Closing Bell: Market falters after good start; Nifty below 24,000, Sensex down 126 points

Although a strong opening reaching higher levels was seen in the opening trade, the Index failed to hold its gains and gradually erased it. In the 2nd half of trading, selling pressure intensified, and the Index wiped off all its gains to end the session at 23,992.55 with a loss of 63.05 points.

A mixed trend was seen across the board where Realty and IT were the top gainers while PSU Banks corrected the most followed by Auto.

From the broader markets, Midcaps and Smallcaps corrected by 0.61% & 0.39% and underperformed the Frontline Index.

The near-term outlook for Nifty50 turned bearish unless it gives a convincing move above 24,400 while on the downside, 50DMA support i.e. 23,880 will be considered as immediate support.

Indian rupee ended at fresh record low at 83.95 per dollar on Tuesday against Monday's close of 83.84.

Indian benchmark indices ended marginally lower in the highly volatile session on August 6 with Nifty below 24,000.

At close, the Sensex was down 125.84 points or 0.16 percent at 78,633.56, and the Nifty was down 63.05 points or 0.26 percent at 23,992.55.

HDFC Life, SBI Life Insurance, Shriram Finance, BPCL and SBI were among the top Nifty losers, while gainers included Britannia Industries, JSW Steel, HUL, L&T and Tech Mahindra.

Among sectors, auto, bank and oil & gas down 0.5 percent each, while IT, metal, realty up 0.3-0.8 percent.

The BSE midcap and smallcap indices ended shed 0.5 percent each.

#1 Headline India/consolidated EBITDA +12 percent/1 percent YoY which is a mild miss

#2 Q1 consolidated PAT beat led by one-off exceptional items

#3 In view of strong stock outperformance, believe ARPU miss could weigh on short-term sentiment

#4 Over next 1-2 years, remain constructive on improvement in earnings, cash flow

#5 Remain constructive on improvement in returns trajectory in India's telecom sector

#1 Q1 standalone EBITDA was 3 percent ahead of estimates

#2 Q1 domestic production was broadly in-line

#3 Realisations were slightly ahead of expectations

#4 Q1 PAT was in-line with estimates & consensus, offset by higher D&A and interest expense

#5 Growth guidance on production especially Krishna Godavari basin key to watch out for

#6 Premium price realisation from new wells in nomination fields key to watch out for

Indian Rupee hit fresh all-time low today on mixed to weak global equities on rising concerns over recession in the US and the geopolitical tensions in the Middle East. Sentimental impact of unwinding of the Yen carry-trade also weighed on the riskier currencies such as the Rupee. However, potential intervention by the RBI and a recovery in the domestic markets prevented a sharp fall.

We expect Rupee to trade with a negative bias on risk aversion in the global markets, amid geopolitical tensions in the Middle East and rising risk of recession in the US which may lead to outflows by foreign investors. However, overall weakness in the US Dollar and declining crude oil prices may support the Rupee at lower levels. Any further intervention by RBI may also support the Rupee. Traders may take cues from trade balance data from the US. Investors may watch out for RBI’s monetary policy decision this week. USDINR spot price is expected to trade in a range of Rs 83.75 to Rs 84.20.

The Sensex was down 210.76 points or 0.27 percent at 78,548.64, and the Nifty was down 55 points or 0.20 percent at 24,006.45.

QIB – 4.10 times

NII - 2.14 times

Retail – 3.67 times

Employee Reserved - 11.07 times

#1 Net Profit Up 23.7% At Rs 3,718 Cr Vs Rs3,006.9 Cr (YoY)

#2 NII Up 23.5% At Rs4,328 Cr Vs Rs3,503.3 Cr (YoY)

#3 Declares 1st Interim Dividend Of Rs3.25/Sh

#1 Revenue Up 98% At Rs937.7 Cr Vs Rs473.4 Cr (YoY)

#2 EBITDA At Rs101.3 Cr Vs Rs45.8 Cr (YoY)

#3 Margin At 10.8% Vs 9.7% (YoY)

#1 Q1 India mobile performance in-line

#2 Consolidated Revenue/EBITDA, both up 2 percent QoQ were slightly (1-2 percent) below estimate

#3 Encouragingly, India capex showed signs of moderation, consistent with past management commentary

#4 India capex drove an improvement in FCF generation along with deleveraging

QIB – 1.54 times

NII - 1.95 times

Retail – 3.53 times

Employee Reserved - 10.79 times

#1 Q1 in-line; positive commentary continues

#2 Growth in core businesses improved sequentially

#3 Management expects double-digit topline growth in FY25

#4 Management maintained EBITDA margin at FY24 level (21 percent)

#1 Q1 results were in-line

#2 EBITDA margin at 16.1 percent, up 213 bps YoY due to 135 bps YoY decline in employee cost, 28 bps YoY decline in other expense

#3 Company’s focused portfolio aligned to India’s automation megatrends

The company board approved proposal for buyback of up to 2,85,600 fully paid-up equity shares of face value Rs 2 each by the company, representing upto 0.41% of the total number of equity shares of the company, at a price of Rs 2,500 at cash for a total consideration not exceeding Rs 71,40,00,000.

