Closing Bell: Nifty at 24,540, Sensex rises 1,330 pts; Tech Mahindra, M&M, Tata Motors, Ultratech Cement top gainers

Nifty rallied above 24500 after days of consolidating within a 400-500 point range. In the near term, Nifty may continue consolidating within the 24300-24550 range. Only a decisive move above 24550 could trigger a directional up move in the index. A buy-on-dips strategy may be more effective unless Nifty decisively falls below 24300.

Broader domestic indices ended the week with gains. BSE Sensex, Nifty-50, BSE Midcap and BSE Smallcap indices posted weekly gains of upto 1%. On the sectoral front, BSE IT and BSE Realty index saw healthy weekly gains. BSE Metal index declined on a weekly basis as the Supreme Court allowed states to levy tax and royalty on minerals, apart from central duties, and collect past dues. Q1FY25 results season has concluded with the Nifty-50 Index reporting 5.2% yoy increase in the net profit. India’s CPI inflation in July 2024 fell to 3.5%, from 5.1% in June 2024. In the US, the annual headline inflation in July 2024 stood at 2.9%. Market expects Fed funds rate to decline gradually in H2CY24. The market focus will now shift towards macro data, monetary policy action and geo-political events.

Markets staged a robust recovery on Friday, gaining nearly 1.5%, driven by positive global cues. After opening with a gap-up, the Nifty initially lost all its gains in the early hours but rebounded due to strong buying interest in select heavyweight stocks. As a result, the Nifty decisively crossed the resistance at 24,400, closing near the day's high at 24,541.15. The rally was broad-based across sectors, with IT, realty, and auto stocks leading the gains. The broader indices also showed a solid recovery, each advancing nearly 2%.

With the Nifty breaking out of its consolidation phase, it appears poised to close the gap around the 24,700 level. If there is any dip, the 24,300-24,400 zone should provide support. We recommend aligning trades with a focus on stock picking. In the absence of any major domestic triggers, attention will remain on global market performance for further cues.

The stability of the JPY has been instrumental in driving a global market recovery. Besides that, the strong U.S. retail sales and a decline in weekly jobless claims have helped alleviate fears of a U.S. recession. Further, the market sentiment has improved due to a decrease in U.S. CPI inflation. On the backdrop of these, the Indian IT firms exhibited strong buying interest. Domestically, the Indian CPI inflation rate has fallen below the estimate, signalling optimism. However, challenges such as a drop in WPI inflation, weak IIP, and lukewarm Q1 corporate earnings suggest that market gains may be limited, which is reflected by FIIs maintaining a net seller position.

#1 PCIL has now become a subsidiary of the company effective today

Franklin Templeton Asset Management India is set to launch the Franklin India Ultra Short Duration Fund, an open-ended fund focused on investing in India’s debt markets. This marks the asset manager’s first fund offering since it wound up six fixed-income and credit-risk funds in 2020 due to a crisis in India’s credit market. Managed by Rahul Goswami, Chief Investment Officer for India Fixed Income, and portfolio manager Pallab Roy, the fund will invest in corporate bonds, certificates of deposit, commercial papers, treasury bills, and government securities, aiming for a Macaulay duration of 3 to 6 months. The fund offer will open on August 19 and close on August 28, with the fund reopening for sale and repurchase on August 30.

#1 Q1 results missed estimates due to continued weakness in most segments

#2 Unclear success rates on recent acquisitions, adds to execution risks

#3 Raise FY25/27 revenue/EBITDA estimates by 24-36 percent

#4 Cut earnings by 6-29 percent to factor acquisitions

Indian Rupee declined on Friday on gains in the US Dollar and elevated crude oil prices. However, positive tone in the domestic markets supported the Rupee at lower levels.

US Dollar gained on Thursday on better than expected economic data from US. US retail sales increased by 1% in July vs forecast of 0.4% while weekly unemployment claims fell to 227,000 vs forecast Empire State Manufacturing Index improved to -4.7 in August vs forecast of -6. However, industrial production declined by 0.6% in July vs forecast of -0.3%.

