Closing Bell: Nifty hits fresh record high, Sensex gains 1,293 pts; all sectors in the green

Indian benchmark indices snapped five-day losing streak and ended higher on July 26 with Nifty touched fresh life-time high of 24,861.15. At close, the Sensex was up 1,292.92 points or 1.62 percent at 81,332.72, and the Nifty was up 428.70 points or 1.76 percent at 24,834.80.

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

Today, the market experienced a significant rally, gaining nearly two percent and reversing the recent negativity. The upbeat tone was evident from the start, with substantial buying in heavyweights across various sectors further driving the momentum. Consequently, both the Nifty and Sensex closed near their highs at 24,834 and 81,332, respectively.

This surge was fueled by improved sentiment following robust performances in IT and Metal stocks, as well as significant rollovers to the August series. Broader indices also reflected this strength, showing substantial gains.

The current trend suggests that bulls are in control, and we are likely to see further advances in the coming sessions. However, it is advised to remain selective, focusing on index majors and large midcaps.

Indian markets outperformed its global peers on the back of a strong across-the-board buying support after languishing in negative territory for the past five trading sessions. The sharp rebound signifies that India remains a good long-term bet and the economy continues to show strong resilience in spite of global uncertainty and geo-political tensions. Also, most of the blue chips and mid-cap companies have reported better earnings, which is providing a major impetus to markets.

The domestic market experienced a substantial rebound on the start of the next month expiry, recovering from the recent losses incurred following the Union budget. This upturn was driven by positive reactions to the better-than-expected US GDP, which augurs well for global demand. Investors are adopting buy on dip strategy, refocusing on quarterly earnings and stock-specific trends. Notably, gains were observed across sectors, with Metals and IT leading, and midcaps outperforming.

The Nifty has experienced a downward consolidation breakout on the daily chart, suggesting a rise in optimism. A sustained trade above the very short-term moving average, the 21 EMA, gave the index bulls the strength to take the Nifty to new highs amid global market weakness.

A fairly large green candle after several insignificant candles clearly signals a bullish trend ahead. The trend might remain positive as long as it stays above 24,500. On the higher end, the index might move towards 25,250.

On the daily chart of Bank Nifty, an outside day pattern has formed, suggesting a possibility of price expansion. Additionally, the index has reclaimed the 50-period exponential moving average. Over the short term, the trend might witness a bullish reversal. Going forward, a move above 51,500 might induce a decent rally towards 52,500. On the lower end, support is placed at 51,000.

Indian rupee ended flat at 83.72 per dollar on Friday against Thursday's close of 83.70.

Indian benchmark indices snapped five-day losing streak and ended higher on July 26 with Nifty touched fresh life-time high of 24,861.15.

At close, the Sensex was up 1,292.92 points or 1.62 percent at 81,332.72, and the Nifty was up 428.70 points or 1.76 percent at 24,834.80. About 2329 shares advanced, 1108 shares declined, and 75 shares unchanged.

Biggest Nifty gainers included Shriram Finance, Divis Labs, Apollo Hospitals, Bharti Airtel and Cipla, while losers were ONGC, Tata Consumer Products, and Nestle India.

All the sectoral indices ended in the green with IT, metal, pharma, realty, auto, FMCG, capital goods, telecom, media up 1-3 percent.

BSE Midcap index rises 2 percent and Smallcap index up 1 percent.

#1 Q1 consol PAT of Rs 214 cr primarily driven by its lending subsidiary – Bajaj Finance

#2 Bajaj Finance contributed 81 percent of company’s profit

#3 Bajaj Finance has strong AUM growth; pressure on NIM/elevated credit cost a concern

#4 Bajaj Allianz Life Insurance showed steady growth in APE

#5 Bajaj Allianz Life Insurance has pressure on margin due to change in product mix

#6 Bajaj Allianz General Insurance premium growth healthy; RoE inched up to 21.3 percent

#1 Tall take ahead for management to deliver on guidance

#2 Miss on Q1 margin; unlikely near-term relief

#3 Needs Mid-teens growth and nearly 100 bps margin improvement in H2

#4 Management alluded to seeing improvement in US biotech funding

#5 Management alluded start of pilot projects in discovery which should help them pick up pace in H2

#6 Believe any meaningful impact of same is likely to come in FY26 only

#1 Profit jumps 46.2 percent to Rs 91.9 crore Vs Rs 62.8 crore, YoY

#2 Revenue increases 16.8 percent to Rs 879.9 crore Vs Rs 753.2 crore, YoY

#1 Profit plunges 31.6 percent to Rs 60.6 crore Vs Rs 88.7 crore, YoY

#2 Revenue grows 16.2 percent to Rs 361 crore Vs Rs 310.8 crore, YoY

#3 Tax expenses at Rs 17.07 crore Vs tax write-back of Rs 51.5 crore, YoY

#1 Profit rises 7.4 percent to Rs 284.5 crore Vs Rs 265 crore, QoQ

#2 Revenue (excluding excise duty) increases 1.4 percent to Rs 1,589.6 crore Vs Rs 1,567 crore, QoQ

