NTPC, Grasim Industries, UltraTech Cements, HDFC Bank, and Power Grid Corporation were the top gainers. Wipro, Kotak Mahindra Bank, Reliance Industries, SBI Life Insurance, and ITC were the major gainers in the Nifty 50 on July 22.

Power stocks traded higher in the muted market. Power and Instrumentation(Gujarat) was up 5%, India Power Corporation was up 4.89%, Hitachi Energy India was up 3.84%, NTPC was up 2.68%, and other power companies were bucking the trend.

Most of the constituents of Nifty Auto were trading in the green. Motherson was the only stock to trade below its previous close.

Courtesy: NSE

NTPC, Grasim Industries, Ultratech Cements, M&M, and BPCL were the top gainers in the Nifty 50. While Wipro, Kotak Mahindra Bank, Reliance Industries, and both the SBI twins were the major draggers in the Nifty 50 on July 22.

“Given the week O2C (oil to chemical) outlook in the near term, we maintain a “Hold” rating with a target price of Rs 3,002 based on SoTP valuing the standalone business at 7.5x FY26 EBITDA, Jio at 15x FY26 EBITDA and Retail at 39x FY26 EBITDA,” said Prabhudas Lilladher in a research report.

After announcing better-than-expected Q1 results for 2024 on Saturday, Yes Bank shares saw strong buying activity in the early morning session on Monday. The share price opened higher at Rs 25.90 and quickly climbed to an intraday high of Rs 25.99, marking an intraday rise of nearly 5%. However, the shares could not sustain the higher levels for long. Following a wave of profit-booking, the stock retraced from its intraday high and touched a low of Rs 25.36 per share on the NSE.

Shares of Dodla Dairy, one of India’s leading integrated dairy companies, surged 16% in intraday trade today, reaching a new all-time high of Rs 1,346 per share. This spike followed a positive investor reaction to the company’s Q1FY25 earnings report. The stock’s performance marked its largest intraday gain in the past six months, contributing to an impressive nearly 200% increase over the past five years.

Motilal Oswal maintains a “Neutral” rating on Kotak Mahindra Bank with a target price of Rs 1,800, based on 2.0x FY26E ABV plus Rs 575 for subsidiaries. 

According to Motilal Oswal’s report, Kotak Mahindra Bank delivered a mixed quarter with earnings in line with estimates, aided by controlled operating expenses, but saw a significant margin contraction of 26 basis points quarter-on-quarter.

Asset quality ratios remained stable, though slippages rose slightly. Moderate growth in unsecured advances impacted yields, but management continues to guide for mid-teens growth in unsecured lending.

Deposit growth has been modest, leading to an increase in the CD ratio to 87.2%. Amid heightened competition for deposits, there is caution regarding the pace of deposit accretion and its impact on margins in the coming quarters.

Despite the RBI ban on its digital sourcing and restrictions on new card issuance, Kotak Mahindra Bank has posted healthy performance. The removal of this ban is deemed critical for sustainable growth and earnings. The report fine-tunes earnings estimates and projects the bank’s RoA/RoE at 2.3%/14.3% by FY26.

Shares of Kotak Mahindra Bank fell over 3.5% to an intraday low of Rs 1,756.15 even after the company’s net profit soared 81% to Rs 6,250 crore for the quarter ending June 30, 2024. The company reported a net profit of Rs 3,452 crore in the same period a year ago. The bank’s bottom line was boosted by Rs 3,012 crore after tax due to the bank’s stake sale in its insurance subsidiary Kotak General Insurance to Zurich Insurance Group.

The NSE Nifty 50 was up 0.01% at 24,532, while the BSE Sensex was 0.05% at 80,565.

HDFC Bank is supporting the index and pulled it up by contributing around 300 points alone. However, Kotak Bank is dragging the index by 157 points despite reporting a strong uptick in net profit in Q1 FY25.

Courtesy: NSE

Shares of One97 Communications, parent firm of Paytm, fell 3.3% to an intraday low of Rs 443.50 as net profit in Q1 FY25 widened to Rs 840 crore from Rs 550 crore it reported the previous quarter of the same fiscal. While the company reported a net loss of Rs 338 crore in the corresponding period a year ago.

HDFC Bank share price gained over 2% in early trade on Monday after the country’s largest private sector bank reported its earnings for the fiscal first quarter ended June 2024. The share price of HDFC Bank 2.71% to intra-day high of Rs 1651 on NSE.

Reliance Industries shares fell 3% to an intraday low of Rs 3,017.95 apiece on the National Stock Exchange. The stock saw a sell-off after its net profit for the quarter ending in June dropped 5% on year to Rs 15,138 crore due to weak refining margins, fuel cracks, and higher depreciation cost. In the same quarter of the previous fiscal year, Reliance Industries reported a net profit of Rs 16,011 crore.

The 30-stock compiled index was being dragged by Reliance Industries, Kotak Bank, ICICI Bank, and other stocks. However, NTPC, HDFC Bank, Power Grid Corp, and many others were trying to hold the index.

Courtesy: BSE

Heavyweights like Reliance Industries, ICICI Bank, Wipro, Kotak Bank, and other stocks are dragging the markets lower. While HDFC Bank, Infosys, and others are trying to hold indices.

Courtesy: NSE

Shares of Bengaluru-based Wipro opened 7.5% lower on Monday following the company’s June quarter results, which were reported after market hours on Friday and missed expectations. The share price of Wipro fell by 7.88%, reaching an intra-day low of Rs 513.25 on the NSE.

