Stock Market Updates: Sensex, Nifty settle 1% lower as IT stocks drag; Infosys tanks 8%

GNA Axels has announced that the 30th Annual General Meeting (AGM) of the company will take place on September 29, 2023.

The company has also announced a dividend payment for its shareholders. The record date for the dividend has been fixed as August 11, 2023. Shareholders will receive ₹6 per equity share on the pre-capital, with 2,14,65,400 equity shares eligible for the dividend.

Reliance Jio Infocomm, the telecom arm of Mukesh Ambani’s Reliance Industries, reported a 12.2 per cent rise in first-quarter profit on Friday, as its added more subscribers.

Jio, India’s biggest telecom carrier by subscribers, said net profit climbed to ₹4,863 crore in April-June, from ₹4,335 crore a year ago.

Its revenue from operations rose 9.9 per cent to ₹24,042 crore.

Shares of Infosys tanked over 8 per cent on Friday after the company reported a lower-than-expected 11 per cent rise in net profit for the June quarter and slashed its FY24 growth outlook.

The stock plunged 8.18 per cent to settle at Rs 1,330.40 on the BSE. During the day, it tumbled 9.47 per cent to Rs 1,311.60.

At the NSE, shares of the company tanked 7.73 per cent to finish at Rs 1,337.45.

The company’s market capitalisation (mcap) fell by Rs 49,159.03 crore to Rs 5,52,141.59 crore.

Hindustan Zinc Ltd (HZL) on Friday reported a 36.48 per cent fall in consolidated net profit to Rs 1,964 crore for the June 2023 quarter, mainly due to lower income.

It had posted a consolidated net profit of Rs 3,092 crore in the first quarter of the previous fiscal, the company said in a BSE filing.

The company’s share price dropped 1.5% to Rs 318.10 on BSE on Friday.

Realty major DLF’s consolidated net profit rose 12 per cent to Rs 527 crore in the first quarter of this fiscal.

The company’s net profit stood at Rs 469.57 crore in the year-ago period, per PTI report.

Total income rose marginally to Rs 1,521.71 crore in the April-June period of 2023-24 financial year from Rs 1,516.28 crore in the year-ago period, according to a regulatory filing.

The company’s share price ended 0.72% lower at Rs 501 on BSE.

The Indian rupee rose for a second straight week, helped by foreign inflows into equities, but gains were capped on expectations that the central bank would not allow the currency to appreciate significantly.

The rupee ended at 81.9450 to the US dollar compared with 81.9850 on Thursday, per Reuters report.

Deep Industries Ltd has entered into joint venture arrangement with Focus Energy Limited to carry out business for providing field services such as higher capacity onshore drilling rig services in oil and gas industry in India. Deep Industries’ stock traded at ₹225.80, up by 5.24% on the NSE.

Karnataka Bank hosted the first edition of KBL - FinOne, “A Fintech Growth Program” at the bank’s Bull Temple Road Office in Bengaluru. Meanwhile, the bank’s stock settled 2.09% lower at ₹208.35 on NSE.

Indian stocks faced a decline on Friday, ​primarily driven by a slump in the IT sector​, triggered by Infosys, the leading software services provider. Infosys revised its revenue guidance, attributing it to weak global cues and reduced client spending.

By the end of the day, the Nifty 50 index dropped 1.17% to 19,745.00, while the S&P BSE Sensex experienced a loss of 1.31%, falling to 66,684.26.

The IT sector suffered a significant decline of over 4%, largely influenced by Infosys, which saw a substantial drop of more than 9%, negatively impacting the overall market sentiment.

Hindstan Unilever also experienced a decline of over 3% as it failed to meet profit expectations for the June-quarter, primarily due to increased costs.

The stock of Ponni Sugars (Erode) jumps by 6.65% on the BSE, trading at ₹415.90. The company recorded a net profit of ₹666 lakh for the quarter ended June 30, 2023, against ₹216 lakh in the previous year.

Dalmia Bharat reported its Q1FY24 results and the stock is down 4.7 per cent. The company reported 14 per cent growth in expenses and a 30 per cent decline in net profit whereas total income grew 10 per cent.

The stock of Indian Railway Finance Corporation Ltd jumps 4.81% on the NSE, trading at ₹34.85.

Major gainers:

LT (3.95%); ONGC (2%); NTPC (1.01%); BPCL (0.76%); SBI (0.71%)

Major losers:

Infosys (-8.58%); HCL Tech (-3.97%); Hindustan Unilever (-3.86%); Reliance industries (-3.35%); Wipro (-3.20%)

Stocks advanced on BSE at 3 pm on July 21 were 1,517 against 1,845 stocks that declined. Total stocks traded were 3,497. The number of stocks that recorded a 52-week high was 190, and those that hit a 52-week low was 26.

The board of GNA Axles Ltd has approved the issue of bonus shares in the ratio of 1:1, i.e. 1 equity share of ₹10 each for every share held by the shareholders of the company as on the record date, subject to the approval of shareholders to be obtained by Postal Ballot.

A Special Purpose Vehicle (SPV) Company - Koppal II Gadag II Transmission Limited - has been incorporated as a wholly owned subsidiary of PFC Consulting Limited (PFCCL), a wholly owned subsidiary of Power Finance Corporation Limited (PFC).

The stock of PFC trades at ₹227.05 on the NSE, up by 0.38%.

Ramkrishna Forgings Ltd has reported its unaudited financial results for the quarter ended June 30, 2023. Net profit recorded at ₹7852.87 lakh against ₹5138.63 lakh in the previous year.

The stock trades at ₹506 on the NSE, up by 1.90%.

India’s Ultratech Cement on Friday reported first-quarter profit above expectations, as strong domestic demand offset higher raw material costs. The top cement maker’s consolidated profit for the quarter ended June 30 rose 6.6% to Rs 1,688 crore ($205.8 million) from Rs 1,584 crore a year ago.

The Mumbai-based company’s revenue from operations rose nearly 17% to Rs 17,737 crore.

Prices of raw materials rose 6%, with key ingredients like fly ash and slag ballooning, while energy costs increased 3%, the company said.

On July 3, Ultratech reported a 20% year-on-year rise in its Q1 grey cement sales at 28.6 million tonnes. - Reuters

HDFC Life on Friday reported 15 per cent increase in net profit at Rs 415 crore for first quarter of the current fiscal year.

The company had reported Rs 361 crore profit in April-June 2022-23.

