Closing Bell: Sensex, Nifty end flat; mid, smallcaps shine

Indian benchmark indices ended flat in the volatile session on August 19. The Sensex was down 12.16 points or 0.02 percent at 80,424.68, and the Nifty was up 31.50 points or 0.13 percent at 24,572.70.

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

The Indian market failed to catch up the initial gains as there is a degree of profit booking witnessed in auto stocks due to a slowdown in demand. However, oil stocks gained momentum with the reduction in windfall tax on crude oil. The recent healthy US economic data diminished the likelihood of a US recession, while a slide in the dollar index supported the hypothesis of a rate cut in the September FOMC meeting.

Markets began the week on a muted note and ended nearly flat, taking a breather after Friday’s surge. Following an initial uptick, the Nifty traded within a narrow range and ultimately closed at 24,580 level. Sectoral performance was mixed, with metals, energy, and IT showing decent gains, while auto and banking lagged behind. The broader indices followed a similar pattern, with the small-cap index performing well, gaining over one and a half percent.

The recovery in global markets is supporting the index's positive tone, but the underperformance of banking majors is limiting momentum. Amid all, we recommend maintaining a "buy on dips" strategy, with a focus on stock selection. Our preference remains for the IT and FMCG sector, and we suggest being selective in others.

Indian equities commenced the week on a strong note but Banking counters dragged the Index lower; however, IT stocks delivered support to the Index to recover from the lower levels but in the absence of momentum, the Index remained rangebound for the rest of the day and settled at 24,572.65 with gains of 31.50 points.

Among the sectors, Metal was the top performer by advancing over 1.80% followed by Energy; and on the flip side, Auto and BankNifty were the major laggards. A mixed activity was seen in the Broader markets where Midcaps more or less moved in tandem with the Frontline Index while Smallcaps outperformed.

On the daily chart, the Index has made a small red candle but the overall uptrend is intact and as per the range breakout, the approximate target comes to 24,870 with the downside being protected at 24,420.

The Nifty remained rangebound throughout the day, appearing to pause before the next rally. The index closed above the recent consolidation for the second consecutive day.

The trend likely favors the bulls as long as it stays above 24,300. On the higher end, the Nifty might move higher, with resistances placed at 24,750-24,800.

Indian rupee ended 8 paise higher at 83.87 per dollar on Monday against Friday's close of 83.95.

Indian benchmark indices ended flat in the volatile session on August 19.

The Sensex was down 12.16 points or 0.02 percent at 80,424.68, and the Nifty was up 31.50 points or 0.13 percent at 24,572.70. About 2462 shares advanced, 1089 shares declined, and 101 shares unchanged.

Top Nifty gainers were Hindalco Industries, BPCL, Shriram Finance, Tata Steel and LTIMindtree, while losers were M&M, Bajaj Auto, Axis Bank, IndusInd Bank and SBI Life Insurance.

On the sectoral front, except auto and bank, all other indices ended higher with healthcare, IT, metal, oil & gas, power, telecom, media up 0.5-2 percent.

The BSE midcap index was up 0.5 percent while smallcap index added 1 percent.

Post reporting better-than-expected performance in Q1FY2025, management targets to achieve double-digit EBITDA margin by FY1026.

The company’s margin improvement efforts are now paying dividend, as this was the consecutive second quarter when it has sustained EBITDA margin at 9% level.

The company witnessed a marginal dip in its market share in the 2W segment mainly due to weakness in Bajaj Auto’s export performance.

The Sunroof project has been progressing well in terms of volume ramp-up and financials. The Sunroof project has delivered an EBITDA margin of 14%, which management believes is sustainable.

Maintain buy rating on the stock with a revised price target (PT) of Rs. 558, driven by its strong brand reputation, expansion strategies, profitability focus, anticipated rise in content per vehicle, inorganic growth initiatives, and enhance export potential.

#1 Q1 was exceptionally strong

#2 Company was able to regain some of the lost market share although margin has been soft

#3 In projects, with no provisions, margin have bounced back but guidance remains unchanged

#4 Market share increase in appliances JV, Voltas Beko has been encouraging

#5 With RAC segment implying a valuation of 58x FY26 P/E, see limited re-rating potential

Indian Rupee gained on Monday on weak US Dollar and positive domestic markets. A decline in crude oil prices and FII inflows also supported the Rupee. US Dollar declined on Friday on disappointing housing market data. Building permits and housing starts were lower than expectations. However, Michigan consumer sentiment was better than forecast.

We expect Rupee to trade with a slight positive bias on rise in risk appetite in global markets and a weak US Dollar. Softening of crude oil prices may also support the Rupee. However, and geopolitical tension in the Middle East may cap sharp upside.

Investors may remain cautious ahead of PMI data from US and Fed Chair Powell’s speech at Jackson Hole Symposium for any cues on rate cuts by the central bank. USDINR spot price is expected to trade in a range of Rs 83.65 to Rs 84.20.

