Stock Market Today: Nifty, Sensex End Flat As HDFC Bank, Titan Weigh

-The local currency closed flat at 83.50 against the US dollar.

-It closed at 83.49 on Friday.

Source: Bloomberg

Benchmark equity indices remained subdued on the first day of the week as gains in the shares of ITC and Reliance were offset by the fall in HDFC Bank and Titan Company.

Both the Nifty and Sensex ended flat at 24320.55 and 79960.38 points respectively. Intraday, the fell as much as 0.3% .

"The market is turning to a consolidation phase due to the absence of major triggers to support the current premium valuation in the near term, prompting investors to book some profits, "said Vinod Nair, head of research at Geojit Financial Services. He added that with stable input prices and ongoing price cuts, the period of margin expansion appears to be concluding, which is likely to affect earnings and valuations.

Shares of ITC Ltd., Reliance Industries Ltd., Infosys Ltd., Oil & Natural Gas Ltd., and Hindustan Unilever Ltd. contributed the most to the gains.

But those of HDFC Bank Ltd, Titan Co. Ltd., Mahindra & Mahindra Ltd., Tata Steel Ltd., and Divi's Laboratories Ltd. pulled the Nifty lower.

Most sectoral indices ended lower with Nifty PSU Bank being the top loser.

Broader indices underperformed. The S&P BSE Midcap ended 0.14% lower and the S&P BSE Smallcap fell 0.22%.

Thirteen out of the 20 sectoral indices on the BSE ended lower. S&P BSE FMCG was the top gainer.

The market breadth was skewed in the favour of sellers. Around 2,254 stocks advanced, 1,804 rose, and 111 remained unchanged on the BSE.

• Saw retail sales growth of 11% and same store sales growth of 4%

• Total sales rose 9% YoY including exports, ecommerce, corporate, digital products

• Expect to grow at 18-20% percent this year

Source: Exchange filing

• Total premium at Rs 42,434 crore, up 14.8% YoY

• HDFC Life's total premium at Rs 2,694 crore, up 8.3% YoY

• Bajaj Allianz's total premium at Rs 1,082 crore, up 22% YoY

• ICICI Prudential's total premium at Rs 1,511 crore, up 14% YoY

• Max Life's total premium at Rs 894 crore, down 5.7% YoY

• SBI Life's total premium at Rs 2,990 crore, up 21.8% YoY

• LIC's total premium at Rs 28,367 crore, up 13.6% YoY

Source: Life Insurance Council

Mercedes-Benz India clocks highest-ever half-yearly sales on the back of demand for top-end vehicles.

• Sales rose 9% YoY to 9,262 units in H1 2024 vs 8,528 in H1 2023

• SUVs made up 55% Mercedes-Benz’s volumes in H1 2024

• Top-end vehicles made up 25% of sales in H1 2024

• Mercedes-Benz’s EV portfolio grew by 60% YoY in H1 2024

• Electric cars made up 5% of total sales volumes in H1 2024

Source: Company statement

Board appoints Amar Kaul as MD & CEO for 5 years effective July 25

Source: Exchange Filing

The NSE Nifty 50 snapped its three-session winning streak and traded near day's low through midday on Monday as HDFC Bank and Titan Co. dragged. The volatility index surged over 7% after falling for four consecutive sessions.

At 11:53 a.m., the Nifty was at 24,299.30, down 0.10% or 24.55 points, and the S&P BSE Sensex was at 79,905.77, down 0.11% or 100 points.

There are signs of fatigue at higher levels, according to Milan Vaishnav, founder of Gemstone Equity Research. But in the near-term, he has a neutral to bullish view.

Vaishnav has pegged near-term support at 24,000, which continues to have maximum put open interest. On the upside, the index may go to 24,500–24,800 levels, which has the highest call open interest.

Shares of HDFC Bank Ltd., Titan Co., ICICI Bank Ltd., Larsen & Toubro Ltd. and Adani Ports & Special Economic Zone Ltd. dragged the Nifty the most.

Reliance Industries Ltd., Infosys Ltd., ITC Ltd., Hindustan Unilever Ltd. and Oil & Natural Gas Corp. cushioned the fall.

