Market Buzz: Gift Nifty Rises 25 Points, UltraTech Cement Q2 Results, Niva Bupa IPO Approval & Top Stocks to Watch Today

On Monday, Indian stock markets struggled as investors continued to book profits amid the ongoing second-quarter (Q2) earnings season. Despite positive cues in some sectors, the overall sentiment remained cautious, with key indices closing lower.

The BSE Sensex closed 73 points down, a 0.1% dip, while the NSE Nifty fell by 73 points, down 0.3%. Mid-cap and small-cap indices were among the worst hit, with the BSE MidCap index declining by 1.6% and the BSE SmallCap index dropping by 1.5%.

In commodities, gold prices saw a rise, with contracts on the MCX trading 0.7% higher at ₹78,275 per 10 grams during the closing hours on Monday. This rise in gold prices indicates increased investor demand for safe-haven assets amid the uncertain market conditions.

Gift Nifty Starts on a Positive Note

As of 7:55 AM today, Gift Nifty was trading 25 points higher at 24,805, signaling a neutral to slightly positive opening for Indian markets. However, the overall sentiment remains mixed, as market participants await the next round of quarterly results and macroeconomic indicators.

Among the top performers were HDFC Bank, Bajaj Auto, and Mahindra & Mahindra (M&M), while BPCL, Bajaj Finserv, and Kotak Mahindra were the top laggards. Investors are expected to keep an eye on sectoral performances, with the auto sector standing out amid an otherwise negative market trend. Oil & gas and real estate sectors faced significant selling pressure, weighing on broader market sentiment.

Top Buzzing Stocks to Watch Today

CG Power & Industrial Solutions:

CG Power announced on Monday that its board has approved raising up to ₹35 billion through the issuance of equity shares via a Qualified Institutional Placement (QIP). This decision is subject to regulatory and shareholder approvals, but it reflects the company’s strategy to strengthen its balance sheet and fund future growth.

MRO Tek Realty:

Shares of MRO Tek Realty surged by 4.6% on the news that the company has acquired a land parcel in Candolim, North Goa. This acquisition marks a significant step in the company’s expansion into the real estate sector. MRO Tek has traditionally been a telecommunications equipment supplier, but this move into real estate could provide new growth opportunities.

UltraTech Cement Q2 Results: Profit Slumps by 36%

UltraTech Cement’s Q2 FY25 results were a major disappointment, with net profit plunging by 36% year-on-year. The company’s profit fell to ₹8.2 billion from ₹12.8 billion in the same period last year. The steep decline was largely attributed to sluggish demand, particularly in infrastructure projects that faced delays due to monsoon disruptions. Additionally, project delays and labor shortages during the quarter further Impacted price realizations.

UltraTech’s revenue from operations also dipped by 2.3% year-on-year to ₹156.4 billion. While demand was weak, the company also struggled with muted price hikes, unsuccessful attempts to pass on costs to consumers, and low realizations due to the extended monsoon season.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 18% year-on-year to ₹22.4 billion, with operating margins shrinking to 13%, down from 16% a year ago. This reflects the broader challenges facing the cement sector, as companies continue to grapple with rising input costs and muted demand.

TD Power Secures Major Contract

In more positive news, TD Power Systems has secured a significant five-year contract to supply traction motors to a major European company. This contract is valued at ₹3 billion and represents a critical growth opportunity for TD Power in the overseas market.

Traction motors, which convert electric energy into mechanical energy, are a key component in industries such as railways and electric vehicles (EVs). The transition towards renewable energy, waste-to-heat projects, and the growing EV sector are driving demand for TD Power’s products. The company is also expanding its presence in the oil & gas, steel, and cement industries, positioning itself for further growth in the international market.

While TD Power has reduced its participation in the highly competitive Indian Railways segment, it continues to supply small quantities of traction motors to meet demand. The company anticipates that the opportunity in this segment could grow to ₹1 billion in the near future.

Niva Bupa Receives IPO Approval from SEBI

In a significant development, Niva Bupa Health Insurance Ltd., backed by private equity firm True North, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). Niva Bupa, formerly known as Max Bupa Health Insurance, is planning to raise ₹30 billion through the IPO.

The offering will consist of a fresh issue of equity shares worth ₹8 billion and an offer for sale (OFS) of up to ₹22 billion by existing shareholders. Under the OFS, investor Fettle Tone LLP will offload ₹18.8 billion worth of shares, while promoter Bupa Singapore Holdings Pte Ltd. Will sell ₹3.2 billion worth of shares.

The company plans to use ₹625 million from the fresh issue to augment its capital base and improve its solvency ratio. Niva Bupa, which is 62.3% owned by Bupa, an international healthcare company based in the UK, is positioning itself as a major player in India’s growing health insurance market.

Niva Bupa will become the second standalone health insurer in India to go public, following Star Health & Allied Insurance. The IPO is expected to attract significant interest from investors, given the growing demand for health insurance in India and the company’s established market presence.

Conclusion: Key Takeaways from the Market

As Indian stock markets continue to navigate through the Q2 earnings season, investors are closely watching major developments in the corporate sector. UltraTech Cement’s disappointing results reflect the challenges in the infrastructure and construction sectors, while companies like TD Power and Niva Bupa are capitalizing on growth opportunities in international markets and new product segments.

The Gift Nifty’s positive start today suggests that markets may see a neutral to slightly positive opening, but much will depend on the broader sentiment and earnings reports in the coming days. Investors are advised to remain cautious, especially as global economic conditions and domestic challenges continue to influence market performance.