#1 Net profit at Rs 88 crore Vs Rs 24 crore, YoY

#2 Revenue up 76% at Rs 531 crore Vs Rs 302 crore, YoY

#3 EBITDA at Rs 111 crore Vs Rs 26 crore, YoY

#4 Margin at 20.9 percent Vs 8.6 percent, YoY

#1 Company continues to deliver below-system loan growth & margin compression

#2 Believe management guidance is optimistic as competition would keep loan growth & NIM under pressure

#3 Estimate a 5 percent EPS CAGR over FY24-27

The biopharma company has received an Establishment Inspection Report (EIR) with Voluntary Action Indicated (VAI) from the US Food and Drug Administration (USFDA) for its API facility in Visakhapatnam, Andhra Pradesh.

The USFDA conducted a GMP inspection of the facility between June 17 and June 21.

The company has announced the incorporation of Lupin Lanka (Private) Ltd in Sri Lanka as its wholly-owned subsidiary. Additionally, it has received a centralized Show Cause Notice from the Maharashtra GST Authority, seeking recovery of Rs 336.2 crore in taxes, along with applicable interest and an equivalent penalty of Rs 336.2 crore for the period from July 2017 to March 2022.

Nitish Shetty has resigned as Chief Executive Officer and Senior Management Personnel of the company to pursue an entrepreneurial opportunity.

#1 Retain FY24/FY25 EPS estimates

#2 Company focuses on expanding distribution, primarily in the rural, innovating products, and scaling up in related categories

#3 Rural demand is reviving and it should gradually start driving volume growth in FY25

#4 Expect the volume recovery trend to continue in FY25

#5 The company is operating at a peak margin; do not see any margin catalysts in the near term

#6 Estimate EBITDA margin of 19-19.5% for FY25/FY26

Indian rupee is trading at record low at 83.92 against the US dollar. On Monday it closed at 83.84 per dollar.

Sportskeeda Inc., a wholly owned subsidiary of Absolute Sports, a material subsidiary of Nazara Technologies, has on August 06, 2024, entered into an Asset Purchase Agreement with Deltias Gaming LLC, a Nebraska Limited Liability Company and Mr. Jacob A. Hausman (a.k.a Deltia), the Founder of Deltias Gaming LLC for acquisition of all the Intellectual Property Rights including but not limited to Domain Rights, trademark, content, website, software codes etc. of the seller, for an aggregate consideration of USD 900,000 (equivalent to approximate INR 7.57 Crores) to be paid in cash by in one or more tranches.

The forty-seventh Annual General Meeting (post-IPO) of the company’s members will be held on August 29.

#1 Profit drops 67.6 percent to Rs 190 crore Vs Rs 587 crore, YoY

#2 Revenue falls 10.2 percent to Rs 3,789 crore Vs Rs 4,218 crore, YoY

Shares of Brigade Enterprises surged over 6 percent on August 6, a day after the Bengaluru-based real estate firm reported that its profit in the fiscal first quarter (Q1FY25) grew nearly four-fold on-year to Rs 81 crore.

The company's strong launch pipeline provides growth visibility in the near term, according to Motilal Oswal. The company’s consolidated revenue from operations grew 62 percent YoY to Rs 1,113 crore during the April to June FY25 period.

Brigade Enterprises recorded presales of Rs 1,086 crore during the period, alongside a sales volume of 1.15 million square feet. Its average realisation stood at Rs 9,483 per square foot during the three months, the real estate player said in a regulatory filing.

#1 Profit jumps 20.9 percent to Rs 148.9 crore Vs Rs 123.1 crore, YoY

#2 Revenue grows 16.7 percent to Rs 2,184.8 crore Vs Rs 1,871.8 crore, YoY

#1 QIB – 0.42 times

#2 NII - 1.46 times

#3 Retail – 3.25 times

#4 Employee Reserved - 10.14 times

Shree Cement, Tata Power, Lupin, PB Fintech, Power Finance Corporation, Bajaj Electricals, Bata India, Blue Star, Bosch, Chambal Fertilisers & Chemicals, Cummins India, EIH, Gland Pharma, Gujarat Gas, IIFL Finance, Krsnaa Diagnostics, Linde India, PI Industries, Symphony, TVS Motor Company, Vedanta, and VIP Industries will release their quarterly earnings on August 6.

