HDFC Life Insurance, BPCL, Tech Mahindra, NTPC, and SBI Life Insurance were the top gainers in the Nifty 50. While Bajaj Finserv, Britannia, Hero MotoCorp, Tata Consumer Products, and HUL were the major losers in the Nifty 50 during the later hour on July 24.

“Crude oil prices rebound from- its lowest level in six weeks, to trade around $77.50, following three days of decline and is down over 3% for the week. The lack of stimulus and reform efforts from China’s three-day plenum, along with softer factory activities in the US and China had worried investors about the potential weakening of demand. On the positive side, the API forecast showed a decline in US commercial reserves by 3.85 million barrels, while an ongoing wildfire in Canada is also supporting prices. The main focus of the market now switch to US GDP data on Thursday followed by the PCE index on Friday, reading beating the consensus could push rate cuts, and could strengthen dollar index,” said Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas. “We expect bearishness in prices to prevail this week to test the support of $75, while geo-political risks have less impact on prices for now and ceasefire talks have also added some pressure on prices. The short-term trading range could be in between $75-$80.”

“Federal bank reported earnings above estimates mainly led by higher other income. Core operational performance (ex other income) (+12% y-o-y) is in line and healthy. The outcome on NIMs and credit cost remained broadly on expected lines. Asset quality also remained broadly stable. The bank managed to report RoA/RoE at 1.3%/ 13.6% in Q1FY25,” Sharekhan’s first take as soon as the bank reported its Q1 results.

“Comex Gold prices held above $2,400, breaking a four-day losing streak on Tuesday, as the market awaited clarity on the Fed’s first interest rate cut. Today, Comex Gold continues to hold gains, trading above $2410 per ounce amid anticipation of upcoming US data releases that could support Fed rate cuts. US personal consumption expenditures, Fed’s preferred underlying inflation measure, due Friday, is expected to show easing price pressures in June. According to the CME FedWatch Tool, traders see a 96% chance of a 25 basis points rate cut in September. Furthermore, a sharp reduction in India’s import duty on gold and silver from 15% to 6% is likely to boost retail demand. Today, Flash PMI data from major global economies will be closely watched for early insights into business activity in July,” said Kaynat Chainwala, Assistant Vice President of Commodity Research at Kotak Securities.

Shares of IDBI Bank rallied more than 12% to an intraday high of Rs 96.99 on DIPAM Secretary’s comment. Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM) said that the lender of last resort is in an advanced stage of giving clearance on fit and proper criteria. “We are almost there and will move to the due diligence stage soon. I hope this can be completed within this financial year,” Pandey said.

Shares of United Spirits were spiriting up, rallied 6.4% to an intraday high of Rs 1,417.30 per equity share. The surge in the stock price came a day after the company released its quarterly results for Q1 FY25. The company reported a growth of 1.7% rise in consolidated net profit to Rs 485 crore for the June quarter, in comparison to Rs 477 crore posted in the same period a year-ago. The revenue from operations stood at Rs 6,238 crore in the first quarter of the current fiscal as against Rs 5,808 crore in the previous fiscal.

Shares of Bajaj Finance fell over 2% in early trading on Wednesday following the company’s Q1 earnings report. For the quarter ending June 2024, Bajaj Finance reported a 14% increase in net profit, rising to Rs 3,912 crore from Rs 3,437 crore in the same period last year. Revenue for the quarter also saw a substantial rise, reaching Rs 16,098 crore compared to Rs 12,497 crore in June 2023.

On Wednesday, the Nifty Bank index was the worst performer, slipping by over 1%, while the FMCG index followed with a 0.5% decline, despite the government’s increased focus on rural consumption. Hindustan Unilever’s (HUL) Q1 earnings report contributed to the FMCG sector’s downturn, with HUL shares falling more than 2%.

In contrast, the realty and energy sectors saw strong performance, with both indices surging by nearly 2%. Leading the gains in the energy sector were Reliance Industries, NTPC, Coal India, ONGC, and Power Grid.

The NSE Nifty 50 was down 0.44% at 24,373, while the BSE Sensex was down 0.55% at 79,983.

BSE, Suzlon Energy, Kalyan Jewellers India, Motilal Oswal Financial Services, and Prestige Estate Projects were the top gainers in the Nifty Midcap 100. While Bandhan Bank, Mphasis, Dizon Technology, PI Industries, and IDFC First Bank were the major losers in the Nifty Midcap 100 on July 24.

Emkay Global maintains its BUY rating on Hindustan Unilever (HUL) and has raised its target price to Rs 3,100 from Rs 2,900. The firm is optimistic about the company’s prospects under new leadership, which is expected to drive better execution and growth recovery across various segments.

A rebound in rural markets is seen as essential for boosting growth in HUL’s mass-end portfolio, which is currently under pressure. While near-term performance may be subdued, Emkay Global forecasts an 8% sales CAGR from FY24 to FY27 and anticipates a 120bps margin recovery over the next three years.

Report also adds that Q1 results were largely in line with expectations, with a 4% increase in volume growth. The increased target valuation multiple of 58x reflects about a 5% premium to the historical average forward P/E.

Courtesy: BSE

Shares of Tata Consumer Products fell more than 3% to an intraday low of Rs 1217.40 after the board approved raising Rs 3000 crore through the rights issue. The company plans to issue 3.66 crore rights equity shares for a price of Rs 818 apiece. This is being offered at a discount of 35% to Tata Consumer Products’ closing price of July 23. Existing shareholders of Tata Consumer Products as on the record date will be eligible to receive one rights equity share for every 26 they hold. Shareholders holding less than 26 shares of the company will have zero rights entitlement in the issue

Shakti Pumps, a leading manufacturer of solar pumps and motors in India, saw its shares climb by 5% during intraday trading for the third consecutive session, reaching ₹4,516 each. This recent surge followed a brief period of profit-taking, as investors reacted positively to the company’s strong June quarter results, which exceeded market expectations.

