Stock Market Today: Sensex Slumps Over 2,000 Points, Nifty Settles Nearly 3% Lower Amid Global Selloff

• Rupee weakened 9 paise to end a record closing low of 83.84 against the US dollar.

• Rupee weakened to a record low of 83.85 during the day.

• It closed at 83.75 on Friday.

Source: Bloomberg

• The NSE Nifty 50 ended 662.10 points or 2.68% lower at 24,055.60, the lowest level since June 28.

• The BSE Sensex ended 2.74% or 2,222.55 points lower at 78,759.40, the lowest level since June 26.

• All 12 sectors ended in negative note on NSE, with the the NSE Nifty Metal emerging as the worst performing sector.

• Intraday, both the benchmarks logged worst decline since June 4.

• Reliance Indfoustries Ltd., HDFC Bank Ltd. were top losers in the Nifty 50 index.

Indian benchmarks ended at over one-month low on Monday as heavyweights Reliance Industries Ltd., HDFC Bank Ltd. declined. Selloff in global equities as traders unwound their carry-trade bets on the Japanese yen after it rose against the US dollar, pressured the benchmarks.

The NSE Nifty 50 ended 662.10 points or 2.68% lower at 24,055.60, the lowest level since June 28. The BSE Sensex ended 2.74% or 2,222.55 points lower at 78,759.40, the lowest level since June 26.

During the day, the Nifty 50 declined as much as 3.33% to 23,893.70, and the Sensex slumped 3.32% to 78295.86, the lowest levels since June 4.

Today's sell off is more of a short term volatility by way of profit booking, said Tanvi Kanchan, head, UAE Business & Strategy, Anand Rathi Shares and Stock Brokers. There is no indicator of any long term panic mode set in the Indian equities. For investors looking at entering the equity market, a staggered entry during volatile periods can be considered.

The India VIX, the index which gauges volatility in Indian equities, jumped 61.68% to 23.15 on Monday, touching the highest level since June 4. It ended 42.63% higher at 20.43

Reliance Indfoustries Ltd., HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd. weighed on the benchmark index.

Hindustan Unilever Ltd., Nestle India Ltd., Tata Consumer Products Ltd., and HDFC Life Insurance Co. Ltd.

On NSE, all 12 sectors ended lower with the NSE Nifty Metal led the losses. The NSE Nifty FMCG fell the least.

Broader indices underperformed. BSE Midcap ended 3.60% lower and BSE Smallcap closed 4.21% lower.

All 20 sectoral indices ended lower BSE Metal and BSE Services fell the most.

Market breadth was skewed in the favour of sellers. Around 3,408 stocks fell, 670 rose, and 111 remained unchanged on the BSE.