The total premium rose 16 per cent to Rs 11,673 crore during the quarter as compared with Rs 10,050 crore in the year-ago period, HDFC Life said in a statement.

During the latest quarter, the first-year premium collection rose 19 per cent to Rs 5,869 crore from Rs 4,949 crore in the same period a year ago.

The company’s solvency stands at 200 per cent as compared to 178 per cent in the same quarter a year ago.

The board has recommended a dividend of Rs 1.90 per share aggregating to a payout of Rs 408 crore subject to approval by the shareholders. - PTI

Dhruv Consultancy Services Limited has received the Letter of Acceptance as Project Supervision Services Agency (PSSA) for various works from the Salem Division- Gati Shakti of Southern Railway. The 12-month contract is worth approx ₹1.23 crore. The company’s stock trades at ₹49.50, down by 0.50% on the NSE.

CarTrade Tech’s CarWale abSure is hosting ‘Mega Used Car Mela’ on July 22-23 at the Garnet Galaxy in Vadodara, Gujarat. The company’s stock declines by 2.42% on the NSE, trading at ₹508.85.

ICICI Prudential Mutual Fund (MF) has launched ICICI Prudential Nifty 200 Quality 30 ETF, an open-ended Exchange Traded Fund tracking NIFTY200 Quality 30 Index. The NFO opened for subscription today (Friday) and will close on July 26. The Entry load and Exit load is not applicable for the scheme. The minimum subscription amount is Rs 1,000 and in multiples of Rs 1.

The performance of the Scheme would be benchmarked against NIFTY200 Quality 30 TRI and its fund managers are Kayzad Eghlim and Nishit Patel.

The investment objective of the scheme is to provide returns before expenses that correspond to the total return of the underlying index subject to tracking errors.

LIC Mutual Fund Trustee, trustee to LIC Mutual Fund, has approved distribution under Income Distribution cum Capital Withdrawal (IDCW) under LIC MF Tax Plan. The record date is July 24 or the immediate next Business Day if that day is not a Business Day.

The quantum of IDCW on the face value of Rs 10.00 per unit will be Rs 0.25 under Direct and Regular Plans .

Shares of Tiger Logistics (India) trade at ₹390.60 on the BSE, down by 0.61%. The company had announced signing an agreement with OneNDF, a product of Devick Biz Solutions Pvt. Ltd for Cargo Value Financing through its digital platform “FreightJar”.

Jindal Stainless stock rises by 1.13% on the NSE, trading at ₹371.70. The company had completed the acquisition of Jindal United Steel Limited (JUSL).

Union Bank of India chief A Manimekhlai says will bring down gross non-performing assets ratio below 6% of gross advances; GNPAs were at 7.34% in Q1FY24; Bank to recover Rs 4,500 crore in FY24

The stock of MTAR Technologies trades at ₹2,120.50 on the BSE, down by 0.76%. The company had scored an overall ESG rating of 2 i.e., good on a 5- rating scale of Dun & Bradstreet.

We believe that these leadership announcements are positive for JLR, as they reflect the company’s commitment to its Reimagine strategy, which aims to enter an electric future and transform into a digitally savvy modern luxury business.

Adrian Mardell and Richard Molyneux have played key roles in implementing the Refocus transformation programme (cost control program), which delivered GBP1.1bn of savings in FY23, and GBP1.5bn in FY22.

ICICI Securities, on Friday, reported a one per cent decline in profit after tax (PAT) at ₹271 crore for three months ended June 2023.

In comparison, the company reported a PAT of ₹273.6 crore in the year-ago period, ICICI Securities said in a regulatory filing.

The decline in the profit could be attributed to higher expenses, as the broking firm’s total expenses shot up by 33 per cent to ₹570 crore in the quarter under review.

However, the company’s total revenues rose by 18 per cent to ₹934 crore in the first quarter under review, from ₹795 crore in the April-June quarter of FY23.

The stock of MTAR Technologies trades at ₹2,120.50 on the BSE, down by 0.76%. The company had scored an overall ESG rating of 2 i.e., good on a 5-rating scale of Dun & Bradstreet.

We believe that these leadership announcements are positive for JLR, as they reflect the company’s commitment to its Reimagine strategy, which aims to enter an electric future and transform into a digitally savvy modern luxury business.

Adrian Mardell and Richard Molyneux have played key roles in implementing the Refocus transformation programme (cost control program), which delivered GBP1.1 billion of savings in FY23, and GBP1.5 billion in FY22.

Surprising with good set of numbers in Q1FY24, Ashok Leyland posted a big beat on the EBITDA margin front aided by three major factors including favourable base effect, effective price hikes, and lower discounts. Network expansion has helped the company gain market share, with MHCV share improving by 120 bps. With a more than eight times jump in net profit aided by lower tax expenses, the company remains optimistic on its performance going ahead. Robust demand for the modular AVTR range of trucks, encouraging market response to the Bada Dost range and continued traction in power solutions and aftermarket businesses should bode well for the coming quarters.

The stock has risen by 3.41% on the NSE, trading at ₹181.70.

NBCC (India) Ltd has secured total business of ₹153.85 crore in June 2023. The company’s stock trades at ₹41.40, up by 0.24% on the NSE.

“SEBI’s move to expand ESG investing opportunities in Mutual Funds marks a significant step in promoting sustainable endeavours. Previously, MFs were limited to launching only one ESG scheme under the thematic category for equity. Now, with the introduction of 6 new strategies, SEBI demonstrates a strong commitment to fostering greater participation in ESG investments. The new guidelines mandate higher disclosure, compliance with independent assurance, ESG audits, and fund manager commentary and case studies.

This coordinated effort by stakeholders, including the Government and regulators, towards ESG is a positive development, given the substantial AUM of 45 lakh crores in Mutual Funds. This initiative will encourage MFs and provide investors with responsible investment avenues. SEBI’s endeavour is commendable and is likely to be remembered as a historic step in the ESG ecosystem for years to come,”

UltraTech Cement Ltd posted a net profit of ₹1,690.22 crore for the quarter ended June 30, 2023, against ₹1,582.02 crore in the previous year. Demand remains strong, the company said. The stock trades at ₹8,198.40, down by 0.31% on the NSE.

Trident Limited has been granted patent for the process of manufacturing a fabric with homogeneous pores by the European Patent Office.

Kuberan Global Edu Solutions Ltd.’s shares went up by 16.90 per cent after the company received a certificate from M/s. Bigshare Services Pvt. Ltd., the Registrar and Share Transfer Agent of the company.