#1 First phase of 500mw will be operational by 2026

#2 Factory will be build in partnership with US based Splitwaters

#1 Skanray order for developing surgical imaging tech

The Sensex was up 649.76 points or 0.82 percent at 79,411, and the Nifty was up 0.82 percent at 24,252.10.

Ashapura Logistics Limited's Initial Public Offering (IPO) made a strong debut on the NSE SME on August 6, with its shares listing at 28.5 percent premium. The shares began trading at Rs 185 apiece, above the issue price of Rs 144.

The Rs 52.66-crore IPO includes a fresh issue of 36.57 lakh shares. The IPO, with a price band set between Rs 136 and Rs 144 per share, was subscribed 185.75 times.

The bidding period for the IPO ran from July 30 to August 1. The issue was oversubscribed in all categories, with retail investors subscribing 174.21 times, Qualified Institutional Buyers (QIBs) 128.23 times, and Non-Institutional Investors (NIIs), 289.33 times.

Shares of Bulkcorp International made a strong debut on the NSE SME, listing at Rs 130 per share, up 24 percent from its IPO upper price band of Rs 105 per share. The issue was subscribed 176.35 times, driven by retail investors, non-institutional investors, and qualified institutional investors.

The IPO opened for bidding on July 30, 2024, and closed on August 1, 2024, with a price band set at Rs 100 to Rs 105 per share. It comprised a fresh issue of 1,978,800 equity shares, reducing the promoter and promoter group shareholding from 98.10 percent to 72.26 percent.

Rajputana Industries Limited's Initial Public Offering (IPO) made a striking debut on August 6 on the NSE SME platform, with shares listing at a remarkable 90 percent premium. The stock opened at Rs 72.20, well above the issue price of Rs 38.

The book-built issue, amounting to Rs 23.88 crore, offered 62.85 lakh new shares priced between Rs 36 and Rs 38. The subscription period ran from July 30 to August 1, with allotment finalised on August 2.

The IPO was subscribed 376.41 times overall. The retail category was oversubscribed by 524.61 times, while the Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII) categories were subscribed 177.94 times and 417.95 times, respectively. The issue also raised Rs 6.12 crores from anchor investors on July 2

Grasim Industries, Ipca Laboratories, Batliboi, Bombay Oxygen Investments, Fermenta Biotech, LT Foods, Morganite Crucible, Oriental Aromatics, TCI Express, TD Power Systems, Usha Martin, West Coast Paper Mills

The monetary policy review (MPC) will maintain it stand of status quo as the GDP growth still strong. However, the policy stance may change as the core inflation is still not with in manageable limits.

On the global front Fed will turn cautious due to US labour market concerns. RBI will not do any rate cuts, in the FY 2024-25. Market expecting a cut if we are looking at the behaviour of the bond yields. The benchmark 10-year bond yield is at 6.9 percent.

#1 Q1 India mobile performance in-line

#2 Consolidated Revenue/EBITDA, both up 2 percent QoQ were slightly (1-2 percent) below estimate

#3 Encouragingly, India capex showed signs of moderation, consistent with past management commentary

#4 India capex drove an improvement in FCF generation along with deleveraging

The Sensex was up 787.72 points or 1 percent at 79,556.26 and the Nifty was up 1.21 percent at 24,346.65.

#1 Profit increases 31.9 percent to Rs 80.41 crore Vs Rs 61 crore

#2 Revenue grows 23 percent to Rs 463.3 crore Vs Rs 376.4 crore

Seedlings India, a wholly owned subsidiary of Best Agrolife has been granted a patent by the Indian Patent Office-Government of India for an invention entitled Synergistic Fungicidal Composition for the term of 20 years commencing from August 9, 2021 in accordance with the provisions of the Patents Act, 1970.

Shree Cement, Tata Power, Lupin, PB Fintech, Power Finance Corporation, Bajaj Electricals, Bata India, Blue Star, Bosch, Chambal Fertilisers & Chemicals, Cummins India, EIH, Gland Pharma, Gujarat Gas, IIFL Finance, Krsnaa Diagnostics, Linde India, PI Industries, Symphony, TVS Motor Company, Vedanta, and VIP Industries will release their quarterly earnings on August 6.

#1 Profit jumps 130 percent to Rs 511.2 crore Vs Rs 222.6 crore, QoQ

#2 Revenue grows 2.3 percent to Rs 1,910.6 crore Vs Rs 1,868 crore, QoQ

#3 EBITDA falls 0.25 percent to Rs 911.7 crore Vs Rs 914 crore, QoQ

#4 EBITDA Margin drops to 47.7 percent Vs 48.9 percent, QoQ

#5 Exceptional gain at Rs 318.3 crore Vs Nil, QoQ