Share Market Highlights 24 July 2024: LTCG, STCG hike sinks Sensex, Nifty on Budget day; realty drags, FMCG, IT shine

Top gainers:

HDFC Life (4.36%), Tech Mahindra (3.12%), BPCL(2.91%), NTPC (2.67%), Tata Motors (2.46%) 

Top losers: 

Bajaj Finserv (-2.09%), Tata Consumer Products (-1.90%), Britannia (-1.88%), Axis Bank (-1.82%), Bajaj Finance (-1.67%)

BSE Sensex closed at 80,148.88, lower by 280.16 pts or 0.35%, and Nifty 50 closed at 24,413.50, down by 65.55 pts or 0.27%.

Ramkrishna Forgings board has approved acquisition of an existing company, Resortes Libertad S.A. DE. C.V. in Mexico. 

Company recorded its consolidated net profit for the quarter ended June 2024 at ₹80.90 crore as against ₹78.52 crore in the corresponding quarter last year.

Stock closes at 883.10 on the NSE, down by 0.66%.

Rajat Deshpande, CEO & Co-Founder of FinBox

“This year’s budget, with its focus on strengthening MSMEs and improving their financial health and borrowing ability, is a move in the right direction. The emphasis on digitising the economy, including land and house registry, is also noteworthy. The government’s substantial capital expenditure outlay of 3.4% of GDP will provide a significant boost to our economy. We appreciate the fintech-driven financial reforms and are excited to partner with policymakers to advance financial inclusion, equity, and credit access for all.” 

Kalpataru Projects International has said that the GST authority has demanded tax, interest, penalty and late fee pertaining to erstwhile JMC Projects (India) Limited (since amalgamated with the Company) for the F.Y. 2019-20 on grounds of excess availment of Input tax Credit. The authority has demanded to pay an aggregate tax amount of ₹99.28 lakh, interest of ₹99.28 lakh, penalty of ₹9.93 lakh and late fee of ₹0.1 lakh. 

Stock rises 3.76% on the NSE, trading at ₹1,329.20

KC Jacob, Counsel, Economic Laws Practice

Recently, the RBI and SEBI have expressed concerns about investor safety, noting that retail traders often lose money in the F&O segment.

The proposed increase in STT on F&O trades can be seen as a measure to address these concerns raised by the RBI and SEBI before the budget.

This move by the government aims to increase tax revenue and discourage retail investors from F&O trading. However, historical data shows that the imposition of STT has not negatively affected trading in this segment; in fact, turnover in the F&O segment has grown significantly. It will be interesting to see if the proposed increase will deter retail investors from trading in this segment.

Natural gas price is coming down after witnessing a short-lived corrective rise. The Natural gas futures contract on the Multi Commodity Exchange (MCX) fell to a low of ₹169.60 per mmBtu last week and recovered from there. However, after rising to a high of ₹190 on Monday this week and then has reversed lower again. The Natural gas futures contract is currently trading at ₹180 mmBtu.

CG Power and Industrial Solutions has entered into definitive agreements for acquisition of 55% stake of G G Tronics Private Limited through a combination of purchase of equity shares from the Promoters of GGT and by way of subscription to Compulsorily Convertible Preference Shares for an aggregate consideration of up to ₹319.38 Crore.

Stock is up 2.09% on the NSE, trading at ₹690.55

Athena BPO Private Limited (‘Athena’), Subsidiary Company , has gone for Buy Back of their shares from their own promoter shareholder, where the Updater Services Limited (‘UDS’) was not part of it. Further, post buy back of the shares, the shareholding of UDS has increased from 57 % to 62 % . 

UDS stock declines 1.66% on the NSE, trading at ₹313.35

Bajaj Finserv (-2.73%), Tata Consumer Products (-2.54%), Axis Bank (-2.09%), Britannia (-2%), Hero Motocorp (-1.90%)

HDFC LIfe (4.67%), BPCL(2.75%), Tata Motors (2.66%), Tech Mahindra (2.53%), NTPC (2.29%)

Stocks advanced on BSE at 3 pm on July 24, 2024, were 2,747 against 1,097 stocks that declined; 123 stocks remain unchanged. Total stocks traded were 3,967. The number of stocks that recorded a 52-week high was 224, and those that hit a 52-week low was 22. 

In addition, 382 stocks traded in upper circuit and 188 stocks hit the lower circuit.

Petronet LNG Ltd. | CMP ₹344 | M Cap ₹51600 Cr | 52 W H/L 351/187

(Nirmal Bang Retail Research)

Result ahead of Expectation

Revenue from Operations came at ₹13415.1 Cr (-2.7% QoQ, 15.1% YoY) vs expectation of ₹14368.4 Cr, QoQ ₹13793.2 Cr, YoY ₹11656.1 Cr

EBIDTA came at ₹1563 Cr (41.6% QoQ, 32.3% YoY) vs expectation of ₹1308.5 Cr, QoQ ₹1104 Cr, YoY ₹1181.8 Cr

EBITDA Margin came at 11.7% vs expectation of 9.1%, QoQ 8%, YoY 10.1%

Adj. PAT came at ₹1141.6 Cr vs expectation of ₹893.6 Cr, QoQ ₹737.6 Cr, YoY ₹789.9 Cr

Quarter EPS is ₹7.6

Stock is trading at P/E of 13.6x FY25E EPS

KPIT Technologies Ltd. | CMP ₹1828 | M Cap ₹50113 Cr | 52 W H/L 1929/961

(Nirmal Bang Retail Research)

Dollar revenue came at $165 mn vs expectation of $165 mn, QoQ $159 mn, YoY $134 mn

CC Rev Growth came at 4.7% vs expectation of 5%, QoQ 6.6%, YoY 7.1 %

TCV Order book at $202 mn, $261 mn QoQ, $190 mn YoY

Result is in line with expectations

Revenue from Operations came at ₹1364.6 Cr (3.6% QoQ, 24.3% YoY) vs expectation of ₹1377.8 Cr, QoQ ₹1317.8 Cr, YoY ₹1097.6 Cr

EBIDTA came at ₹288.4 Cr (5.7% QoQ, 31.1% YoY) vs expectation of ₹285.9 Cr, QoQ ₹272.9 Cr, YoY Rs. 220 Cr

EBITDA Margin came at 21.1% vs expectation of 20.8%, QoQ 20.7%, YoY 20%

Adj. PAT came at ₹204.2 Cr vs expectation of ₹175.1 Cr, QoQ ₹164.4 Cr, YoY ₹134 Cr

Quarter EPS is Rs. 7.4

Stock is trading at P/E of 65.3x FY25E EPS

The Federal Bank Ltd. | CMP ₹194 | M Cap ₹47473 Cr | 52 W H/L 203/130

(Nirmal Bang Retail Research)

Result is marginally above expectations

Advances came at ₹224139 Crore (20% YoY, 5.4% QoQ)

Net Interest Income came at ₹2292 Crore vs expectation of ₹2288 Crore, YoY ₹1919 Crore, QoQ ₹2195 Crore

Non Interest Income came at ₹915 Crore vs YoY ₹732 Crore, QoQ ₹754 Crore

PBP came at ₹1501 Crore vs expectation of ₹1365 Crore, YoY ₹1302 Crore, QoQ ₹1110 Crore

Provisions came at ₹144 Crore vs expectation of ₹128 Crore, YoY ₹156 Crore, QoQ ₹95 Crore

Credit Cost came at 0.3% vs YoY 0.3%, QoQ -0.2%

Adj. PAT came at ₹1010 Crore vs expectation of ₹949 Crore, YoY ₹854 Crore, QoQ ₹906 Crore

Gross NPA came at ₹4738 Crore vs QoQ ₹4529 Crore at 2.11% vs QoQ 2.13%

Net NPA came at ₹1330 Crore vs QoQ ₹1255 Crore at 0.6% vs QoQ 0.6%

Slippages are awaited

Quarter EPS is ₹4.1

Stock is trading at P/E of 9.7x FY25E EPS & 1.7x trailing P/Adj. BV

Vijay Kaushik, Founder, Chairman & Managing Director, Vibhor Steel Tubes Ltd

“The government has given a major boost to infrastructure development in the Budget and increased the outlay by 11.1% to Rs 11.11 lakh crore accounting for nearly 3.4% of the country’s GDP, which would ultimately lead to enhanced demand for various sectors, including cement, steel, power etc.”

“The focus on rural development including rural infrastructure will lead to better roads and connectivity and improving access to rural hinterlands, which will go a long way in improving the distribution and thereby increase sales for companies particularly in the under penetrated rural and semi-urban markets. The 3 crore additional houses to be constructed under the PM Awas Yojana in rural and urban areas should give a major fillip to the construction sector and drive the overall economic growth of the country in the long run.”

Crompton Greaves Consumer Electricals has received an order from the Office of the Assistant Commissioner, Fauji Complex, Sai Road, Baddi – 173205, Himachal Pradesh for the period April 2019 to March 2020 imposing demand of ₹2,96,44,106/-(Tax ₹1,58,00,048 /-, interest ₹1,22,64,053 /- and penalty of INR 15,80,005 /-) under Goods and Service Tax Act,2017

Petronet LNG recorded its consolidated net profit after share of JVs for the quarter ended June 2024 at ₹1,105.47 crore as against ₹819.28 crore in the corresponding quarter last year.

Stock rises 2.80% on the NSE, trading at ₹342.90

JSW Holdings recorded its consolidated net profit for the quarter ended June 2024 at ₹52.58 crore as against ₹24.35 crore in the corresponding quarter last year.

Stock rises 2.74% on the NSE, trading at ₹7,103.45

Sterlite Technologies extends its partnership with Netomnia to develop a full-fibre network in the UK

Stock trades at ₹144.83 on the NSE, up 2.32%.

Mahindra Lifespace recorded its consolidated net profit for the quarter ended June 2024 at ₹12.74 crore as against the loss of ₹4.27 crore in the corresponding quarter last year.

Stock trades at ₹626.85 on the NSE, up 3.07%.

Ram Iyer, Founder and CEO of Vayana

Credit Guarantee Scheme

MSMEs are always starved of capital and the move to provide credit guarantee for purchasing machinery and equipment without the need for collateral is a game changer. This scheme is expected to facilitate access to capital for MSMEs, which currently contribute over 29% to India’s GDP and play a pivotal role in the country’s export landscape, accounting for 45.56% of MSME-specified product exports in 2023-24. This move will empower businesses to scale operations, improve productivity, and ultimately contribute to job creation and economic resilience.

PSBs to develop in-house credit assessment

PSBs develop in-house credit assessment tools for MSMEs using alternate data, especially micro and smaller businesses that do not have formal accounting systems in place. This will have a significant impact on credit accessibility for the micro and small enterprises that have historically been out of the formal financial ecosystem.

On reducing the threshold of corporates to participate in TReDS

By lowering the turnover threshold from 500 crore to 250 crore, over 7,000 corporations will now join TReDS. Medium enterprises will also be included in the scope of the suppliers. This move will enable a significant number of smaller companies, just above the MSME threshold, including PSEs to benefit from TReDS. This policy expansion is timely, considering that NBFCs are now permitted to participate in TReDS, and it will also facilitate payments to smaller vendors within 45 days.