#1 Airtel Africa Q1FY25 revenue/EBITDA fell short of estimates

#2 Other key highlights were lower capex, full repayment of holdco debt, continued traction in mobile money

#1 Q1 PAT was 2 percent above estimates

#2 PBT was only 1 percent above estimate as NII miss of 1 percent was offset by 4 percent beat on operating costs

#3 Credit cost of 20 bps was in-line with estimates

#4 Tweak FY25-27 EPS estimates

#5 Remain equal-weight as valuation, 2.8x NTM P/BV, appears full for F2027 RoE of 15.3 percent

While the stock market seems to be shrugging off the hike in capital gains tax on equities, mutual fund companies are hopeful that the increase in the long-term capital gains tax rate could actually result in investors adopting a longer-term view to minimize the tax impact. READ MORE

The company's profit jumped to Rs 110 crore in Q1FY25 from Rs 62 crore in Q1FY23

The IPO, with a face value of ₹10 each, is a mix of fresh issuance of Rs 250 crore and an offer for sale of up to 18.44 million equity shares by promoters and Other Selling Shareholders.

The Indian stock market made a strong comeback, with the Sensex soaring 1,000 points to surpass the 81,000 mark, while the Nifty moved closer to 24,800. This upward surge was fueled by impressive Q1 results. All sectoral indices attracted significant buying interest, with the Auto and IT indices hitting record highs. The MidCap index also recorded a notable 2% increase.

The Nifty has successfully surpassed the 24,600 resistance level and is now inching towards its all-time high of 24,850, which may act as the next hurdle. The 24,500 level is expected to serve as the new support for the Nifty.

Looking ahead, we anticipate the market to maintain its upward momentum, with earnings-driven, stock-specific movements influencing the intraday action. Overall, a "buy on dips" strategy is advisable in the current market scenario.

The company has successfully completed the United States Food and Drug  Administration (USFDA) inspection for its Oral Solid Formulation Facility (F-I) located at Panelav.

This was a scheduled GMP inspection and was successfully completed without any Form 483 observation.

The inspection was conducted from 17th July, 2024 to 26th July, 2024.

#1 Q1 EBITDA margin largely in-line with estimates

#2 Management mentioned that it continues to see strong demand in all its business units

#3 Company’s business segments such as power solutions, aftermarket contributed strongly to top line

#4 Defence, international operations also contributed strongly to top line

#5 Key catalysts will be improved CV growth, double-digit EBITDA growth over FY25-26F

A meeting of Board of Directors of Semac Consultants is scheduled to be held on Tuesday, 06th August, 2024 to, consider proposal for raising funds by way of issue of one or more instruments including equity shares/ convertible securities either by way of Preferential Issue/ Rights Issue/or any other mode as may be considered.

#1 Q1 sales growing 1 percent YoY, down 12 percent vs estimates

#2 Q1 sales growing impacted by weakness across divisions (except API segment)

#3 EBITDA margin also came below estimate at 14.3 percent, down 367 bps vs estimate

#4 EBITDA margin lower primarily due to higher R&D spends & operating deleverage

#5 Company did not provide quantitative topline guidance for FY25

#6 Management said that they have laid strong foundations for medium-term growth starting H2FY25

#7 Company expects margin to improve to 20 percent levels driven by asset utilisation & productivity gains

#1 Profit increases 15 percent to Rs 126.1 crore Vs Rs 109.7 crore, YoY

#2 Revenue grows 16.2 percent to Rs 542.4 crore Vs Rs 466.8 crore, YoY

#3 Assets under management rises 22 percent to Rs 17,841.5 crore Vs Rs 14,650 crore, YoY

#4 Disbursements up 13 percent at Rs 1,210.9 crore Vs Rs 1,068.2 crore, YoY

#1 Profit jumps 43.5 percent to Rs 84.2 crore Vs Rs 58.7 crore, YoY

#2 Revenue falls 5 percent to Rs 699.1 crore Vs Rs 736.7 crore, YoY

#1 Company embracing energy transitions across dimensions

#2 Company has strong EBITDA growth for businesses linked to renewables value chain

#3 Renewables value chain includes renewable power generation, solar equipment manufacturing

#4 Renewables value chain includes large-scale solar EPC projects & pumped storage

#5 Stock trades at 3.3x FY26 P/BV & 11.6x FY26 EV/EBITDA

#1 Stock underperformed going into Q1 earnings, & expect some recovery

#2 Quarter saw better than expected margin

#3 Credit cost was at 146 bps vs guidance of 110-120 bps, company retained its full-year guidance

#4 Q1 RoA was 1.6 percent in-line with full year guidance despite a seasonally soft quarter

#5 PAT 27 percent above estimate led by a strong beat on revenues as well as costs

#6 Margin beat was 10 bps, & fee income was 17 percent above estimates

The company board at its meeting to be held on July 30 will consider consider the proposal for buyback of fully paid-up equity shares of Rs 10 each of the company.

