Aug 16, 2024, 3:27 pm IST
Market Outlook By Vishnu Kant Upadhyay, AVP, Research and Advisory at Master Capital Services Ltd
The Indian benchmark indices opened on a strong note, buoyed by positive global cues as better-than-expected U.S. economic data alleviated recession fears in the world's largest economy. The Nifty50 surged over 300 points, while the Sensex gained more than 1,000 points, trading at 24,455 and 80,150, respectively. In July, U.S. consumer price inflation dropped to 2.9%, the first time since March 2021 that it has fallen below 3%. Jobless claims also decreased to 227,000, the lowest in five weeks, against market expectations of 236,000. The IT sector extended its rally for the fifth consecutive day, rising nearly 2.5%, as softer inflation strengthened the case for a Federal Reserve rate cut in September. Technically, the market has broken above the 21-day EMA and the crucial resistance zone of 24,400-24,450, where heavy call writing was observed. We expect the uptrend to continue, with potential targets at 24,800-24,850. Any dip towards 24,350 is likely to attract fresh buying.
Aug 16, 2024, 3:16 pm IST
SKF India | 1QFY25: Outlook remains positive, focusing on increasing localisation
Deepak Agarwal of JM Financial Institutional Securities said, “In Q1FY25 SKF India posted a revenue at INR 12.1bn up 5% YoY and down 4.5% QoQ and was broadly in-line with the JMFe of INR 12.4bn, 5 year CAGR +9%, Schaeffler +13%, Timken +12%). Growth in the revenue was mainly driven by the Auto segment followed by Industrial along with some pickup in the exports. Gross margin was at 39.3% vs 39.8% YoY and 41.2% QoQ. EBITDA was at INR 1.9bn down 4.5% YoY and 4.9% QoQ. OPM was at 16.1% vs 17.6% YoY and 17.7% QoQ (JMFe OPM at 15.9%); lower margins mainly because of the negative operating leverage. EBITDA 5 year CAGR was at +10% for SKF, Schaeffler +19%, Timken +8%). Net profit was at INR 1.5bn down 3% YoY and 12%QoQ. 5 year CAGR was +15% for SKF, Schaeffler +25%, Timken +14%). We transfer the coverage to Deepak Agarwal and resume the coverage with BUY rating.”
Aug 16, 2024, 2:57 pm IST
Market Outlook From Santosh Meena, Head of Research, Swastika Investmart Ltd.
Indian markets joined the global rally today, rebounding after a brief period of underperformance driven by FIIs' selling in both the cash and F&O segments. Concerns over slightly weaker earnings, high valuations, and the Hindenburg issue had weighed on the market recently. However, a shift in global sentiment from panic to optimism has fueled today's upturn.
Several factors have contributed to this bullish momentum. The fear of a reversal in the yen carry trade has subsided, and strong retail sales figures, along with better-than-expected job data, have alleviated concerns about a potential U.S. recession. Additionally, the market is now fully pricing in a 25 basis point rate cut by the U.S. Federal Reserve in September, further boosting investor confidence.
FIIs have turned net sellers in index futures this week, but today's trading session has seen a significant short-covering move. If the Nifty can sustain above its 20-DMA, around 24,500, the bullish momentum could extend towards the 24,800-25,000 zone. On the downside, the 24,200 level now serves as a key support.
Aug 16, 2024, 2:33 pm IST
Ipca Laboratories | Exports subdued; Growth to return
Amey Chalke of JM Financial Institutional Securities Ltd said, “IPCA reported a mixed set of numbers, revenue missed estimates however EBITDA and PAT managed a beat driven by higher Gross margins and improved operating efficiencies. While domestic formulations delivered an in-line performance, growing 12% YoY to INR 8.7bn, exports missed JMFe by 10%, declining 4% YoY. This miss was driven by logistics challenges and API supply issues. Management believes that going ahead growth should return and overall topline should grow at 10.5-11% for the remaining quarters. However due to a sub-par 1Q, FY25 revenue guidance was cut to 9% (previously 10.5-11%). EBITDA margin beat was driven by raw material procurement efficiencies combined with improvement in manufacturing related costs. As part of the Unichem integration the management have addressed the low hanging fruits, however structural changes such as API process improvements and new product launches etc are still 1.5-2 years away. IPCA’s US business is at an inflection point – supplies have begun and 12-13 launches are expected over the next two years. Given the imminent US turnaround, strong domestic franchise and margin improvement, we maintain BUY with a revised Sep’25 TP of INR 1,545.”