• Net profit rose 20.4% at Rs 40.5 crore vs Rs 33.7 crore

• Revenue rose 33.5% at Rs 513 crore vs Rs 385 crore

• Ebitda rose 32.3% at Rs 64.2 crore vs Rs 48.5 crore

• Margin fell at 12.5% vs 12.6%

• Revenue up 3% at Rs 960 crore vs Rs 932 crore

• EBITDA up 27% at Rs 153 crore vs Rs 121 crore

• EBITDA margin at 15.9% vs 12.9%

• Net profit up 33% at Rs 137 crore vs Rs 103 crore

• Revenue up 72.95% at Rs 83.57 crore vs Rs 48.32 crore

• Ebitda up 122.71% at Rs 24.12 crore vs Rs 10.83 crore

• Margin up 644 bps at 28.86% vs 22.41%

• Net profit up 142.85% at Rs 14.11 crore vs Rs 5.81 crore

• Net profit rose 19.4% at Rs 31.5 crore vs Rs 26.4 crore

• Revenue rose 28.9% at Rs 156 crore vs Rs 121 crore

• Ebitda rose 26.9% at Rs 61 crore vs Rs 48 crore

• Margin fell at 39.1% vs 39.7%

• Revenue rose 12.3% at Rs 1,014 crore vs Rs 903 crore

• Ebitda fell 17.2% at Rs 120 crore vs Rs 145 crore

• Margin at 11.8% vs 16.1%

• Net profit fell 60.9% at Rs 34 crore vs Rs 87 crore

• Net profit rose 8.7% at Rs 474 crore vs Rs 436 crore

• Revenue rose 6.7% at Rs 2,643 crore vs Rs 2,477 crore

• Ebitda rose 9.1% at Rs 626 crore vs Rs 574 crore

• Margin at 23.7% vs 23.2%

• Revenue down 3% at Rs 1,506 crore vs Rs 1,554 crore

• Ebitda up 16% at Rs 160 crore vs Rs 138 crore

• Ebitda margin at 10.6% vs 8.8%

• Net profit up 20% at Rs 138 crore vs Rs 115 crore

• Net profit fell 0.8% at Rs 36.7 crore vs Rs 37 crore

• Revenue fell 15.6% at Rs 696 crore vs Rs 825 crore

• Ebitda fell 3.2% at Rs 96 crore vs Rs 99 crore

• Margin at 13.8% vs 12%

• JLR UK sales up 11% at 6,121 units

• Jaguar UK sales up 1% at 1,058 units

• Land Rover UK sales up 13% at 5,063 units

Source: SMMT

• Cera Sanitaryware's board approved buyback of shares up to Rs 130 crore

• The company is to buy back 0.83% equity at Rs 12,000 per share.

Source: Exchange filing

• Sobha Ltd.'s IT infrastructure was targeted by ransomware attack yesterday.

• The company's management initiated necessary precautions to mitigate impact of cyber security incident.

• Technical team took necessary precautions to retrieve & restore the systems.

• The company did not find any material impact on the operations due to cyber security incident.

Source: Exchange filing

• Insolation Energy Ltd.'s arm signed a memorandum of understanding with Ganesh Decor India for development of solar power project worth Rs 118 crore

• The company received a Letter of Award worth Rs 24.4 crore by Jaipur Vidyut Vitaran Nigam for development of solar power project.

Source: Exchange filing

• Revenue rose 7.9% at Rs 727 crore vs Rs 674 crore

• Ebitda fell 14.7% at Rs 86.9 crore vs Rs 102 crore

• Margin at 11.9% vs 15.1%

• Net profit fell 60.4% at Rs 13.4 crore vs Rs 33.9 crore

• The S&P 500 Futures declined 3.26% to a low of 5,201.00 on Monday. It was trading 2.79% to 5,266.00 as of 12:09 p.m.

Source: Bloomberg

• Revenue rose 44.3% at Rs 1,222 crore vs Rs 847 crore

• Ebitda rose 68.6% at Rs 292 crore vs Rs 173 crore

• Margin at 23.9% vs 20.5%

• Net profit of Rs 22.4 crore vs loss of Rs 1.6 crore

• Orissa Bengal Carrier is in pact with Vedanta for transportation of around 15,000 metric tons of materials.

Source: Exchange filing

• Jash Engineering Ltd.'s July consolidated order stands at Rs 107 crore.

Source: Exchange filing

• Equity markets are reacting to economic weakness, highlighted by disappointing earnings from a few U.S. consumer-focused companies. It's crucial to monitor these developments closely in the coming months.

Source: Trideep Bhattacharya, president and chief investment officer, Equities, Edelweiss Asset Management Limited

The India VIX, which gauges volatility in the Indian markets, jumped 51.25% to 21.78, the highest level since June 4. It was trading 49.14% higher at 21.36 as of 11:09 a.m.

• TIL Ltd. has signed a pact with Snorkel Europe to become official sales and service partner for multiple locations.

Source: Exchange filing

• Volume and value growth has been same around 6-6.5%

• Rural demand picking up; 28.2 lakh direct distribution touch points

• Expanded to 30,000 rural distribution points

• Rural outperformed urban performance by 1.25 times

• We are not interested in B2B business

• Nepal business is doing well now closely at 170 crore

• Continues to target 2% cost efficiencies every year

• Amid high trading volumes, Zerodha users reported glitches on platform

• This is the third time the app faced glitches in last 3 months

• Many took to X, formerly known as Twitter, to express their concern

• In response, Zerodha's official handle stated that their systems were functioning properly

• They suggested that the issues might be related to users' connectivity.

• They meanwhile asked the users to message them about the details of the issue

• The rupee weakened 7 paise to 83.82 against the US dollar on Monday.

• It closed at 83.75 a dollar on Friday.