The Nifty FMCG was the top sectoral gainer and among the four indices that rose on the NSE.

The broader indices underperformed as the BSE MidCap and the SmallCap fell 0.3% each.

Sixteen out of the 20 sectoral indices on the BSE declined, with Consumer Durables falling the most.

The market breadth was skewed in the favour of the sellers as 2,219 stocks fell, 1,669 rose and 159 remained unchanged on the BSE.

• June new business premium up 14.1% at Rs 1,511 crore

• June new business sum assured up 13.6% at Rs 85,348 crore

Source: Exchange Filing

• Q1 group wholesales (including JLR) up 2% at 3.3 lakh units

• Q1 global PV wholesales down 1% at 1.4 lakh units

• Q1 global CV wholesales up 6% at 93,410 units

• Q1 global JLR wholesales up 5% at 97,755 units

Source: Exchange Filing

• Domestic advances as of June-end up 17.3% at Rs 4.3 lakh crore

• Domestic deposits as of June-end up 10% at Rs 5.9 lakh crore

Source: Exchange Filing

Of the 35 analysts tracking the stock, 28 have a 'buy' rating, five recommend 'hold', and two suggest 'sell', according to Bloomberg. The The average 12-month consensus price target implies an upside of 1.3%.

In pact with China-based Guangxi Ramway Tech for assembly of relays in India

Source: Exchange Filing

• Limited fiscal space in their view to stimulate the economy given high public debt

• India’s infrastructure upgrades have created long-term positive growth spillovers: policymakers may not be willing to give up

• Expects government to stick to fiscal deficit target of 5.1% of GDP for FY25

• Consolidation to a deficit of below 4.5% of GDP by FY26

• Some expenditure allocation towards welfare spending, may not require a reduction in capex given the higher than expected dividend from RBI

• Limited fiscal space for stimulus in FY25

• FY26 given the fiscal consolidation target of the central government

• Expects capex to provide a positive impulse, while welfare spending will likely remain a drag

• See an emphasis on job creation through labor-intensive manufacturing, credit for MSMEs, continued focus on services exports by expanding GCCs, thrust on domestic food supply chain and inventory management to control price volatility.

Budget is also likely to lay out a path for the future of public finance in India, entailing:

• a roadmap for public debt sustainability

• green finance: the role of public finance in balancing India’s energy security vs. transition needs

"From FY25F, JLR's volumes may be flattish, but the company is likely to focus on revenue growth which should help drive better margins," the brokerage firm said. "Its target EBIT margin is greater than 8.5% in FY25, 10% by FY26 and 15% in the medium term."

This should depend on successful new launches and ability to keep the marking spends in check as order books clear out.

The brokerage estimates the company to move from net debt of Rs 160 billion (-Rs44/share) in 4Q to net cash of Rs12/INR85 per share in FY25F/26. It said, "Further re-rating of JLR will depend on the success of new EV models and ability to sustain JLR margins, in our view."

The stock fell today, snapping their four-day streak, after gaining nearly 3% in the last four sessions.

• Q1 sales value up 36% at Rs 306 crore

• Q1 collections up 49% at Rs 165 crore

Source: Exchange Filing

• Finalises orders in the range of Rs 10,000-15,000 crore for solar plants in Middle East

• Middle East solar plants to have cumulative capacity of 3.5 GW

Source: Exchange Filing

An exchange filing by the company said its consolidated revenue grew in high single digits, despite the residual impact of pricing cuts in the Saffola Oils portfolio and currency headwinds in overseas markets.

• Maintains 'Overweight', Target Rs 6,900, upside:0.9%

• Naukri Q1FY25 billing accelerated and were in line with estimates, 99 acres growth slowed

• Jobspeak index are providing mixed indications for both IT and overall as index was flat

• Channel checks did not indicate recovery in discretionary spends

• Peak utilisations may drive some IT hiring

• Stock is relatively cheaper and higher quality play on IT recovery.

• Consistent improvement in Naukri billings momentum to be driver of stock performance.