Aug 16, 2024, 2:14 pm IST
Ethos - Growth Story Remains Intact; Maintain BUY
According to Axis Securities, “Ethos’ promising future is underpinned by the company's robust and consistent performance over the last several quarters. This will be driven by – 1) Continued strong demand in the premium and luxury watch space, 2) Foray into the fast-growing CPO segment, 3) Increasing share of high-margin exclusive brands, 4) Diversification into fast-growing luxury segment – Luggage and Jewellery, and 5) Notable headroom for margin and ROCE expansion. Given the strong investment thesis outlined above, we anticipate the company to report robust Revenue CAGR growth of 33% and PAT growth of 40% over FY24-27E. Currently, at the CMP, the company is trading at 48x/33x its FY26/27E EPS. With improved visibility in earnings growth and a stronger return profile, the stock appears attractive within the Smallcap space. We maintain our BUY rating and value the company at 45x Sep-26 EPS to arrive at a TP of Rs 3,600/Share, implying an upside of 15% from the CMP.”
Aug 16, 2024, 1:50 pm IST
Salasar Techno Engineering Shares Jump On High Order Book, Rise In FII Stake
Salasar Techno Engineering Limited (STEL) experienced a 2.5% increase in its share price today, reaching Rs 16.97 per share, up from the previous closing of Rs 16.56. This rise reflects investor confidence, driven by the company's strong performance and strategic initiatives.
STEL concluded Q1 FY25 with an impressive order book valued at Rs 24,019 million, spanning across telecom infrastructure, power transmission, and renewable energy sectors. This diverse pipeline guarantees a stable revenue stream for the upcoming quarters, solidifying STEL's market leadership. The continuous order wins underscore the trust placed by clients in STEL's execution capabilities and alignment with high-growth sectors.
Aug 16, 2024, 1:23 pm IST
Eraaya Lifespaces Secures Rs 248.50 Crores Via QIP To Fund Ebix Acquisition
Eraaya Lifespaces Limited announced completion of its Qualified Institutional Placement (QIP) issue as it raised approximately INR 248.50 Crores. This capital will be directed towards the final payment for the acquisition of 100% equity in Ebix Inc., a move that has already received approval from the Bankruptcy Court in Dallas, Texas, United States. Prominent investors participating in the QIP include Ebisu Global Opportunities Fund, Nexpact, and Unico Global Opportunities Fund, among others.
The QIP forms a critical component of Eraaya Lifespaces' broader funding strategy for the acquisition of Ebix Inc. To secure the remaining necessary capital, the company plans to issue additional securities, convertible bonds, and other financial instruments in the international market. Eraaya led a consortium that submitted a successful bid to acquire 100% equity of Ebix Inc. in June 2024.
Aug 16, 2024, 1:10 pm IST
Ecom Express Files DRHP With SEBI For Rs 2,600 Cr IPO
Ecom Express Ltd has filed draft papers with capital markets regulator Sebi to garner Rs 2,600 crore through an initial share-sale. The company's initial public offering (IPO) comprises a fresh issue of equity shares worth Rs 1,284.50 crore and an Offer for Sale (OFS) of shares valued Rs 1,315.50 crore by promoters and other shareholders, according to the draft red herring prospectus (DRHP).
Proceeds from the fresh capital to the tune of Rs 387.44 crore will be used for setting up new processing centres with automation and new fulfilment centres, Rs 73.71 crore for computers and IT equipment, Rs 239.23 crore for enhancing technology, data science capabilities, and cloud infrastructure, and Rs 87.92 crore for payment of debt.