Enhanced Mudra Loan Limits

The government is concentrating on boosting employment creation with the aid of the private sector. By increasing the limits of the Tarun category, it aims to encourage medium enterprises to expand and become large-scale units.

Goods and Services Tax

The commitment to further rationalize the tax structure is a positive step forward. Rationalization has long been required and has been a consistent demand from various industry stakeholders who seek to simplify compliance processes. This initiative is expected to benefit not only businesses but also consumers, as it can lead to more competitive pricing and improved services across sectors.

Piramal Capital & Housing Finance Limited, a leading diversified financial services company and wholly owned subsidiary of Piramal Enterprises Limited (PEL), has successfully issued its debut US dollar-denominated bonds in the international markets. This bond marks Piramal Finance’s first issuance in the international capital markets, providing the company access to a deep, alternative pool of liquidity to complement funds available through banks and Indian domestic capital markets.

Piramal Finance raised $300 million through this issuance. The bonds have been structured as Fixed Rate Senior Secured Sustainability Bonds at a yield of 7.95% for a tenor of 3.5 years. This transaction marks a major milestone in Piramal Finance’s efforts to diversify its borrowing profile.

For this strategic fund-raising effort, Piramal Finance engaged with institutional debt investors across Asia, Europe, and the Middle East over the past few weeks. The company also recently received its debut international ratings, a BB- rating from S&P and a Ba3 from Moody’s, both with a stable outlook. This Dollar Bond transaction follows the recently concluded $100 million social impact loan by Piramal Finance with Standard Chartered Bank.

For the $300 million issue, the company received a 4X level of demand, with the order book peaking at $1.3 billion ahead of the release of final pricing guidance. A total of 113 investors participated in the final issuance, with 81% of the funds raised from Asia and 19% from the Middle East. The deal attracted high-quality demand, with 88% of funds raised from asset managers, 5% from sovereign wealth funds and insurance companies, 4% from private banks, and 3% from banks and others.

The Sustainability Bond issuance is guided by PEL’s Sustainable Finance Framework, which is aligned to the ICMA Social Bond Principles. Proceeds are expected to fund impactful social projects, including affordable housing, MSME business loans, priority sector loans, microfinance, and other eligible products. Standard Chartered Bank, Barclays, and Deutsche Bank acted as Joint Global Coordinators and Joint Bookrunners, along with Axis Bank, Citi, and ENBD as Joint Bookrunners for this transaction.

On the first trading day (July 23rd), the bond performed strongly in the secondary markets, with yields tightening by approximately 15 basis points to 7.80%.

Mr. Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance Ltd, said, “We are delighted to announce the successful $300 million maiden fundraise from international bond markets. Over the last few months, RBI has been guiding NBFCs to explore other sources of debt beyond Indian banks. This issuance is our attempt to open a significant new liability pool in alignment with that guidance. The core business of Piramal Finance has been to serve the borrowing needs of the Budget Customer of Bharat. This Sustainability Bond issuance fits perfectly with our mission and our investors’ intent. The resounding success of this bond issuance marks a significant milestone for Piramal Finance and reaffirms our commitment to driving inclusive growth and sustainable development.”

Heritage Foods Ltd. | CMP ₹576 | M Cap ₹5345 Crore | 52 W H/L 728/209

(Nirmal Bang Retail Research)

Results are above expectations

Revenue from Operations came at ₹1032.7 Crore (8.6% QoQ, 11.8% YoY) vs expectation of ₹1038 Crore, QoQ ₹950.6 Crore, YoY ₹923.7 Crore

EBIDTA came at ₹93.8 Crore (33.5% QoQ, 133% YoY) vs expectation of ₹86.3 Crore, QoQ ₹70.2 Crore, YoY ₹40.3 Crore.

EBITDA Margin came at 9.1% vs expectation of 8.3%, QoQ 7.4%, YoY 4.4%

PAT came at ₹58.4 Crore vs expectation of ₹42.6 Crore, QoQ ₹40.5 Crore, YoY ₹16.7 Crore

Quarter EPS is ₹6.3

Stock is trading at P/E of 35x FY25E EPS

Siddharth Tandon, Partner, Indirect Tax, BDO India

“In line with the 53rd GST Council meeting recommendations, the limitation period for raising demands has been made 3.5 years (42 months) from the due date of relevant annual return for all types of cases, instead of 3/5 years earlier, depending on whether fraud suppression has been alleged or not. This is targeted to streamline litigation matters for FY 2024-25 onwards.

Rony Antony, Partner & Leader, Corporate Tax (South), Tax & Regulatory Services, BDO India

The possible introduction of Vivad se Vishwas Scheme 2024 could significantly reduce litigation and create a better visibility of India as a tax friendly jurisdiction. The enhancements proposed for litigation at higher forums could also significantly reduce litigation at lower levels.

Jiger Saiya, Partner, MSKA & Associates - a member firm of BDO International

The FM announced releasing a vision document for the Financial Sector. To foster a dynamic and inclusive financial ecosystem in India, the vision document should prioritize a balanced approach between regulatory agility to address risks and encouraging technological advancements that empower innovation, financial inclusion, and robust consumer protection. The vision document should aim to guide both regulators and financial institutions

Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India

“The FM has proposed a reduction in tax rates for foreign companies operating in India from 40% to 35%. This is a much-awaited change for the reinsurance companies operating through a branch office in India since 2017. The proposed change may not provide a level-playing field to the reinsurance branches with the domestic insurance companies (which continue to be taxed at a much lower rate) but will surely pave the path towards rationalising the tax rates for foreign companies operating in India.”

Nitesh Mehta, Partner, M&A Tax and Regulatory Services, BDO India

“Angel tax has been a bone of litigation for many companies especially new age ones. The FM has abolished this tax with effect from this financial year. While the past period litigations could continue, however, with the abolishment of the Angel tax provisions, India Inc is likely to get a sigh of relief from this provision. This proposed amendment would also do away with peculiar situations requiring exact valuation at FMV to meet FEMA and Angel tax provisions, while raising money from non-resident investors.”

Deepashree Shetty, Partner, Global Employer Services, Tax & Regulatory Services, BDO India

The penal consequences under the Black Money Act for non-reporting of certain assets in the tax return form was up to INR 10lacs regardless of the value of the asset located outside India. However, such a penalty is not applicable in case of non-reporting of bank accounts which has a balance of up to INR 5lacs balance in aggregate.

Employees who have ESOPs or social security funds are often parked in overseas accounts. The value of funds in such accounts may not be significant and in most cases could be less than INR 10lacs. In the case of non-reporting of such bank accounts by Resident and ordinary resident taxpayers, the penalty is higher than the asset bank balance itself. Hence, to ease the penal hardship, the threshold of INR 5lacs for any moveable asset is proposed to be raised to INR 20lacs. This would bring relief to such taxpayers and may encourage to do appropriate reporting.

The Government has proposed to implement three schemes for ‘Employment Linked Incentive’ to encourage and reward new employment opportunities. The eligibility to be covered under the proposed schemes shall be based on the enrolment of the employees in the Employee Provident Fund Organization (EPFO),

Scheme A: Reward to First-Time Employees. This scheme will provide a one-month wage to individuals taking up employment in any sector for the first time. The Government will transfer one month’s salary up to INR 15,000 in 3 installments to the bank account of the eligible employees drawing salaries up to Rs 1 lakh per month.

Scheme B: Reward for Job Creation in Manufacturing. This scheme will incentivize the employers in the Manufacturing sector to hire Individuals who are first-time taking up employment. The benefit in the form of subsidy at specified scale shall be provided both to the employer as well as employees over a four-year period subject to satisfaction of conditions provided in the scheme.

Scheme C: Support to employers in all sectors. This employer-focussed scheme will cover additional employment up to a salary level of INR 1 lakh per month in all sectors. The Government will reimburse employers up to INR 3,000 per month for two years towards their contribution to the provident fund for each additional employee subject to satisfaction of prescribed conditions.

NTPC has received an order from the Deputy Commissioner of State Tax, LAKADGANJ_501, Nagpur, Maharashtra state, for the payment of Tax, Interest and penalty (total ₹8,08,39,146) under Goods and Service Tax law

NTPC stock is up 1.33% on the NSE, trading at ₹387.55

Bandhan Bank (-4.31%), Axis Bank (-2.24%), IDFC First Bank (-1.93%), Kotak (-1.73%)

KPIT Technologies board has approved merger of Future Mobility Solutions GmbH with KPIT Technologies GmbH, wholly owned step-down subsidiaries of KPIT Technologies.

Company recorded its consolidated net profit for the quarter ended June 2024 at ₹204.16 crore as against ₹134.44 crore in the corresponding quarter last year.

Stock surges 4.32% on the NSE, trading at ₹1,872.05

Rane (Madras) Limited recorded a consolidated net profit for the quarter ended June 2024 at ₹3.41 crore as against loss of ₹14.47 crore in the corresponding quarter last year.

Stock rallies 8.06% on the NSE, trading at ₹900.05

Vishnu Prakash R Punglia Limited has received a Letter of Acceptance from the Office of DYCE-C-AIIENGINEERING, North Western Railway Ajmer. 

The contract pertains to the construction of Major/Minor Bridges, Road Under Bridges (RUBs), Earthwork in embankment/cutting on both sides approaches of bridges/RUBs, Construction of Platforms, Platform Shelters, Circulating area, staff Quarters, offices and other ancillary works between Pushkar – Katyasani section in connection with Pushkar-Merta New BG line project in Ajmer division of North Western Railway. (valued at ₹88.61 crore)

VPRPL-KSIPL BKN JV, Joint venture, in which Vishnu Prakash R Punglia Limited is a partner received Letter of Acceptance from the Office of DYCE-C-BKN-ENGINEERING, North Western Railway Bikaner. (valued ₹382.43 crore)

Vishnu Prakash R Punglia stock surges 5.80% on the NSE, trading at ₹224.70

The Federal Bank recorded its consolidated net profit for the quarter ended June 2024 at ₹1,040.02 crore as against ₹891.74 crore in the corresponding quarter last year.

Stock trades at ₹194.68 on the NSE, down by 1.66%.

“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.

The budget’s explicit focus on increasing employment through support for skill development measures and infrastructure signifies a holistic strategy to promote inclusive growth. The Prime Minister’s strong commitment to Atmanirbhar Bharat, along with the clear prioritization of renewable energy and micro, small, and medium enterprises, underlines India’s seriousness about sustainable development goals and reducing import dependency. If correctly implemented, these initiatives have the potential to boost economic resilience and solidify the banking sector’s position, serving the broader objectives of recovery and growth in the medium run. The budget reflects the government’s economic vision of anchoring deficits, inflation & interest rate on one hand and broad basing the growth across capital goods and consumption to prepare India for stepping up 6.5% to 7.5% GDP to 7.5% - 8.5% over the next three years.”

Mahindra & Mahindra Financial Services reported a 45 per cent year-on-year increase in net profit in the June quarter, to ₹513 crore, and the net interest income was up 15 per cent to ₹1,932 crore.

The net interest income margin was 20 basis points lower at 6.6 per cent.

The company ended the quarter with a gross loan book of ₹1.1 lakh crore, up 23 per cent on year.