This certificate confirms the company’s compliance with regulations that require listed entities to reconcile their total admitted and listed capital with depositories every quarter. By obtaining this certificate, Kuberan Global Edu Solutions Ltd. reassures its shareholders and regulatory authorities that it follows the prescribed guidelines, ensuring transparency and accuracy in its financial records.

Kuberan Global Edu Solutions Limited provides test preparation courses for various exams and customized training to corporate, government, and educational organizations. They offer classroom and online teaching, along with an integrated test and assessment platform on their app.

The shares of Kuberen Global Edu went up by 16.90 per cent to ₹24.55 at 01:01 p.m. on BSE.

Akshar Spintex Ltd. has scheduled a board meeting on Monday, July 31, 2023, at 1:00 P.M. at their registered office in Gujarat.

The meeting’s agenda includes discussions regarding the resignation of Pratik M. Makwana, the Company Secretary and Compliance Officer. Additionally, any other relevant business will be taken up with the permission of the Chair. The shares were up by 3.55 per cent to ₹73 at 12:30 p.m. on BSE.

Major gainers on the BSE at 1 pm: Tanla (9.61%); Stylam Industries (8.82%); IndiaMART (7.93%); Rites (7.56%); RVNL (7.19%)

Major losers: Infosys (-8.17%); KPIT (-5.79%); South Indian Bank (-5.28%); Persistent (-5.23%); Dalmia Bharat (-3.64%)

Shares of Royal Orchid Hotels Ltd trade at₹344.70, up by 2.86%. The company earlier announced its entry to Kolhapur with the opening of Regenta Place Raysons.

Marine Electricals (India) Limited has received two orders worth ₹29.95 crore from Larsen & Toubro for supply of LT panels for STT data Centre, Mumbai, and from Sundaram Clayton Limited for supply of HT panels, LT panels and Energy Management System. The delivery period for both orders shall be over a period of 3 months. The stock of Marine Electricals is up by 2.33% on the NSE, trading at ₹63.75.

Lupin has incorporated Lupin Atharv Ability Limited, a wholly owned subsidiary, for neuro-rehabilitation business. The stock trades at ₹938.95 on the NSE, down by 0.76%.

Vishnu Chemicals, a Hyderabad-based speciality chemical manufacturer and a large producer of barium and chromium chemicals, has announced that it has acquired 100 per cent stake in Chennai-based Ramadas Minerals Pvt Ltd. The acquisition was made through its wholly-owned subsidiary, Vishnu Barium Pvt Ltd for a consideration of ₹26 crore.

On NCDEX, dhaniya (coriander) September futures gained ₹70 at ₹7,630 a quintal. Jeera (cumin) September contracts were up ₹810 at ₹62,145 a quintal. Turmeric December futures increased by ₹568 to ₹14,856 a quintal.

On MCX, gold August contracts were down a tad at ₹59,550 per 10 gm. But silver September contracts were up ₹51 at ₹75,550 a kg.

The Indian Steel Association (ISA) — which includes the country’s largest steel mills like AM/NS India, Tata Steel, JSW, JSPL and PSU-majors like SAIL and RINL — has sought intervention of the Steel Ministry and the Railways in order to waive off a “busy season surcharge” on rakes (which includes 40-60 wagons) and provide wagons at base rates.

In the Asian market, gold came off a two-month high to $1,970 an ounce around noon in India. Silver, too, dropped below $25 an ounce. Gold last traded at $1,970.78 and silver at $24.858.

The 2-week uptrend in gold and silver will likely end as prices are set to be range-bound, says Tejas Anil Shigrekar, Commodities and Currencies Senior Technical Analyst, Angel One Ltd.

Sutlej Textiles and Industries’ president and Chief Executive Officer Updeep Singh Chatrath has tendered his resignation with immediate effect, the company disclosed in a stock exchange filing. However, the stock trades at ₹47.75, up by 0.32% on the NSE.

Gainers: LT (2.78%); JSW Steel (1.38%); SBI (1.16%); Tata Motors (1.01%); Adani Enterprises (1%)

Major losers:

Losers: Infosys (-7.88%); Reliance industries (-3.09%); HCL Tech (-3.08%); Hindustan Unilever (-2.92%); Wipro (-2.38%)

Stocks advanced on BSE at 12 noon on July 21 were 1,566 against 1,666 stocks that declined. Total stocks traded were 3,364. The number of stocks that recorded a 52-week high was 163, and those that hit a 52-week low was 23.

The stock of Utkarsh Small Finance Bank now trades at ₹48 on the NSE. The issue was listed at ₹39.95 per share today, 60% higher than the issue price.

Overall, strong set of numbers on both revenue and margins, beating our and street’s consensus estimates. The CV industry has been aiming for profitable growth since the 2HFY23, when Tata Motors started reducing discounts offered. This has led to improvement in margins across CV OEMs. AL was targeting to reach double digit margins in FY24, which it has achieved in 1QFY24 itself, which gives us confidence in its medium term margin targets of reaching mid-teen. The stock current trades at 19.5x FY25 PE. AL has noted that demand should improve from 2QFY24 onwards as 1Q volume performance was impacted due to pre-buying in 4QFY23 ahead of transition to BS VI OBD 2 norms.

Federal Bank to raise approx. ₹9,600 crore from International Finance Corporation (IFC). The bank also plans to raise ₹8,000 crore via debt. The stock trades at ₹134.60, down by 1.64%.

JSW Steel recorded a net profit of ₹2,428 crore under the consolidated financial results for the quarter ended June 30, 2023, against ₹839 crore in the previous year.

The stock of JSW Steel rises by 2.49% on the NSE, trading at ₹818.95.

The company also announced the appointment of Swayam Saurabh as the Chief Financial Officer

Bank Nifty index opened lower today at 46,064 against Thursday’s close of 46,187. The index then rallied and marked a high of 46,369.50, but moderated to 46,100. Thus, it is down by 0.15 per cent for the day.

The advance/decline ratio of Bank Nifty stands at 5/7, giving it a bearish bias. SBI is the top gainer, up by 1.3 per cent whereas Federal Bank is the top loser, down by 1.7 per cent.

The board of Ramco Systems has approved an allotment of 43,135 equity shares of ₹10 each exercised under Employee Stock Option Schemes. Consequently, the company’s paid-up equity share capital has increased from 3,52,39,845 equity shares of ₹10 each to 3,52,82,980 equity shares of ₹10 each. The company’s stock trades at ₹262.35, down by 1.67% on the NSE.