Shakti Pumps, a leading manufacturer of solar pumps and motors in India, saw its shares climb by 5% during intraday trading for the third consecutive session, reaching ₹4,516 each. This recent surge followed a brief period of profit-taking, as investors reacted positively to the company’s strong June quarter results, which exceeded market expectations.

Hindustan Unilever’s share price fell more than 2% in early trade on Wednesday after the company reported its first-quarter FY25 earnings, which were largely in line with street estimates. HUL shares declined by as much as 2.7%, reaching Rs 2,691.35 apiece on the BSE.

Jefferies has upgraded ITC to a Buy rating with a target price of R 585. According to their report, the lack of news regarding changes in tobacco taxes is seen as a positive for the company, as the government has left these taxes unchanged.

Additionally, GST taxes are expected to remain stable until March 2026 while the central government settles state dues. Jefferies also notes an improving demand outlook for staples, which should benefit ITC.

ITC shares reached a record high on Tuesday, climbing an additional 3% following Monday’s 6.5% surge. The stock crossed the Rs 500 mark for the first time, surpassing the previous record high of Rs 499.7.

Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that the Nifty remained highly volatile on budget day as traders adjusted their positions in accordance with the budget announcements. On the daily chart, a hammer kind of pattern has formed. On the other hand, the RSI is emerging from the overbought zone with a bearish crossover. On the lower end, immediate support is placed at 24,400. Heavy call writing at 24,500 indicates that the selling pressure will remain prevalent in the market until Nifty decisively breaches above 24,500. On the lower end, a fall below 24,400 might trigger a correction towards 24,200/24,000.

Nifty 50’s first look a day after the Union Budget presented by Finance Minister Niramala Sitharaman. ITC is trying its best to hold the markets, meanwhile, HDFC Bank, Reliance, Bajaj Finance are dragging the markets lower.

Courtesy: NSE

The NSE Nifty 50 opens down by 34.10 points or 0.14% at 24,444.95, while the BSE Sensex drops 85.65 points or 0.11% to 80,343.39 in the opening trade.

The NSE added GNFC, India Cements, and SAIL in F&O on July 24, 2024.

“Crude oil futures have fallen below $77.5 per barrel, hitting a six-week low amid expectations of a Gaza ceasefire. The Union Budget’s positive catalysts include a targeted fiscal deficit of 4.9%, Rs 2.66 lakh crore allocated for rural development, and Rs 11.11 trillion for infrastructure spending in FY25. Despite India VIX cooling by 17.49% to 12.74 levels, Gift Nifty shows minimal change, suggesting potential market wavering. Negative catalysts include a 20% tax on short-term financial gains and a 12.5% tax on long-term financial and non-financial gains. Q1 results from major companies like Bajaj Finserv and Federal Bank are expected today,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

“The market reaction to the recent budget announcement signals an immediate response to the adjustments in capital gains taxes that investors had anticipated, confirming the government’s commitment to restraining speculative excesses while laying the foundation for sustainable growth. The increasing monthly SIP inflows and expanding mutual fund participation exemplify the developing trend of financialization of savings in India, forming a solid basis for future market resilience. Although the recent fiscal budget evoked an initial response, its impact was always likely to be restricted. The revised deficit target of 4.9% of GDP indicates fiscally responsible policies, serving as a strong indicator of economic stability,” said Amisha Vora, Chairperson & MD at Prabhudas Lilladher.

Foreign institutional investors (FII) offloaded shares worth Rs 2,975.31 crore, while domestic institutional investors (DII) mopped shares worth Rs 1418.82 crore on July 23, 2024, according to the provisional data available on the NSE.

“Now that the steep increase in STCGs tax and the marginal increase in LTCGs tax on equity is a reality, investors should focus on investing in stocks that can deliver superior returns. In the present context, FMCG stocks look attractive from the valuation perspective. Watch out for stocks like ITC and United Spirits. It is important to understand that the Budget strengthens the India Growth Story with a focus on growth with financial stability. The fiscal consolidation being attempted through the Budget is a big positive that should not be missed amidst the concerns of an increase in capital gains tax. Another important factor is that the removal of indexation benefits on gold and real estate will make equity a superior asset class, relatively. The higher tax on F&O trading is intended to discourage the excessive speculation in this segment and, therefore, is a welcome move,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The FY 25 budget outlines a path of continuity and future-oriented strategies to bolster India’s growth momentum. Emphasizing employment, skills development, inclusivity, social justice, infrastructure, innovation, and progressive reforms, this budget tackled immediate challenges and laid the groundwork for an economy driven by knowledge and growth. However, announcing revisions to the capital gains tax regime triggered significant market volatility. Despite these tax adjustments, which underscore the budget’s forward-looking approach to economic strengthening, the growth trajectory of the Indian economy remains robust. Market confidence remains resilient, and Indian markets are anticipated to achieve new highs moving forward,” said Subhash Chandra Aggarwal, Chairman and Managing Director of SMC Global Securities.

Shares in the Asia-Pacific region are trading in negative territory on Wednesday morning. The Asia Dow is trading up by 0.96%, where as the Japan’s Nikkei 225 is trading in red, down by 0.22%, Hong Kong’s Hang Seng index is traded marginally lower by 0.21% and the benchmark Chinese index Shanghai Composite ended down by 0.05%.