After trading range bound, the market ended the week on a positive note after the cooling down of U.S. inflation, declining Jobless data and impressive retail sales data.
Earlier during the week, the markets were flat and were trading in a certain range driven by ongoing foreign fund outflows, mixed trends in global markets and the latest report from Hindenburg, which has led to some caution among the market participants. If we look at domestic macros, domestic inflation has cooled to a five-year low of 3.54%, while direct tax collection for FY25 has surged by 23% to Rs 7 lakh crore.
These positive economic indicators, along with good quarterly earnings, have likely set a favourable tone for the markets. We are witnessing sector-specific movements, and any significant declines may present buying opportunities. The overall market sentiment remains bullish due to strong economic data and a good earning season.
With this, let us move to our weekly market review. How Did the Markets Fare Last Week? On a weekly expiry basis ended on Wednesday, the Indian benchmark indices ended in red. Sensex and Nifty were between 0.
4 and 0.6%, while Midcaps were down 0.6%.
What Might Keep the Markets Busy Into the Next Week? As the Q1FY25 Earnings come to an end, markets will now look onto local and global macro cues. Investors will shift their focus to a speech by the Fed Chair at Jackson Hole scheduled between 22-24 August, where he may map out the final steps in the US Central Bank’s campaign to control inflation. This event dictates the theme for the rest of the year and beyond, with markets keenly observing the conference to obtain insights into the direction of monetary policy.
It plays an important role in shaping global central banking events. What Might Keep the Markets Busy Into the Next Week? | Apart from this, we also have FOMC Minutes, S&P Global Manufacturing & Services, PMI & Existing Home Sales Numbers as well. Locally we will focus on FX Reserves, HSBC Manufacturing & Services PMI data.
These events will keep investors busy. Crude and FII Flows Brent Crude Oil prices rose to $81/bbl as an industry report pointed to a sizable drop in the US crude reserves and tensions in the Middle East. On the other hand, FIIs continue to be net sellers for the week.
Crude and FII Flows | Sector in Focus Auto, consumption and IT remained in focus during the week. MPHASIS - TECHNICAL CALL OF THE WEEK Stock has given range breakout on daily scale with higher than average buying volumes. The MACD Indicator is on the verge of giving a bullish crossover signal which suggests upward momentum.
Buying is visible across IT sector which may support the ongoing up move. BUY Mphasis CMP 2910 SL 2790 TGT 3150. Mphasis Limited | Stocks that made headlines during the week Mining Stocks: The Supreme Court's recent ruling on the mining royalty case is expected to have significant financial implications for India's mining industry, potentially leading to arrears between Rs 1.
5 lakh crore and Rs 2 lakh crore. According to a report by PTI, the verdict, which upholds the power of states to levy taxes on mineral rights and mineral-bearing land, will further strain the sector. Tata Steel: Tata Steel acquired 115,92,35,669 ordinary equity shares of face value USD 0.
157 each aggregating to ~USD 182 million translating to Rs 1,528.24 crore in T Steel Holdings Pte. Ltd (‘TSHP’).
Post this acquisition, TSHP will continue to be a wholly owned subsidiary of the Company. This strategic move aims to strengthen Tata Steel’s international presence and operational efficiency. Suprajit Engineering: The Board has declared a buyback of equity shares.
The last buyback was in March 2021. Subject to necessary clearances, the Company will buyback of 15,00,000 equity shares at a price of Rs 750 amounting to Rs 1,125 million from all eligible shareholders on the record date that will be announced. This buyback is expected to be completed before 30th September 2024.
SpiceJet: SpiceJet announced its second consecutive profitable quarter, a testament to the airline’s resilience and strategic growth. The carrier reported a net profit of Rs 150 crore for the quarter ended June 2024, reflecting a 26% increase over Q4FY24. This marks a significant milestone in the airline’s recovery efforts, following a challenging period for the aviation sector.
Ola Electric: Ola Electric announced its first quarterly results post listing. Company’s revenue grew by 34.32% to Rs 1,718 crore for the quarter ended 30th June 2024, up from Rs 1,279 crore for the quarter ended 30th June 2023.
The company has registered its highest ever quarterly revenue during the quarter ended 30th June 2024 with 48.63% market share. Mahindra & Mahindra: Mahindra & Mahindra unveiled the All-New Thar ROXX at a high-octane rock concert in Kochi, marking the eve of India’s 78th Independence Day, starting at a price of Rs 12.
99 Lakh for petrol and for Diesel its Rs 13.99 Lakh. The Thar ROXX promises to redefine the SUV experience, offering an unmatched combination of luxury, performance, and cutting-edge technology.
Apollo Hospitals: Q1FY25 Revenues grew to Rs 5,086 crore representing a growth of 15% YoY growth. In terms of operational performance, EBITDA stood at Rs 675 crore, up 33% YoY. This has led to 83% YoY growth in the bottom line performance with company reporting net profit at Rs 305 crore as compared to Rs 167 crore in Q1FY24.
Hero MotoCorp: The company’s revenue crossed 10,000 crore for the first time. The company reported a revenue of Rs 10,144 crore as compared to Rs 8,767 crore reflecting a growth of 16% on a YoY basis. Furthermore, the EBITDA stood at Rs 1,460 crore growing 21% YoY withs margin expanding over the previous year and stood at 14.
4% while net profit stood at Rs 1,123 crore, representing a growth of 36% YoY. The company witnessed positive trends across domestic, EV and global businesses during the quarter. The company also witnessed sequential improvement in retail sales (VAHAN).
It expects the momentum to build up in the following quarters on account of positive customer sentiments, good monsoons and the upcoming festive season. The company has a slew of product launches planned in both ICE and EV categories. HEG: The Board has approved sub-division / split of existing equity share of FV of Rs 10 each, full paid-up into 5 equity shares of FV Rs 2 each.
The split ratio is 10:2 which means, existing 1 equity share having FV of Rs 10 to be split into 5 equity share having FV of of Rs 2. KPI Green: The Board has approved authorizing the opening of the QIP Issue on 12th August 2024. For this, the board has approved the floor price for the Issue, being Rs 983.
24 per Equity Share based on the pricing formula. According to the press release, the company may, at its discretion, offer a discount of not more than 5% on the floor price so calculated for the QIP. Vodafone Idea: Revenue for the quarter stood at Rs 105.
1 billion, a decline of 1.4% on a YoY basis. The EBITDA, on a reported basis, stood at Rs.
42 billion. EBITDA pre-IndAS116 grew by 4.2% on YoY basis to Rs.
21 billion compared to Rs. 20.2 billion in Q1FY24.
The payment obligations to the Government stood at Rs 2,095.2 billion as of 30th June 2024 including deferred spectrum payment obligations of Rs 1,392 billion and AGR liability of Rs 703.2 billion.
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