We expect Rupee to trade with a slight negative bias on strong US Dollar and geopolitical tension in the Middle East between Israel and Iran. However, positive global markets may support the rupee at lower levels. Traders may take cues from US consumer confidence and housing data today. USDINR spot price is expected to trade in a range of Rs 83.75 to Rs 84.25.

#1 Consolidated EBITDA after 24x7 cost was Rs 670 crore, in-line with estimate & consensus estimate

#2 Net profit (after minority interests) came in at Rs 310 crore

#1 Believe company will surpass a coveted USD 1 billion operating cash flow at group level in FY25

#2 Company riding a strong sales cycle & compounding of free cash at its rental business

#3 This opens up significant strategic flexibility at group level on acquisitions

#4 See upside to pre-sales, margin & cash flow in FY25

#1 Earnings ahead of estimates; international revenues weak

#2 Low costs & a sustained EBITDA recovery at Unichem were key positives

#3 International sales were impacted by technical & supply chain issues

#4 But these issues should be addressed in due course

#5 For FY25 management now expects standalone revenue growth of 9 percent (previously 10.5-11 percent)

#6 Projects EBITDA margin at 18.5-19.5 percent (previously 18.0-18.5 percent)

#7 Forecast a 25 percent earnings CAGR over FY25-27

#8 Raise FY25F/26 EPS by 6 percent/3 percent on likely declined costs

Coal India, Power Grid Corporation of India, Apollo Hospitals Enterprise, Astral, Bata India, Macrotech Developers, Abirami Financial Services, Alkali Metals, Anuh Pharma, Bella Casa Fashion & Retail, Bharti Hexacom, Bharat Highways InvIT, Capital Small Finance Bank, Cochin Minerals & Rutile, Comfort Fincap, Comfort Intech, Compucom Software, Container Corporation of India, Elcid Investments, Electrosteel Castings, Elixir Capital, Gland Pharma, Godrej Consumer Products, Godawari Power & Ispat, KK Shah Hospitals, NGL Fine-Chem, National Highways Infra Trust, NR Agarwal Industries, Page Industries, Premco Global, Ram Ratna Wires, Rossari Biotech, Steelcast, Thomas Cook, Thyrocare Technologies, Transindia Real Estate

#1 Profit plunges 30 percent to Rs 57.9 crore Vs Rs 82.5 crore, YoY

#2 Revenue grows 5.5 percent to Rs 393.6 crore Vs Rs 373.2 crore, YoY

#1 Profit zooms 47.1 percent to Rs 20.5 crore Vs Rs 13.97 crore, YoY

#2 Revenue grows 32.1 percent to Rs 382.8 crore Vs Rs 289.8 crore, YoY

#3 Other income rises to Rs 3.9 crore Vs Rs 0.9 crore, YoY

#1 Despite conservative view on EV penetration in India along with other uncertainties

#2 Believe Ola is worth investing in given sustained regulatory support

#3 Ola’s has the ability to reduce costs, with positive risk-reward in its battery venture

#4 Slower penetration of e2-wheelers & battery plant issues are key downside risks

#1 Loss doubles to Rs 26.97 crore Vs loss of Rs 12.2 crore, YoY

#2 Revenue plunges 34.8 percent to Rs 26.5 crore Vs Rs 40.67 crore, YoY

#1 Saw weaker VNB growth of 3 percent YoY despite 31 percent rise in premium

#2 Weaker mix dragged margins

#3 Company is benefiting from ramp-up of e-com, agency and integration with Axis

#4 Encouraged to see management indicate limited impact of new SV norms on margin

#5 Limited impact of SV norms will aid mid-teen growth in VNB over FY26-27

#1 Q1 hospitals (HCS) revenue growth led by 11 percent inpatient volume growth

#2 Other segments also grew mid-teens

#3 HCS outlook intact for 24/7 to achieve cost breakeven in 6-7 quarters

#4 HCS gross merchandise value (GMV) picking up

#5 Launch of insurance service via 24/7 platform will be key

Brigade Group has partnered with abCoffee, grab-and-go specialty coffee, to establish outlets across its commercial office spaces in Bengaluru. Through this partnership, abCoffee will open 6 outlets within Brigade properties, enhancing the café experience for tenants and visitors alike.

