Sensex Today | Share Market Live updates: Sensex, Nifty in red; Powergrid sheds; Coal India, NTPC shine

Religare Broking views on Maruti Suzuki: Strong topline and bottom-line growth, however margins a slight miss!

Outlook & Valuations: The domestic PV industry grew by ~6-7% for the quarter while MSIL domestic volumes were up by 12.4% (excluding sales to Toyota). We anticipate MSIL to continue to lead the industry growth with its new embark in the SUV space garnering strong response from the customers as it now maintains more than 20% market share in the segment. Additionally, it has a strong presence in the CNG space with 15 models on the offering with a market share of ~65% while its portfolio operates on petrol fuel; indicating it has a wide range of offerings to cater diverse needs of customers. We remain optimistic on the growth prospects of the company and estimate its revenue/EBITDA/PAT to grow at a CAGR of 15.2%/27.1%/28.8% over FY23-25E. Hence, we remain overweight and maintain our Buy rating with a target price of ₹11,501 valuing the company at 26x on FY25E EPS.

As per CNBC-TV18, the Enforcement Directorate (ED) has conducted raids at the residence of Hero MotoCorp Chairman Pawan Munjal. The action was taken in connection with the Directorate of Revenue Intelligence (DRI) case. Earlier, the DRI had apprehended a close aide of Pawan Munjal with undeclared foreign currency.

On Tuesday, the Aditya Birla Group revealed that it has acquired full ownership of KA Hospitality. As a result of this acquisition, the Aditya Birla Group has added four new restaurant brands to its portfolio. These brands include Hakkasan, Yauatcha, Nara Thai, and CinCin.

KA Hospitality, established in 2011, owns the home-grown brand CinCin and holds the franchise rights for the other three renowned global restaurant brands. Their first venture was Hakkasan Mumbai, an award-winning establishment from London with additional locations in the Middle-East, Asia, and the USA. (Read More)

Developing countries like India will flag serious concerns over the impact of European Union’s (EU) regulations on climate change and trade such as carbon tax, on their domestic industry, during WTO ministerial meeting next year, an official said.

The four-day 13th ministerial conference (MC) of the World Trade Organization (WTO) is scheduled for February 26 next year in Abu Dhabi. MC is the highest decision making body of WTO.

“These issues will come up in the WTO in a big way. Countries like India will oppose these measures in the WTO,” the official said.

In the first seven months of this year, the EU has introduced four regulations on climate change and trade. These are carbon border adjustment mechanism (CBAM); deforestation regulation; including shipping in the EU’s emissions trade system; and Foreign subsidies regulation. EU member Germany too has announced a supply chain due diligence act (SCDDA). (PTI)

Oriana Power Ltd’s initial public offering (IPO) has opened for subscription on Tuesday, August 1.

Oriana Power specializes in providing solar energy solutions to industrial and commercial clients. The company offers on-site solar projects, including rooftop and ground-mounted systems, as well as off-site solar farms like Open access, to offer low carbon energy alternatives. The majority of the company’s operations fall under two sectors: Capital Expenditure (CAPEX) and Renewable Energy Service Company (RESCO). (Read More)

Chintan Mehta CEO-Commodity, Abans Group: The overall market participation in gold and silver remains low as the focus shifts towards crucial U.S. nonfarm payrolls data, scheduled for release this Friday. The U.S. labor market has shown strength throughout the year, which has supported the Federal Reserve in implementing sharp rate hikes. However, there are some indications of weakness in the labor market, and a stronger-than-expected data release could prompt the central bank to adopt a more hawkish stance.

This morning, China’s Caixin PMI was released, showing signs of contraction, with a slip to 49.2 in July from 50.5 in June due to slower output and weaker demand.

Despite comments from major central banks and signs of stability in the global economy, it is crucial to keep an eye on the final manufacturing PMI figures from European economies, which are due today. These figures will help gauge the strength of the global economy.

In the near future, precious metals face a two-way risk. The price gold and silver could rise on signs of weak US labor markets and expectations that the FED won’t change its policy rate this year. On the other hand, if the US economy proves to be resilient and labor market conditions remain tight due to a soft landing, Gold and Silver may struggle to fend off the bearish pressure. This could result in a higher probability of a further rate hike in November or December, which will be more heavily discounted in the bullion market.