Reliance’s share price declined by around 3% in morning trades on Monday, following the Q1 results announced on Friday after market hours. Reliance Industries reported a consolidated net profit of Rs 17,445 crore, which fell slightly more than 4% year-on-year but met consensus analyst estimates. The earnings decline was anticipated due to weakness in the Oil-to-Chemicals segment.

Ultratech Cement, ITC, Nestle India, NTPC, and Hindustan Unilever are the top gainers on NSE Nifty 50 index whereas the top laggards include Wipro, Kotak Mahindra Bank, Reliance Industries, Eicher Motors, and JSW Steel.

The NSE Nifty 50 opens down by 85.15 points or 0.35% at 24,445.75, while the BSE Sensex drops 195.75 points or 0.24% to 80,408.90 in the opening trade.

In constant currency terms, revenue declined by 1%, marking the sixth consecutive quarterly drop. The EBIT margin remained stable at 16.5%. For Q2, revenue growth is projected to range between -1% and +1% in constant currency terms.

The overall Total Contract Value (TCV) decreased by 9% sequentially to $3.28 billion, with large deal TCV falling 3% sequentially to $1.15 billion. The company’s ADR ended 11.5% lower on Wall Street.

The NSE added Balrampur Chini Mills, Bandhan Bank, GMR Airports Infrastructure, Hindustan Aeronautics, Hindustan Copper, India Cements, Piramal Enterprises, SAIL, Vedanta in F&O on July 22, 2024.

Commenting on the Bank Nifty Levels to watch today Kunal Kamble Sr. Technical Research Analyst at Bonanza Portfolio said that BNF has been trading in a range of 51750-52850, the Index has been underperforming compared to Nifty. The buyers have tried pushing the index on higher side but the sellers have came in action and has lead to close at weekly low.

Kamble also added that BNF is expected to trade near 51750 once the index is able to close below 52150levels. For an upward move BNF need to close above 52850 level. The BNF PCR of 1.01 reveals a tug of war between the PE and CE participants.

The bank reported a Net Interest Income of Rs 6,842 crore, falling short of the expected Rs 7,067 crore, while net profit exceeded expectations at Rs 6,249 crore, compared to the projected Rs 4,004 crore. The Net Interest Margin dropped to 5.02%, the lowest in eight quarters.

Deposits grew by 15.8% year-on-year, the smallest increase in six quarters, while advances rose by 18.7%, marking the best growth in six quarters. Provisions doubled sequentially to Rs 578.5 crore. Profit was bolstered by an exceptional item of Rs 3,519.9 crore. Gross NPA remained flat at 1.39%, and Net NPA stood at 0.35%.

HDFC Bank reported a Net Interest Income of Rs 29,837.1 crore, surpassing the poll estimate of Rs 29,583 crore, and a net profit of Rs 16,174 crore, exceeding the estimate of Rs 15,693.1 crore. Net Interest Income grew by 2.6% quarter-on-quarter. Gross NPA increased to 1.33% from 1.24% in March, and Net NPA rose to 0.39% from 0.33%. Provisions fell by 80.7% sequentially to Rs 2,602 crore.

Return on Assets decreased to 1.88% from 1.96% quarter-on-quarter, with most asset quality issues arising from the agriculture segment. The board gave in-principle approval to list its subsidiary, HDB Financial Services, in accordance with RBI norms, and the bank is seeking the necessary regulatory approvals.

Reliance Industries reported an 11.5% increase in revenue, rising to Rs 2.32 lakh crore from Rs 2.08 lakh crore. EBITDA saw a 1% increase to Rs 38,765 crore, while net profit decreased by 5.5% year-on-year to Rs 15,138 crore. The EBITDA margin declined to 16.7% from 18.4% the previous year. Reliance Jio’s Average Revenue per User (ARPU) increased slightly to Rs 181.7 from Rs 180.5.

Reliance Retail experienced an 8.1% rise in revenue, reaching Rs 75,630 crore, with its EBITDA margin improving to 7.5% from 7.4%. The Oil-to-Chemicals (O2C) segment’s revenue grew to Rs 1.57 lakh crore from Rs 1.33 lakh crore, though its margin dropped to 8.3% from 11.5%. The Oil and Gas segment’s revenue increased to Rs 6,179 crore from Rs 4,632 crore, with the margin slightly decreasing to 84.3% from 86.7%.

U.S. stocks extended their slump on Friday as lingering chaos from a global technical outage caused by a software glitch added uncertainty to an already anxious market, according to Returns. The tech-heavy Nasdaq Composite fell by 144.28 points, or 0.81%, to close at 17,726.94. The S&P 500 dropped 39.59 points, or 0.71%, to finish at 5,505. Meanwhile, the Dow Jones Industrial Average declined by 377.49 points, or 0.93%, ending at 40,287.53.

U.S. stocks extended their slump on Friday as lingering chaos from a global technical outage caused by a software glitch added uncertainty to an already anxious market, according to Returns. The tech-heavy Nasdaq Composite fell by 144.28 points, or 0.81%, to close at 17,726.94. The S&P 500 dropped 39.59 points, or 0.71%, to finish at 5,505. Meanwhile, the Dow Jones Industrial Average declined by 377.49 points, or 0.93%, ending at 40,287.53.

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