Market Snapshot: Gift Nifty Surges, Vedanta Reports Strong Q1, Infosys Faces Unchanged GST Demand, and Top Buzzing Stocks

Indian equity markets faced a downturn on Tuesday, with both the BSE Sensex and NSE Nifty50 closing in the red after paring early gains. The BSE Sensex concluded the session down by 166 points, marking a 0.2% decline, while the NSE Nifty50 fell by 63 points, representing a 0.3% decrease.

Top performers included Britannia, JSW Steel, and HUL, while HDFC Life, BPCL, and SBI emerged as the biggest laggards. In terms of broader market indices, the BSE MidCap index dropped by 0.7%, and the BSE SmallCap index fell by 0.6%.

Sectoral Insights

The realty, power, and FMCG sectors experienced significant buying interest. However, the power and auto sectors faced selling pressure, reflecting a mixed sentiment across different sectors.

Commodity Market Update

Gold prices, tracked via the latest contract on MCX, edged 0.1% higher, trading at Rs 69,413 during the closing hours of the Indian market on Tuesday.

Global Market Influence: Gift Nifty’s Positive Outlook

The Gift Nifty indicated a positive start for Indian markets, trading 261 points higher at 24,306 levels as of 8:00 AM today. This trend suggests a likely positive opening for Indian share markets.

Spotlight on Pharma Sector

Indian Pharma companies are garnering increased interest from US counterparts, potentially opening new business avenues.

Stocks in Focus

TVS Motor Company: The company reported a 23% rise in consolidated net profit, reaching Rs 5.8 billion for the quarter ended June 30, 2024, compared to Rs 4.7 billion in the same period last year. Revenue for the quarter rose by 16% to Rs 83.8 billion, aligning with market expectations.

Shree Cement: The company saw a 51.3% year-on-year decline in its consolidated net profit, posting Rs 2.8 billion for Q1 FY25, down from Rs 5.7 billion in the corresponding quarter of the previous year.

Vedanta Q1 FY25 Results

Vedanta Ltd, led by billionaire Anil Agarwal, reported a 36.5% increase in consolidated net profit, reaching Rs 36.1 billion for Q1 FY25, up from Rs 26.4 billion in the year-ago period. Revenue from operations grew by 5.6% to Rs 352.4 billion.

The surge In profit was driven by robust prices for zinc, lead, copper, and nickel. The company’s EBITDA saw a 47% year-on-year increase, achieving a margin of 34%, up from 24% in the previous year. Notably, earnings from the aluminium business skyrocketed by 144%, reaching Rs 44.4 billion, supported by increased production at the Lanjigarh refinery.

Infosys GST Demand

Infosys is currently dealing with a substantial tax demand from the Indian government, amounting to over Rs 320 billion (approximately US$ 4 billion), related to services received from its overseas branches between July 2017 and FY22. Despite the demand, Infosys maintains that it has complied with all central and state regulations.

Power Finance Corporation’s Impressive Earnings

The Power Finance Corporation reported a significant 20% rise in consolidated net profit for Q1 FY25, reaching Rs 59.8 billion, up from Rs 49.8 billion in the same quarter last year. Total income for the quarter increased to Rs 247.4 billion.

The company also announced an interim dividend of 32.5% or Rs 3.25 per equity share, with the record date set for August 30, 2024. This dividend is scheduled for payment by September 5, 2024.

In conclusion, Tuesday’s market activity underscores the volatility and mixed sentiments prevailing across various sectors. While certain sectors like FMCG and realty showed resilience, others, particularly power and auto, faced headwinds. The upcoming sessions will reveal how these dynamics play out, influenced by corporate earnings, sectoral performances, and global market trends.