360 ONE WAM reported that its net profit in the June quarter was up 13 per cent at ₹181 crore against ₹160 crore logged in the same period last year, on back of better margin. Revenue increased 8 per cent to ₹406 crore.

Ashok Leyland: Unaudited financial results for quarter ended June 30, 2023, Net profit at ₹576.42 crore against ₹68.05 crore in the previous year. The stock rises by 2.73% on the NSE, trading at ₹180.50.

Bhageria Industries has revealed that a minor fire occurred near the Thermopac area at the factory premises in Palghar on July 20, 2023. The same was controlled within the time, causing the least effect on plant & machinery, no injuries caused to any employee.

The stock trades at ₹154 on the BSE, down by 1.38%.

Major gainers on the BSE at 11 am: Stylam Industries (9.17%); Indiamart (7.17%); Ircon (6.13%); United Spirits (6.11%); RVNL (5.52%)

Major losers: Infosys (-7.69%); Persistent Systems (-4.76%); KPIT Tech (-4.14%); Polycab (-3.94%); South Indian Bank (-3.63%)

Companies providing aircraft leasing services in the IFSC (International Financial Services Centre) will not be liable to TDS on dividend, the Income Tax Department has said. This will promote setting up of more such units in IFSC.

The new norm will come into effect from September 1. ’Inter se’ is a Latin phrase which means ‘among themselves,’ and refers to the rights and duties owed among certain parties, rather than to others. The aircraft operating lease business is estimated to be worth $50 billion globally.

Hindustan Unilever’s (HUL) shares dipped 2.58 per cent on Friday morning after the fast-moving consumer goods (FMCG) company reported weak volume growth in the first quarter.

According to Motilal Oswal, “During the quarter, volumes grew 3 per cent YoY versus the expectation of 7 per cent growth, as higher inflation is adversely impacting consumer spending.”

ICICI Bank has allotted 165,264 equity shares of face value of ₹2 each under the bank’s Employees Stock Option Scheme. The stock trades at ₹922.55, down by 0.31% on the NSE.

Nifty 50 and Sensex are trading lower. Both indices are trying to recover the loss after opening the day with a wide gap down. Nifty 50 is trading at 19,821, down 0.8 per cent. Sensex at 66,940, is down 0.94 per cent.

Newgen Software Technologies Ltd has incorporated its wholly-owned subsidiary in Saudi Arabia. The company’s stock rises by 2.65% on the NSE, trading at ₹823.90.

Shah Metacorp has received export orders worth approx ₹40 crore from Italy and another European country for the export of steels and alloys. The company has also received in-principle approval for preferential issue from both stock exchanges. The company’s stock surges 8.33% on the NSE, trading at ₹3.90.

The stock of Suzlon Energy rises by 4.81% on the NSE, trading at ₹19.60.

Anubhuti Mishra, Equity Research Analyst at Swastika Investmart

The Utkarsh Small Finance Bank IPO made a strong debut on the stock exchanges today, listing at ₹40 per share, a premium of 60% over the upper end of the price band of ₹25. The strong listing was in line with expectations. The company has a strong track record of growth, and its financial performance has been improving in recent years. Utkarsh SFB is well-positioned to benefit from the growth of the SFB sector, as it has a strong focus on underserved segments of the population. After listing at such a level, we will suggest booking this gain; however, aggressive investors can choose to buy during any subsequent dip.

The stock of Infosys down by 8.10% on the NSE, trading at ₹1,332.05.. This was triggered by the revision of its revenue guidance for the fiscal year 2024, which was adjusted to a range of 1–3.5 per cent, down from the previous projection of 4–7 per cent.

Drone Destination listing opened at ₹107.45, and is now at ₹102.10, against the IPO price of ₹65. The SME-IPO of Drone Destination saw strong response by subscribing 191.65 times between July 7-13. The ₹44.2 crore issue fetched bids worth ₹5,500 crore.

Listing ceremony of Utkarsh Small Finance Bank Ltd to start soon. Prices settled at 39.95 in pre-open session.

Hindustan Unilever’s 1QFY24 performance fell slightly short of our expectations. During the quarter, volumes grew 3% YoY vs. expectation of 7% growth, as higher inflation is adversely impacting consumer spending.

- In 1QFY24, rural market delivered volume growth. While we expect this momentum to continue; however weather patterns remain a critical factor to monitor.

- The company is normalising A&P spends to revive volume and bring it back to pre-COVID levels, which represents 9.8% of sales. Management mentioned about funnelling the gross margin expansion towards adspends to drive volume growth. However, the 120bp YoY increase in ‘other expenses’ is due to a step-up in investments, the impact of new royalty incentives.

Major gainers on the NSE at 9:30 am on July 21: LT (2.53%); Kotak (1.15%); Cipla (1.08%); SBI (0.94%); Britannia (0.74%)

Major losers: Infosys (-7.64%); HCL Tech (-1.80%); Hindustan Unilever (-1.62%); Reliance Industries (-1.41%); TCS (-1.40%)

Infosys share price dipped 7.76 per cent on Friday morning. This was triggered by the revision of its revenue guidance for the fiscal year 2024, which was adjusted to a range of 1–3.5 per cent, down from the previous projection of 4–7 per cent.

The decision came in response to clients reducing spending and deferring decisions in an increasingly uncertain market landscape. While the company reported an 11 per cent y-o-y increase in net profit to ₹5,945 crores during Q1 of FY24, the figure fell 3 per cent sequentially, missing market expectations.

Despite sustaining consolidated revenue growth of 10 per cent YoY to ₹37,933 crore, the shares went down by 7.76 per cent to ₹1,336.45 at 09:51 a.m. on BSE.

ICICI Securities on Havells: We note three structural growth drivers from Q1FY24 as the company is in early stages to develop white label business (EMS) via exports and it has entered the premium and luxury segment with the launch of Havells Studio. We believe the premiumisation path could potentially result in structural margin expansion and B2B sales are likely to remain strong in the coming quarters. We also believe the correction in input prices and the likely revival in B2C sales in H2FY24 offer tailwinds to earnings. We remain positive on Havells and model it to report revenue and PAT CAGR of 14.5% and 28.1%, respectively, over FY23-FY25E. We cut FY24 earnings estimates to factor in delayed recovery in consumer demand.

Shares of Venus Pipes and Tubes Ltd gained 0.49 per cent after it announced the commercial production of Longitudinal Submerged Arc Welding (LSAW) pipes.