#1Pipeline intact & Q1 weak large engine orders pushed to Q2 & rest to H2FY25

#2 1QFY25 EBITDA down 6 percent but PAT up 14 percent YoY

#3 Orders slowed on a delay in Russia-linked programs to 2QFY25

#1 Company has shown good success in its past launches

#2 Found Thar five-door package also impressive

#3 Thar three-door sales stand at 5,900 units/month (last six months' average)

#4 Expect three- and five-door variants to collectively clock 8,000-9,000 unit sales/month

#5 Maintain that M&M will be fastest growing PV company

#6 See a strong jump in sales in coming months, driven by festive demand

#1 Profit stands at Rs 97.1 crore Vs loss of Rs 10.3 crore, YoY

#2 Revenue grows 8 percent to Rs 1,685.6 crore Vs Rs 1,560.5 crore, YoY

#3 Other income rises to Rs 25.92 crore Vs Rs 12.42 crore, YoY

The company has received an order worth Rs 114.30 crore from Coastal Energen. The order involves the operation and maintenance of a 1,200 MW (2*600 MW) coal-based thermal power plant, namely Mutiara Thermal Power Plant, owned by Coastal Energen at Melamaruthur, Tamil Nadu, for one year, effective October 1.

Benchmark equity indices are trading higher, buoyed by positive momentum from Wall Street, anticipation of a rate cut by the Federal Reserve in September, and strong US retail sales figures that have alleviated recession fears.

However, we believe the upside potential may be limited, with Nifty unlikely to surpass the 24,500 level. On the downside, 24,100 is expected to provide immediate support. The 24,200 Call strike in Nifty has a notable open interest of around 25 lakh shares, while the 24,200 Put strike shows significant open interest of approximately 20 lakh shares.

Given the current market conditions, we anticipate Bank Nifty will encounter selling pressure at higher levels, with major resistance at 50,500. On the downside, 49,500 is expected to serve as a support level.

#1 Q1 revenue was 3 percent above expectations

#2 EBITDA was lower as margins contracted 440 bps to 22.8 percent

#3 Depreciation was 27 percent lower YoY and contributed to the profit beat

#4 Believe strong order book gives confidence of double-digit growth for 3-5 years

#5 Volatile Margin should pick-up in H2 with revenue delivery

JNK India share price hit the upper price band in August 16 trading session after the heating equipment maker bagged a major order from PSU firm Hindustan Petroleum Corporation Limited (HPLC). The counter opened gap-up with a gain of 3.14 percent today and touched an intraday high of Rs 735 per share on the National Stock Exchange (NSE), hitting the 5 percent upper price band from its previous close of Rs 700 apiece. The scrip gained after two days of consecutive fall. READ MORE

The Supreme Court (SC), earlier this week, allowed state governments to collect mining companies' tax dues pending from April 1, 2005.. While the Supreme Court ruling has been against expectations and sentiment negative, the financial implications and cash flow impact are not expected to be severe for most companies, said Motilal Oswal Financial Services (MOFSL) in a recent report. READ MORE

#1 Rural Revival & Xtreme 125 key catalysts

#2 Q1 margin lower, ICE improves but EV drags

#3 EV cost reduction should address this in H2FY25

#5 Trim volume growth estimate to 6 percent for FY25/26F (7 percent earlier)

#5 Trim revenue growth by 2-3 percent on lower ASPs

#1 Thar Roxx launched at Rs 12.99 lakh onwards; potential to redefine urban SUVs

#2 Appreciate consistency with which MM has come out with successful launches

#3 Every single launch, even the facelifts & variants show a lot of effort

#4 Not merely an extension of the 3-door Thar but is substantially improved in many areas

#1 Q1 EBITDA ahead of estimate on 8 percent growth in pax traffic

#2 Q1 saw growth in non-aero and subsidiary revenue

#3 Company recently announced completion of simplification of holding structure, re-opening of T1 At DIAL (new terminal)

