Closing Bell: Sensex, Nifty end flat amid volatility; media, realty shine

Indian benchmark indices ended flat in the volatile session on July 29. At close, the Sensex was up 23.12 points or 0.03 percent at 81,355.84, and the Nifty was up 0.01 points or 1.25 percent at 24,836.10,

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.

While benchmark indices hit fresh intra-day life-time highs and Nifty almost touched the 25k mark, most of the gains were lost and markets ended off their highs amid profit-taking in IT and telecom stocks. Going ahead, global market direction and corporate earnings will dictate the trend.

Nifty opened on a positive note and witnessed a volatile day of trade. It managed to close marginally in the green up ~8 points. On the daily chart we can observe that the Nifty has rallied around 800 points in the last three trading sessions.

The hourly momentum indicator has triggered a fresh negative crossover suggesting loss of momentum. Thus, there is a high probability that the Nifty is likely to consolidate over the next few trading sessions.

On the downside crucial support is placed at 24650 – 24600 where the key hourly moving averages are placed. On the upside, 25000 is the key psychological hurdle from short term perspective.

Bank Nifty has also witnessed an extremely volatile day of trade today. It faced resistance at the falling trend line (52300) derived by joining the previous couple of swing highs.

On the downside, 51200 – 51000 is a crucial support zone. Thus, the Bank Nifty is also suggesting rangebound price action over the next few trading sessions. In terms of levels, 51800 – 52000 is an immediate hurdle while support is placed at 51200 – 51000.

An ease in the US personal consumption expenditure to 2.5% and the subsequent drop in the US 10-year yield have fuelled optimism that the Fed might cut rates in September, leading to a global rally. However, profit-booking was triggered in the domestic market given trading in the overbought territory and closed flat. Policy meeting is scheduled for the Fed, BOJ and BOE this week, and investors are closely monitoring the developments. It is anticipated that the BOE may implement a 25-bps rate cut in response to easing inflation.

Indian bourses commenced the week at yet another record level of 24,940. After a minor dip in the morning trade, Banking counters set the stage for the Index to surpass the psychological barrier of 25,000 but a hidden bearish divergence in the RSI pulled BankNifty lower which put pressure on the Index to trade lower to end the day at 24,836.10 with a minuscule gain of 1.25 points.

On a sectoral front, PSU Banks and Media were the outperformers while FMCG and IT ended the session in red. Despite a steep reversal in the markets, Mid and Smallcaps held their gains to outshine the Frontline Index.

On the daily chart, the Index has formed a small red candle with a probable bearish divergence in RSI indicating a temporary pause in its journey towards the north. A level of 25,000 will continue to act as an immediate resistance while 22,560 is a strong support point.

Indian rupee ended flat at 83.73 per dollar on Monday versus Friday's close of 83.72.

Indian benchmark indices ended marginally higher in the volatile session on July 29.

Top Nifty gainers were Divis Labs, L&T, BPCL, Bajaj Finserv and SBI, while losers were Titan Company, Bharti Airtel, Hero MotoCorp, Tech Mahindra and Tata Consumer Products.

On the sectoral front, IT, FMCG, telecom down 0.4 percent each, while auto, bank, media, capital goods, oil & gas, power and realty rose 0.5-2.5 percent.

The BSE midcap index rose nearly 1 percent while smallcap index added 1.2 percent.