Source: Bloomberg

Shares of Titan Co. fell over 4% on Monday after its first-quarter profit fell, missing analysts' estimates. The jewellery manufacturer's consolidated net profit fell 5% year-on-year to Rs 715 crore in the quarter ended June, according to an exchange filing on Friday. Analysts tracked by Bloomberg had estimated the profit at Rs 797.2 crore.

• Companies borrowed in yen to take currency depreciation advantage and interest advantage

• Advantage could be to the tune of 400-500 bps

• Some of these loans were not hedged or hedges through partial options.

• Unhedged positions could take significant hit

• Impact could be worse off for companies with imports from Japan.

Source: Forex traders

• Manappuram Finance Ltd. is to consider fund raising via non-convertible debentures on Aug 8.

Source: Exchange filing

The India VIX, which gauges volatility in the Indian markets, jumped 20.50% to 17.21, the highest level since June 5. It was trading 15.82% higher at 16.59 as of 09:48 a.m.

Shares of State Bank of India declined 3.58% to Rs 817.50, the lowest level in nearly two months. It was trading 2.59% lower at Rs 825.85 as of 09:40 a.m., compared to 1.96% decline in the NSE Nifty 50.

The lender reported 0.48% increase in credit costs during April-June, which raised concern. It reported a 0.89% year-on-year rise in net profit to Rs 17,035 crore in the first quarter of fiscal 2025.

Benchmark opened sharply lower on Monday as tracking losses in heavyweight Reliance Industries Ltd., and HDFC Bank Ltd. Sell-off in Asian peers in the wake of unwinding in yen-carry-trade also weighed on the indices.

Only three Nifty stocks traded higher, and out of 30 stocks in the Sensex only two traded higher.

As of 09:17 a.m., the NSE Nifty 50 was 1.72% or 424.20 points lower at 24,304.15. The BSE Sensex was 1,359.55 points or 1.68% down at 79,622.41.

The Nifty 50 has closed at 5 days low to close 0.5% down w-o-w with strong support at 24,560 being the 20-day f average on the downside followed by 24,100 levels. The Nifty 50 has broken on the downside from its doji candle and now the key resistance would continue near to 25,100 levels over the next few days. RSI is trending below the average line and could test the lower end of the range building some momentum form lower levels. Highest call OI has moved lower to 25,000 strikes while the downside the highest put OI moved higher to 24,500 for the weekly expiry, said  Vikas Jain, head, research at Reliance Securities.

Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., and Larsen & Toubro were top draggers in the index.

Only Sun Pharmaceutical Industries Ltd., and Apollo Hospitals Enterprise Ltd. limited losses in the index.

All 12 sectors slumped on NSE, with the NSE Nifty Realty emerging as the top loser.

Broader markets underperformed benchmark indices. The BSE Midcap and Smallcap indices were trading 2.91% and 3.45% lower, respectively.

On BSE, all 20 sectors fell sharply with the BSE Realty emerged as the worst performing sector.

Market breadth was skewed in favour of sellers. Around 2,872 stocks declined, 385 stocks advanced, and 132 stocks remained unchanged on BSE.

The NSE Nifty 50 was trading 1.68% lower at 24,302.85, and the BSE Sensex fell 2.96% to 78,588.19.

• The yield on the 10-year bond declined 3 bps lower to 6.86%.

• It closed at 6.89% on Friday.

Source: Bloomberg

• Rupee weakened 4 paise to open a record low of 83.79 against the US dollar.

• It closed at 83.75 on Friday.

Source: Bloomberg

Gold falls 0.2% to $2,434/ounce

Brent falls below $77/barrel

Brent lowest since January 2024

Japan VIX surges surges 35%

July total cargo up 9.5% at 37.3 MMT YoY

Source: Exchange Filing

• We have unambiguous evidence of a weakening in the US labour market

• This is at a time when inflation is above the Federal Reserve’s 2% target

• Money markets are discounting 116 bps of easing by the end of this year

• Versus expectation of 86 bps before the payroll data

• The headline increase of 114,000 in July was the second lowest since December 2020

• Government and healthcare and social assistance sectors increased by 81,000 which accounted for 71%