Bajaj Finserv recorded its consolidated net profit for the quarter ended June 2024 at ₹2,137.70 crore as against ₹1,942.63 crore in the corresponding quarter last year.

Top gainers on the NSE as at 12 pm:

ONGC (3.20%), HDFC Life (2.65%), Coal India (2.43%), Tata Motors (2.32%), SBI Life (2.30%)

Top losers:

Axis Bank (-2.18%), Bajaj Finance (-2.18%), Bajaj Finserv (-2.12%), Tata Consumer Products (-1.81%), Neslte India (-1.73%)

Stocks advanced on BSE at 12 pm on July 24, 2024, were 2,680 against 1,041 stocks that declined; 137 stocks remain unchanged. Total stocks traded were 3,858. The number of stocks that recorded a 52-week high was 187, and those that hit a 52-week low was 17. 

In addition, 306 stocks traded in upper circuit and 169 stocks hit the lower circuit.

The government has reduced the fiscal deficit from 5.1% to 4.9%. Gross and net borrowing numbers haven’t changed much hence market reaction today was muted. The government is committed to stay on course of the fiscal consolidation path, gliding down from 4.9% in FY25 to 4.5% in FY26. This was in line with our expectations. We continue to remain constructive on rates on the back of sustained FPI flows in debt post index inclusion of Indian G-Secs, stable outlook on external front and the recent S&P sovereign outlook upgrade. Accordingly, from a strategy perspective, we will maintain an overweight duration stance within the respective scheme mandates. We do expect the 10-year bond yields to trade in a narrow range in the near term and to soften to 6.75% over the next few quarters.

The most awaited event post-elections, the budget, has finally passed. India remains one of the fastest growing economies globally. Macros remain strong with an easing inflation cycle, progress of monsoons and robust economic growth. The fiscal discipline by government will translate to crowding in for private investments. With the government also emphasizing on private capex, the entire curve of the capex cycle stands to benefit in light of multiple enablers such as deleveraged corporate balance sheets, healthy profitability, rising domestic demand, and increasing capacity utilization. Even though there is no change in the capex expenditure, compared to the interim budget, it is a 17% growth on YOY terms, which in itself is a healthy figure. Tax benefits to salaried class, focus on employment generation, and continuation of policies directed towards housing and rural reforms (agri/allied sectors) can have a positive impact on the consumption theme.

Companies that have witnessed growth, are today seeing high multiples. Whereas segments where multiples are low, growth is not yet delivered. Hence, in the near term we believe returns could be muted; while we continue to be positive on the long-term growth potential of the Indian equity market.

Go Fashion (India) recorded its net profit for the quarter ended June 2024 at ₹28.65 crore as against ₹26.27 crore in the corresponding quarter last year. 

Stock surges 4.35% on the NSE, trading at ₹1,104.

The Finance Minister must be commended for the FY2024-25 Budget’s focus on skill development, job generation and MSMEs. For this, Rs1.48 lakh crore has been allocated for education, employment and skilling initiatives, with five schemes dedicated towards these objectives. Moreover, a new Centrally-sponsored skilling scheme is meant to benefit two million youth over five years. Additionally, a new credit guarantee scheme for MSMEs in manufacturing will be introduced to offer guarantees of up to Rs100 crore. This credit guarantee scheme is aimed at facilitating term loans for the purchase of equipment and machinery by MSMEs without guarantee or collateral. This is a most welcome measure since the availability of affordable credit has been a major constraint for MSMEs. Other laudable moves include the opening of new SIDBI branches within three years covering all major MSME clusters for direct credit. This will help in easing liquidity problems in specific clusters. The decision to open e-commerce export hubs for traditional artisans and MSMEs is also beneficial. Moreover, the government’s focus on simplifying tax regulations is a game-changer for small and midsize enterprises, providing the clarity needed to plan and invest with confidence. This clarity will drive innovation and attract investments across various sectors. The emphasis on boosting manufacturing, supporting local industries, and encouraging domestic production is essential for reducing import dependency and strengthening our industrial base. Overall, this balanced approach addresses immediate economic challenges while laying a solid foundation for long-term growth, reflecting a dedicated effort to build a resilient and dynamic economy. All the above measures are bound to provide a big boost to MSMEs across India.”

The 2024 budget shows a positive continuation of macroeconomic policies. The government’s commitment to maintaining infrastructure spending at ₹11.11 lakh crore and fiscal deficit of 4.9% ensures manageable borrowing. Lower fiscal deficit will increase availability funds for both the corporate sector and retail consumers, supporting economic growth.

There has been an increase in Tax incidence for equity investors where short-term and long-term capital gains taxes are set to rise—from 15% to 20% and 10% to 12.5% respectively. This move came as a negative surprise. But there are encouraging changes like The tax rate for long-term capital gains on unlisted shares getting reduced from 20% to 12.5% and increase in exemption limit for long term capital gains on equity shares and Mutual funds from ₹1 lakh to ₹1.25 lakh. The standard deduction for salaried individuals also rises from ₹50,000 to ₹75,000 in the new tax regime.

Overall, the budget balances need for higher spendings with fiscal prudence and bolstering economic growth.

“Further tax simplification introduced in this year’s union budget further levels the playing field for other asset classes such as unlisted shares, gold, international equity/debt FoF, and real estate. We continue to believe that portfolios should be tax-informed, not tax-driven, and the finance minister’s action is a positive step in that direction. At the industry level, we have observed that in the last 15 months, a large swathe of investors has made tax-driven portfolio allocations, in which they have allocated to riskier products due to changes in taxation of vanilla debt mutual funds, possibly, without carefully assessing and understanding the risks (market/credit) they have assumed in their portfolios by including such riskier products. Everything is fine in moderation, and we are confident that innovative products have a role to play in well-diversified portfolios; however, we continue to believe that portfolios should be tax informed, not tax driven.

The government has clearly been walking on the path to simplify the income tax system for some time, and the finance minister has made significant progress in this regard in this budget. The capital gains tax structure has been simplified, the dreaded angel tax has been eliminated, and there is a simplification of the withholding tax.

Given the weaker political mandate, there was widespread anticipation that the government would bite the populism bullet in this budget for pragmatic political reasons. However, the administration maintains the resolve seen in the interim budget, demonstrating impressive restraint by prioritizing fiscal prudence and broad policy continuity in areas such as capex and supply-side capacity creation.”

Piramal Capital and Housing Finance has raised $300 million from the overseas market through sustainability bonds, and the non-banking finance company intends to raise its international borrowings to 10 per cent of its liabilities from less than a per cent now, a top official told businessline. 

“We have opened the gates to international issuances. We have issued to 113 investors. Now that we have greater name familiarity and the bonds are traded in the market, it’ll be a lot easier for us to go out there and issue future bonds,” said Managing Director, Jairam Sridharan. The current issuance will take the share of overseas borrowing to 4 per cent of the total. 

Infosys agreed with UVC Partners , a Venture Capital fund based out of Germany, committing to invest €5.0 million.

Infosys stock trades at ₹1,835.50 on the NSE, down by 0.08%.

Tata Teleservices (Maharashtra) recorded its net loss for the quarter ended June 2024 at ₹323.40 crore as against ₹301.18 crore in the corresponding quarter last year.

Despite the loss, stock trades positive by 1.52% on the NSE at ₹101.35

With strong order inflow from the Middle East and the domestic market, Larsen & Toubro (L&T) is expected to see an uptick in revenue in Q1 FY25.

Analysts have seen project growth driven by the infrastructure, hydrogen, solar and heavy engineering sectors for the company. 

Titagarh Rail Systems stock surges 3.30% on the NSE, trading at ₹1,640.60. Company had commenced the export of traction converters, pursuant to which the first batch of 8 converters were shipped to Titagarh Firema S.p.A (Titagarh Firema), Italy

Organic Recycling Systems board has approved the proposal of investment in securities (convertible warrants) of Sonu Infratech Limited.

Organic Recycling Systems stock inches up 0.36% on the BSE trading at ₹282.

Bank Nifty opened today’s session at 51,657 versus yesterday’s close of 51,778. The index declined after opening and is now trading around 51,460, down 0.6 per cent.

All the 12 stocks in the index are down, indicating a strong downward bias. Bandhan Bank, down nearly 2 per cent, and Axis Bank, down 1.6 per cent, are leading the sell-off.

Nifty 50, the Indian benchmark index, opened today’s session slightly lower at 24,445 versus yesterday’s close of 24,479. It is now hovering around 24,400, down 0.25 per cent in early trade.

The advance/decline ratio of Nifty 50 stands at 20/30, giving the index a bearish bias. Nevertheless, the mid- and the small-cap indices are largely in the green.

The 2024 budget shows a positive continuation of macroeconomic policies. The government’s commitment to maintaining infrastructure spending at ₹11.11 lakh crore and fiscal deficit of 4.9% ensures manageable borrowing. Lower fiscal deficit will increase availability funds for both the corporate sector and retail consumers, supporting economic growth.

There has been an increase in Tax incidence for equity investors where short-term and long-term capital gains taxes are set to rise—from 15% to 20% and 10% to 12.5% respectively. This move came as a negative surprise. But there are encouraging changes like The tax rate for long-term capital gains on unlisted shares getting reduced from 20% to 12.5% and increase in exemption limit for long term capital gains on equity shares and Mutual funds from ₹1 lakh to ₹1.25 lakh. The standard deduction for salaried individuals also rises from ₹50,000 to ₹75,000 in the new tax regime.

Overall, the budget balances need for higher spendings with fiscal prudence and bolstering economic growth.

“The Budget 2024 looks to be the Government’s continued and focused commitment and support with robust Central investments for Infrastructure Sector, facilitating States Investments for the Sector and providing Viable Gap Funding for promoting Private Investments in the Sector for overall strengthening of the Nation’s infrastructure. Overall, the Budget is going to be a big booster to facilitate India’s economic growth; roads and highways sector, being the prominent infra sector is expected to get much needed impetus through adequate funds allocations.”

Crude oil futures traded higher on Wednesday morning as the industry data showed increase in inventory level in the US.

At 9.52 am on Wednesday, September Brent oil futures were at $81.14, up by 0.16 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $77.11, up by 0.19 per cent.

Tata Consumer Products stock declined about 3% in early trade on Wednesday. The company’s board has approved a rights issue for an amount not exceeding ₹3,000 crore by issuing 3,66,47,492 shares at ₹818 a share. The issue will open on August 5 and end on August 19 while the record date is July 27. Click here for more updates.

“The Union Budget-FY25 has rationalized long-term capital gains tax on real estate transaction. It proposed to remove indexation benefits and reduce the long term capital gains tax rate from 20% to 12.5% with immediate effect (grandfathering for properties held before 2001). We find that the new capital gains tax structure for real estate favours investors, who have generated high IRRs, while investors with poor IRRs would be worse off in the new regime. On the other hand, it is expected to have limited impact on end users who purchase homes for personal consumption. The budget has also talked about encouraging states to lower the stamp duty and consider lower duties for women buyers. Lowering of stamp duties would reduce the overall acquisition cost in high stamp duty states/markets like Gurgaon, Chennai, Mumbai and Kolkata. Further, Rs10 lakh cr allocation for urban housing (including Central Government assistance of Rs2.2 lakh cr over the next 5 years) is expected provide thrust to government’s housing for all initiatives.”

