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Market Recap: Gift Nifty Rises, Indian Overseas Bank's Strong Q1, JSW Infra's Strategic Moves, and Key Stock Highlights
Synopsis: In a cautious trading session ahead of the Union Budget 2024, the Indian stock markets saw minor declines with the BSE Sensex and NSE Nifty closing slightly lower. While the power, capital goods, and auto sectors showed strength, realty and banking faced selling pressure. Key highlights include Wipro's significant dip, IDBI Bank's profit surge, and a notable rise in fertiliser stocks. JSW Infrastructure's strategic expansion in logistics and Indian Overseas Bank's robust Q1 results also drew attention. As the market anticipates the budget announcement, several sectors display promising growth potential.
MARKETSINDIA
By Sameer Malhotra
7/23/20242 min read
Stock Market Summary
On Monday, the Indian stock markets experienced a muted performance with investors maintaining a cautious stance ahead of the Union Budget 2024 (FY25). The BSE Sensex dipped by 102 points (0.1%), while the NSE Nifty fell by 22 points (0.1%).
Top Gainers and Losers:
Gainers: NTPC, HDFC Bank, Grasim Industries
Losers: Wipro, ITC, Reliance Industries
The BSE MidCap and SmallCap indices, however, showed positive momentum, ending the day 1.3% and 0.8% higher respectively. Sector-wise, the power, capital goods, and auto sectors saw notable buying, whereas the realty and banking sectors faced selling pressure.
Commodity and Index Futures
Gold prices were slightly lower, trading at Rs 72,962 per 10 grams on the MCX at the close of the market on Monday. As of 7:50 AM today, the Gift Nifty was up by 31 points, indicating a positive opening for Indian share markets.
Market Insights
Power Sector Outlook:
The power sector is anticipating a significant demand-supply gap over the next decade, which is expected to lead to a rise in merchant power tariffs. This makes power stocks an attractive option for investors looking at long-term growth.
Buzzing Stocks
1. Wipro:
Wipro’s shares fell by 8% on July 22, 2024, following a weak Q1 FY25 performance with a 1% quarter-on-quarter decline in consolidated revenue. This performance lagged behind its peers TCS and Infosys, which reported 2-3% QoQ growth.
2. IDBI Bank:
IDBI Bank’s shares surged by 3% after it reported a 40% increase in net profit for Q1 FY25, reaching Rs 17.2 billion compared to Rs 12.2 billion in the same period last year. This also marked a 6% rise from the previous quarter’s profit of Rs 16.3 billion.
3. Fertiliser Stocks:
Fertiliser stocks were in the spotlight, with several companies seeing up to a 13% surge in their share prices. This was driven by speculation regarding the upcoming Union Budget 2024 and potential subsidy allocations. Companies like Deepak Fertilisers, Chambal Fertilisers, and National Fertilizers saw significant gains.
Company Highlights
JSW Infrastructure:
JSW Infrastructure, a major player in the ports sector, is expanding into inland logistics. Recently, the company acquired a majority stake in Navkar Corporation for Rs 16.4 billion, enhancing its control over inland assets such as CFSs, Gati-Shakti terminals, and ICDs.
In Q1 FY25, JSW Infra reported a 15% increase in revenue from operations to Rs 10.1 billion, although net profit dropped by 9%. The company’s third-party cargo volumes grew by 48%, representing 50% of total volumes.
Indian Overseas Bank:
Indian Overseas Bank posted a net profit of Rs 633 crore for Q1 FY25, up 27% from Rs 500 crore in the corresponding quarter last year. The bank’s gross NPA reduced significantly from 7.1% to 2.9%, and net NPA declined from 1.4% to 0.5%. The bank’s total deposits increased by 13% to Rs 2.9 trillion, with CASA deposits improving by 8% to Rs 1.3 trillion.
In conclusion, The Indian stock markets exhibited a cautious stance with minor declines in major indices ahead of the Union Budget 2024. However, several stocks, including those in the power, logistics, and fertiliser sectors, showed promising movements. Investors are keenly watching these developments and the upcoming budget announcement for further market direction.