• Q1 retailer sales up 25% at Rs 3,214 crore

• Q1 gross retail sales up 28% at Rs 794 crore

Source: Exchange Filing

Shares of Signatureglobal (India) Ltd hit record high on Monday following strong pre-sales and collection in the first quarter of the current fiscal.

Shares of PC Jeweller jumped to their upper circuit limit after an exchange filing by the company said that Punjab National Bank has conveyed its approval to the one time settlement proposal submitted by the company.

Shares of Man Industries (India) Ltd. surged nearly 11% to hit record high on Monday after it received its highest single order of Rs 1,850 crore from a reputable international oil and gas company.

The company will supply high value-added line pipes for a mega offshore oil and gas project and is expected to be delivered in the next 12 to 18 months, according to an exchange filing on Monday.

Shares of the company rose as much as 10.75% to hit record high of 513.70 apiece. Its trading 5.04% higher at Rs 513.70 apiece, as of 9:26 a.m. This compares to a 0.04% decline in the NSE Nifty 50 Index.

It has risen 253.65% in the last 12 months. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 72.04, indicating the stock is overbought.

Both the analysts tracking the company maintain a 'buy' call on the stock, according to Bloomberg data. The average 12-month consensus price target implies a downside of 4.3%.

Shares of Titan Co. fell nearly 4% on Monday after it reported subdued growth in the sales of its Jewellery segment.

The Tata Group company's domestic jewellery operations grew 8% year-on-year impacted by higher gold prices and lower wedding days, it said in a business update last week. Domestic growth came largely through an increase in average selling prices whereas buyer growth was in low single digits.

Titan's stock fell as much as 4.12% during the day to Rs 3,204 apiece on the NSE, the lowest since June 4. It was trading 3.7% lower at Rs 3,147 apiece, compared to a 0.03% advance in the benchmark Nifty 50 as of 9:35 a.m.

It has risen 3.3% in the last 12 months and declined 14% on a year-to-date basis. The total traded volume so far in the day stood at 7.4 times its 30-day average. The relative strength index was at 30.

Sixteen out of the 31 analysts tracking the company have a 'buy' rating on the stock, 10 recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 15%.

Benchmark equity indices snapped their three-day winning streak and opened lower as private banks weighed on them.

At pre-open, the Nifty was flat at 24329.45 and the Sensex was lower by 0.1% at 79915.00.

"We are positive on the Index (Nifty 50) with a buy-on-dip recommendation," said Aditya Gaggar, director of Progressive Shares. "The immediate support is placed at 24,150 while for the time being, the higher side is capped at a cluster of 24,450-24,570." He added that the bearish divergence in Bank Nifty is likely to restrict the upside of the Index.

Shares of ICICI Bank Ltd., Titan Co. Ltd., HDFC Bank Ltd., Infosys Ltd., and State Bank Of India Ltd. dragged the Nifty.

While those of Tata Motors Ltd., Hindustan Unilever Ltd., ITC Ltd., Bharti Airtel Ltd., and Oil & Natural Gas Corp. Ltd. cushioned the fall.

Most sectoral indices trade higher with Nifty Media and Nifty FMCG rising the most.

Market breadth was skewed in the favour of buyers. Around 1,903 stocks rose, 1,318 fell and 134 remained unchanged on the BSE.

At pre-open, the Nifty was flat at 24329.45 and the Sensex was lower by 0.1% at 79915.00.

The yield on the 10-year bond opened flat at 6.99%.

It closed at 6.99% on Friday.

Source: Cogencis

• The local currency strengthened by 4 paise to open at 83.45 against the US dollar.

• It closed at 83.49 on Friday.