• The unemployment level is highest level since October 2021

• Risk of US economic downturn has risen materially,

• The excess savings from pandemic has been finally spent

• Interest rate cuts are not necessarily positive for US equities

• The Indian stock market is much more resilient in the face of a US downturn

• Because India’s stock market has been driven by domestic money, whereas the opposite is in Japan

• Maintains 'reduce' on Hindustan Zinc at Rs 339 target implying 47% downside

• Growth in Q1FY25 EBITDA on higher zinc, lead and silver prices

• Benefit from higher prices partially offset by lower volumes

• Cut FY25/26 EBITDA by 4% to factor lower zinc prices in FY25

• Expect FY25/26 zinc prices at Rs $2700/2750 per tonne

• Expect approval to transfer general reserves to retained earnings to result in additional dividend by company

• Expect total dividend per share of Rs 40 per share

July traded volume up 56% YoY at 13.3 bn units

July renewable energy certificates up 405% YoY at 3,150 mn units

July green electricity volume up 259% YoY at 1 bn units

Source: Exchange Filing

• Upgrades to 'buy' from reduce with target price of Rs 5,740; upside 15.4%

• Reported mixed Q1FY25 results with revenue beating consensus estimates

• Multi-year levers of growth such a capex-led growth from Kakinada P-I, opportunity in FY27E due to Rs 700 crore project for undisclosed client, sustained opportunity in Sacubitril/Valsartan beyond FY26, and opportunity in contrast media and peptide/GLP1 fragments

• Expect continued ramp-up in Sacubitril/ Valsartan and contrast media business.

• Expects revenue/PAT CAGR Of 20%/31% over FY24–27E.

Citi Research

Maintains neutral with target of Rs. 3,510 (upside 1.7%)

Competition due to store expansion by existing players and entry of new player (Novel Jewels by Aditya Birla)

Slowdown in the pace of market share gain

Margins/earnings downgrade risk

Absolute valuations remain high

Nuvama

• Upgrading Titan to BUY with target of Rs 3,955 (upside 15%)

• Next levers of growth would come from the scale up of international segment, Mia, and CaratLane

• Titan had outlined a 15% CAGR target for the jewellery segment till FY27

• Building in a revenue CAGR of 16.6% in jewellery segment till FY27

• Factoring in margins of 12% as guided by management in jewellery

Nuvama

• Retains 'buy' with target of Rs 1026 implying 21% upside

• Above-average loan growth

• Strong deposit franchise with low LDR are key strengths

• Positive: Core NIM improved 6 bps QoQ

• Valuation based on 1.5 times BV FY26E

Bernstein

• Retains market perform with target Rs 810, implying 4% downside

• Deposit growth slightly below system

• Marginal decline in NIM

• Muted opex growth offset non interest income normalisation

• Credit costs inch up

• Maintaining ROA of 1% would be challenging

Emkay

• Retains buy; target Rs 1,025 vs 950 earlier implying 21% upside

• Broadly healthy and in-line PAT

• Lower opex with the adhoc wage revision provisions largely behind

• Expect the bank to deliver 1.1% RoA/17-19% RoE

• Valuing standalone bank at 1.5x Jun-26E ABV and subsidiary/inv at Rs260/share

Gets GST order worth Rs 3.08 crore including interest & penalty from Gujarat State Tax Officer

Source: Exchange Filing

U.S. Dollar Index at 103.05

U.S. 10-year bond yield at 3.8%

Brent crude down 0.52% at $77.21 per barrel

Nymex crude down 0.46% at $73.86 per barrel

GIFT Nifty down 1.17% at 24,339.50 as of 7:50 a.m.

The Indian rupee ended at a record closing low against the US dollar on Friday after stock indices crashed over 1%, tracking their global peers amid rising geopolitical tensions and weak economic data from the US.

The Indian currency depreciated 3 paise to end at a record closing low of Rs 83.75 after opening at Rs 83.73 against the greenback, according to Bloomberg. It closed at Rs 83.72 on Thursday.

• Ceigall India: The public issue was subscribed to 1.23 times on day 2. The bids were led by qualified institutional investors (0.01 times), non-institutional investors (1.75 times), retail investors (1.65 times) and reserved for employees (5.47 times).

• Ola Electric Mobility: The public issue was subscribed to 0.35 times on day 1. The bids were led retail investors (1.57 times) and reserved for employees (4.88 times), non-institutional investors (0.2 times).