10:30 AM Schaeffler Ind

Dial: +91 22 6280 1538 

11:00 AM EKI Energy Serv

12:00 PM Dodla Dairy

Dial: +91 22 6280 1144

12:00 PM Greenlam Ind

Dial: +91 22 6280 1309

2:30 PM ZF Commercial Vehicle Control Systems

Dial: +91 22 6280 1222

2:30 PM Gopal Snacks

(Results, Investor/Analyst Presentation, Press Release )

Dial: +91 22 6280 1366

3:00 PM Pondy Oxides

3:00 PM SRF

Dial: +91 22 6280 1222 

3:30 PM Indoco Remedies

Dial: +91 22 6280 1116

3:30 PM Welspun Special

Dial: +91226280 1366 

4:00 PM Poly Medicure

4:00 PM Epigral Ltd

Dial: +91 22 6280 1325

4:00 PM SBI Life Insurance

Dial: + 91 22 6280 1101 

4:00 PM MCDOWELL & CO. .

Dial: +91 22 6280 1250

4:00 PM Federal Bank

Dial: +91 22 6280 1270 

4:30 PM Sona BLW Precision Forgings

4:30 PM RamkrishnaForge

Dial: + 91 22 6280 1123 

5:00 PM Tatva Chintan Pharma Chem

5:00 PM DCB Bank

Dial: +91 22 6280 1102

5:00 PM CG Power

Dial: +91 22 6280 1259

5:00 PM Go Fashion (India)

Dial: +91 22 6280 1309 

5:30 PM Petronet LNG

Dial: +91 22 6280 1304

5:30 PM Tips Industries

Dial: +91 22 6280 1550

6:00 PM Jindal Steel

Dial: +91 22 6280 1259 

6:00 PM Karnataka Bank

Dial: +912262801579 

6:15 PM Axis Bank

Dial: +91 22 6280 1253 

7:30 PM Larsen

Thyrocare Techn : (replay)

M&M Fin : (replay)

Kajaria Ceramic : (replay)

Mahindra Logist : (replay)

Nitin Spinners : (replay)

Blue Dart : (replay)

Zensar Tech : (replay)

Route Mobile : (replay)

IOB : (replay)

Cyient DLM Ltd : (replay)

Results today …

Recent interviews …

-

MIC Electronics has developed GPS (Global Positioning System) Based Public Address System (PA), Passenger Information System (PIS) & LED Destination boards for New and existing LHB/ICF type AC and Non AC Coaches including Pantry Car and Power Car as per the Research Designs and Standards Organization (RDSO) and applied for Capacity Cum Capability Assessment (CCA).

MIC Electronics stock declined 5% on the NSE, trading at ₹85.65, also its lower circuit.

Global Index Performance

GIFT Nifty 24402 -61 Nifty F

Hang Sang 17400 -70

Dow Jones 40358 -57

NASDAQ 17997 -10

Nikkei 39509 -86

Shanghai 2901 -14

India Vix 12.75 -17.4%

Commodity Market 

Brent 81.3 +0.40%

WTI 77.3 +0.39%

Gold 2413.3 +0.25%

Silver 29.1 +0.03%

Copper 9146.0 -0.25%

Aluminium 2297.0 +0.11%

Iron Ore (SGX) 106.0 +0.02%

Zinc 2686.0 -0.13%

Sugar 18.2 -0.60%

Sovereign Yield (10-year benchmark) 

India 6.97 +0.01

US 4.26 +0.02

Currency Market 

USD 83.7 -0.03%

EUR 91.0 +0.20%

GBP 108.1 +0.11%

Company Name: Mastek Ltd

Sector: IT 

Ratings: BUY 

Current Price: Rs.2,664 

Target: Rs.3,279

Potential upside: 23% 

Holding: 12 months

Mastek is a trusted digital engineering and cloud transformation partner, delivering innovative solutions for clients across Government/Public Sector, Healthcare, Retail, Manufacturing, and Financial Services. By unlocking data, modernizing applications to the cloud, and accelerating digital advantage, Mastek drives customer success and business transformation. Their strong engineering mindset and solutions-based approach enable rapid expansion and innovative capabilities. To enhance front-to[1]back office digital transformation, Mastek is focused on expanding partnerships with major technology companies like Oracle, Microsoft, and Salesforce. Their mission is to Decomplex Digital and makes businesses future-ready.

The key strengths of the Company are

a) MST Solutions acquisition which will bolsters Mastek’s growth across key sectors, 

b) BizAnalytica to fuel Mastek’s account mining strategy, 

c) Mastek’s strategic growth in UK Public Sector and Beyond, 

d) Strategic Vision for AI-Driven growth and achieving USD 1 Billion Revenue, 

e) Diversified revenue streams providing Mastek with a strategic edge.

Going ahead strategic partnerships and digital capabilities can propel revenue by 19% CAGR to Rs. 4,300 Crs by FY26E. Acquisitions of MST and BizAnalytica, and a favorable offshore-onshore ratio, can help EBITDA & PAT grow by 24%/21% CAGR respectively to Rs. 777 Cr / 440 Crs, by FY26E. EBITDA margin can increase from 17% in FY24 to 18% in FY26E. Given these growth prospects, we initiate coverage on Mastek with a “BUY” rating and a target price of Rs. 3,279, implying an upside of 23%

24 July 2024 (Today)

Derivative Segment

* Axis Bank Ltd.

* Bajaj Finserv Ltd.

* Indian Energy Exchange Ltd.

* Indraprastha Gas Ltd.

* Jindal Steel & Power Ltd.

* Larsen & Toubro Ltd.

* Oracle Fin Services Software

* Petronet LNG Ltd.

* SBI Life Insurance Company

* Syngene International Ltd.

* The Federal Bank Ltd.

Cash Segment

* Aditya Birla Sun Life AMC 

* Bajaj Holdings & Inv

* Bikaji Foods International 

* CG Power & Industrial Slns 

* Craftsman Automation Ltd.

* HFCL Ltd.

* Hitachi Energy India Ltd.

* India Grid Trust

* JK Paper Ltd.

* KPIT Technologies Ltd.

* Mahindra Lifespace Dev

* MAS Financial Services 

* Ramkrishna Forgings 

* SIS Ltd.

* Sona BLW Precision Forgings 

* Tata Teleservices Ltd.

* The Karnataka Bank Ltd.

* Trident Ltd.

* V-Guard Industries Ltd.

* Welspun Living Ltd.

25 July 2024

Derivative Segment

* Ashok Leyland Ltd.

* AU Small Finance Bank 

* Canara Bank

* DLF Ltd.

* Laurus Labs Ltd.

* Mahanagar Gas Ltd.

* Mphasis Ltd.

* Nestle India Ltd.

* Tech Mahindra Ltd.

* The Ramco Cements Ltd.

* United Breweries Ltd.

Cash Segment

* Aavas Financiers Ltd.

* Adani Energy Solutions Ltd.

* Adani Green Energy Ltd.

* Chalet Hotels Ltd.

* Cyient Ltd.

* Embassy Office Parks REIT

* Home First Fin Co India 

* Jupiter Wagons Ltd.

* Jyothy Labs Ltd.

* Mahindra Holidays & Resorts 

* Motilal Oswal Fin Services 

* PNB Housing Finance Ltd.

* Praj Industries Ltd.

* Ujjivan Small Finance Bank 

* UTI AMC Ltd.

* VST Industries Ltd.

* Westlife Foodworld Ltd

26 July 2024

Derivative Segment

* Bandhan Bank Ltd.

* Cholamandalam Inv & Fin Co 

* Cipla Ltd.

* City Union Bank Ltd.

* IndusInd Bank Ltd.

* Interglobe Aviation Ltd.

* Power Grid Corp Of India 

* SBI Cards & Payment Services 

* Shriram Finance Ltd.

Cash Segment

* Aarti Drugs Ltd.

* Amber Enterprises India Ltd.

* Equitas Small Finance Bank 

* Intellect Design Arena Ltd.

* IRB InvIT Fund

* Kaynes Technology India Ltd.

* KEC International Ltd.

* Latent View Analytics Ltd.

* Laxmi Organic Industries Ltd.

* Piramal Pharma Ltd.

* POWERGRID InvIT

* Punjab & Sind Bank

* Sanofi India Ltd.

* TTK Prestige Ltd.

27 July 2024

Derivative Segment

* Dr. Reddy’s Laboratories Ltd.

* ICICI Bank Ltd.

* IDFC First Bank Ltd.

* MCX India Ltd.

* REC Ltd.

Cash Segment

* Finolex Industries Ltd.

* Sumitomo Chemical India Ltd.

* Jammu & Kashmir Bank Ltd.

29 July 2024

Derivative Segment

* ACC Ltd.

* Bharat Electronics Ltd.

* Colgate-Palmolive (India) 

* Hindustan Petroleum Corp 

Cash Segment

* Adani Total Gas Ltd.

* Adani Wilmar Ltd.

* CSB Bank Ltd.

* Data Patterns (India) Ltd.

* Indian Bank

* Jindal Saw Ltd.

* Kalpataru Projects Int Ltd.

* Kansai Nerolac Paints Ltd.

* KEI Industries Ltd.

* Pfizer Ltd.

* Privi Speciality Chemicals Ltd.

* Quess Corp Ltd.

* Restaurant Brands Asia Ltd.

* Vedant Fashions Ltd.

30 July 2024

Derivative Segment

* Exide Industries Ltd.

* Granules India Ltd.

* Indiamart Intermesh Ltd.

* Indian Oil Corporation Ltd.

* Indus Towers Ltd.

* Navin Fluorine International 

Cash Segment

* 360 One Wam Ltd.

* Ajanta Pharma Ltd.

* Apar Industries Ltd.

* Carborundum Universal 

* Castrol India Ltd.

* Fine Organic Industries 

* Firstsource Solutions Ltd.

* Shyam Metalics & Energy 

* Star Health & Allied Ins Co

* Sterlite Technologies Ltd.

31 July 2024

Derivative Segment

* Ambuja Cements Ltd.

* Birlasoft Ltd.

* Crompton Greaves Cons Ele

* Godrej Properties Ltd.

* Mahindra & Mahindra Ltd.

* Maruti Suzuki India Ltd.

Cash Segment

* Deepak Fert & Petrochem Corp

* Elgi Equipments Ltd.

* K.P.R. Mill Ltd.

* Lakshmi Machine Works Ltd.

* Mankind Pharma Ltd.

* Nuvoco Vistas Corp Ltd.

* Prestige Estates Projects Ltd.

* Tata Investment Corp Ltd.

01 August 2024

Derivative Segment

* Aditya Birla Capital Ltd.

* Dabur India Ltd.

* Escorts Kubota Ltd.

* ITC Ltd.

* Sun Pharma Industries

* Tata Motors Ltd.

Cash Segment

* Akzo Nobel India Ltd.

* Alkyl Amines Chemicals Ltd.

* Aptus Value Housing Fin India 

* Clean Science & Tech Ltd.

* Emami Ltd.

* Kalyan Jewellers India Ltd.

* Orient Electric Ltd.

* Suryoday Small Finance Bank 

* Tata Motors Ltd. - DVR 

* The Great Eastern Shipping Co

* Triveni Engineering & Industries 

* Tube Investments of India 

* Vaibhav Global Ltd.

