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At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 226.37 points or 0.28% to 80,491.03. The Nifty 50 index rose 74.65 points or 0.30% to 24,538.35.
In the broader market, the S&P BSE Mid-Cap index fell 0.39% and the S&P BSE Small-Cap index shed 0.19%.
The market breadth was negative. On the BSE, 1,416 shares rose and 1,588 shares fell. A total of 138 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,271.45 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 529.48 crore in the Indian equity market on 16 July 2024, provisional data showed.
Economy:
The International Monetary Fund (IMF) upgraded India's economic outlook, raising its growth forecast for the 2024-25 financial year to 7%. This revision is driven by an anticipated improvement in private consumption, especially in rural areas.
The IMF maintained its projection of 6.5% growth for the following year (2025-26). This information comes from their latest World Economic Outlook report.
In April, the IMF had already revised India's growth forecast upwards, from 6.5% to 6.8%. This latest increase reflects continued optimism about the Indian economy.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 0.01% to 6.967 as compared with previous close 6.966.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5600, compared with its close of 83.5850 during the previous trading session.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.04% to 103.79.
The United States 10-year bond yield rose 0.73% to 4.173.
In the commodities market, Brent crude for September 2024 settlement gained 35 cents or 0.41% to $85.43 a barrel.
Stocks in Spotlight:
LTIMindtree rallied 3.38% after the company reported 3.1% increase in consolidated net profit to Rs 1,135.1 crore in Q1 FY25 as compared with Rs 1,100.7 crore in Q4 FY24. Revenue from operations increased 2.8% QoQ to Rs 9,142.6 crore in Q1 FY25.
TV18 Broadcast declined 2.89% after the company reported a consolidated net loss of Rs 50.09 crore in Q1 FY25 as against a net profit of Rs 44.33 crore reported in Q1 FY24. Revenue from operations was at Rs 3,069.32 crore in Q1 FY25, down 3.36% from Rs 3,176.03 crore posted in Q1 FY24.
Asian Paints slipped 1.92% after the company's consolidated net profit tumbled 24.54% to Rs 1,169.98 crore in Q1 FY25 as against Rs 1,550.37 crore reported in Q1 FY24. Revenue from operations stood at Rs 8,943.24 crore in Q1 FY25, down 2.3% from Rs 9,153.79 crore recorded in the corresponding quarter previous year.
Global Market:
Asian stocks traded mixed on Thursday. Chip stocks dipped as investors worried about potential trade war escalation between the US and China. Meanwhile, the Japanese yen strengthened to a six-week high, likely due to recent interventions by the Japanese government.
News of stricter US export controls on advanced chip technology to China caused chip stocks and the Nasdaq to fall in the US overnight. This decline was led by tech giants Nvidia and Apple.
Later today, investors will focus on the European Central Bank's policy decision. The bank is likely to maintain current interest rates, but their comments will be closely watched for hints about future rate adjustments.
US markets ended Wednesday with mixed results. The S&P 500 and Nasdaq took a significant hit due to a sell-off in tech stocks driven by trade war concerns. The S&P 500 dropped 1.4%, and the Nasdaq plunged 2.8%. However, the Dow Jones bucked the trend, rising 0.6% (243 points) after a surge of over 700 points on the previous day.
PBDIT [profit before depreciation, interest, tax, other income, and exceptional items] (before share in profit of associates) decreased by 20.2% year on year (YoY) to Rs 1,693.8 crore in Q1 FY25.
PBDIT margin declined to 18.9% in the June quarter as compared to 23.2% registered in Q1 FY24.
Profit before tax dropped 23.82% YoY to Rs 1603.62 crore in the quarter ended 30 June 2024.
International business sales declined 2.3% YoY to Rs 679.1 crore in Q1 FY25, on the back of economic uncertainty, forex crisis and liquidity issues in key markets of Asia and Egypt. In constant currency terms, sales increased by 1.8%.
PBT before exceptional items slumped 75.47% to Rs 6.5 crore in Q1 FY25 as against Rs 26.5 crore reported in Q1 FY24.
During the period under review, Bath Fittings business sales were at Rs 93.4 crore (up 10.3% YoY) while Kitchen business sales stood at Rs 100.4 crore (up 4.6% YoY).
Sales at White Teak grew by 14.3% YoY to Rs 29.7 crore in Q1 FY25 and sales at Weatherseal increased by 17.6% to Rs 11.5 crore in Q1 FY25. Both these recent acquisitions are gaining from synergies with the Asian Paints network, said the firm.
Industrial business (Asian Paints PPG) sales were flat at Rs 293.2 crore in Q1 FY25 from Rs 294.2 crores recoreded in Q1 FY24. PBT was Rs 29.8 crore as against Rs 39.2 crore in the corresponding period of previous year.