Source: Bloomberg

Order for supply of pipes for mega offshore project

Source: Exchange Filing

Q1 standalone billings at Rs 579.4 crore vs Rs 523 crore

Q1 recruitment solutions at Rs 431.4 crore vs Rs 397.5 crore

Q1 99acres for real estate at Rs 81 crore vs Rs 73.4 crore

Source: Exchange Filing

• Maintains 'equal weight'; target price Rs 280

• Decline in loans was led by domestic and overseas

• Gross loan growth moderated and was below system growth

• Deposits degrew 2% sequentially after strong 6% growth in the previous quarter

• Loan to deposit ratio at 79.8% vs 79.6% QOQ

• Nifty earnings to grow 4% YoY in 1QFY25

• Margin tailwinds are likely to ebb due to a high base

• Earnings growth is anticipated to be driven, once again, by domestic cyclicals: Auto (+18% YoY), BFSI (+15% YoY), Healthcare (+21% YoY), and Metals (+12% YoY)

• Earnings growth is likely to be weighed down by global cyclicals, such as OMC’s which are anticipated to decline 36% YoY, Cement (-15% YoY), Specialty Chemicals (-20% YoY), andReal Estate (+37% YoY)

• Strong growth in the following sectors expected in retail (+14% YoY), consumers (+10% YoY), and technology (+6% YoY)

• Nifty EPS remain stable at Rs 1,134 and Rs 1,330, respectively.

• Estimate the Nifty EPS to grow 13%/17% in FY25/FY26

• FY25 to normalize as earnings converge with revenue growth

Top Ideas

Largecaps – ICICI Bank, SBI, L&T, M&M, HCL Tech, Coal India, Titan, Mankind Pharma, CIFC and Hindalco;

Midcaps and Smallcaps – Indian Hotels, Ashok Leyland, Godrej Properties, KEI Industries, PNB Housing, Cello World, Kalyan Jewelers, Persistent Systems, Angel One, Metro Brands

• Zambia-based step-down arm gets two large scale exploration licenses for lithium & other minerals

• Exploratory licenses valid for 4 years

Source: Exchange Filing

• Maintains 'Buy' with target of Rs 700 (14% upside)

• FY25 on a positive note with sequential uptick in domestic volumes

• Continued double-digit constant currency

• Parachute volumes grew low single digit, but offtakes were strong growth in the international markets

• Saffola edible oils volumes grew mid-single digit (stability in input and consumer pricing)

• Value added hairoils remained under pressure

• Foods, digital-first brands sustained robust growth momentum

• Forecasts 6% consolidated revenue growth YoY

• Forecasts EBITDA margin at 23.5%

• Recurring PAT estimate is Rs 4.3 billion, up 4% YoY.

• Taloja plant operations disrupted due to heavy rainfall; Extent of damage being worked out

• Taking necessary measures to restore normalcy & resume operations in phased manner

Source: Exchange Filing

• Maintains buy with target of Rs 1,141, upside 14%

• JLR wholesale/ retail volumes improved during the quarter

• Wholesale volumes up 5% yoy at 97,900 units

• Wholesale volume growth in North America (+38%) and UK (+36%)

• Retails at 1 lakh units, up 13% yoy

• Waiting list for Range rover electric improved to 39,000

• Estimate yearly volumes at 3.98 lakh for FY25

• Forecast JLR EBIT margins by 8.4% vs 8.6% reported YoY

• Maintains Buy; Target price raised to Rs 12,000 vs Rs 10340 earlier

• Huge Addressable Market for CNG motorcycles

• First CNG 125cc motorcycle "Freedom" at a starting ex-showroom price of Rs 95,000

• Management expects size of the addressable market to be ~650,000 units/month

• Built in volumes of 10,000 units/month in second half of FY25

• Expect 20,000 units/month in FY26 for this model

• Expect revenue/EBITDA CAGR at 12%/15% over FY24–26E

• Expect average RoE of ~35%

• Target based on 35 times FY26E earnings along with cash/investments of Rs 876/share

• US Dollar Index at 104.92

• US 10-year bond yield at 4.30%

• Brent crude down 0.27% at 86.31 per barrel

• Bitcoin was down 4% at $54,965.51

• GIFT Nifty was at 24,392.00, lower by 16 points or 0.07% as of 7:43 a.m.

• Nifty July futures up by 0.11% to 24,379.4 at a premium of 55.55 points.

• Nifty July futures open interest down by 2.55%.

• Nifty Bank July futures down by 0.86% to 52,724.10 at a premium of 63.75 points.

• Nifty Bank July futures open interest down by 6.62%.

• Nifty Options July 11 Expiry: Maximum call open interest at 25,000 and maximum put open interest at 24,000. 