02 August 2024

Derivative Segment

* LIC Housing Finance Ltd.

* Titan Company Ltd.

Cash Segment

* Computer Age Mgmt Services 

* Dalmia Bharat Sugar 

* Glaxosmithkline Pharma

* Infibeam Avenues Ltd.

* Medplus Health Services Ltd.

* Tamilnad Mercantile Bank Ltd.

* Zydus Wellness Ltd.

03 August 2024

Derivative Segment

* State Bank Of India

Cash Segment

* Amara Raja Energy & Mobility 

* Bank Of India

* Capri Global Capital Ltd.

05 August 2024

Derivative Segment

* Deepak Nitrite Ltd.

* Marico Ltd.

* Oil & Natural Gas Corp

* Tata Chemicals Ltd.

Cash Segment

* Avanti Feeds Ltd.

* Devyani International Ltd.

* Gujarat State Fert & Chem

* Honeywell Automation India 

* Motherson Sumi Wiring India

* Orient Cement Ltd.

06 August 2024

Derivative Segment

* Bata India Ltd.

* Bosch Ltd.

* Cummins India Ltd.

* Gujarat Gas Ltd.

* Shree Cement Ltd.

* Tata Power Company Ltd.

* TVS Motor Company Ltd.

Cash Segment

* 3M India Ltd.

* Blue Star Ltd.

* Gland Pharma Ltd.

* Indigo Paints Ltd.

* PB Fintech Ltd.

* Rain Industries Ltd.

* Symphony Ltd.

07 August 2024

Derivative Segment

* Godrej Consumer Products 

* Pidilite Industries Ltd.

Cash Segment

* BASF India Ltd.

* BSE Ltd.

* Esab India Ltd.

* Lemon Tree Hotels Ltd.

08 August 2024

Derivative Segment

* ABB India Ltd.

* Biocon Ltd.

* Container Corp Of India 

* Page Industries Ltd.

Cash Segment

* Gujarat State Petronet Ltd.

* Timken India Ltd.

09 August 2024

Derivative Segment

* Berger Paints India Ltd.

* Info Edge (India) Ltd.

* Jubilant FoodWorks Ltd.

* Zydus Lifesciences Ltd.

Cash Segment

* Cholamandalam Fin Holdings 

13 August 2024

Derivative Segment

* GNFC Ltd.

* Hindalco Industries Ltd.

* Max Financial Services Ltd.

* Samvardhana Motherson Int

Cash Segment

* Endurance Technologies

* HEG Ltd.

* TCI Express Ltd.

21 August 2024

Derivative Segment

Nil

Cash Segment

* P&G Health Ltd.

28 August 2024

Derivative Segment

Nil

Cash Segment

* P&G Hygiene & Health Care 

29 August 2024

Derivative Segment

Nil

Cash Segment

* Gillette India Ltd.

KSB Ltd.

Stock Split From Rs.10/- to Rs.2/-

Previous day Closing Price – Rs. 4786.75

Ex - Stock Split 25 July 2024 (Tomorrow)

Last day trade for before split Today

G E Shipping company has contracted to sell its 2005 built Medium Range Product Tanker, Jag Pranav of about 51,383 dwt on July 23, 2024 to an unaffiliated third party

O-P TP Rs 5535

Believe budget offers several incentives for urban working class consumers from lower tax rates, direct benefit transfers to 1st time employees & incentives for employers of new employees

Believe DMART beneficiary of each of these themes

CLSA on Titan

O-P, TP Rs 3948

Customs duty on gold & silver cut to 6% from 15%

Should lead to a reduction in gold prices, allaying investor concerns on gold prices.

Believe this is positive for Titan & reiterate O-PF rating

MS on Titan

EW, TP Rs 3526

The budget has proposed a 9ppt reduction in custom duty on gold (6-9% correction in gold price).

This should help boost jewellery consumption and also reduce competitive pressures on discounting (inventory loss for local players)

Jefferies on ITC

Upgrade to Buy, TP Rs 585

No News is Great News

A clear winner with gov’t leaving tobacco taxes unchanged

GST taxes are also likely to stay stable until Mar-26 until center settles state dues.

Demand outlook for staples improving & should benefit Co

MS on ITC

OW, TP Rs 506

Today’s budget allays one of key concerns of tobacco tax hikes.

In addition to relief from any near-term demand disruptions, this will be viewed as a reflection of future policy action

ITC well placed & a re-rating play

EW, TP Rs 610

VNB margin better than MSe

VNB margin progression in FY24 was quite volatile; hence, maintain forecasts for now

Stock has outperformed YTD & re-rated vs. peers despite sharper VNB downgrades both by us & consensus in recent qtrs

Jefferies on M&M Fin

Hold, TP Rs 305

PAT grew 45% YoY to Rs5.1bn ahead of our Rs4.7bn est. due to lower provision.

Loan growth moderated.

Margins dipped QoQ due to lower yield.

Stage 2 & stage 3 assets rose QoQ.

CITI on M&M Fin

Neutral, TP Rs 310

Earnings growth of 45% yoy & RoA of 1.8% beat CitiE primarily led by lower-than-anticipated credit cost at 1.8%.

Despite 130bps rise in GS-3/2 & write-offs of Rs3.2bn, provisions lower by Rs1.1bn 

Building in credit cost of 1.5% over FY25-27E

Jefferies on Coforge

U-P, TP Rs 5180

1Q rev/margins were in line but normalized profits missed est

Deal ramp-ups supported growth in 1Q & will continue to do so in 2Q, as evident from pick-up in net hiring

Mgmt. focus on margin expansion has intensified & Cigniti is on track

MS on Coforge

Overweight Call, Target Raised To Rs 7,180

Q1 Results Show Signs Of Rev Growth Pickup With An Orderbook Upturn

Co Has Strong Headcount Addition

Constructive Demand Commentary, In-line With Peers

Co’s Focus Is On Margin Both In The Core Business As Well As Cigniti

Raise F25-F27 EPS Estimate By 5%

Think Earnings Est Downgrade Cycle May Be Behind

Expect Consensus Core Business Estimates To Inch Up

Buy Call, Target Rs 3,540

Q1 Revenue Was In-line With Estimates

Q1 EBITDA/ PAT Were +3%/+5% Higher As Strong India Growth Led To Multi Yr High Gross Margin

Q1 Was Impacted By One Offs In Topline & Expenses Otherwise Beat Would Have Been Even Higher

Expect Co To Continue Strong Run & International Regions’ Growth To Pick Up Pace In Future

CLSA on HUL

Downgrade to U-P, TP cut to Rs 2161

Cut EPS est by 4-5%

Q1 sales slightly below est(-3%) while Ebitda in-line

Growth varied across segments with home care & beauty above co avg. but personal care & F&R lagged

Believe stk already pricing in improvement in rural demand

Nomura on HUL

Buy, TP Rs 3200

On an improving path

1Q25: Tad above estimates; volume growth at 4% y-y

Recovery seen in rural demand; market share to see improvement from hereon

Margins to remain range-bound in near term but to improve in medium term

MS on HUL

UW, TP Rs 1876

Vol growth improved to 4%, ahead of MSe, but management commentary did not signal confidence of a strong recovery in 2nd half of F25

Management expects price growth to be near-zero (-2% in 1Q) in near term if commodity prices remain at current levels

Jefferies on HUL

Buy, TP Rs 3130

Managed to beat est. in 1QFY25

Heartening part is 4% vol growth

Mgmt sounded fairly +ve on external environment as well as own initiatives to drive growth, some of which are already yielding results

CITI on Bajaj Fin

Buy, TP cut to Rs 8275

Core earnings missed expectations as NIMs declined 23bps (30-40bps guided for H1) & credit cost was elevated at 2%(vs 1.75-1.85% guidance)

Mgmt cited muted CE due to heat wave/election disruption as reason for uptick in stress pool

CLSA on Bajaj Fin

O-P, TP Rs 9200

1Q total income & PPOP were 3%-5% ahead of est., while PAT was in line due to higher credit costs

Credit costs for qtr were 2% vs guided range of 1.75-1.85% & historical avg of 1.6%

Collections partly impacted by elections

MS on Bajaj Fin

OW, TP Rs 9000

Net credit costs came at higher end of guidance with higher gross credit costs

It indicated better collections in June/July; however, expect stock performance to be muted in near term & improve in 2HF25 as earnings growth inflects & AQ improves

Jefferies on Bajaj Fin

Buy, TP cut to Rs 7780 from Rs 9260

1QFY25, BAF’s profit rose by 14% YoY to Rs39bn & missed est.

Sharper rise in credit costs to 2.3% of avg AUM(adj. for utilisation of reserves) was key drag; per mgt, it was broad-based

Trim earnings by 3-5%

Jefferies on Kajaria: Maintain Buy on Company, raise target price at Rs 1590/Sh (Positive) 

Jefferies on Torrent Pharma: Maintain Buy on Company, raise target price at Rs 3540/Sh (Positive) 

Investec on Zensar Tech: Maintain Buy on Company, raise target price at Rs 885/Sh (Positive) 

Investec on HUL: Maintain Buy on Company, raise target price at Rs 2797/Sh (Positive) 

Citi on HUL: Maintain Buy on Company, raise target price at Rs 3150/Sh (Positive) 

Nomura on HUL: Maintain Buy on Company, raise target price at Rs 3200/Sh (Positive) 

ICICI on HUL: Upgrade to Buy on Company, target price at Rs 2950/Sh (Positive) 

Investec on Keystone: Initiate Buy on Company, target price at Rs 875/Sh (Positive) 

MS on Coforge: Maintain Buy on Company, raise target price at Rs 7180/Sh (Positive) 

MS on Bajaj Finance: Maintain Overweight on Company, target price at Rs 9000/Sh (Positive) 

Jefferies on ICICI Pru: Maintain Buy on Company, target price at Rs 750/Sh (Positive) 

Goldman Sachs on India Budget: No increase in cigarette taxes in govt’s budget positive for ITC (Positive) 

Jefferies on ITC: No news is great news; upgrades ITC to a buy call adding that it is a clear winner with government leaving tobacco taxes unchanged (Positive) 

Morgan Stanley on Indian Budget: Reaffirms our view on continued macro stability and strong foundation for medium-term growth path (Positive) 

CLSA On Real Estate: Negative for investments with shorter duration, moderate price growth. Markets like NCR and Mumbai are likely to adverse impacted while Pune, Bangalore and Hyderabad least impacted. Focus on affordable housing players like Sobha, Godrej Prop, Sunteck and Prestige (Neutral) 

Jefferies on Real Estate: See low impact of the move on demand. (Neutral) 

Jefferies on Indian Budget: FY25 final budget doesn’t deviate much from the Feb ‘24 budget, but several small things have changed (Neutral) 

Bernstein on Indian Budget: Capital gains tax increase is also a non-event; Market and sector views remain unchanged (Neutral) 

MS on Indian Budget: Increase in formal employment creates a path for sustained growth momentum (Neutral) 

Macquarie on ICICI Pru: Maintain Neutral on Company, target price at Rs 580/Sh (Neutral) 

MS on ICICI Pru: Maintain Equal-Weight on Company, target price at Rs 610/Sh (Neutral) 

Bernstein on Bajaj Finance: Maintain Market perform on Company, target price at Rs 6800/Sh (Neutral) 

Emkay on Bajaj Finance: Maintain Buy on Company, cut target price at Rs 9000/Sh (Neutral) 

Jefferies on Bajaj Finance: Maintain Market perform on Company, cut target price at Rs 7180/Sh (Neutral) 

Jefferies on M&M Fin: Maintain Hold on Company, target price at Rs 305/Sh (Neutral) 

Emkay on M&M Fin: Maintain Reduce on Company, target price at Rs 270/Sh (Neutral) 

MS on HUL: Maintain Underweight on Company, target price at Rs 1876/Sh (Negative)

AVADH SUGAR: Rs 10

FIEM INDUSTRIES: Rs 20

HATSUN AGRO: Rs 6

HONEYWELL AUTOMATION: Rs 100

LAKSHMI MACHINE WORKS: Rs 75

PIDILITE INDUSTRIES: Rs 16

VINYL CHEMICALS: Rs 6.75

* GNFC

* INDIACEM

* SAIL

“The budget was anticipated to build upon the progressive measures outlined in the interim budget. However, the overall government expenditure aligns with the interim budget’s goal and focus is to reduce the fiscal deficit to 4.9%, significantly lower than the 5.6% estimated for FY24. Key positives are new macro-initiative aimed at job creation, workforce skill development, improvements in agriculture, urban & rural housing, and higher funding the MSME sector, which should uplift the masses.