Aug 16, 2024, 12:45 pm IST
Sarveshwar Foods Declares 6% Jump In PAT
Sarveshwar Foods, a leading FMCG company has declared its financial results for the quarter ended 30th June 2024. In Q1 FY25, revenue from operations was Rs. 233.05 crore, up 24% YoY from Rs. 187.68 crore in the same quarter last year. EBITDA for the quarter jumped by 20% YoY to Rs. 13.31 crore from Rs. 11.10 crore in Q1FY24. However, the EBITDA margin was 5.71% as against 5.91% in the same quarter of the previous fiscal year. With a 6% year-on-year growth, Q1 FY25 profit was Rs 3.09 crore compared to PAT of Rs 2.90 crore in Q1 FY24.
Mr. Rohit Gupta, Chairman, Sarveshwar Foods Ltd. said, "The financial performance of Sarveshwar Foods in Q1 FY25 marks a promising start to the new fiscal year, reflecting our strategic focus and resilience. We achieved a revenue of Rs. 233.05 crore, showcasing a strong year-on-year growth of 24%. Our EBITDA AND PAT reached Rs. 13.31 crore and 3.09 crore respectively. This growth is primarily attributed to our ongoing commitment to the Bharat Rice Scheme, under the Government of India.”
Aug 16, 2024, 12:34 pm IST
US Court Orders Vedanta Group-Backed Sterlite Tech To Pay Usd 96.5 Mn To Prysmian
An American court has ordered Vedanta Group-backed Sterlite Technologies' overseas arm to pay USD 96.5 million, about Rs 810 crore, in damages to US-based Prysmian for violating trade secrets norms, according to a regulatory filing and plaintiff's statement. Additionally, the court has awarded USD 200,000 penalty on Stephen Szymanski, Sterlite Technologies Inc (STI) Executive Vice President for Americas Region, for misappropriation of trade secrets of Prysmian.
STI is the US subsidiary of Sterlite Technologies (STL) which has contested the judgement and may file an appeal against it. Prysmian in a statement said a South Carolina jury on August 9 ordered in favour of Prysmian following a three-week trial in the district court of Columbia, South Carolina, according to a PTI report. "The jury found that Sterlite was unjustly enriched by taking Prysmian's trade secrets and awarded USD 96.5 million in damages against Sterlite Technologies, Inc. In addition, the jury found that Stephen Szymanski had been unjustly enriched by misappropriating Prysmian's trade secrets," Prysmian said in the statement dated August 12.
Aug 16, 2024, 12:13 pm IST
Gold Prices Jump In India, Aug 16: Check Latest Yellow Metal Prices After Rally
Gold price in India today jumped after remaining steady on August 15 as investors awaited Federal Reserve Chairman Jerome Powell's speech for cues on size of rate cut. 22k gold prices today surged by Rs 100 to Rs 65,650/10 grams on August 16 and 100 grams of 22 carat yellow metal prices today zoomed by Rs 1000 to Rs 6,56,500. 24k gold rate today surged by Rs 110 to Rs 71,620/10 grams and 100 grams of 24k precious metal prices rallied by Rs 1100 to Rs 7,16,200. 18k gold prices today soared by Rs 90 to Rs 53,720/10 grams and 100 grams of 18 carat yellow metal prices gained by Rs 900 to settle at Rs 5,37,200 on Friday.
Spot Gold, Spot Silver Prices Today: Spot gold slipped 0.2% to ,450.91 per ounce, as of 0320 GMT and prices surged nearly 1% this week. U.S. gold futures declined 0.2% to ,488.50. Spot silver declined 0.8% to .16 per ounce, platinum ticked 0.1% lower to 1.95 and palladium fell 0.2% to 2.64. All metals likely to register weekly gains, according to Reuters.