#1 Q1 PAT was well ahead of estimate, driven by higher NII & lower provisions

#2 Non-II growth was aided by release of provisions on SR redemption

#3 Non-II growth was aided by recovery from written-off accounts

#4 Asset quality performance was better than estimate in a seasonally weaker Q1

#5 Overall, gross slippages fell below 3 percent after 14 quarters

#6 Net flow into 0+ MFI book was contained at 3.4 percent

#1 Reported in-line Q1, revenues were largely inline

#2 Margins were slightly lower

#3 TTM down 42 percent YoY in Q1

#4 There are deals won in FY24 to be converted to revenues

#5 Headcount declined ~7 percent YoY in Q1

#6 Management says, discretionary spends trends hasn’t changed versus Q4

#7 Though there are some green shoots & early signs of recovery in mortgage

#1 Went into results with muted expectations on asset quality

#2 Were positively surprised by Q1– net slippages declined 50 percent YoY

#3 Credit costs came in at 1.7 percent vs 2.4 percent YoY

#4 Q1 is generally slow on balance sheet growth & this quarter was no exception

#5 Management still maintains its 18-20 percent loan growth target for the year

#6 See Loan growth largely coming in the second half

#7 NIM was stable & opex was in-line

#8 Raise PAT estimate by 5-7 percent driven largely by 20 bps lower credit costs

#1 Q1 PAT was in-line with estimate, NII was in-line as well

#2 NIM decline along expected lines

#3 Core PPoP was up 11 percent YoY with overall average

#4 Asset growth at 16 percent YoY with NIMs having moderated 42 bps YoY

#5 Opex growth at 11 percent YoY has been lagging overall asset growth

#6 Opex growth could offset NIM pressures to support operating margins

#7 Bank saw seasonally higher slippages in Q1 on account of its KCC portfolio

#8 Credit costs were however benign with 13 bps aid from AIF provision reversal

Indian rupee traded on flat note on Monday. Positive domestic markets and weak crude oil prices supported the Rupee. However, a recovery in the US Dollar and importer demand capped sharp gains.

We expect Rupee to trade with a slight negative bias on a month-end dollar demand from importers and OMCs. A recovery in the US Dollar ahead of FOMC meeting this week may also weigh on the Rupee. However, a positive tone in the domestic markets and fresh FII inflows may support the rupee at lower levels.

Investors may remain cautious ahead of FOMC, BoE and BoJ meeting this week. USDINR spot price is expected to trade in a range of Rs 83.50 to Rs 84.

#1 Target Rs 1,525 per share

#2 Q1 CIFC's PAT 3 percent beat vs our estimate

#3 Stronger NII, lower opex offset higher provision

#4 AUM grew 35 percent YoY as expected, auto disbursement growth improved

#5 NIM rose 10 bps QoQ due to higher yield, lower CoF

#6 Credit cost was up 19 bps YOY at 1.5 percent versus estimate of 1.35 percent

#1 NII Up 8.3% At Rs6,178 Cr Vs Rs5,703 Cr (YoY)

#2 Net NPA At 0.39% Vs 0.43% (QoQ)

#3 Gross NPA At 3.77% Vs 3.95% (QoQ)

#4 Net NPA At Rs2,026.6 Cr Vs Rs2,222.6 Cr (QoQ)

#5 Gross NPA At Rs20,302 Cr

#1 Net interest income Rs 362 crore, down 0.5% YoY

#2 Gross NPA at 1.69% vs 1.47% YoY

#3 Operating Profit Rs 172 crore, down 5% YoY

#4 Provisions Rs 20 crore, down 7.4% QoQ

#1 BEL Q1 revenue at Rs4240 crore, up 20% YoY

#2 BEL Q1 total costs Rs 3360 crore, up 14% YoY

#1 EBITDA was 20 percent ahead of estimate on lower gas costs

#2 Volumes declined YoY and were 2 percent below

#3 Expect volume growth to remain subdued over FY25-27e

#4 Slowdown in Delhi (70 percent of vol) & growing EV risk

#5 Rising APM shortfall puts a lid on margins

#6 Recent price hikes may not compensate fully for the higher Reliance on LNG

#7 Cut earnings by 8 percent/1 percent, on lower margin assumptions

The company has received an order from the Income Tax Department for FY20, raising a tax demand of Rs 38.13 crore on its subsidiary Jubilant Generics due to mistakes apparent from records apart from certain transfer pricing adjustments.

The gold financing company has received intimation from its subsidiary company and its service vendor (Manappuram Comptech and Consultants) about a potential fraud perpetuated by an employee.

The estimated quantum of the potential fraud is Rs 20 crore.

It has appointed KPMG to conduct a detailed analysis of the fraud.

#1 Q1 profit missed estimates due to higher credit losses in MFI segment

#2 Drag may sustain in Q2-Q4 as well

#3 New disclosure on vintage delinquency of other retail loans is encouraging

#4 Deposit growth of 36 percent to aid loan growth & improvement in LDR (97 percent now)

#5 Operating efficiencies are evident and will aid profits over H2FY25-27

#6 Lower estimate for MFI losses, but see RoA rising to 1.4 percent in FY27

#1 Management commentary continues to be constructive

#2 BFS vertical has been witnessing improving trends

#3 However, execution has scope to improve

#4 Post the run-up since end of May, valuations are not cheap

#1 Q1 EPS of Rs 71 was above estimate

#2 Beat driven largely by higher one-off compensation booking

#3 Beat partially offset by higher costs

#4 Yields and ASK/RPK were largely in-line with estimate

#5 Passenger fleet size increased to 379 planes, with 8 from new deliveries

#6 Aircraft groundings were stable at mid-70s

#7 Company expects groundings to start coming down by end of FY25

#8 For Q2, company expects high-single digit YoY ASK growth

The company has received permission from the Chhattisgarh Environment Conservation Board for setting up a 2 million ton pellet plant for the expansion of iron ore pelletisation capacity from 2.7 to 4.7 MTPA.