The stainless steel pipe and tube manufacturer would produce approximately 600 tonnes monthly, effective July 21. Managing Director, Arun Kothari, emphasised the company’s commitment to upholding superior standards.

The shares went up by 0.49 per cent to Rs 1,203.60 at 09:26 a.m. on the BSE.

Sprayking Agro Equipment Ltd, a brass manufacturer, has acquired its new manufacturing facility at Jamnagar, Gujarat. The new facility is spread over 3,000 sq. mt which has been acquired by the company on rent from the third party.

L&T’s Heavy Civil Infrastructure business has secured order from the National High-Speed Rail Corporation Limited (NHSRCL) to construct the 135.45 km stretch MAHSR – C3 package, which is part of the Mumbai Ahmedabad High-Speed Rail Project. The 508 km high-speed rail project, also called MAHSR Bullet Train project, will cover 155.76 kms in the State of Maharashtra, 4.3 kms in the Union Territory of Dadra & Nagar Haveli and 348.04 kms in the State of Gujarat with 12 stations along the route.

Michigan Federal District Court in its order on Fiat motion said M&M’s arm Mahindra Automotive North America can continue to produce/sell post-2020 ROXOR in the US

Larsen & Toubro to consider buyback of equity shares of the company and payment of Special dividend on 25 July.

TCS has bagged a deal from British Broadcasting Cooperation (BBC) to change its finance, procurement, and HR applications management

Indusind Bank board approves raising of funds through debt securities on a private placement basis for an aggregate amount of Rs 20,000 crore

Hindustan Unilever (HUVR)’s 1QFY24 performance fell slightly short of our expectations. During the quarter, volumes grew 3% YoY vs. expectation of 7% growth, as higher inflation is adversely impacting consumer spending.

- In 1QFY24, rural market delivered volume growth. While we expect this momentum to continue; however weather patterns remain a critical factor to monitor.

- The company is normalizing A&P spends to revive volume and bring it back to pre-COVID levels, which represents 9.8% of sales. Management mentioned about funnelling the gross margin expansion towards adspends to drive volume growth. However, the 120bp YoY increase in ‘other expenses’ is due to a step-up in investments, the impact of new royalty incentives, and favorable benefits in the base quarter.

- The outlook for HUVR remains balanced with lower commodity costs and gradual recovery in rural demand offset by reduced leverage on pricing and increased competition from smaller players in some categories. We reiterate our BUY rating with a TP of INR 3,100.

Major gainers: LT (2.53%); Kotak (1.15%); Cipla (1.08%); SBI (0.94%); Britannia (0.74%)

Major losers: Infosys (-7.64%); HCL Tech (-1.80%); Hindustan Unilever (-1.62%); Reliance Industries (-1.41%); TCS (-1.40%)

Price Band Revised From 20% To 10%: Jayaswal Neco Industries

Ex-Date Dividend: Abbott India, Archean Chemical Industries, Anup Engineering, Arvind, Arvind SmartSpaces, Astec Lifesciences, BASF India, Blue Star, Cipla, Dabur India, Dhanuka Agritech, Fiem Industries, HIL, Indian Metals and Ferro Alloys, Indian Hume Pipe, Infobeans Technologies, Intellect Design Arena, Jamna Auto Industries, Kokuyo Camlin, KPR Mill, L&T Finance Holdings, LIC, Laxmi Organic Industries, Mahindra & Mahindra Financial Services, Minda Corporation, RPG Lifesciences, Sasken Technologies, Sonata Software, Sumitomo Chemical India, Symphony, Tech Mahindra, Thermax, TTK Prestige, Zensar Technologies, Zydus Wellness

Ex-date Interim Dividend: Angel One

Ex-date Buy Back: Goldiam International

Ex-date AGM: TTK Prestige, Fiem Industries, Arvind, BASF India, Mahindra & Mahindra Financial Services, KPR Mill, Tech Mahindra, Dabur India, Astec Lifesciences, Kokuyo Camlin, Sonata Software, Jamna Auto Industries, Dhanuka Agritech, Indian Metals & Ferro Alloys, Symphony, Indian Hume Pipe, HIL, Intellect Design Arena, Arvind Smartspaces, Infobeans Technologies, Anup Engineering

Record-date Dividend: Abbott India, Archean Chemical Industries, Angel One, Blue Star, Cipla, L&T Finance Holdings, LIC, Laxmi Organic Industries, RPG Lifesciences, Sumitomo Chemical India, Thermax, Zensar Technologies, Zydus Wellness

Record-date Interim Dividend: Angel One

Move Out Of Short-Term ASM Framework: Action Construction Equipment, RattanIndia Power

Jai Balaji Industries: Ashika Global Finance sold 11.5 lakh shares (0.7%), and SM Niryat bought 11.5 lakh shares (0.7%) at Rs 112 apiece.

Responsive Industries: Brenzett sold 26.5 lakh shares (1%) at Rs 182.02 apiece.

Amara Raja Batteries: BNP Paribas Arbitrage sold 10.3 lakh shares (0.6%) at Rs 623.53 apiece.

Reliance Industries, Ashok Leyland, Atul, Aditya Vision, CreditAccess Grameen, Dodla Diary, Glenmark Lifesciences, GNA Axles, HDFC Life Insurance Company, Hindustan Zinc, JSW Steel, Kabra Extrusiontechnik, PNB Gilts, Rajratan Global Wire, Ramkrishna Forgings, Tejas Networks, Ultratech Cement, Wendt (India)

IndiaMart InterMesh: The board of the company has approved a buyback of up to Rs 500 crore consisting of 12.5 lakh shares, representing a 2.04% stake via tender offer. The buyback price will be Rs 4,000 per share, a premium of 38% over Thursday’s closing price.

Larsen & Toubro: The company will consider a share buyback and special dividend on July 25.

IndusInd Bank: The board of the bank approved raising Rs 20,000 crore via debt securities on a private placement basis.

Jindal Stainless: The company completed the acquisition of Jindal United Steel by acquiring the remaining 74% stake for Rs 958 crore, making JUSL a 100% owned subsidiary of JSL.

LTIMindtree: The company announced a strategic partnership with CYFIRMA to enhance the threat intelligence capabilities of its XDR platform. Larsen & Toubro, through its L&T Innovation Fund, recently invested in CYFIRMA in a pre-Series B round of funding.

Hindustan Aeronautics: The company has signed a Letter of Intent on co-operation for Light and Medium Utility Helicopters for the Armed Forces of Argentina.