Currently, Gold is holding above crucial support levels of around ₹59,400. However, a decisive break below this support could expose a downside and bring prices around ₹58,400 levels.

On the upside, gold faces resistance at ₹60,000 levels, and if this resistance is breached, we may witness a rally up to ₹60,800.

Manufacturing sector activities in India moderated for the second straight month in July as rates of expansion in output and new orders eased slightly, a monthly survey said on Tuesday.

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) eased to 57.7 in July from 57.8 in June.

Despite the fall, the Indian manufacturing sector maintained strong growth momentum at the start of the third quarter amid ongoing buoyant demand, the survey said.

The July PMI data pointed to an improvement in overall operating conditions for the 25th straight month. In PMI parlance, a print above 50 means expansion while a score below 50 indicates contraction.

“The Indian manufacturing sector showed little sign of losing growth momentum in July as production lines continued to motor on the back of strong new order growth,” said Andrew Harker, Economics Director at S&P Global Market Intelligence. (PTI)

India’s gold demand in 2023 could fall 10% from a year ago to their lowest in three years, as record high prices are dampening retail purchases, the World Gold Council (WGC) said on Tuesday.

The lower purchases in the world’s second-biggest gold consumer could limit a rally in global prices. Falling demand for gold imports could also help to narrow India’s trade deficit and support the rupee.

“We remain cautious about gold demand as it faces uncertainties due to elevated local prices and slowdown in discretionary spending,” said Somasundaram PR, regional chief executive officer of WGC’s Indian operations.

Demand could fall to 700 metric tons in 2023 from 774.1 metric tons a year ago, he said. (Reuters)

On Tuesday’s session, Welspun India’s share price witnessed a significant surge of over 5%, reaching a 52-week high. This boost came in response to the company’s robust Q1 results. For the first quarter ended June (Q1FY24), Welspun India reported a substantial increase in its consolidated net profit, reaching ₹162.73 crore. This growth was supported by improved margins. (Read More)

On Tuesday, Maruti Suzuki’s share price experienced a decline of nearly 2% following the company’s announcement of Q1 results and the acquisition of Suzuki Motor’s stake in Suzuki Motor Gujarat (SMG). The share price fell to ₹(specific value not provided) apiece on the BSE (Bombay Stock Exchange).

Despite the share price decline, Maruti Suzuki reported impressive Q1 results, with a significant 145% year-on-year (YoY) increase in standalone net profit, reaching ₹2,485.1 crore for the quarter ending in June 2023. This growth was attributed to factors like larger sales volume, improved realization, cost reduction efforts, and higher non-operating income. Additionally, the auto major’s standalone revenue in Q1FY24 witnessed a 22% YoY growth, reaching ₹32,326.9 crore compared to ₹26,499 crore in the corresponding period last year. (Read More)

Incred Equities views on Bosch Ltd: 1QFY24 Result First Cut – REDUCE | TP: Rs16,401

1. 1Q EBITDA dip 10% qoq to Rs4.7bn, below our (4%) and Bloomberg consensus estimate (8%). But higher other income, led to 1% qoq rise in EPS to Rs.139.

2. Lower purchase goods (-460bp qoq) was overcome by sustained higher manufacturing expenses (+170bp qoq), leading to EBITDA margin disappointment.

3. Reiterate REDUCE rating on Bosch Ltd for its rich valuation at P/E of 38.7x 1-yr forward.

Niraj Bagri, Partner, Dhruva Advisors on GST queries on ESOPs: The issue of taxability of ESOP being provided by the overseas / parent entity to the employee of Indian subsidiary company is being scrutinized and demand notices have been issued to the Indian company. The GST law expressly excludes transaction in securities from the purview of taxability. Therefore, any such transaction should not be subject to GST. Largely, it can be said that the Indian company is working merely on reimbursement mechanism wherein the amounts remitted to the foreign company is being collected / deducted from the salary paid to the employees. Hence, no service is received by the Indian company which can attract GST liability.

It is important that a suitable clarification is issued by the GST Council to nip the issue at bud. This would help in avoiding unnecessary litigation.