#1 Company has strengthened its position in room AC segment

#2 For Q2 management highlighted, it generally remains a lean period

#3 Company remains optimistic on demand for voltbek products in Q3FY25 led by festive spend

#1 Target raised to Rs 320 per share from Rs 260 per share

#2 Q1 surprised positively with stronger quick commerce GMV growthand solid 27 percent growth in food delivery

#3 Quick commerce & food delivery growth came ahead of estimates

#4 Margin expansion in both quick commerce & food delivery came above estimates

#5 Management was optimistic with an implicit positive guidance revision

#6 Post for Q1 FY26-28, GMV estimate is up 20-30 percent for quick commerce & 2-3 percent for food delivery

#7 Company is trading at FY27 EV/EBITDA of 35x versus average of Indian consumer/retail peers at 30x

#8 Company has a superior growth & margin expansion profile

#1 Company is in its most convincing operating period in over a decade due to strategic clarity & healthy metrics

#2 At 1.7x FY26 BVPS, stock still retains several re-rating triggers

#3 Company also has option value of a credit rating upgrade

#4 Risks for company include dependence on the vehicle finance portfolio for growth

#5 A slowdown in AUM growth would be negative

#6 Disproportionate stress in its personal loan portfolio could impact confidence in its asset quality

Expect company's EBITDA/adjusted profit to report a CAGR of 51%/79% over FY24-27, partly due to a low base (in FY24, it provided higher provisioning in the EMPS segment for losses in the Qatar projects)

RoE should be at ~15%/16% in FY26E/FY27E versus 4.1% in FY24 (average of 12.3% over FY13-23)

Expect UCP’s margin to improve to 8.8%/9.3%/9.5% for FY25E/26E/27E versus 8.5% in FY24

#1 Positive surprise in Q1 came from mechanical, electrical & plumbing (MEP) segment

#2 UCP growth was strong & in-line with company's strategy of market share gain

#3 Company’s Q1 performance reflects ongoing price competition

#4 Margin may have limited room to surprise positively in future

#5 EMP turnaround should result in mean reversion in operations as was case in quarter

#6 Sustainability of ordering is key

Bengaluru-based TruAlt Bioenergy has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise capital through an Initial Public Offering (IPO).

The IPO, with a face value of Rs 10 each, is a mix of fresh issuance of Rs 750 crore and an offer for sale of up to 36 lakhs equity shares by promoters group selling shareholders.

The offer for sale consists of up to 18 lakh equity shares by Dhraksayani Sangamesh Nirani, and up to 18 lakh equity shares by Sangamesh Rudrappa Nirani.

Shares of Caplin Point Labs jumped 14 percent to a fresh 52-week high in trade on August 19, after the Brazilian Health Regulatory Agency concluded its inspection.

The regulatory agency or ANVISA conducted an inspection of Caplin Steriles’ injectable and ophthalmic manufacturing facility located at Gummidipoondi. The inspection was conducted between August 12 and 16, 2024 and was concluded with zero observations.

The firm's chairman C C Paarthipan said, “It is indeed gratifying to have two back to back audits with zero observations. We remain steadfast in our commitment to maintaining the highest levels of quality compliance at all our sites."

Ramesh KS has been appointed as Chief Executive Officer (CEO) for ECS-2 Domain of the company, effective August 17. He will report to Nirmal K. Minda, Chairman and Managing Director of the company.

The Management Committee of the company has approved the public issuance of non-convertible debentures amounting to up to Rs 400 crore, with an option to retain over-subscription up to Rs 400 crore, aggregating up to Rs 800 crore.

The board has approved the re-appointment of Pranay Kothari as Whole Time Director, designated as Executive Director of the company, for three years, effective September 7.

#1 FDA issued a warning letter to Eugia 3, company’s key injectable plant

#2 Plant status is already classified as ‘OAI’

#3 See low risk of an FDA import alert for plant

#4 Believe FDA remains focused on ensuring supplies to US

#5 Assume 11 percent risk to FY25/26 EPS estimates

Zen Technologies announced the recent Patent Grant in India for its revolutionary "Mine Detection System". This innovation marks a substantial leap in the field of minefield reconnaissance, planning, and clearance, specifically addressing the development of a safer, more efficient, and accurate approach to mine detection.

The company has partnered with IndiGrid to collaboratively undertake the development of two of IndiGrid’s greenfield interstate transmission system (ISTS) projects. Under this partnership, Techno Electric will co-develop and invest in IndiGrid’s two ISTS projects, i.e., Ishanagar Power Transmission (IPTL) and Dhule Power Transmission (DPTL). Techno will invest minority capital and will also be responsible for the complete execution of the projects on a lump sum turnkey (LSTK) basis.