• Bank Nifty Options July 10 Expiry: Maximum call open interest at 55,000 and maximum put open interest at 50,000.

• Securities in ban period: Aditya Birla Fashion and Retail, Bandhan Bank, GNFC, Piramal Enterprises, India Cement, Hindustan Copper.

• Price band Changes from 10% to 5%: Century Extrusions, Cochin Shipyard, Garden Reach Shipbuilders & Engineers.

• Ex/record Dividend: Computer Age Management Services.

• Ex/record AGM: Nucleus Software Exports.

• Moved in short-term Framework: GM Breweries.

• HEG: Quant Mutual Fund sold 9.5 lakh shares (2.46%) at Rs 2260 apiece.

• Bajaj HealthCare: Maa Sharda Distributors sold 10 lakh shares (3.62%) at Rs 316.95 apiece.

• Inox Green Energy Services: Dovetail India Fund sold 20.65 lakh shares (0.61%) at Rs 168.19 apiece.

• Medplus Health Services: PI Opportunities Fund - I sold 29.41 lakh shares (2.46%) at Rs 680 apiece.

Cigniti Technologies: Coforge bought 46.18 lakh shares (16.91%) at Rs 1,398.5 apiece, while Kukunuru Madhava Lakshmi sold 15.49 lakh shares (5.67%) at Rs 1,398.5 apiece, Promoter Sapna P who holds and sold 13.77 lakh shares (5.04%) at Rs 1,398.5 apiece, Venkata Subramanyam Chakkilam sold 13.77 lakh shares (5.04%) at Rs 1,398.5 apiece, Kukunuru Kumar Bapuji sold 3.13 lakh shares (1.14%) at Rs 1,398.5 apiece.

• Emcure Pharmaceuticals: The public issue was subscribed to 67.87 times on day 3. The bids were led by institutional investors (195.83 times), non-institutional investors (48.32 times), retail investors (7.21 times), portion reserved for employees (4.83 times)

• Bansal Wire Industries: The public issue was subscribed 59.57 times on day 3. The bids were led by institutional investors (146.05 times), non-institutional investors (51.46 times), retail investors (13.64 times).

• Tata Motors: The company reported JLR wholesales were up 5% year-on-year at 97,775 units, and JLR retail sales up 9% at 1.11 lakh units, for the end of Q1 FY25.

• Marico: The company’s international business delivered double-digit constant currency growth, consolidated revenue grew in high single digits, operating profit expected to grow slightly ahead of revenue, gross margin to expand on a year-on-year basis, expecting consolidated revenue growth to trend upwards during the year for the end of Q1 FY25.

• IndusInd Bank: The company reported net advances up 16% year-on-year at Rs 3.48 lakh crore, deposits up 15% year-on-year at Rs 3.98 lakh crore, CASA ratio at 36.7% vs 37.9% QoQ.

• Titan Industries: The company's jewellery business grew 9% year-on-year, the watches and wearables business grew 15% year-on-year, the eyecare business grew 3%, the Carat Lane business grew 18%, emerging businesses grew 4%, and the TCL business grew 9% for the end of Q1 FY25.

• Adani Wilmar: The company saw volume growth of 13% year-on-year, and branded exports volume grew 36%, food & FMCG business volume grew 23% after normalisation.

• Tata Steel: The company's India crude steel production saw a 5% year-on-year jump at 5.25 million tonnes in the first quarter of this fiscal. However, the production was lower sequentially due to planned maintenance shutdowns. Tata Steel Ltd.'s Indian deliveries grew 3% year-on-year to 4.94 million tonnes, which, according to an exchange filing on Saturday, is the best-ever first-quarter sales.

• Indian Bank: The bank's gross advances increased 12.7% on a yearly basis to Rs 5.4 lakh crore in the April–June quarter. The bank's total business rose 10.9% year-on-year to Rs 12.2 lakh crore while the bank reported an advance of 9.5% in total deposits at Rs 6.81 lakh crore.

• La Opala RG: The company will shut down operations at its opal glass plant in Madhupur, Jharkhand from July 7.