Revenue up 19% to Rs 558.96 crore vs. Rs 471.12 crore (Bloomberg estimate: Rs 420.8 crore).

NII up 17% to Rs 448.35 crore vs. Rs 283.56 crore.

Net profit up 17% to Rs 183.58 crore vs. Rs 156.58 crore (Bloomberg estimate: Rs 176 crore).

Revenue up 14% to Rs 911 crore vs. Rs 800 crore.

Ebitda up 39% to Rs 182.22 crore vs. Rs 130.7 crore.

Ebitda margin 20% vs. 16.3%

Net profit up 35% to Rs 135.4 crore vs. Rs 100.41 crore.

Revenue up 2.4% at Rs 2221 crore vs. Rs 2170 crore.

EBIT up 2.9% at Rs 230.3 crore vs. Rs 223.8 crore.

Margins at 10.4% vs. 10.3%

Net profit up 44% at Rs 165.3 crore vs. Rs 114.8 crore.

Revenues up 25.65% at Rs 282.1 crore vs. Rs 224.5 crore.

Net profit up 77.9% at Rs 83.1 crore vs. Rs 46.69 crore.

Ebitda up 20.59% at Rs 77.35 crore vs. Rs 64.14 crore.

Margins at 27.41% vs. 28.57%

Revenue up 31% to Rs 108 crore vs. Rs 82 crore.

Ebitda loss of Rs 29 crore vs. Rs 47.6 crore

Net loss of Rs 33.5 crore vs. a net profit of Rs 635.12 crore

Revenue up 10% at Rs 3,624 crore vs. Rs 3,302 crore (Bloomberg estimate: Rs 3,693 crore).

Ebitda up 4% at Rs 610 crore vs. Rs 586 crore (Bloomberg estimate: Rs 657.6 crore).

Ebitda margin 16.8% vs. 17.7% (Bloomberg estimate: 17.8%)

Net profit fell 30% to Rs 144 crore vs. Rs 205 crore (Bloomberg estimate: Rs 240 crore).

We note three structural growth drivers from Q1FY24 as the company is in early stages to develop white label business (EMS) via exports and It has entered premium and luxury segment via launch of Havells Studio. We believe the premiumisation path could potentially result in structural margin expansion and B2B sales are likely to remain strong in coming quarters. We also believe the correction in input prices and the likely revival in B2C sales in H2FY24 offer tailwinds to earnings. We remain positive on Havells and model it to report revenue and PAT CAGR of 14.5% and 28.1%, respectively, over FY23-FY25E. We cut FY24 earnings estimates to factor in delayed recovery in consumer demand.

Sprayking Agro Equipment Ltd, brass manufacturer, has acquired its new manufacturing facility at Jamnagar, Gujarat. The new facility is spread over 3,000 sq. mtr which has been acquired by the company on rent from the third party.

Shares of Venus Pipes and Tubes Ltd gained 0.49 per cent after it announced the commercial production of Longitudinal Submerged Arc Welding (LSAW) pipes.

The stainless steel pipe and tube manufacturer would produce approximately 600 tonnes monthly, effective July 21, 2023. Managing Director, Arun Kothari, emphasised the company’s commitment to upholding superior standards.

The shares went up by 0.49 per cent to Rs 1,203.60 at 09:26 a.m. on the BSE.

Macquarie 0n Infosys

Downgrade To Underperform

Target Rs 1,130

==

JPMorgan on Infosys

Underweight Rating

Target Rs 1,150

==

Jefferies On Infosys

Buy Rating

Target Rs 1,550

==

Nomura on Infosys

Downgrade To Reduce

Target Cut To Rs 1,210 From 1,260

==

BoFA Sec on Infosys

Neutral Rating

Target Rs 1,390

==

HSBC on Infosys

Buy Rating

Target Rs 1,540

Crude oil futures traded higher on Friday morning with the market hoping for a pause in the interest rate hikes by the US Federal Reserve in its meeting next week.

At 9.16 am on Friday, September Brent oil futures were at $80.28, up by 0.80 per cent; and September crude oil futures on WTI (West Texas Intermediate) were at $76.25, up by 0.79 per cent.

August crude oil futures were trading at ₹6260 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹6211, up by 0.81 per cent; and September futures were trading at ₹6270 as against the previous close of ₹6222, up by 0.77 per cent.

On Friday’s opening trade, the Sensex and Nifty experienced a drop of over 1%, reflecting global developments. The Sensex declined by 191.60 points (0.96%), to trade at 19,787.55, while the Nifty fell by 590.27 points (0.87%), reaching 66,981.63. Among the major losers were Wipro, TCS, and Hero MotoCorp, while Britannia, Titan, and Nestle emerged as gainers.

Revenue fell 3% to Rs 3,252 crore vs. Rs 3,361 crore (Bloomberg estimate: Rs 3,362 crore).

EBIT fell 3% to Rs 500 crore from Rs 515.27 crore.

EBIT margin flat at 15.3%.

Net profit fell 2% to Rs 396.05 crore vs. Rs 405.3 crore (Bloomberg estimate: 403 crore).

Revenue up 18% to Rs 934.31 crore vs. Rs 793.55 crore (Bloomberg estimate: Rs 950.3 crore).

Net interest income up 17% to Rs 749.7 crore vs. Rs 693.2 crore.

Net profit down 1% to Rs 270.84 crore vs. Rs 273.59 crore (Bloomberg estimate: Rs 278.8 crore).

Net interest income up 16.5% to Rs 8839 crore vs. Rs 7581 crore (YoY).

Net Profit up 2x at Rs 3236 crore vs. Rs 1558 crore (YoY) (Bloomberg estimate: 2,343 crore)

GNPA: 7.34% vs. 7.53% (QoQ)

NNPA: 1.58% vs. 1.70% (QoQ)

Revenue up 10% at Rs 2,667.8 crore vs. Rs 2,419.1 crore.

Ebitda up 92% at Rs 713.50 crore vs. Rs 372.3 crore.

EBITDA margin 26.7% vs. 15.3%

Net profit up 83% at Rs 476.7 crore vs. Rs 261.1 crore.

Revenue flat at Rs 2,321.1 crore vs. Rs 2,254.4 crore (Bloomberg estimate: Rs 2,328.8 crore).

EBIT fell 14% to Rs 298 crore vs. Rs 346.6 crore (Bloomberg estimate: Rs 358 crore).