On Tuesday, ONGC (Oil and Natural Gas Corporation) experienced a decline in its share price by over one percent following the Central Government’s decision to increase the windfall tax on domestic crude oil. ONGC’s shares fell as much as 1.49% to ₹174.30 per share on the BSE (Bombay Stock Exchange).

The government’s announcement late Monday revealed a hike in the Special Additional Excise Duty (SAED) on crude petroleum, raising it to ₹4,250 per tonne from the previous ₹1,600 per tonne. This increase in windfall tax has impacted ONGC’s stock price negatively. (Read More)

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The resilience of the mother market US, where the rally is spreading to the broader market, is supporting global markets. But the rally is stretching valuations beyond comfort levels. Sensex is now trading at 25 times trailing one-year earnings. It is important to note that the rally is driven by PE expansion, not commensurate earnings growth. The FY 24 Q1 earnings growth is muted except in banking and refineries. Results indicate that rural demand is yet to pick up in a meaningful manner.

Even though the Indian economy is in a sweet spot and it makes sense to remain invested, investors should be cautious in their fresh investment, particularly in chasing low-grade small-caps.

In 2023, Kamdhenu Ventures has emerged as one of the multibagger stocks in the Indian stock market, delivering an impressive 120% return to its shareholders. Today, the stock is in focus as it is trading ex-bonus. The company’s board of directors has declared a bonus issuance in the ratio of 1:1. This means that eligible shareholders will receive one bonus share for every one share they hold in the small-cap multibagger stock. (Read More)

Small is beautiful in India’s market for initial public offerings after the disappointment of hyped mega-share sales.

From finance startup Paytm to the nation’s largest insurer, investors have lost money from those IPOs in the past two years. They’ve turned to companies offering up to just $100 million in stock sales, as India hosted 92 such listings this year, the most in the world, according to data compiled by Bloomberg.

Small firms are selling shares for their financing needs after interest rates surged, as they take advantage of a five-month market rally. While such listings tend to be saddled with poor trading liquidity and have lax disclosure rules, retail investors are ignoring those concerns, bidding more than 100 times what’s on offer for some IPOs.

“IPOs are a product of a bull run in stocks,” said Abhishek Sharma, managing director at GYR Capital Advisors. “Greater retail and institutional investor participation is providing tailwinds to these companies.” (Bloomberg)

Reliance Industries Ltd (RIL) has signed a Memorandum of Understanding (MOU) with Brookfield for onshore renewable power and decarbonization equipment manufacturing in Australia.

On Monday, Credit Rating agency Crisil Ratings provided a positive forecast for Indian sugar mills, anticipating a consistent operating profitability for integrated mills despite market fluctuations. According to their report, this encouraging outlook is driven by significant factors, such as a notable increase in domestic sugar prices and a rise in ethanol sales.

Crisil Ratings further predicts a stable operating profitability for integrated sugar mills in India, even in the face of challenges. The report emphasizes that the expected surge in domestic sugar prices and the growing sales of ethanol are likely to counterbalance the impact of rising sugarcane costs and reduced exports during fiscal year 2024. (Read More)

Bharti Airtel Ltd prepaid ₹8,024 crore ahead of schedule to clear a portion of its deferred liabilities for the spectrum acquired in 2015. This move is part of the company’s cost-saving strategy.

“The said instalments had an interest rate of 10% and have been prepaid by Airtel, leveraging much lower cost financing available to it,” the telco said in a statement on Monday, noting that the amount was paid to the department of telecommunications.

Airtel continues to enjoy access to well-diversified sources of capital or financing, allowing it to have enhanced financial flexibility in its capital structure, including the optimized cost of financing using all opportunities for significant interest savings, like this prepayment, the carrier added. (Read More)

In today’s trade, top stocks in focus include Maruti Suzuki, Bharti Airtel, SBI, Power Grid Corp, Kotak Bank, GAIL, Adani Green Energy, Castrol India, Dhanlaxmi Bank, and Bosch. Maruti Suzuki’s Q2 net profit surged 145%, while Bharti Airtel prepaid ₹8,024 crore. SBI raised ₹10,000 crore via infrastructure bonds. GAIL’s Q1 net profit declined 45%, and Adani Green Energy reported a 51% YoY rise in net profit. Castrol India’s profit rose 9%. Dhanlaxmi Bank posted a net profit of ₹28.30 crore. Bosch’s net profit jumped 22.5%. (Read More)

According to reports from Bloomberg, Gautam Adani’s group is planning to access India’s bond market to raise funds of up to ₹150 billion during the financial year 2023-24. This move indicates the Adani Group’s intention to issue local-currency debt, marking the first such issuance since Hindenburg Research made damaging allegations earlier this year.