• Datamatics Global Services: Sandeep Mantri resigned as CFO effective August 9.

• Coforge: The company acquired an additional 28% stake in Cigniti Technologies for about Rs 1,072 crore via open market operations.

• SBI Cards and Payment Services: Amritesh Mohan resigned as deputy CEO, owing to his transfer back to SBI.

• Power Grid Corp: The company will borrow funds up to Rs 16,000 crore funds during the FY 2025-26 through various sources including domestic bonds.

• Dabur India: The company saw sequential improvement in demand trends with rural growth picking up, consolidated revenue expected to register mid to high single-digit growth, India business expected to record mid-single digit volume growth, In India business, HPC & Healthcare segment expected to grow in high-single digits, gross margins likely to witness some expansion, operating profit expected to grow marginally ahead of revenue for the end of Q1 FY24.

• Bank of Baroda: The company reported domestic advances up 8.5% year-on-year at Rs 8.81 lakh crore, domestic deposits up 5.3% at Rs 11.05 lakh crore, global advances up 8.1% at Rs 10.71 lakh crore, Global deposits up 8.8% at Rs 13.05 lakh crore, for the end of Q1 FY25. The company also approved raising up to Rs 10,000 crore via long-term bonds and approved raising additional capital to Rs 7,500 crore.

• Aditya Birla Capital: Mukesh Malik to resign as COO effective July 31.

• Garware Hi-Tech Films: Pradeep Mehta resigned as CFO effective today.

• KPI Green Energy: The company signed a power purchase agreement for a 50 MW solar-wind hybrid project with Gujarat Urja Vikas Nigam.

• Fortis Healthcare: The company recommended the re-appointment of Ashutosh Raguvanshi as MD & CEO for two years effective March 19.

• Vedanta: Received fine and penalty of Rs 2.5 crore from office of the Commissioner of Customs, Chennai.

• Signature Global: Pre-sales of Q1FY25 grew 3.5 times to Rs 3,120 crore on year. Collections rose twofold times to Rs 1,210 crore YoY and more than 30% of the FY25 guidance of Rs 10,000 crore in pre-sales was achieved in Q1 FY25.

• PCBL: Gets patent for invention titled 'hybrid carbon black grade comprising graphene to improve performance of rubber compound.

• FSN E-Commerce: Consolidated revenue growth in Q1FY25 expected to be around 22-23% YoY and GMV growth expected to be in mid-twenties on a YoY basis.

• PC Jewellers: Consortium, including Punjab National Bank, approves company's proposal for one-time settlement of outstanding dues. 

The July futures contract of the GIFT Nifty was trading 23.5 points or 0.1% lower at 24,384.50 as of 07:18 a.m.

Most markets in the Asia-Pacific region were trading lower with Hong Kong's Hang Seng falling the most by over 1%. Japan's Nikkei and South Korea's Kospi traded 0.1% lower.

The September contract of Brent crude was trading 0.17% lower at $86.39 per barrel on the International Continental Exchange as of 06:59 a.m. The spot gold was down 0.30% at $2,384.98.

US stock market ended the week at all-time highs with traders focusing on prospects for Federal Reserve rate cuts. In the post-holiday session, the S&P 500 index and Nasdaq Composite rose by 0.54% and 0.04%, respectively. The Dow Jones Industrial Average gained 0.17%.

Indian benchmarks rose for the fifth week to record the best streak of weekly gains in over six months. Meanwhile, the indices erased loss during the last leg of trade on Friday, tracking gains in shares of Reliance Industries Ltd., State Bank of India, and Larsen & Toubro Ltd.

The NSE Nifty 50 settled 21.70 points, or 0.1%, higher at 24,323.85, and the S&P BSE Sensex ended 53.07 points, or 0.1%, lower at 79,996.60.

Overseas investors remained net buyers of Indian equities for the second consecutive day on Friday. Foreign portfolio investors mopped up stocks worth Rs 1,241.3 crore, while domestic institutional investors stayed net sellers for the third session and sold equities worth Rs 1,651.4 crore, according to provisional data from the National Stock Exchange.

The Indian currency closed flat at Rs 83.49 against the US dollar.