Increase in capital gain tax is a negative surprise, the 5% increase in STCG is likely to adversely affect short-term investors in the near term.”

Hi-Tech Pipes Ltd. announced decarbonisation of its manufacturing facilities, additional 5 MW Green Power through Roof Top Solar & Open Access and Generation & captive consumption of Green Hydrogen Gas.

Hi-Tech Pipes stock rose 2.33% on the NSE, trading at ₹146.50.

Adani Renewable Energy Forty One Limited, Wholly-owned stepdown subsidiary of Adani Green Energy Limited, has operationalised 250 MW of wind power project at Khavda, Kutchh, Gujarat.

Adani Green Energy stock is up 0.95% on the NSE, trading at ₹1,736.60.

MIC Electronics has appointed Vivek Reddy Venumuddala as Chief Operating Officer (COO) with immediate effect ; and Rakshit Mathur as Chief Executive Officer (CEO) of the Company with effect from August 01, 2024.

Best Agrolife Limited has been assigned a patent by the Indian Patent Office-Government of India for an invention entitled “STABLE SYNERGISTIC INSECTICIDAL COMPOSITION” for the term of 20 years commencing from November 2, 2022.

Best Agrolife stock is up 1.77% on the NSE, trading at ₹625.50

Suzlon Energy has been slashed with a penalty of ₹2,84,595 from Superintendent of Central GST Gujarat Audit Circle 3.

Trades at upper circuit ₹60.72, higher by 5% on the NSE.

Top gainers on the NSE at 9.30 am:

ITC (3.18%), Titan (2.28%), HDFC Life (1.85%), Tata Motors (1.40%), NTPC (0.99%)

Top losers:

Tata Consumer Products (-2.91%), Hindustan Unilever (-2.26%), Bajaj Finance (-1.92%), Nestle India (-1.62%), Britannia (-1.60%)

Crude oil futures traded higher on Wednesday morning as the industry data showed increase in inventory level in the US. At 9.12 am on Wednesday, September Brent oil futures were at $81.39, up by 0.47 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $77.33, up by 0.48 per cent. August crude oil futures were trading at ₹6484 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹6458, up by 0.40 per cent.

“The decision to raise taxes comes amid a dramatic increase in derivative trading volumes, which have grown significantly since 2020. Retail investor participation in the derivatives market has surged from 2% in 2018 to 41% in 2023. Regulators have expressed concerns that this surge in trading is leading to speculative behaviour that could be detrimental to individual investors and the broader economy.

This change in tax policy should encourage Retail investors to shift their focus from speculative trading to long-term investments. This shift could potentially reshape the market dynamics in the near term, leading to a more stable and sustainable market environment. 

The government’s tax adjustments demonstrate a proactive approach to managing the risks associated with the rapid growth of retail participation in the derivatives market. The aim is to foster a more stable trading environment. The increase in taxes may have a significant impact on trading volumes, potentially affecting market liquidity and dynamics. High-frequency trading firms, which operate on narrow margins, are particularly sensitive to changes in transaction costs, and this sensitivity could lead to significant changes in the market landscape.

For investors, taxation on share buybacks could potentially dampen enthusiasm, as the income will now be taxed at the same rate as dividends. The elimination of the buyback tax will increase corporate cash flow, but the new taxation of buyback income as dividends may decrease interest in share repurchase programs, particularly among cash-rich firms and high-tax bracket investors. In the future, companies might favour dividends over buybacks.”

“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 which 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 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 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.”

In recent years, the government’s vision for the Indian Railways (IR), as reflected in the Budget speech, has been reduced to just a few lines. Therefore, expectations for railway-related announcements in the Finance Minister’s Budget speech were low. Some mention rail safety, which has been under considerable stress recently, and an update on the Interim Budget announcement of three economic corridors and the upgrade of 40,000 rail coaches was expected. As for the numbers, it was almost a foregone conclusion that the operating ratio would be kept just below 100 through the now-familiar accounting practice of severely curtailing the allotment for depreciation, and that the government would continue its rail infrastructure spending spree, financed almost entirely through General Budgetary Support (GBS).

To ensure India meets its RE goals by 2030, the Union Budget prioritised Energy security, placing emphasis on nuclear and thermal energy projects and duty cuts for solar energy sector

The Budget allocation for roads at almost the same level as the previous fiscal year. The pace of road construction is also slowing. 

AAVAS, ADANIGREEN, ASHOKLEY, AUBANK, CANBK, CHALET, CHENNPETRO, CYIENT, DLF, FOSECOIND, GLS, GODIGIT, HOMEFIRST, JWL, JYOTHYLAB, LAURUSLABS, LTFOODS, MGL, MHRIL, MPHASIS, NESTLEIND, PNBHOUSING, PRAJIND, RAMCOCEM, TECHM, THANGAMAYL, UBL, UJJIVANSFB, VENUSPIPES, VESUVIUS, VSSL, VSTIND, WESTLIFE

ASHOKLEY

* Revenue expected at Rs 8816 crore versus Rs 8189 crore

* EBITDA expected to be seen at Rs 989 crore versus Rs 820 crore

* EBITDA margin expected to be seen at 11.2 % versus 10.01 %

* Net profit expected to be seen at Rs 569 crore versus Rs 577 crore

AUBANK

* NII expected at Rs 1869 crore versus Rs 1246 crore

* EBIT expected to be seen at Rs 849 crore versus Rs 513 crore

* EBIT margin expected to be seen at 44.2 % versus 41.1 %

* Net profit expected to be seen at Rs 485 crore versus Rs 386 crore

CANBK

* NII expected at Rs 9597 crore versus Rs 8665 crore

* EBIT expected to be seen at Rs 7685 crore versus Rs 7604 crore

* EBIT margin expected to be seen at 52.6 % versus 56.3 %

* Net profit expected to be seen at Rs 3935 crore versus Rs 3534 crore

LAURUSLABS

* Revenue expected at Rs 1337 crore versus Rs 1181 crore

* EBITDA expected to be seen at Rs 241 crore versus Rs 166 crore

* EBITDA margin expected to be seen at 18.02 % versus 14.05 %

* Net profit expected to be seen at Rs 84 crore versus Rs 24 crore

MGL

* Revenue expected at Rs 1550 crore versus Rs 1612 crore

* EBITDA expected to be seen at Rs 380 crore versus Rs 395 crore

* EBITDA margin expected to be seen at 24.51 % versus 24.50 %

* Net profit expected to be seen at Rs 255 crore versus Rs 252 crore

MPHASIS

* Rupee Revenue expected at Rs 3461 crore versus Rs 3412 crore

* EBIT expected to be seen at Rs 525 crore versus Rs 508 crore

* EBIT margin expected to be seen at 15.1 % versus 14.8 %

* Net profit expected to be seen at Rs 402 crore versus Rs 393 crore

TECHM 

* Rupee Revenue expected at Rs 12,946 crore versus Rs 12,871 crore

* EBIT expected to be seen at Rs 1054 crore versus Rs 637 crore

* EBIT margin expected to be seen at 8.14 % versus 4.94 %

* Net profit expected to be seen at Rs 871 crore versus Rs 661 crore

UBL 

* Revenue expected at Rs 2585 crore versus Rs 2274 crore

* EBITDA expected to be seen at Rs 256 crore versus Rs 223 crore

* EBITDA margin expected to be seen at 9.9 % versus 9.8 %

* Net profit expected to be seen at Rs 168 crore versus Rs 136 crore

ABSLAMC, AURIONPRO, AXISBANK, BAJAJFINSV, BAJAJHLDNG, BIKAJI, CGPOWER, CMSINFO, CRAFTSMAN, DCBBANK, EPACK, EPIGRAL, FEDERALBNK, GOCOLORS, HFCL, IEX, IGL,JINDALSTEL, JKPAPER, JSWHL, KPITTECH, KTKBANK, L&T, MAHLIFE, MASFIN, OFSS, PDSL, PETRONET, PGEL, PNBGILTS, POWERINDIA, RKFORGE, SBILIFE, SIS, SONACOMS, SYNGENE, TATVA, TIPSINDLTD, TIRUMALCHM, TRIDENT, TTML, VGUARD

AXISBANK

* Revenue expected at Rs 13368 crore versus Rs 11958 crore

* EBIT expected to be seen at Rs 9665 crore versus Rs 7779 crore

* EBIT margin expected to be seen at 72.2% versus 65%

* Net profit expected to be seen at Rs 6448 crore versus Rs 5797 crore

CGPOWER

* Revenue expected at Rs 2154 crore versus Rs 1874 crore

* EBITDA expected to be seen at Rs 291 crore versus Rs 265 crore

* EBITDA margin expected to be seen at 13.5% versus 14.1%

* Net profit expected to be seen at Rs 217 crore versus Rs 203 crore

FEDERALBNK

* Revenue expected at Rs 2346 crore versus Rs 1918 crore

* EBIT expected to be seen at Rs 1377 crore versus Rs 1302 crore

* EBIT margin expected to be seen at 58.6% versus 67.8%

* Net profit expected to be seen at Rs 936 crore versus Rs 853 crore

IGL

* Revenue expected at Rs 3575 crore versus Rs 3964 crore

* EBITDA expected to be seen at Rs 521 crore versus Rs 521 crore

* EBITDA margin expected to be seen at 14.5% versus 13.1%

* Net profit expected to be seen at Rs 374 crore versus Rs 433 crore

JINDALSTEL

* Revenue expected at Rs 12966 crore versus Rs 12588 crore

* EBITDA expected to be seen at Rs 2575 crore versus Rs 2886 crore

* EBITDA margin expected to be seen at 19.8% versus 22.9%

* Net profit expected to be seen at Rs 1142 crore versus Rs 1691 crore

L&T

* Revenue expected at Rs 53931 crore versus Rs 47882 crore

* EBITDA expected to be seen at Rs 5503 crore versus Rs 4868 crore

* EBITDA margin expected to be seen at 10.2% versus 10.1%

* Net profit expected to be seen at Rs 2740 crore versus Rs 2493 crore

PETRONET

* Revenue expected at Rs 14273 crore versus Rs 13793 crore

* EBITDA expected to be seen at Rs 1300 crore versus Rs 1104 crore

* EBITDA margin expected to be seen at 9.10% versus 17.0%

* Net profit expected to be seen at Rs 906 crore versus Rs 737 crore

POWERINDIA

* Revenue expected at Rs 1351 crore versus Rs 1040 crore

* EBITDA expected to be seen at Rs 101 crore versus Rs 36 crore

* EBITDA margin expected to be seen at 7.4 % versus 3.5 %

* Net profit expected to be seen at Rs 52 crore versus Rs 2.4 crore

SBILIFE

* Revenue expected at Rs 14,867 crore versus Rs 13,104 crore

* EBIT expected to be seen at Rs 597 crore versus Rs 604 crore

* EBIT margin expected to be seen at 4.01 % versus 4.61 %

* Net profit expected to be seen at Rs 410 crore versus Rs 381 crore

SONACOM

* Revenue expected at Rs 877 crore versus Rs 732 crore

* EBITDA expected to be seen at Rs 247 crore versus Rs 203 crore

* EBITDA margin expected to be seen at 28.1 % versus 27.7 %

* Net profit expected to be seen at Rs 143 crore versus Rs 114 crore

Thermo Fisher Scientific Inc (Pre market)(Sector-Healthcare)