Shares of Genus Power saw only buyers as it was firmly locked in its five percent upper circuit as the firm's wholly-owned subsidiary bagged three Letter of Awards, clocking in at almost Rs 3,000 crore. The subsidiary received three Letter of Awards (LOA) worth totaling to Rs. 2,925.52 crore for the appointment of Advanced Metering Infrastructure Service Providers (AMISPs). READ MORE

DCX Systems shares snapped a three-day losing run to hit an upper circuit of 5 percent at Rs 337.95, after the company received orders worth Rs 107.08 crore from both domestic and international customers. These contracts involve the supply of electronic kits as well as cable and wire harness assemblies, and are scheduled for completion within the next 12 months. READ MORE

Jubilant Biosys Innovative Research Services Pte, Singapore, a subsidiary of Jubilant Biosys (a wholly-owned subsidiary of the company), has signed and issued a “put option offer” to Pierre Fabre Laboratories.

With this offer, Jubilant Biosys will acquire 80% equity capital (4.4 million euros over 2 years) in a new company to be incorporated in France. This new company will acquire Pierre Fabre’s R&D Centre (including R&D site and R&D activities) at Saint Julien, France.

This transaction will enable Jubilant Biosys to establish a center of excellence in Europe for Biologics and Antibody Drug Conjugate (ADC), opening up a total addressable market of $500 million. In addition, Pierre Fabre Laboratories may also hire services from Jubilant Biosys aggregating to 7 million euros for the first 4 years post-closing date.

The Reserve Bank of India has imposed a monetary penalty of Rs 1.27 crore on Bank of Maharashtra for non-compliance with certain directions issued by the RBI on ‘Loan System for Delivery of Bank Credit,’ ‘Cyber Security Framework in Banks,’ and ‘Know Your Customer.’

The Reserve Bank of India has imposed a monetary penalty of Rs 10 lakh on Poonawalla Fincorp for non-compliance with certain provisions related to the Fair Practices Code for NBFCs.

#1 Q1 was exceptionally strong

#2 Company was able to regain some of the lost market share although margin has been soft

#3 In projects, with no provisions, margin have bounced back but guidance remains unchanged

#4 Market share increase in appliances JV, Voltas Beko has been encouraging

#5 With RAC segment implying a valuation of 58x FY26 P/E, see limited re-rating potential

Strides Alathur Private Limited, a wholly owned subsidiary of Strides Pharma Science Limited (Strides) has received an Establishment Inspection Report (EIR) from the U.S. Food and Drug Administration (USFDA) for its formulations facility at Alathur, Chennai thereby successfully concluding the Good Manufacturing Practices (GMP) inspection conducted between April 1-5, 2024.

USFDA has determined that the inspection classification of this facility is “Voluntary Action Indicated” (VAI).

The board appointed Aravind Viswanathan as the Chief Financial Officer of the company with immediate effect, following the resignation of Manish Dugar as the Chief Financial Officer.

ANVISA-Brazil (the drug agency of Brazil) conducted an inspection of the company’s subsidiary Caplin Steriles’ injectable and ophthalmic manufacturing facility at Gummidipoondi. The inspection was conducted between August 12 and 16 and concluded with zero observations.

#1 Discussions about ‘intrinsic value’ of platform & potential upside scenarios have returned

#2 Value creation route includes finding corporate parent that could ease the regulatory overhang

#3 A merger with a bank/NBFC could unlock full value of platform

Veranda Learning Solutions announced its foray into the Middle East through its popular brand, J.K. Shah Classes. The company is partnering with Jumeira University Connect, the training arm of Jumeira University, to introduce a Chartered Accountancy (CA) preparation course for students in the UAE.

The company has received orders worth Rs 107.09 crore from domestic and overseas customers for the supply of electronic kits and cable & wire harness assemblies.

The company will explore various options for industrial land to set up a greenfield facility. In this regard, an investment intent has been submitted to the Government of Uttar Pradesh for the acquisition of land. The company has estimated direct and indirect investment of about Rs 4,500 crore plus to be done in phases, targeting an annual production revenue generation of over Rs 10,000 crore at full capacity. According to the company, there will be direct and indirect employment of more than 14,000 persons at full capacity.

Passenger traffic across all airports in July grew by 7.7% YoY to 1.06 crore, with domestic passenger traffic up 7.1% and international passenger traffic rising 9.3%. Aircraft movements increased by 6% YoY and 2% MoM to 68,755.

1.54 million shares of the company traded in a block: Bloomberg

Glenmark Therapeutics Inc., USA has launched Olopatadine Hydrochloride Ophthalmic Solution USP, 0.1% (OTC); compare to the active ingredient in Pataday Twice Daily Relief.

Khiroda Chandra Jena has resigned as Chief Financial Officer of the company, effective August 17, to pursue professional opportunities outside the organization.

#1 Target raised to Rs 320 per share from Rs 260 per share

#2 Q1 surprised positively with stronger quick commerce GMV growthand solid 27 percent growth in food delivery

#3 Quick commerce & food delivery growth came ahead of estimates

#4 Margin expansion in both quick commerce & food delivery came above estimates

#5 Management was optimistic with an implicit positive guidance revision

#6 Post for Q1 FY26-28, GMV estimate is up 20-30 percent for quick commerce & 2-3 percent for food delivery

#7 Company is trading at FY27 EV/EBITDA of 35x versus average of Indian consumer/retail peers at 30x

#8 Company has a superior growth & margin expansion profile