Silver Prices Today In India: Silver price in India today registered rally. 1kg silver prices today jumped by Rs 500 to Rs 84,000. 100 grams silver price today in the country surged by Rs 50 to Rs 8,400.
Aug 16, 2024, 11:55 am IST
Ola Electric Stock Soars 20%, Strong Q1 Drive Shares Higher
Ola Electric's stock price experienced a surge of nearly 20 % today , buoyed by the company's strategic expansion into the electric motorcycle market and a strong financial performance in the Q1 of FY25. The announcement of three new electric motorcycle models, with two more in the pipeline, has sparked investor enthusiasm in the company's future growth prospects.
Aug 16, 2024, 11:29 am IST
Eraaya Lifespaces Secures Rs 248.50 Crores Via QIP To Fund Ebix Inc. Acquisition
Eraaya Lifespaces Limited announced the successful completion of its Qualified Institutional Placement (QIP) issue, raising approximately INR 248.50 Crores. This capital will be directed towards the final payment for the acquisition of 100% equity in Ebix Inc., a move that has already received approval from the Bankruptcy Court in Dallas, Texas, United States.
Aug 16, 2024, 11:06 am IST
Silver Price India
Silver Price India, Aug 16: Price of 1 gram of silver rate today in India stood at Rs 84 after the gain by Re 0.50. 1kg silver prices today jumped by Rs 500 to Rs 84,000. 100 grams silver price today in the country surged by Rs 50 to Rs 8,400.
Aug 16, 2024, 11:05 am IST
Gold Price Chennai
Gold Price Chennai, Aug 16: Price of 1 gram of 22 carat gold rate in Chennai today is Rs 6,565 after the jump by Rs 10.
Aug 16, 2024, 11:04 am IST
Gold Price India
Gold Price India, Aug 16: Price of 1 gram of 22 carat gold rate in India today stood at Rs 6,565 after the rally by Rs 10.
Aug 16, 2024, 10:47 am IST
Rise In Gold Prices In India After A Recent Decline
India's gold market sees a surge as 24-carat gold rates climb by Rs. 100 to Rs. 71,620.
Aug 16, 2024, 10:14 am IST
Arman Financial Services Ltd reports Q1 Financial Results
Arman Financial Services Limited, a Gujarat-Based Non-Banking Financial Company (NBFC), with interests in microfinance, micro-enterprise (MSME) loans , two-wheelers loans and Loan Against Property (LAP) announced its unaudited financial results for the quarter ended 30th June 2024. The financial numbers are based on Ind-AS. Consolidated Asset Under Management (AUM) stood at INR 2,594 Crore, growing by 21% on a year-on-year basis. Macroeconomic challenges led to a moderation in disbursement activity, with disbursements for Q1 FY25 standing at INR 459 Crore. Net total income for Q1 FY25 amounted to INR 119 Crore, registering a 39% year-on-year growth. Pre-Provision Operating Profit (PPoP) for Q1 FY25 registered a 34% year-on-year growth to INR 85 Crore. Profit After Tax for Q1 FY25 stood at INR 31 Crore. Shareholders' Equity as of June 30, 2024, stood at INR 847 Crore. For Q1 FY25, Return on Average AUM stood at 4.79%, while Return on Equity stood at 15.09%.
Aug 16, 2024, 10:00 am IST
Aurobindo Pharma Stock Dips
This pharma stock dipped by nearly 3% after its ArmEugia’s Unit-III, A Formulation Mfg Unit received warning letter from USFDA.
Aug 16, 2024, 9:34 am IST
Sensex, Nifty Latest
Market opened strong with Sensex nearing its 80,000 mark and Nifty 50 flirting around 24,400. Overall, both benchmarks surged by 1% each. The uptrend is due to broad-based buying across indices amid bullish global cues
Aug 16, 2024, 9:33 am IST
Top Gainers, Losers
Stocks like M&M, Tata Motors, Tech Mahindra, TCS and ICICI Bank are top gainers. While Titan is the only laggard.
