be gradual

#1 Profit increases 8.2 percent to Rs 152.6 crore Vs Rs 141 crore, YoY

#2 Revenue grows 16.6 percent to Rs 1,815.1 crore Vs Rs 1,556.2 crore, YoY

#1 Q1 EBITDA was largely in-line

#2 With all acquisitions closed, expect balancesheet to start improving

#3 Ramp-up of non-auto business & additional details on consumer electronics business is key to watch

#1 Q1 India EBITDA was ahead of estimates on lower aluminium COP & better copper profitability

#2 Spot LME was USD 210/t lower than Q1

#3 Profitability impact is likely to be cushioned by a better mix and hedging

#4 With downstream expansion near complete, focus now shifts to upstream projects

#5 Upstream projects paves way for volume growth & margin expansion

#1 Profit surges to 38.5 percent to Rs 107.2 crore Vs Rs 77.4 crore, YoY

#2 Revenue grows 11.3 percent to Rs 2,144.2 crore Vs Rs 1,926.1 crore, YoY

The company has received board approval for monetization through the securitization of partial future revenue/return on equity of the Nathpa Jhakri Hydro Power Station (NJHPS). The board also approved, in principle, the dilution of stake in the subsidiary, SJVN Green Energy.

The company has executed definitive agreements with Goisu Realty (a subsidiary of Sumitomo Realty & Development Company) and received Rs 537.78 crore to complete the transaction of land sale at Worli.

#1 Loss stands at Rs 337.6 crore Vs Profit of Rs 15.5 crore, YoY

#2 Revenue jumps 19.1 percent to Rs 2,402.2 crore Vs Rs 2,017.6 crore, YoY

#3 Finance cost rises to Rs 889.42 crore Vs Rs 575.94 crore, YoY

#4 Depreciation cost spikes to Rs 466.16 crore Vs Rs 295.6 crore, YoY

#1 Profit rises 11.7 percent to Rs 556.5 crore Vs Rs 498 crore, YoY

#2 Net interest income surges 18.7 percent to Rs 1,639.9 crore Vs Rs 1,381.7 crore, YoY

#1 Profit surges 151.7 percent to Rs 13.64 crore Vs Rs 5.42 crore, YoY

#2 Revenue increases 22.8 percent to Rs 1,746.1 crore Vs Rs 1,421.8 crore, YoY

#4 Company to acquire 39 percent stake in Dot & Key Wellness From promoters or existing shareholders for Rs 265.3 crore

Ola Electric Mobility, Glenmark Pharmaceuticals, Astron Paper & Board Mill, Bajaj Healthcare, GMR Power and Urban Infra, Hindustan Aeronautics, Jaiprakash Associates, KNR Constructions, Lux Industries, Mazagon Dock Shipbuilders, National Fertilizers, Apeejay Surrendra Park Hotels, Sanstar, Shriram Properties, SpiceJet, Stanley Lifestyles, Sunteck Realty, and Vascon Engineers will announce their quarterly earnings scorecard on August 14.

#1 Profit spikes 82 percent to Rs 315.5 crore Vs Rs 173.4 crore, YoY

#2 Revenue grows 15.1 percent to Rs 5,085.6 crore Vs Rs 4,417.8 crore, YoY

The Sensex was up 131.42 points or 0.17 percent at 79,087.45, and the Nifty was up 8.20 points or 0.03 percent at 24,147.20.

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#1 Q1 revenues came in below estimates

#2 Subscriber losses were stable

#3 Miss on subscriber numbers was due to flat ARPU vs expectation of slight improvement

#4 Net loss narrowed QoQ, better than our estimate

#5 Narrow net loss led by higher other income (following the equity raise)

Mining stocks fell sharply after the Supreme Court affirmed legislative competence of states to levy tax and royalty on minerals, apart from Central levies. NMDC slipped more than 4 percent. A nine-judge Constitution Bench of the Supreme Court on August 14 delivered a crucial judgment on tax on mining companies, ruling that states can collect previous dues on royalty and tax on mineral bearing land from April 1, 2005. READ MORE

#1 Working On Recovering Market Share In 125cc Segment

#2 Electric 2-wheeler Ops Weighed On EBITDA Margin Apr-Jun

#3 To Launch Couple Of Models In Premium Segment FY25

#1 Odisha, Jharkhand & Tamil Nadu had such levies on mining

#2 All companies with mining in Odisha, Jharkhand & Tamil Nadu to be impacted

#3 Total estimate for overdue cess is about Rs 2 lakh cr

#4 For PSUs alone the impact could be about Rs 60,000 cr

#5 NMDC can be impacted because other states may come with levies

#6 States are mostly short of funds, so most will go ahead

#7 There might be some leeway given to PSUs by some states

#8 Vedanta has big exposure to Odisha, so it is likely to be impacted

#9 India Cements & Ramco could be impacted as well

#1 Supreme Court allows states to collect past dues in form of royalty & tax from April 2005

#2 Supreme Court affirms legislative competence of states to levy tax & royalty, apart from central levies

#3 Supreme Court rejects Mineral Area Dvpt Authority's plea for prospective realisation of levy by states

#4 States asked to not levy interest on past dues

#5 Time for payment of demand for tax shall be staggered in installments

#6 Time for payment of demand will be over a period of 12 years commencing from April 1, 2026

The Board of Directors of the company will meet on August 20 to consider raising funds through QIP or another method.

Total sales for July increased by 2.1% year-on-year to 64,929 units, but production fell by 1.2% to 69,138 units, and exports dropped by 40.4% to 1,515 units.