Fomento Economico Mexicano S.A.B. de C.V. (Pre market) (Sector-FMCG)

NextEra (Energy), Inc. (Pre market) (Sector-Energy)

AT&T Inc. (Pre market) (Sector-Technology)

Boston Scientific Corporation (Pre market) (Sector-Healthcare)

Fiserv, Inc. (Pre market) (Sector-Finance)

General Dynamics Corporation (Pre market) (Sector-Defense)

Amphenol Corporation (Pre market) (Sector-Technology)

Banco Santander, S.A. (Pre market) (Sector-Finance)

CME Group Inc. (Pre market) (Sector-Finance)

Roper Technologies, Inc. (Pre market) (Sector-Technology)

TE Connectivity Ltd. (Pre market) (Sector-Capital Goods)

GE Vernova Inc.(Pre market) (Sector-Energy)

Old Dominion Freight Line, Inc. (Pre market) (Sector-Transportation)

Otis Worldwide Corporation (Pre market) (Sector-Capital Goods)

Banco Santander Brasil SA (Pre market) (Sector-Finance)

Vertiv Holdings, LLC (Pre market) (Sector-Capital Goods)

Westinghouse Air Brake Technologies Corporation (Pre market) (Sector-Capital Goods)

Fortive Corporation (Pre market) (Sector-Capital Goods)

Teck Resources Ltd (Pre market) (Sector-Metals)

Rogers Communication, Inc. (Pre market) (Sector-Technology)

Lennox International, Inc. (Pre market) (Sector-Capital Goods)

Check Point Software Technologies Ltd. (Pre market) (Sector-Technology)

Teledyne Technologies Incorporated (Pre market) (Sector-Technology)

International Paper Company (Pre market) (Sector-Manufacturing)

Tenet Healthcare Corporation (Pre market) (Sector-Healthcare)

Flex Ltd. (Pre market) (Sector-Technology)

Lamb Weston Holdings, Inc. (Pre market) (Sector-FMCG)

Interpublic Group of Companies, Inc. (The) (Pre market) (Sector-Media)

Allegion plc (Pre market) (Sector-Technology)

Deutsche Bank AG (Tent) (Sector-Finance)

eBay Inc. (Tent) (Sector-Technology)

United Microelectronics Corporation (Tent) (Sector-Technology)

Dr. Reddy’s Laboratories Ltd (Tent) (Sector-Healthcare)

Comfort Systems USA, Inc. (Tent) (Sector-Engineering)

Penske Automotive Group, Inc. (Tent) (Sector-Transportation)

International Business Machines Corporation (Post market) (Sector-Technology)

ServiceNow, Inc. (Post market) (Sector-Technology)

KLA Corporation (Post market) (Sector-Technology)

Waste Management, Inc. (Post market) (Sector-Miscellaneous)

Equinor ASA (Post market) (Sector-Energy)

Chipotle Mexican Grill, Inc. (Post market) (Sector-Hotels)

Republic Services, Inc. (Post market) (Sector-Miscellaneous)

O’Reilly Automotive, Inc. (Post market) (Sector-Retail)

Ford Motor Company (Post market) (Sector-Automobile)

Newmont Corporation (Post market) (Sector-Metals)

Edwards Lifesciences Corporation (Post market) (Sector-Healthcare)

United Rentals, Inc. (Post market) (Sector-Capital Goods)

Waste Connections, Inc. (Post market) (Sector-Miscellaneous)

AMERIPRISE FINANCIAL SERVICES, LLC (Post market) (Sector-Finance)

ICON plc (Post market) (Sector-Healthcare)

Rollins, Inc. (Post market) (Sector-Miscellaneous)

Teradyne, Inc. (Post market) (Sector-Technology)

Raymond James Financial, Inc. (Post market) (Sector-Finance)

Tyler Technologies, Inc. (Post market) (Sector-Technology)

Invitation Homes Inc. (Post market) (Sector-Real Estate)

Carlisle Companies Incorporated (Post market) (Sector-Manufacturing)

Align (Technology), Inc. (Post market) (Sector-Technology)

Molina (Healthcare) Inc (Post market) (Sector-Healthcare)

Graco Inc. (Post market) (Sector-Manufacturing)

Morningstar, Inc. (Post market) (Sector-Finance)

Universal Health Services, Inc. (Post market)(Sector-Healthcare)

RenaissanceRe Holdings Ltd. (Post market) (Sector-Finance)

Churchill Downs, Incorporated (Post market) (Sector-Hotels)

Annaly Capital Management Inc. (Post market) (Sector-Real Estate)

Tesla Inc fell 7.7% in afterhours following the report. For Q2, the company reported adjusted earnings per share of $0.52 on revenue of $25.5 billion, compared with with Wall Street estimates of $0.61 a share and $24.33B, respectively.

Visa third-quarter revenue growth fell short of Wall Street targets in a rare miss for the world’s largest payments processor as steep borrowing costs limited consumer spending, sending its shares down 4.0% in extended trading.

Google stock was down 2.2% in after-hours trade Tuesday. The company’s adjusted earnings per share (EPS) came in at $1.89, slightly higher than the consensus estimate of $1.83. Revenue for the quarter was $84.74 billion, also above the average analyst projection of $84.16 billion.

Q1 SL NET PROFIT 2.99B RUPEES VS 2.38B (YOY)

Q1 REVENUE 58.3B RUPEES VS 53.12B (YOY)

Q1 EBITDA 4.6B RUPEES VS 3.85B (YOY) 

Q1 EBITDA MARGIN 7.86% VS 7.25% (YOY)

(NUMBERS SEEN MUTED YOY BASIS)

Turnover: (NSE + BSE)

Cash Volume: 169336.37 + 12456.34 Total: 181792.71

F&O Volume: 992640.87 + 239783.7 Total: 1232424.57

Provisional Cash

FII/FPI: NET SELL: -2975.31 

(14330.77 - 17306.08) 

DII: NET BUY: +1418.82 

(17799.44 - 16380.62)

Buzzing stocks: Bajel Projects, Titagarh Rail, Dr Reddy’s Lab, Krsnaa Diagnostics, Suven Pharma, Piramal Pharma, Infosys, ONGC, IOL Chem, Tata Consumer, Elgi Equipments

The Finance Minister presented a solid Union Budget, with policy continuity as the keystone. The fiscal consolidation path was maintained and the focus on capex over revex continued. The small hike in capital gains tax is not material, in our view. Direct incentives for employment is a big measure, though it is difficult to scope the impact so early. We maintain our overall stance: the market is vulnerable at these valuations and could correct in the short term. Our favored sectors are FMCG/IT/Durables, and we are negative on Industrials/Financials.

Policy Continuity was maintained with i) the fiscal deficit ending lower than the interim budget estimates (4.9% of GDP vs 5.1%), ii) continued focus on capex (17% YoY growth). Fears that the electoral setback in June would drive a pivot to consumption stimulus were largely belied. We believe that overall financial stability has been a major driver of the current growth phase and bull-run, so we see this as a major positive.

Positive for consumption. The two (minor) changes in approach are both positive. One, that the direct stimulus to employment, especially the one to employers, should help stimulate hiring at the margin. Retail, NBFCs, and MFIs in growth mode could see some benefits too. The other is that half the windfall gain from the RBI dividend was diverted to revex, with transfers to states the most prominent expenditure head. We see both as positive, and address the K-shaped post-Covid recovery. Our positive stance on FMCG and two-wheelers is reinforced by these moves.

Capital gains tax. The increase in CG tax has been marginal and we do not see it as a major worry. The tax on buyback could adversely affect payouts and, at the margin, hurt return ratios and valuations of some high-cash generators; many companies, however, may not change their behavior. The increase in STT on derivatives is also relatively minor. Overall, the increase in taxes on capital markets has not been severe and is unlikely to affect market valuations materially.

Key winners and losers. The incremental impact of the budget has been marginal in most cases. The two clear positives are for i) the jewelry sector, which benefits from the cut in gold import duties, and ii) battery players, who gain from lower import duties on critical metals. There are marginal positives for cement and building material players, due to continued stimulus to housing from PMAY Urban 2.0 and a focus on highways and city development. Capital market participants were hit by the CGT and STT, but the impact is negligible. There was a relief rally in some stocks, as there were expectations of more severe measures, especially on derivatives trading.

Stance unchanged. We remain cautious on the markets. A good budget is in the price and unlikely to move the needle significantly. On the other hand, we are looking at a tepid earnings season, as topline growth remains moderate and margin tailwinds are petering out. Also, rate cuts are at least 1-2 quarters away. On the other hand, valuations are stretched at 21.4 (1YF P/E of Nifty), with no imminent upgrades. We maintain our preference for IT/FMCG/Durables over Industrials/Financials. There are no changes to our model portfolio, top SMID picks, or key avoids

The honourable Finance Minister Nirmala Sitharaman, in her seventh consecutive budget presentation, outlined PM Modi-led government’s clear objectives for its third straight term: a roadmap for fiscal consolidation and a framework for medium-term economic interventions, focusing on employment, skilling, MSMEs, and the middle class. 