#1 Q1 EBITDA was below consensus largely on lower volumes (+1 percent YoY)

#2 Q1 profitability of Rs 733/t, (down 3 percent QoQ & 8 percent YoY) was higher than expected on better prices

#3 Company expects to achieve 30 mt capacity by FY26 after kurnool line 2 clinker expansion

#4 Company’s expectation to achieve 30 mt capacity looks higher than its earlier guidance

Sudershan Bajaj has resigned as Chief Financial Officer of the company due to personal reasons, effective July 31.

The company has entered into a definitive agreement to acquire a 100% stake in Bharat Serums and Vaccines Limited (BSV) from Advent International, for an enterprise value of Rs 13,630 crore.

#1 Profit falls 17.7 percent to Rs 111.5 crore Vs Rs 135.5 crore, YoY

#2 Revenue grows 1.8 percent to Rs 588.6 crore Vs Rs 578.5 crore, YoY

#1 Gross written premium grows 22.1 percent to Rs 2,660 crore Vs Rs 2,178 crore, YoY

#2 Profit jumps 74.1 percent to Rs 101 crore Vs Rs 58 crore, YoY

#3 Assets under management increases 33.3 percent to Rs 17,773 crore Vs Rs 13,337 crore, YoY

#4 Combined ratio falls to 105.4 percent Vs 106.2 percent, YoY

#1 Profit drops 36% to Rs 53.6 crore Vs Rs 83.7 crore, YoY

#2 Revenue (excluding excise duty) falls 3.6% to Rs 321.3 crore Vs Rs 333.3 crore, YoY

#3 Board approves issuance of 10 bonus shares for every 1 equity share held

#1 Profit climbs 27.5% to Rs 173.8 crore Vs Rs 136.3 crore, YoY

#2 Revenue (excluding excise duty) rises 8.8% to Rs 2,475.1 crore Vs Rs 2,274.8 crore, YoY

#1 The bill will levy cess on TV channels, OTT players & multiplexes. Under Bill, cess to be paid on cinema tickets, subscription fees

Despite markets being on positive note Sanstar listing was below to our listing expectation of ~22-25% while post listing the stock is headed towards to our expectation.

Despite market upbeat mood, we still continue to recommend allotted investors to book profits on listing day.

We not comfortable on the valuations which were slightly on the expensive side when compared to other listed peers.

#1 Q1 EBITDA was 9 percent ahead of estimate on lower gas cost

#2 Q1 overall volume grew double-digits for second consecutive quarter, much ahead of IGL

#3 Expect strong volume growth over FY25/26 on strong RO additions

#4 Rising APM shortfall puts a lid on margin, but recent price hikes are assuring

#5 Raise target multiple to 16x- in line with IGL's since company’s volume growth outlook is superior

Zydus Lifesciences, Power Finance Corporation, RBL Bank, Symphony, Twentyfirst Century Management Services, Aarti Industries, ADF Foods, The Anup Engineering, Associated Alcohols & Breweries, Aditya Vision, BASF India, Birla Cable, Bombay Cycle & Motor Agency, Bondada Engineering, Control Print, Coromandel International, Cosmo First, CreditAccess Grameen, Dollar Industries, Eveready Industries, Galaxy Surfactants, Godrej Agrovet, GRP, Infobeans Technologies, Intelligent Supply Chain Infrastructure Trust, JK Tyre & Industries, Jtekt India, Kaira Can, Kirloskar Brothers, Magellanic Cloud, Menon Bearings, Mukand, Nesco, Nitta Gelatin, NOCIL, Orient Paper, Paushak, Rane Holdings, Repco Home Finance, Raghav Productivity Enhancers, R R Kabel, Sasken Technologies, Sobha, Sonata Software, Sudarshan Chemical Industries, Super Sales India, Timken India, Tinna Rubber and Infrastructure, Ugar Sugar Works, Universal Cables, Vindhya Telelinks, Voith Paper Fabrics, Whirlpool of India, Yasho Industries

#1 Company embracing energy transitions across dimensions

#2 Company has strong EBITDA growth for businesses linked to renewables value chain

#3 Renewables value chain includes renewable power generation, solar equipment manufacturing

#4 Renewables value chain includes large-scale solar EPC projects & pumped storage

#5 Stock trades at 3.3x FY26 P/BV & 11.6x FY26 EV/EBITDA

Mphasis today announced the launch of Mphasis NeoCruxTM, an industry-first tool designed to improve software engineer’s productivity by streamlining the Software Development Lifecycle with the help of Generative AI (Gen AI) powered Agent Orchestrator.

This is one of the first platforms in the market that provides flexibility to engineers to integrate fit-for-purpose AI Agents instead of limiting their access to one AI agent.

In addition to NeoCrux, Mphasis also launched the only Gen AI-based Enterprise Modernization Platform in the marketplace, NeoZetaTM, that offers full transparency into the re-learning process so organizations can modernize mission-critical systems with confidence.

ICICI Bank, Dr Reddy's Laboratories, NTPC, Punjab National Bank, REC, IDFC First Bank, MCX India, Anant Raj, Finolex Industries, Genus Power Infrastructures, Jammu & Kashmir Bank, Meghmani Organics, SBFC Finance, Spandana Sphoorty Financial, Sumitomo Chemical India, and Transport Corporation of India will announce their quarterly earnings scorecard on July 27.