Margin 12.83% vs. 15.37% (Bloomberg estimate: 15.37%)

Net Profit fell 9% to Rs 228.7 crore vs. Rs 251.5 crore (Bloomberg estimate: Rs 272 crore).

Revenue up 6% at Rs 15496 crore vs. Rs 14624 crore (Bloomberg Estimate: Rs 15,491 crore).

Ebitda is up 8% at Rs 3665 crore vs. Rs 3402 crore (Bloomberg Estimate: Rs 3,645.86 crore).

Margins at 23.7% vs. 23.3% (Bloomberg Estimate: 23.5%)

Net profit up 7% at Rs 2554 crore vs. Rs 2381 crore (Bloomberg Estimate: Rs 2,593.5 crore).

Revenue up 1.3% to Rs 37,933 crore vs. Rs 37,441 (Bloomberg estimate: Rs 37,843.3 crore).

EBIT flat at Rs 7,891 crore vs. Rs 7,877 crore (Bloomberg estimate: Rs 7,907.7 crore)

Margin 20.80% vs. 21.03 (Bloomberg estimate: 20.9%)

Net Profit: Rs 5,945 crore vs. Rs 6,134 crore (Bloomberg estimate: Rs 6,245 crore)

Revises lower FY24 revenue guidance to 1.0–3.5% from the 4-7% estimated earlier.

Emami: Promoter Group Divarkar Finvest revoked a pledge of 8.5 lakh, Suraj Finvest invoked a pledge of 12.75 lakh shares, and revoked a pledge of 4.25 lakh shares between July 17 and July 19.

Paisalo Digital: Promoter Group Equilibrated Venture Cflow created a pledge of 2 lakh shares on July 19.

Fertiliser sales have increased by 2.5 per cent in the first quarter of the current fiscal, from a year ago, to touch 102.12 lakh tonnes (lt), as there was a significant increase in demand in June despite the delayed and deficient monsoon. As a result, the subsidy in the April-June period accounts for 26 per cent of the budget estimate of Rs 1.75 lakh crore for 2023-24 fiscal. Higher sales may also help fertiliser companies increase their earnings, negating any likely adverse impact on consumption after the launch of the single ‘Bharat’ brand for all subsidised crop nutrients.

NDR Auto Components Ltd

Bonus issue 1:1

Previous day Closing Price – Rs. 964.30

Ex Bonus 24 July 2023 (Monday)

Last date Trade for Before Bonus Today

Union Bank of India (UBI) reported a 108 per cent year-on-year jump in first quarter net profit at Rs 3,236 crore, against Rs 1,558 crore in the year-ago quarter on the back of healthy growth in net interest income and other income, and a decline in loan loss provisions.

Indian shares are set to open little changed on Friday, on caution after data from the U.S. reignited concerns of a prolonged high-interest regime, while investors awaited key domestic earnings.

India’s GIFT Nifty on the NSE International Exchange was up 0.09% at 19,876.5, as of 8:12 a.m. IST.

Both the Nifty 50 and Sensex hit fresh highs for the fifth straight session on Thursday, with the Nifty 50 closing just shy of the 20,000 mark. The benchmarks are on course to extend gains for the fourth week in a row, adding over 2% each so far.

Asian equities declined, following weakness in Wall Street overnight, as lacklustre earnings from Tesla and Netflix and concerns of prolonged high-interest rate regime in the U.S. weighed on sentiment.

Weekly jobless claims in the world’s largest economy fell unexpectedly, official data showed, indicating strength in the labour market and heightening fears of the U.S. Federal Reserve keeping interest rates higher for longer.

The probability of a 25 basis-point rate hike at the upcoming Fed meeting on July 26 was 99.2%.

Information technology (IT) stocks will be in focus after bellwether software services provider Infosys halved its full-year revenue growth outlook, citing cuts in tech spending. Infosys reported a 10.9% rise in profit in the June quarter post-market hours on Thursday.

Investors also await the June-quarter earnings of top Nifty 50 firms including Reliance Industries. Reliance is expected to see an about 25% year-on-year fall in June quarter consolidated profit, post-market hours on Friday.

Foreign institutional investors bought 33.71 billion rupees ($410.9 million) of Indian equities on a net basis on Thursday, while domestic investors sold 1.93 billion rupees of shares, as per provisional NSE data. - Reuters

** Hindustan Unilever: Co misses June quarter profit view on higher costs.

** Union Bank: Lender reports rise in June quarter net profit, asset quality improves sequentially.

** Tanla Platforms: Co reports rise in consolidated net profit in first quarter.

** United Spirits: Co posts rise in June quarter profit on falling costs and sales growth in premium segment. - Reuters

UTI Mutual Fund (UTI) to launch UTI Balanced Advantage Fund, an open-ended dynamic asset allocation fund, investing in a diversified portfolio of equity and fixed income.

The portfolio of the scheme will be dynamically managed based on valuation and fundamental driven inhouse proprietary asset allocation model. The NFO starts on July 21, 2023 and closes on August 4, 2023.

Our PT remains Rs2,100, as we didn’t ascribe value accretion from JFS; With the key tactical catalyst, the Jio Financial Services demerger, now done, we see RIL shares underperforming on lack of earnings follow through; Our FY24-25e net profit is 15%-20% below Visible Alpha consensus

8:00 AM ICICI Securities

Dial: +91 22 7195 0000

8:30 AM Mphasis

Dial: +91 22 6280 1165,

10:30 AM Dalmia Bharat

Dial: +91 22 6280 1536

12:00 PM South IndBk

(Results)

Dial: +91 22 6280 1342

1:15 PM Union Bank

Dial: +91 22 6280 1394

2:00 PM 360 ONE WAM

No Contact Available

2:00 PM JSW Steel

(Press Release )

Dial: +91 22 6280 1481

4:00 PM IndiaMART InterMESH

Webinar: https://tinyurl.com/3nwthf6u

4:00 PM Shalby

(Results)

Dial: +91 22 6280 1146

4:00 PM MCDOWELL & CO

Dial: +91 22 6280 1250

4:00 PM HindZinc

Dial: +91 22 6280 1340

4:00 PM Glenmark Life

Dial: +91 22 6280 1564

4:00 PM Kirloskar Pneum

(Results, Press Release )

Dial: +9122 6280 1342

4:30 PM Tanla Platforms

(Results, Press Release )

Dial: +91 22 6280 1141

4:30 PM RamkrishnaForge

Dial: +91 22 6280 1325

5:00 PM Persistent

(Results, Investor/Analyst Presentation, Press Release )

6:00 PM HDFC life Insur

Dial: +91 22 6280 1406

6:30 PM CreditAccess Gr

Dial: +91 22 6280 1224

7:00 PM Tejas Networks

Dial: +91 22 7195 0000

8:00 PM Vedanta

Dial: +91 22 6280 1114

“Against an implied value of Rs 133 per share of Reliance Strategic Investments Ltd. (to be renamed as Jio Financial Services), post its demerger from Reliance Industries, the market has valued the entity at Rs 250-260 per share. This is due to its strong networth of ~Rs 1 lakh crore (on consolidated basis) which is seen enabling faster growth in an already competitive financial marketplace.