Sources familiar with the matter, as cited by Bloomberg, revealed that the bonds are likely to be sold in smaller denominations of 5 billion to 10 billion rupees. The funds raised through these bond sales will be utilized to meet the capital expenditure requirements of the group. As of now, the plans are being kept confidential, and the individuals who provided this information chose to remain anonymous.

Among the companies within the Adani Group, Adani Ports and Special Economic Zone Ltd., Adani Electricity Mumbai Ltd., Mumbai International Airport Ltd., Navi Mumbai International Airport Ltd., and flagship company Adani Enterprises Ltd. are said to be among the first to potentially issue these bonds. (Read More)

Foxconn Technology Group, the main supplier for Apple, has plans to invest nearly ( ₹4,100 crore) $500 million in the construction of two component factories in India, according to a report by Bloomberg News on July 31. The chosen location for these factories will be in the southern state of Karnataka. It is anticipated that at least one of these facilities will be dedicated to manufacturing Apple components, including those used in iPhones.

In March, Karnataka greenlit an investment of ₹8,000 crore ($972.88 million) by a Foxconn subsidiary, becoming the third southern Indian state, after Andhra Pradesh and Tamil Nadu, to welcome Foxconn’s ventures. (Read More)

On Monday, Kotak Mahindra Bank (KMB) refuted a news report claiming that the Reserve Bank of India (RBI) has urged the private sector bank to appoint an external candidate as its chief executive after the conclusion of founder Uday Kotak’s tenure in December.

“We would like to state that there is no communication, formal or informal, from RBI to Kotak Mahindra Bank or its board members on CEO succession,” the bank said in a media statement.

On Monday, Bloomberg reported that RBI is “nudging Kotak Mahindra Bank Ltd to select someone outside the lenders’ ranks to succeed Uday Kotak as the next chief executive officer”. (Read More)

Maruti Suzuki India, the leading passenger car manufacturer in the nation, achieved a noteworthy standalone net profit of ₹2,485.1 crore in the quarter ending June 2023. This remarkable performance reflects a remarkable surge of 145% compared to the ₹1,012.8 crore recorded in the corresponding quarter of the previous year.

The substantial increase in net profit can be attributed to several factors, including a rise in sales volume, enhanced realization, diligent cost reduction efforts, and a boost in non-operating income.

Nevertheless, there was a sequential decline in the company’s net profit from ₹2,623.6 crore in the previous March quarter. (Read More)

The central government has more than doubled the windfall profit tax on the production of crude oil with effect from 1 August, showed an official order.

The tax, levied in the form of special additional excise duty has been raised from Rs. 1600 a tonne to Rs. 4250 a tonne, showed the order.

The special additional excise duty on the export of diesel has also been raised from zero to ₹1 a litre from 1 August. (Read More)

Wall Street and global stocks edged up on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings and a key employment report due this week.

The Dow Jones Industrial Average rose 0.28% to 35,560.19, the S&P 500 gained 0.15% to 4,589.15 and the Nasdaq Composite added 0.21% to 14,346.02.

Apple Inc and Amazon.com both report on Thursday, while other well-known names with results due include Caterpillar Inc, Starbucks Corp and Advanced Micro Devices.

European shares gained modestly after euro zone inflation fell further in July seeing that most measures of underlying price growth also eased. Markets took this as a comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes.

The pan-European STOXX 600 index rose by 0.12%, a second consecutive monthly gain. MSCI’s gauge of stocks across the globe gained 0.15%.

The modest gains came despite China’s manufacturing activity falling for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday. (Reuters)