The pellet plant is proposed to be financed from internal accruals of the company and is expected to be commissioned by Q1FY26.

The company has received an order from the Assessment Unit, Income Tax Department (NFAC) for the Assessment Year 2013-14, demanding Rs 1,884.3 crore on July 25. It has already filed an application for rectification of mistakes on July 26 and is hopeful of a favourable outcome from the said rectification application. It also believes that the erroneous demand should be revised to reflect the correct tax liability of NIL.

The Gujarat Pollution Control Board (GPCB) has issued a closure notice for the company’s Ankleshwar facility. The sample collected from the GIDC storm water drain was found to be contaminated with high COD levels and other parameters.

GPCB has ordered the company to deposit interim environment damage compensation as determined by GPCB and to submit a bank guarantee of Rs 15 lakh for compliance assurance at the time of revocation.

The pharma research company has re-designated Nitin Dharmadhikari as Chief Operation Officer effective July 26. Mudgal Kothekar, Vice President, and Sandeep Inamdar, Vice President - Clinical Development, have been designated as senior management personnel of the company effective July 26.

#1 Profit zooms 105.4 percent to Rs 126.7 crore Vs Rs 61.7 crore, YoY

#2 Revenue increases 15.8 percent to Rs 838.9 crore Vs Rs 724.2 crore, YoY

Hindustan Petroleum Corporation, ACC, Bharat Electronics, Arvind, ASK Automotive, Adani Total Gas, Adani Wilmar, Colgate Palmolive, CSB Bank, Data Patterns, Indian Bank, Jindal Saw, Kansai Nerolac Paints, Kalpataru Projects International, Pfizer, Quess Corp,Strides Pharma Science, Voltamp Transformers, Whirlpool of India, and Wonderla Holidays will release their quarterly earnings on July 29.

Shares of RITES zoomed more than 11 percent in the early trade on July 29 after the railway-linked state-run company informed the exchanges that it will hold a board meet on July 31 to consider a bonus issue of shares.

Along with the bonus issue proposal, the board will also consider its June quarter earnings and a first interim dividend for FY25. Read More

The step-down subsidiary of the company Strides Pharma Global Pte in Singapore has incorporated a company - Strides Pharma New Zealand Pty Limited in New Zealand.

Strides New Zealand will hold market authorizations for the products in New Zealand and will also undertake trading in pharmaceutical products.

#1 Strong quarter & run-rate for July seems to indicate an >25 percent volume growth

#2 With abundant domestic coal availability

#3 Un-requisitioned power & renewable plants trying to leverage infirm power think near-term tailwinds are supportive for volumes

#4 On regulatory front though, next 3-6 months could carry some uncertainty

#5 Results of shadow coupling expected from regulator

The board also approved a 1:1 bonus issue of shares to its investors.

#1 Reported a solid set with a steady sequential RoA at 2.36 percent

#2 Strong treasury gains offsetting a marginal drop in NIM

#3 Normalisation of credit costs from ultra-low levels seen in last quarter

#4 Loan growth & deposit growth were both healthy

#5 Loan & deposit growth driving a healthy +14 percent YoY EPS growth

#1 Profit plunges 53.8 percent to Rs 51.3 crore Vs Rs 111.1 crore, YoY

#2 Net interest income increases 43 percent to Rs 416.9 crore Vs Rs 291.6 crore, YoY

#1 Sharp fall in soda ash, China soda ash drops 6 percent today

#2 China soda ash prices drop to lowest levels since April

#3 In last one month, soda ash prices fall 17 percent

#1 We will be spending significantly across businesses

#2 Biggest expansion will be in the chemicals and carbon black business

#3 Looking to spend Rs 35,000 crore over the next 12-18 months

#4 Looking to spend over Rs 50,000 crore over the next 3 years

#5 Targeting Rs 2 lakh crore of market capitalisation in the next 30 months

#6 PCBL margin can go up to 17-18% from the current 16%

The automobile company has received a final assessment order with a total tax demand (including interest) of Rs 779.2 crore. It has also received a Show Cause Notice for the initiation of penalty proceedings concerning this order.

Maruti will be filing an appeal before the Income Tax Appellate Tribunal and stated that the order would have no impact on the financial, operational, or other activities of the company.

Ola Electric Mobility Ltd has set a price band of Rs 72-76 a share for its initial public offering that will open for subscription on 2 August.