• Netweb Tech India: Navin Lodha sold 4.1 lakh shares (0.72%) at Rs 2,232.1 apiece, Niraj Lodha sold 4.1 lakh shares (0.72%) at Rs 2,232.1 apiece and Sanjay Lodha sold 8.21 lakh shares (1.45%) at Rs 2,232.1 apiece. Vivek Lodha also offloaded 4.1 lakh shares (0.72%) at Rs 2,232.1 apiece. On the other hand, ICICI Prudential Mutual Fund bought 10.75 lakh shares (1.9%) at Rs 2,232.1 apiece, Citigroup Global Markets Mauritius Pvt. - Odi bought 4.48 lakh shares (0.79%) at Rs 2,232.1 apiece and Societe Generale bought 2.73 lakh shares (0.48%) and among others at Rs 2,232.1 apiece.

• Genus Power Infrastructures: Nomura India Investment Fund Mother Fund bought 59.7 lakh shares (1.96%) at Rs 346.5 apiece, Banwari Lal Todi sold 40 lakh shares (1.31%) at Rs 346.5 apiece, and Seema Todi sold 26 lakh shares (0.85%) at Rs 347.07 apiece. Anand Todi also sold 19 lakh shares (0.62%) at Rs 346.52 apiece.

• SJVN: The Cabinet Committee on Economic Affairs has approved the investment of Rs 5,792.4 crore for the 669 MW Lower Arun Hydro Electric Project at a levelized tariff of Rs 4.99 per unit.

• Mahindra & Mahindra Financial Services: The company reported overall disbursement at Rs 4,530 crore, up 3% year-on-year, business assets at Rs 1.07 lakh crore, up 22% year-on-year, and collection efficiency at 95% for the month of July.

• Samvardhana Motherson International: The company will acquire Sojitz Corp's 34% stake in JV Motherson Auto Solutions for Rs 237 crore.

• Mahindra & Mahindra: The company subsidiary Classic Legends executed a JV agreement with Tube Investments of India in the ratio of 50:50 to use the BSA Marks in India for motorcycles, their parts, and accessories to be manufactured and sold by the subsidiary.

• Power Grid Corp.: The company emerged as a successful bidder for an inter-state transmission line in Rajasthan.

• HEG: The board is to consider a stock split on Aug. 13.

• Power Mech Projects: The company received an order worth Rs 142 crore for the revival of Phase II of Meenakshi Energy in Nellore district, Andhra Pradesh.

• Gland Pharma: The US FDA conducted an unannounced inspection at the company’s facility for good manufacturing practices between July 25 and Aug. 2 and concluded with three 483 observations.

• Jyothy Labs: Sanjay Agarwal resigned as CFO effective Aug. 21.

• Aptech: Pawan Nawal was appointed as the group CFO effective Aug. 2.

Avanti Feeds, BEML, Bharti Airtel, Bharti Hexacom, BLS International, Brigade Enterprises, Century Plyboards, Deepak Nitrite, Devani International, GSFC, HG Infra Engineering, Honeywell Automation, Marico, Motherson Sumi Wiring India, Oil & Natural Gas Corp, Orient Cement, Sandur Manganese and Iron Ores, Schneider Electric Infrastructure, Syrma SGS Technology, Tata Chemicals, Triveni Turbine, Vijaya Diagnostic Centre, V-Mart Retail, VRL Logistics.

Britannia Industries Q1 FY25 Highlights (Consolidated, YoY)

• Revenue rose 6% to Rs 4,250.3 crore. (Bloomberg estimate: Rs 4,177.8 crore).

• Ebitda rose 9% to Rs 753.66 crore. (Bloomberg estimate: Rs 774.1 crore).

• Margin stood at 17.7% versus 17.2% (Bloomberg estimate: 18.5%).

• Net profit up 11% at Rs 505 crore. (Bloomberg estimate: Rs 527 crore)

Titan Q1 FY25 (Consolidated, YoY)

• Revenue up 11.5% to Rs 13,266 crore. (Bloomberg estimate: Rs. 12,642.7 crore).

• Ebitda up 11% to Rs 1,247 crore. (Bloomberg estimate: Rs 1,242 crore).