In the initial phase, we expect the Jio Financial Services stock to follow implied value determined by market participants. We expect the company to deliver higher growth given the huge opportunity in the financial sector in the country and its own strong capitalisation, which will ensure that the company would not need to raise external equity capital for reasonably long period of time, thereby limiting any dilution overhang.”

The Union Government has prohibited the export of non-basmati white rice with immediate effect, according to a government notice on Thursday, after a late start to seasonal monsoon rains hurt the crop, raising fears of a shortfall in production. “Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed)...is amended from free to prohibited,” the DGFT said in a notification. Shares such as KRBL, Chamal Lal Setia and LT Foods Ltd will remain in focus.

Royal Orchid & Regenta Hotels, with a portfolio of 90+ properties across the country, has announced its entry into Kolhapur with the opening of Regenta Place Raysons.

Jindal Stainless Limited (JSL) has completed the acquisition of Jindal United Steel Limited (JUSL). Earlier, JSL held 26%l per cent stake in JUSL; it has now acquired the remaining 74 per cent equity stake in JUSL for Rs 958 crore.

NBCC (India) Limited has secured the total business of Rs. 153.85 Crore in June.

MTAR Technologies has scored an overall ESG rating of 2 i.e., good on a 5- rating scale of Dun & Bradstreet.. The governance aspects of the company are rated as 1 - Very Good, environment aspects as 2 - Good and social aspects as 3 - Medium.

Hindustan Aeronautics Ltd has signed a Letter of Intent (Lol) for Helicopters for the armed forces of Argentina.

The Board of Directors of IndiaMART InterMESH has approved a proposal for buyback of 12.50 lakh shares worth Rs 500 crore from all the shareholders, including promoters and members of the promoter group, as on Record Date, which will be decided subsequently, through the “tender offer” route, on a proportionate basis, at Rs. 4000 a share.

Tata Motors announced that Adrian Mardell has been appointed as the Chief Executive Officer (CEO) of its subsidiary, Jaguar Land Rover (JLR), for a three-year term.

(Nirmal Bang Retail Research)

Outlook – Longterm Positive

Management indicates Near term demand environment remains challenging and Investing in sustainable long term growth is top priority. On vertical front , hitech and consumer services industry softness is to continue

Wage hike impact will come in Q2 wage hike could be slightly lower as compare to last year .On margin front , endeavour is to be at mid teen margins and invest back for further growth

Symbol: UTKARSHBNK

Series: Equity “B Group”

BSE Code: 543942

ISIN: INE735W01017

Face Value: Rs 10/-

Issue Price: Rs. 25/- per share

1 BALRAMCHIN

2 DELTACORP

3 IBULHSGFIN

4 L&TFH

5 MANAPPURAM

6 PNB

7 RBLBANK

Utkarsh Small Finance Bank shares will be listed on the bourses on Friday. The company has fixed the IPO price at Rs 25, at the upper end of the price band. The IPO saw an overwhelming response from all investors, by subscribing 101.91 times.

All eyes on Nifty weather will breach the historical 20,000-mark on Friday. Though it came tantalisingly came close to the psychological number, giving some anxious moments to traders towards the close of trade on Thursday, experts believe it may achieve the milestone sooner-than-later.

Buzzing stocks: Reliance Industries, Tata Motors, Ashok Leyland, CMS Info Systems, CreditAccess, Cyient DLM, DLF, Dodla Dairy, HDFC Life, Hindustan Zinc, JSW Steel, Paytm, UltraTech Cement, Vedanta, IndiaMart, LTIMindtree, HAL, VIP Industries, MTAR Tech, Jindal Stainless,

The first quarter of 2023 saw a remarkable 88 per cent increase in the number of passengers carried by both Indian and foreign carriers for scheduled international operations when compared to the same period in 2022. This surge in air travel comes after a prolonged period of decline due to the adverse effects of the COVID-19 pandemic on international passenger numbers.

Here are the key intraday supports and resistances to watch out for Nifty Futures, RIL, ONGC, TCS, Infosys, HDFC Bank, SBI, and ITC

Mazagon Dock Shipbuilder’s stock price has sharply risen since April. It found support at around ₹620 and embarked on an uptrend. The bull trend is still valid, and the stock has broken out of resistance on Thursday, opening the door for further rallies, especially on Friday.

In Q1FY24, Himadri recorded a revenue of ₹950.9 crore, indicating a decrease of 8 per cent compared with the previous quarter and 9 per cent compared with the same period last year. The EBITDA for the quarter was ₹134 crore, reflecting a 7 per cent quarter-on-quarter growth and a 87 per cent increase year on year. The company reported a PAT of ₹86.1 crore, showing a 13 per cent quarter-on-quarter increase and a 123 per cent increase year on year.

The domestic institutional investors (DIIs) have turned cautious on equity markets, even as the foreign portfolio investors (FPIs) have been pumping the benchmarks to new heights.

DIIs were sellers in 12 out of the last 13 trading sessions and have cumulatively sold for ₹16,321 crore. On the other hand, FPIs have pumped in ₹33,250 crore, including bulk deals in the same period.

Asian stocks fell on Friday as a result of declines in US equities and Treasuries, driven by disappointing tech earnings and indications of a strong labour market that could lead to further interest rate hikes.

During early trade, the benchmark Nikkei 225 index dropped by 0.64 per cent or 208.31 points, reaching 32,282.21, while the broader Topix index decreased by 0.21 per cent or 4.85 points, settling at 2,256.05.

In New York, the Nasdaq, known for its tech-heavy stocks, experienced a significant decline of 2.1 per cent overnight, and the S&P 500, representing a wide range of industries, fell by 0.7 per cent. On the other hand, the Dow Jones Industrial Average rose by 0.5 per cent to reach 35,225.18, continuing its rally. --- Agencies