The anchor investor bidding will start on August 1 and the issue will close on August 6.

The issue comprises a fresh issue of Rs 5500 crore and an offer for sale of upto 84.94 million. On the upper price band, OFS comes at Rs 645.96 crore. The total issue size will be at Rs 6145.96 crore. Total mcap of the firm will be at around Rs 33500 crore. Read More

#1 Profit increases 27.3 percent to Rs 415.5 crore Vs Rs 326.5 crore, YoY

#2 Revenue rises 6.7 percent to Rs 1,369.2 crore Vs Rs 1,283.3 crore, YoY

#3 Gross NPA drops to 3.91 percent Vs 4.08 percent, QoQ

#4 Net NPA falls to 0.76 percent Vs 0.79 percent, QoQ

The US Food and Drug Administration conducted the cGMP and pre-licensing inspection at Biocon Biologics’ facilities in Bengaluru during July 15-26. At the close of the inspection, the regulator issued a Form-483 with 10 observations: one across the four drug substance facilities, seven across the two drug product facilities, and two on the analytical quality control laboratories.

BHEL has received a Letter of Intent (LOI) from Damodar Valley Corporation (DVC) for setting up the 2x800 MW Koderma Phase-II thermal power station at Koderma in Jharkhand on an EPC basis. The contract is worth Rs 10,000 crore.

#1 Reported a solid set with a steady sequential RoA at 2.36 percent

#2 Strong treasury gains offsetting a marginal drop in NIM

#3 Normalisation of credit costs from ultra-low levels seen in last quarter

#4 Loan growth & deposit growth were both healthy

#5 Loan & deposit growth driving a healthy +14 percent YoY EPS growth

#1 Q1 revenue/EBITDA above estimate, driven by robust performance in core markets

#2 Margin beat primarily driven by better GMs

#3 EBITDA margin partially offset by higher SG&A spends

#4 Raise FY25-27E EPS by 2 percent-12 percent to factor in Q1 beat

#5 Higher growth for India/US business & updated business outlook

#1 Delivered balanced Q1, loan growth & deposit growth were in mid-teens

#2 NIM moderated a few bps sequentially

#3 PPoP grew slightly faster than NII due to some ops leverage

#4 Gross NPL ratio was stable & credit costs were benign at 45 bps

#5 Among large banks, ICICI has highest standard asset provisioning

#6 Fee income was slightly tepid, growing 13 percent YoY

#1 Profit rises 0.2 percent to Rs 594.5 crore Vs Rs 593.3 crore, YoY

#2 Revenue increases 11.4 percent to Rs 4,358.6 crore Vs Rs 3,911.9 crore, YoY

#1 Profit jumps 82 percent to Rs 348.5 crore Vs Rs 191.7 crore, YoY

#2 Revenue increases 2.7 percent to Rs 1,754.7 crore Vs Rs 1,707.8 crore, YoY

The cement major has received board approval for the acquisition of a 32.72% stake in India Cements at a price of Rs 390 per share. The cost of acquisition is Rs 3,954 crore. In addition, it announced an open offer for an additional 26% stake in India Cements at Rs 390 per share, which is a 4 percent premium over Friday's closing price.

#1 NII broadly in-line with estimate & led by average balancesheet growth

#2 Margins moderated by 3 bps QoQ to 3.07 percent

#3 Asset quality trend was better than expected with lower slippage, credit cost

#4 Management lowered FY25 credit cost guidance to 50 bps Vs 100 bps earlier

#5 Adjusted for which, net credit cost was just 2 bps Vs negligible last quarter

#6 SMA 1&2 appears elevated at 2.5 percent & is key to watch

#1 Profit declines 3.7 percent to Rs 3,412.2 crore Vs Rs 3,542.7 crore, YoY

#2 Revenue slips 1.7 percent to Rs 10,068.2 crore Vs Rs 10,244.6 crore, YoY

#3 EBITDA drops 2.9 percent to Rs 8,744.1 crore Vs Rs 9,004.8 crore, YoY

#4 EBITDA margin falls to 86.8 percent Vs 87.9 percent, YoY

Hindustan Petroleum Corporation, ACC, Bharat Electronics, Arvind, ASK Automotive, Adani Total Gas, Adani Wilmar, Colgate Palmolive, CSB Bank, Data Patterns, Indian Bank, Jindal Saw, Kansai Nerolac Paints, Kalpataru Projects International, Pfizer, Quess Corp,Strides Pharma Science, Voltamp Transformers, Whirlpool of India, and Wonderla Holidays will release their quarterly earnings on July 29.