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Gift Nifty Falls 246 Points | Axis Bank Q1 Earnings | Reliance Industries Resumes Oil Imports | Highlighted Stocks Today
Synopsis: The Indian stock market faced another volatile session on Wednesday, reacting to the Budget 2024 proposals. The BSE Sensex and NSE Nifty both closed lower. Key gainers included Nestle and ICICI Bank, while Tech Mahindra and BPCL were among the top losers. Sectoral performances were mixed, with significant buying in power and energy sectors but selling pressure in banking and finance. Gold prices saw a slight increase, and the Gift Nifty indicated a negative start for today. Key stock highlights included Titagarh Rail Systems' export news and United Spirits' record-high share price. Axis Bank and SBI Life both reported strong Q1 results, and Reliance Industries received US approval to resume crude oil imports from Venezuela. This update offers valuable insights into market movements and key financial outcomes.
MARKETSINDIAPRE-OPEN
By Sameer Malhotra
7/25/20243 min read
Volatility Persists Amid Budget 2024 Proposals
The Indian stock market experienced another tumultuous session on Wednesday as investors digested the implications of the Budget 2024 proposals. At the closing bell, the BSE Sensex had declined by 280 points, or 0.4%, while the NSE Nifty ended 66 points lower, marking a 0.3% drop.
Key Gainers and Losers
Among the top performers were Nestle, ICICI Bank, and Titan. Conversely, Tech Mahindra, NTPC, and BPCL were among the notable laggards. For those tracking the performance of banking sector stocks, Equitymaster’s comprehensive Bank Nifty Companies list provides detailed insights.
Sectoral Performance
The BSE MidCap index rose by 0.7%, and the BSE SmallCap index saw a significant increase of 1.9%. Sector-wise, power, telecom, and energy stocks witnessed substantial buying interest, while the banking and finance sectors faced selling pressure.
Gold Prices
Gold prices, based on the latest MCX contract, were trading 0.4% higher at ₹68,806 as of the market’s close on Wednesday.
Gift Nifty Update
As of 8:20 AM today, the Gift Nifty was down by 246 points, trading at 24,168 levels, indicating a likely negative start for the Indian markets today.
Noteworthy Stocks Today
Titagarh Rail Systems
Titagarh Rail Systems’ share price is expected to be in the spotlight. The stock surged over 3% on 24 July following the announcement of starting traction converter exports. The initial shipment of 8 converters was dispatched to Titagarh Firema SpA in Italy. This export is part of a €7.18 million (₹65 crore) order from Titagarh Firema.
United Spirits
United Spirits shares jumped 6.5% to reach a record high of ₹1,417.30 on 24 July, following positive earnings for the April-June period. The company reported a net profit growth of around 2% year-on-year to ₹4.9 billion, with revenue increasing by 3.5% to ₹27.6 billion.
Axis Bank Q1 FY25 Results
Axis Bank reported a significant net profit of ₹60.4 billion for Q1 FY25, up from ₹34.5 billion in the same quarter of the previous year, surpassing market expectations. However, the bank’s asset quality showed some deterioration sequentially, with gross non-performing assets (GNPA) rising by 11 basis points (bps) to 1.5% and net non-performing assets (NNPA) up by 3 bps to 0.3%. Year-on-year, the bank’s GNPA and NNPA improved by 0.4% and 7 bps, respectively.
The bank's net interest income (NII) for the April-June quarter increased to ₹134.5 billion from ₹119.6 billion a year ago, exceeding brokerage estimates. The net interest margin (NIM) stood at 4.1%. Total deposits grew by 13% year-on-year, with current account deposits up by 12% and term deposits by 20%. Advances increased by 14% year-on-year and 2% quarter-on-quarter to ₹9.8 trillion, with retail loans growing by 18% to ₹5.85 trillion, making up 60% of the bank’s net advances.
SBI Life Q1 FY25 Results
SBI Life reported a standalone net profit of ₹5.2 billion for Q1 FY25, marking a 36% increase from ₹3.8 billion in the same quarter last year. The net premium income rose by 15% year-on-year to ₹151.1 billion, while investment income surged by 32% to ₹192.8 billion. The first-year premium grew by 19% to ₹31.5 billion, and the new business premium increased by 13% to ₹70.3 billion. The gross written premium (GWP) saw a 15% year-on-year rise to ₹155.7 billion, driven by strong growth in new business regular premium and renewal premium. The value of new business (VoNB) grew by 12% to ₹9.7 billion, despite margins dropping to 26.8%. SBI Life also recorded significant improvements in the 49th and 61st month persistency rates.
Reliance Industries to Resume Crude Imports
Reliance Industries Ltd. Has received US approval to resume crude oil imports from Venezuela, despite ongoing sanctions. As India’s largest privately owned refiner, Reliance plans to recommence purchases of Venezuelan crude soon. The company accounted for about 90% of India’s crude imports from Venezuela after the sanctions were temporarily lifted last year. Washington had removed restrictions on Venezuela’s gold and oil sectors following an agreement to guarantee free and fair elections, but sanctions were re-imposed in April after Venezuela failed to meet the terms. Despite the sanctions, Venezuelan crude exports rose to 654,000 barrels per day in June, the highest since April 2020, due to a specific license granted by the US Treasury Department.
In Conclusion, This comprehensive market update provides valuable insights into the latest developments, key financial results, and market movements, helping investors stay informed and make well-informed decisions.