#4 New tariff at DIAL is expected by Q4FY25

#5 Company is focussed on growing non-aero business

#1 Loss stands at Rs 57 crore Vs Profit at Rs 16.64 crore, YoY

#2 Revenue falls 3.7 percent to Rs 1,091.9 crore Vs Rs 1,133.5 crore, YoY

#1 Profit jumps 24.6 percent to Rs 166 crore Vs Rs 133.2 crore on strong operating numbers, YoY

#2 Revenue rises 0.4 percent to Rs 985 crore Vs Rs 981 crore, YoY

The company has informed that Unit-III, a Formulationmanufacturing facility of Eugia Pharma Specialities Ltd., a wholly owned subsidiary of the company, receiving Official Action Indicated (OAI) status by the US FDA.

Subsequent to OAI, the unit has received a Warning Letter. There is no impact on the existing supplies to the US markets.

Coal India, Power Grid Corporation of India, Apollo Hospitals Enterprise, Astral, Bata India, Macrotech Developers, Abirami Financial Services, Alkali Metals, Anuh Pharma, Bella Casa Fashion & Retail, Bharti Hexacom, Bharat Highways InvIT, Capital Small Finance Bank, Cochin Minerals & Rutile, Comfort Fincap, Comfort Intech, Compucom Software, Container Corporation of India, Elcid Investments, Electrosteel Castings, Elixir Capital, Gland Pharma, Godrej Consumer Products, Godawari Power & Ispat, KK Shah Hospitals, NGL Fine-Chem, National Highways Infra Trust, NR Agarwal Industries, Page Industries, Premco Global, Ram Ratna Wires, Rossari Biotech, Steelcast, Thomas Cook, Thyrocare Technologies, Transindia Real Estate

The company has received an order worth Rs 114.30 crore from Coastal Energen. The order involves the operation and maintenance of a 1,200 MW (2*600 MW) coal-based thermal power plant, namely Mutiara Thermal Power Plant, owned by Coastal Energen at Melamaruthur, Tamil Nadu, for one year, effective October 1.

The company has acquired 115.92 crore ordinary equity shares of its subsidiary, T Steel Holdings Pte, for $182 million (Rs 1,528.24 crore). Post this acquisition, T Steel Holdings Pte will continue to be a wholly owned subsidiary of the company.

SpiceJet Ltd stayed in the black in the first quarter of 2024-25 with a net profit of Rs 158.6 crore for the April-June period. The profit, however, was 19.7 percent lower than the Rs 197.53 crore reported in the year-ago period, the airlines said on August 14.

Its revenue came in at Rs 1,708.24 crore, down 14.7 percent on year from Rs 2,003.5 crore in the year-ago quarter as the airline decided to reduce the scale of its operations.

Bheema Cements, Rapid Investments, Sharanam Infraproject and Trading, and Shri Venkatesh Refineries will release their quarterly earnings scorecard on August 16.

HDFC Life Insurance Company has received GST Order from Commercial Tax Officer, Ward 8, Chandigarh on August 14, 2024 with tax demand of Rs 56.73 crore, interest of Rs 49.80 crore and penalty of Rs 5.68 crore.

#1 Despite conservative view on EV penetration in India along with other uncertainties

#2 Believe Ola is worth investing in given sustained regulatory support

#3 Ola’s has the ability to reduce costs, with positive risk-reward in its battery venture

#4 Slower penetration of e2-wheelers & battery plant issues are key downside risks

Jio Financial Services has incorporated a wholly owned subsidiary named Jio Finance Platform and Service to carry on the business of distribution of financial products and allied services.

The company will invest an amount of Rs 1 Lakh towards initial subscription of 10,000 equity shares of face value Rs 10 each.

Promoter Vedanta will be selling a 3.17% stake in Hindustan Zinc through an offer-for-sale (OFS) from August 16-19. The OFS will have a base size of 1.22% with an option to sell an additional 1.95% stake in case of oversubscription. The floor price has been fixed at Rs 486 per share.