The company said that an installed capacity at the Mysuru plant has increased from 300,000 KL p.a. to 600,000 KL p.a.
Amit Syngle, managing director & CEO of Asian Paints, said, “Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter. We delivered a good volume growth of 7% in the decorative segment aided by some movement in rural markets, however value declined by 3% impacted by the price decrease taken earlier in the year and shift in product mix.
Unanticipated material price inflation coupled with supply chain challenges impacted profitability of the Decorative business for the quarter. The Industrial business did relatively better and grew by 5.8% by value backed by good growth in Auto OEM and powder coatings segment. Economy segment saw a good offtake aided by the launch of our revolutionary latex paint NeoBharat, which is part of our focused approach to make further inroads in the ‘bottom of the pyramid’ segment.
On the International front, geographies like Ethiopia and Sri Lanka grew well in Q1 on the back of gradual recovery in these economies, however key macroeconomic issues persisted in markets like Nepal, Bangladesh and Egypt impacting the overall performance for the International business. We saw a progressive quarter in Home Décor, with growth in all the categories and a strong growth in our beautiful home stores.
In the near term, we expect demand conditions to improve at the back of improving rural sentiment and monsoons picking up gradually. We remain focused on driving growth through enhanced saliency of our brand, innovation and customer centricity.”
Asian Paints is India's leading paint company and ranked among the top ten decorative coatings companies in the world. Asian Paints is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing related services.
At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 475.11 points or 0.59% to 81,195.30. The Nifty 50 index added 123.05 points or 0.50% to 24,736.05.
The Sensex and Nifty clocked an all-time high of 81,166.12 and 24,738.95, respectively in afternoon trade.
The broader market underperformed the frontline indices, the S&P BSE Mid-Cap index shed 1.06% and the S&P BSE Small-Cap index fell 0.79%.
The market breadth was weak. On the BSE, 1,347 shares rose and 2,487 shares fell. A total of 111 shares were unchanged.
Gainers & Losers:
LTIMindtree (up 2.85%), Tata Consultancy Services (up 2.82%), Oil and Natural Gas Corporation (up 2.03%), Wipro (up 1.98%) and Bajaj Finserv (up 1.91%) were major Nifty gainers.
Asian Paints (down 2.17%), Hero MotoCorp (down 2.04%), Bajaj Finance (down 1.98%), Coal India (down 1.74%) and UltraTech Cement (down 1.06%) were major Nifty losers.
LTImindtree jumped 2.85% after the company’s consolidated net profit increased 3.1% to Rs 1,135.1 crore in Q1 FY25 as compared with Rs 1,100.7 crore in Q4 FY24. Revenue from operations rose 2.8% QoQ to Rs 9,142.6 crore in Q1 FY25.
Asian Paints declined 2.17%. The company’s consolidated net profit tumbled 24.54% to Rs 1,169.98 crore in Q1 FY25 as against Rs 1,550.37 crore reported in Q1 FY24. Revenue from operations stood at Rs 8,943.24 crore in Q1 FY25, down 2.3% from Rs 9,153.79 crore recorded in the corresponding quarter previous year.
Just Dial zoomed 17.90% after the company reported 69.33% surge in net profit to Rs 141.22 crore in Q1 FY25 as compared with Rs 83.40 crore posted in Q1 FY24. Revenue from operations grew by 13.6% year on year to Rs 280.57 crore in the quarter ended 30 June 2024.
Tata Power Company declined 1.37%. The company’s wholly owned subsidiary, Tata Power Renewable Energy (TPREL) has signed memorandum of understanding (MoU) with NHPC Renewable Energy (NHPC-REL) for installation of rooftop solar projects (RTS Projects) across government buildings.
Jubilant Ingrevia tumbled 3.97% after the company reported 15.36% decline in consolidated net profit to Rs 48.74 crore in Q1 FY25 compared with net profit of Rs 57.59 crore in Q1 FY24. Total revenue from operations stood at Rs 1,024.34 crore in Q1 FY25, down 4.71% from Rs 1,075.02 crore in Q1 FY24.
Global Markets:
European markets open higher ahead of ECB rate decision.
Asian stocks declined on Thursday. Chip stocks dipped as investors worried about potential trade war escalation between the US and China. Meanwhile, the Japanese yen strengthened to a six-week high, likely due to recent interventions by the Japanese government.
In the cash market, the Nifty 50 added 187.85 points or 0.76% to 24,800.85.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.02% to 14.51.
Infosys, Asian Paints and HDFC Bank were the top traded individual stock futures contracts in F&O segment of NSE.
The July 2024 F&O contracts will expire on 25 July 2024.