• Margin at 9.4% versus 9.5% (Bloomberg estimate: 9.8%).

• Net Profit down 5% to Rs 715 crore. (Bloomberg estimate: Rs. 797.2 crore).

Delhivery Q1 FY 25 (Consolidated, QoQ)

• Revenue up 5% at Rs 2,172 crore. (Bloomberg estimate: Rs 2,153 crore).

• Ebitda up 112% at Rs 97 crore. (Bloomberg estimate: Rs 45 crore).

• Ebitda margin at 4.5% versus 2.2% (Bloomberg estimate: 2.1%).

• Net profit at Rs 54 crore versus loss of Rs 68 crore (Bloomberg estimate net loss of Rs 68 crore).

Medplus Health Services Q1 FY 25 (Consolidated, YoY)

• Revenue up15.96% at Rs 1489 crore. (Bloomberg estimate: Rs 1,496 crore).

• Ebitda up 32.76% at Rs 94 crore. (Bloomberg estimate: Rs 74 crore).

• Ebitda margin up 79 bps at 6.31%. (Bloomberg estimate: 4.9%).

• Net profit up 257.5% at Rs 14.3 crore. (Bloomberg estimate: Rs 11 crore).

Archean Chemical Industries Q1 FY25 (Consolidated, YoY)

• Revenue down 37.9% at Rs 213 crore. (Bloomberg estimate: Rs 336 crore).

• Ebitda down 47% at Rs 71 crore. (Bloomberg estimate: Rs 102 crore).

• Margin at 33.5% versus 39.2% (Bloomberg estimate: 30.4%).

• Net profit down 52.1% at Rs 45 crore. (Bloomberg estimate: Rs 71 crore).

Sheela Foam Q1 FY 25 (Consolidated, YoY)

• Revenue up 26% at Rs 810 crore.

• Ebitda down 23% at Rs 60 crore.

• Ebitda margin at 7.4% versus 12.1%.

• Net profit up 9 % at Rs 47 crore.

LIC Housing Finance Q1 FY25 (Standalone, YoY)

• Total income up 0.5% at Rs 6,784 crore.

•  Net profit down 1.8% at `Rs 1,300 crore. (Bloomberg estimate Rs 1,235 crore).

Japan's benchmark indices extended decline on Monday amid bets on more rate hikes by the Bank of Japan going forward, strengthening the yen and bonds in the country.

The Nikkei 225 was trading 2,031.17 points or 5.66% lower at 33,878.53, and the Topix was trading 159.96 points or 6.30% down at 2,377.64 as of 06:53 a.m.

The Kospi and S&P ASX 200 were trading 3.95% and 2.86%, lower respectively as of 06:54 a.m.

US stocks ended lower on Friday after weak employment data stoked recession fears among market participants. The S&P 500 and Nasdaq Composite settled 1.84% and 2.43%, lower respectively. The Dow Jones Industrial Average ended 1.51% lower.

The October contract of the Brent crude on Intercontinental Exchange was trading 0.27% higher at $77.02 per barrel as of 06:58 a.m. Spot gold was trading 0.43% lower at $2,432.80 as of 06:59 a.m. The GIFT Nifty was trading 1.03% or 252.50 points lower at 24,375.50 as of 07:00 a.m.

The Indian markets on Monday will reflect on the previous week while anticipating the release of interesting data points throughout the week. While the first-quarter earnings season will start winding down, the Reserve Bank of India will announce its decision after the three-day Monetary Policy Committee meeting on Thursday.

India's benchmark equity indices reversed five consecutive sessions of gains to close lower on Friday. The indices also snapped a weekly gaining streak of eight weeks to end at their lowest closing since July 25.

The NSE Nifty 50 closed 293.20 points or 1.17% down at 24,717.70 and the S&P BSE Sensex was 885.60 points or 1.08% lower at 80,981.

Overseas investors turned net sellers of Indian equities on Friday.

Foreign portfolio investors offloaded equities worth Rs 3,310 crore and domestic investors turned net buyers after one session of selling and mopped up equities worth Rs 2,965.9 crore, according to provisional data from the National Stock Exchange.

The Indian currency depreciated 3 paise to end at a record closing low of Rs 83.75 against the US dollar.