Aug 16, 2024, 9:29 am IST
Market Opening Bell
Benchmarks of BSE and NSE made strong opening with over 1% gains. The 30-scrip benchmark touched an intraday high of 79,951.79, while Nifty hit the day's high of 24,403.55. Bank Nifty gained over 540 points.
Aug 16, 2024, 9:10 am IST
What Will Drive Market On August 16?
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services: Globally stock markets have turned around smartly from the August 5th sell off triggered by US recession fears and the unwinding of the yen carry trade. Latest data on US inflation and unemployment relief do not indicate an economy tipping into recession. On the other hand, the 2.9% annual inflation number and slightly softening labour markets set the stage for a Fed rate cut in September, which the market is pencilling in now. The sharp dip in CBOE VIX to around 15% indicates that the fears were overdone and stability is the near-term trend. In India we have the paradox of exuberant retail investors and cautious institutional investors. The former is not much concerned about the elevated valuations of the market while the latter are increasing their cash component on valuation concerns. Investors should give priority to valuations in their fresh investment. The broader market doesn’t have valuation comfort.
Aug 16, 2024, 9:09 am IST
Rupee Vs Dollar
The Indian rupee is floating above 83.90 levels, and near its record low against the US dollar. The local currency opened at 84.013, and witnessed correction to trade at 83.94 per dollar. This comes as investors take comfort from latest data on US inflation and unemployment relief, which dims recession fears in the largest economy.
Aug 16, 2024, 8:56 am IST
Key Stocks To Watch
Prashanth Tapse, Senior VP (Research), Mehta Equities: Nifty is poised for a potential uptick as bulls look to capitalise on positive momentum from Wall Street. Traders are likely to adopt a risk-on approach, driven by strong cues from Wall Street, the expectation of a rate cut by the Federal Reserve in September, and robust US retail sales figures, which have eased recession concerns. The July US CPI data further boosts confidence that inflation will return to the Fed’s 2% target. However, risk appetite is expected to improve significantly only above the Nifty 24,497 mark. In Wednesday’s session, FIIs were net sellers by Rs 2,595 crore, while DIIs bought Rs 2,236 crore. Nifty options data suggests a trading range of 24,000-25,000, with 25,000 acting as a key resistance level. Key stocks to watch include Aurobindo Pharma, Bajaj Auto, Naukri, and TVS Motors, with a bullish outlook on Aurobindo Pharma for the month.
Aug 16, 2024, 8:54 am IST
Bank Nifty Technical Outlook
Prabhudas Lilladher: Bankex in the last 2 sessions witnessing profit booking has slipped down with support maintained near 100 period MA level of 56500 zone and can expect a pullback but need to breach above the resistance barrier of 57800 levels to establish conviction for further rise. BankNifty would have the daily range of 49300-50400 levels, with Bankex support at 56700 and resistance at 57500 levels for the day.
Aug 16, 2024, 8:53 am IST
Nifty Outlook Today
Prabhudas Lilladher: Nifty witnessed a consolidated session with very narrow rangebound movement and as mentioned earlier, would have the 24000 zone as the crucial and important support as of now which needs to sustain to maintain the overall trend intact. On the upside, the index needs to sustain above 24200 levels to improve the bias and thereafter decisively breach above the resistance barrier of 24400 zone to strengthen the trend.
Aug 16, 2024, 8:53 am IST
Sensex Outlook Today
Prabhudas Lilladher: Sensex witnessed consolidation in the previous session and has maintained above the important support zone of 50 EMA levels of 78800, with bias overall maintained with a cautious approach. Expecting some pullback, the index needs to move past the 80000 barrier for the bias to improve overall. The support for the day is seen at 78800/24000 levels while the resistance would be seen at 79800/24400 levels.
Aug 16, 2024, 8:53 am IST
Market Previous Session
BSE Sensex ended the day with a slight rise of 165 points, closing at 79,121, while the NSE Nifty edged up by just 4 points to settle at 24,143.
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