This budget, the first since the BJP-led NDA was re-elected in June, highlights a commitment to fiscal consolidation with a fiscal deficit target of 4.9% for 2024-25 and a projected decrease in the debt-to-GDP ratio. It balances fiscal discipline with increased spending on essential developmental expenditures, addresses inequality through tax reforms, and emphasizes agriculture, infrastructure, and job creation. Special attention is given to women-led development and support for MSMEs

Q1 CONS NET PROFIT 4.6B RUPEES VS 3.78B (YOY)

Q1 REVENUE 28.6B RUPEES VS 25.91B (YOY)

Q1 EBITDA 9B RUPEES VS 7.91B (YOY) || Q1 EBITDA MARGIN 31.62% VS 30.53% (YOY)

TITAGARH RAIL SYSTEMS: CO BEGINS EXPO OF TRACTION CONVEERS WITH FIRST SHIPMENT TO ITALY || INAUGURAL DISPATCH FROM INDIA PASSENGER ROLLING STOCK FACILITY AS PA OF EUR 7.18M (INR 65 CRORE APPROX.) DEAL WITH TITAGARH FIREMA S.P.A

SCHAEFFLER INDIA:

Q1 SL NET PROFIT 2.5B RUPEES VS 2.37B (YOY)

Q1 REVENUE 20.7B RUPEES VS 18.29B (YOY)

Q1 EBITDA 3.79B RUPEES VS 3.42B (YOY) || Q1 EBITDA MARGIN 18.32% VS 18.69% (YOY)

DCM SHRIRAM:

Q1 CONS NET PROFIT 1B RUPEES VS 566M (YOY)

Q1 REVENUE 30.7B RUPEES VS 29.4B (YOY)

Q1 EBITDA 2.5B RUPEES VS 1.66B (YOY) || Q1 EBITDA MARGIN 8.04% VS 5.65% (YOY)

👉Net Profit up 13.8% At ₹3,912 Cr Vs ₹3,436.9 Cr (YoY)

👉Gross NPA at 0.86% vs 0.85% (QoQ)

👉Net NPA at 0.38% vs 0.37% (QoQ)

👉Provision coverage ratio at 56% vs 57% (QoQ)

SRF: Q1 CONS NET PROFIT 2.52B RUPEES VS 3.6B (YOY)

SRF: Q1 EBITDA 6.03B RUPEES VS 6.96B (YOY) || Q1 EBITDA MARGIN 17.42% VS 20.86% (YOY)

POOR EBITDA AND MARGINS

The budget strikes a decent and balanced approach, especially given the current coalition government dynamics. Allocations to Bihar and Andhra Pradesh are strategic investments that will likely generate significant revenue in the future. Increased FDI is expected to boost investment in India, while changes in the Insolvency and Bankruptcy Code (IBC) and the establishment of new tribunals will strengthen the banking sector.

The digitization of land records is a forward-thinking initiative that holds great promise.

The removal of indexation benefits might negatively impact investor returns, leading to a short-term bearish outlook for the sector.

The 25% increase in the Long-Term Capital Gains (LTCG) tax is manageable and not likely to deter investors significantly.

However, the increase in Short-Term Capital Gains (STCG) tax from 15% to 20% could have a more pronounced negative impact in the medium term.

“Union Budget 2024-25 was better than expectations for bond markets. The market was surprised by drop in estimated fiscal deficit to 4.9% of GDP (from 5.1% of GDP in the interim budget). However, there was only marginal drop in gross / net borrowing numbers, which dented market sentiments. Overall the budget was positive as it stuck to fiscal consolidation and further projected to achieve 4.5% fiscal deficit in FY2026. With continuing passive inflows, post inclusion in JP Morgan EM Bond Index, and a tight fiscal budget, market yields should continue to soften, as long term investors get confidence from the continuing fiscal prudence.”

i

“Continuing her reformist agenda from previous tenure, the finance minister’s announcements on land digitisations,employment and skill development, taxes, and manufacturing are going to further strengthen the economy. The declining fiscal deficit highlights the fiscal discipline and prudence of the government. On this front, it is a good budget. Any continuity of policy in budget announcement is good.

One big negative is increased taxes on long-term capital gains, which is discouraging. Given the low penetration of financial assets, consistency of taxes always helps in the long run. The intention of change in slabs in the new tax regime is to spur consumption. Thegovernment is also making a clear indication that the new tax regime would be the preferred one going forward. 

One good news for mutual fund investors is that Fund of Fund making investments of more than 65% in domestic equities will be treated at par with other mutual fund schemes as far tax treatment is concerned. This has removed an anomaly.”

“The Union Budget has put comprehensive focus on housing and rural development alongside the economic growth narrative. The allocation of ₹2.66 lakh crore for rural infrastructure and the construction of 3 crore additional houses under the PM Awas Yojana in both rural and urban areas are complementary and would significantly boost housing demand. Rental housing has received the attention and will improve the housing stock. Other positives are digitization of land records, PM Surya Ghar Muft Bijli Yojana, encouraging states on moderation of high stamp duty rates and considering lower stamp duty on properties purchased by women. These measures will stimulate the housing market, driving demand and fostering socio-economic growth.”

Today, July 23,2024, the budget day, was one of the busiest days ever for @nseindia with more than 2044 crores orders (world record for any exchange in the world) were received today in a single day by NSE resulting in 25.97 crore trades today.

Instl. Investors EQUITY Cash Trades PROV. - 23/07/2024 : Rs. CRS.

FIIS : SELL -2,975 (14,331-17,306)

DIIS : BUY +1,419 (17,799-16,380)

Supreme Industries: BUY | TP 6830 | Strong momentum continues

Oberoi Realty: BUY | TP 2107 | Strong cash flow visibility; all levers in place for a shift in gear

Patanjali Foods: BUY | TP 2144 | Edible oil profitability improves; FMCG miss expectations

J.K. Cement: BUY | TP 5000 | Timely capex, better market mix, and cost efficiencies to drive

outperformance

Gravita India: BUY | TP 1710 | Strong execution; long term guidance maintained

Kirloskar Pneumatic Company: BUY | TP 1725 | Margin-led operational outperformance

Solara Active Pharma Sciences: SELL | TP 485 | Focus on regulated markets reduce losses

The Union Budget for 2024-25 was announced by the Hon’ble Union Finance Minister , Smt. Nirmala Sitharaman on July 23, 2024

Welcoming the Budget, Shri Bhadresh Dodhia, Chairman, MATEXIL ( Man-Made and Technical Textiles Export Promotion Council ) - ( Formerly SRTEPC) said “the Union Budget for 2024-25 is growth oriented , pragmatic and progressive as it focus on crucially important areas such as Employment generation , Skill development and Investments”. The Budget propose to introduce Employment linked incentives and Skilling programmes which will certainly lead to job creation in manufacturing in the Textiles and clothing Sector, according to Shri Dodhia. 

The Budget has proposed a Credit Guarantee Scheme to the MSMEs to enable them to get term loans for purchase of machinery and equipment without collateral or third party guarantee. Shri Bhadresh Dodhia pointed out that getting credit facilities from the banks for business operations have always been a challenge for the MSMEs and the Credit Guarantee Scheme announced in the Budget will encourage the growth and development of the MSMEs . 

The Chairman MATEXIL appreciated the Budget proposal to provide internship opportunities for youths in top Companies to 1cr youth in 5 years . The budget has reduced Customs duties on Methylene Dipheaye isocyanate (MDI) -used in the manufacture of Spandex Yarn from 7.5 to 5%. Spandex yarn is used widely in the production of textile garments and technical textiles and this duty reduction will reduce production cost , pointed out Shri Dodhia . 

The budget outlay for RoDTEP and RoSCTL Schemes has been increased. Shri Bhadresh Dodhia urged the Government to increase the rates under these schemes for textiles & clothing . 

The Chairman, MATEXTIL appealed to the Government to rectify the inverted duty structure in GST in the case of manmade fibre textiles and to reduce the rate of GST rate on plastic bottles from 18% to 5% . 

Shri Bhadresh Dodhia expressed his confidence that the announcements in the Union Budget for 2023-24 will lead to improvement in business sentiments and overall development of the Country including employment generation. 

👉Net profit up 27.6% at ₹27.3 cr vs ₹21.4 cr (YoY)

👉Revenue up 1.1% at ₹757.9 cr vs ₹749.6 cr (YoY)

👉EBITDA up 31.9% at ₹55.8 cr vs ₹42.3 cr (YoY)

👉Margin at 7.4% vs 5.6% (YoY)

NET PROFIT 25.38B RUPEES VS 24.72B (YOY); EST 24.81B

REVENUE 151.7B RUPEES VS 149.31B (YOY); EST 151B 

EBITDA 36.1B RUPEES VS 35.21B (YOY); EST 35.40B

EBITDA MARGIN 23.78% VS 23.58% (YOY); EST 23.4%

Q1 CONS NET PROFIT 1B RUPEES VS 566M (YOY)

Q1 REVENUE 30.7B RUPEES VS 29.4B (YOY)

Q1 EBITDA 2.5B RUPEES VS 1.66B (YOY) || Q1 EBITDA MARGIN 8.04% VS 5.65% (YOY)

Q1 SL NET PROFIT 2.25B RUPEES VS 2.08B (YOY)

Q1 NET PREMIUM INCOME 78.7B RUPEES VS 70.2B (YOY)

Q1 VNB SEEN AT RUPEES 4.72B GREW BY 7.8% YEAR-ON-YEAR BASIS

Q1 APE SEEN AT 19.63B FOR Q1-FY2025

Q1 SL NET PROFIT 2.5B RUPEES VS 2.37B (YOY)

Q1 REVENUE 20.7B RUPEES VS 18.29B (YOY)

Q1 EBITDA 3.79B RUPEES VS 3.42B (YOY) || Q1 EBITDA MARGIN 18.32% VS 18.69% (YOY)

Stocks of fertiliser makers tumbled in trade on Tuesday. While there was no specific reason behind the fall, the negative sentiment market-wide had a rub-off effect on fertiliser stocks too. Fertiliser stocks saw their prices fall between 3 and 7 per cent, with urea maker National Fertiliser Limited (7 per cent) losing the most, followed by Paradeep Phosphates (4.2 per cent), GSFC (4.2 per cent), Chambal (4 per cent) and GNFC (3.3 per cent). Also, several of them have had a strong rally in the past year and profit booking may have also resulted in the sharp correction. 

The latest Budget on an overall basis is broadly positive despite the higher tax on capital gains and higher STT. The negative sentimental effect of the higher taxes may be over in a couple of days.

The provision for boosting spends in the agri sector, increase in spend on affordable housing, new schemes to provide incentives for employment generation may lay the foundation for medium-term inclusive growth.

Transaction of shares under offers for sale have been brought under the capital gains tax net with the Budget amending the tax provisions with retrospective effect from assessment year FY19.

The Budget memorandum noted that taxpayers in some cases were not paying capital gains tax on transfer of shares acquired through the offer for sale (OFS) route, citing the absence of an express provision for determination of the fair market value of such equity shares since they were still unlisted on the date of transfer even though securities transaction tax has been paid on transfer and thus, cost of acquisition is indeterminable, and capital gains is not chargeable.

Shares of gold and jewellery retailers surged on Tuesday after Finance Minister Nirmala Sitharaman said the Government will reduce the basic customs duty on the yellow metal and silver to 6 per cent.

The Indian benchmark indices retained trend of closing the July Budget Day in red for the fifth consecutive time. Sensex and Nifty 50 were down about 0.1 per cent each. The Nifty Bank index was down about a per cent. Indeed, all three indices witnessed an intraday fall of over 1.5 per cent before recovering some of the loss in the second half of the day.

Increase in short-term and long-term capital gains tax and rising the security transaction tax (STT) for the Futures & Options (F&O) segment were the major triggers for the intraday fall.