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US Markets again at a record high! Asian markets are down! Will consolidation continue in Nifty?

Good Morning Everyone, Today is Wednesday and tomorrow is the weekly expiry. We can expect the market to be volatile today and tomorrow like it has been for the last few weeks.

Global Markets:

Global stock markets strengthened on Tuesday. The sentiment was boosted by the US Senate passing a $1 trillion bipartisan infrastructure bill that could provide the United States with its biggest investment in decades in roads, bridges, airports, and waterways. That helped the Dow Jones Industrial Average and S&P 500 close at record highs. The Dow Jones Industrial Average rose 162.82 points, or 0.46 percent, to 35,264.67, the S&P 500 gained 4.4 points, or 0.10 percent, to 4,436.75 and the Nasdaq Composite dropped 72.09 points, or 0.49 percent, to 14,788.09.

Asian shares are trading lower today with Straits Times, Hang Seng, and Taiwan Weighted down 0.5 percent each, while the Nikkei index is up 0.5 percent.

Indian Market:

Trends on the SGX Nifty indicate a flat start to nifty today. US markets are strong and again at record highs, while Asian markets are down, let's watch who has taken on the market today, the Bears or the Bulls.

The owners of Dabur, the Burmans, are planning to sell their stake in the life insurance JV with UK’s Aviva Plc. The move is according to its plans to raise funds for Dabur's core consumer goods business. The Burman family will sell a 25% stake worth at least ₹1,500 crores from the current 51% in Aviva Life Insurance Company. Aviva’s stakes are set to increase to 74% after the plan.

Vodafone Idea (Vi) filed a review petition in the Supreme Court for its order on AGR dues. The apex court on its July 23 order dismissed the petitions of telecoms for a re-computation of adjusted gross revenue dues. Meanwhile, the government is planning to provide financial relief for telecom companies. Vodafone Idea's accumulated debt is around ₹1.8 trillion.

The Sebi is looking at the Ant Group's and Alibaba's shareholding pattern in the Paytm is in compliance with regulations. The regulator as part of the due diligence process wants to know whether the two investors must be treated as separate firms or a combined entity. Ant has around 30 percent stake and Alibaba around 7 percent shares in Paytm. Ant is an affiliate of the Alibaba group but registered as a separate firm. As per the rules, to become a professionally managed firm, no single entity can own more than 25 percent of Paytm.

Anamika Roy Rashtrawar, MD & CEO of IFFCO Tokio General Insurance, in an interview with Business Standard, says that the second Covid wave impacted the business growth. The uncertainty of future income opportunities and many facing personal losses deterred customers from buying insurance. Covid-related claims were almost 2.5 times the normal claims size. The company paid health claims over ₹150 crores in Q1. The loss ratio in the health segment increased to over 120 percent in Q1.

Dipan Mehta, Director, Elixir Equities: Stocks like Kotak Mahindra Bank once you have them in your portfolio they merely form part of the core holding, you hold them for 5-10 years or so and still you feel that they can deliver exceptional returns going ahead as well. I think the latest statements by the management that they are now going to lend more aggressively have been very well received. By and large, I think this could be an outperformer going ahead.

Sushil Kedia Founder, Kedianomics: ITC made a breakout above a triangular pattern and after that, the kind of momentum that should have come has not been there. So ITC is in a sluggish uptrend but over time I am looking at ITC going to Rs 250 but right now it is suffering from some noise.

Results Today:

Cadila Healthcare, Aptech, Aries Agro, Ashiana Housing, Aster DM Healthcare, Antony Waste Handling Cell, Bajaj Electricals, Bata India, BF Utilities, Birla Cable, Bharat Road Network, CESC, CreditAccess Grameen, Cummins India, Endurance Technologies, Equitas Holdings, Force Motors, Greaves Cotton, HEG, IDFC, India Cement, Kolte-Patil Developers, Lemon Tree Hotels, Novartis India, Pidilite Industries, PNC Infratech, Rupa & Company, Take Solutions, VIP Industries, and VA Tech Wabag will release their quarterly earnings on August 11.

FII and DII data:

Foreign institutional investors (FIIs) net sold shares worth Rs 178.51 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 689 crore in the Indian equity market on August 10

Stock Specific News:

Lupin | The company’s consolidated net profit in Q1FY22 rose to Rs 542.46 crore from Rs 106.9 crore, while revenue increased 21 percent to Rs 4,270.19 crore from Rs 3,527.6 crore, YoY.

Power Grid Corporation | The company’s Q1FY22 net profit jumped to Rs 5,998.3 crore from Rs 2,048.4 crore and revenue rose 8 percent to Rs 10,216.5 crore from Rs 9,457.4 crore, YoY.

Zomato | The company’s net loss in Q1FY22 widened to Rs 356.2 crore from Rs 99.8 crore, YoY. Net loss in the quarter ended March 2021 was Rs 130.8 crore. Revenue jumped to Rs 844.4 crore from Rs 266 crore, YoY.

GMR Infrastructure | The company’s board will meet on August 13 to consider raising funds of up to Rs 6,000 crore in one or more tranches via the issue of securities including a QIP and/or Foreign Currency Convertible Bonds.

Siemens | The company’s standalone net profit in the June quarter saw a multifold jump to Rs 162 crore from Rs 10 crore, YoY. Revenue from continuing operations rose to Rs 2,658 crore from Rs 1,149 crore, YoY. New orders from continuing operations stood at Rs 4,341 crore against Rs 1,767 crore a year ago.

RattanIndia Enterprises | The company has ventured into the fast-growing drone industry and will make a strategic investment in the US-based urban drone logistics platform Matternet.

Trent | The company posted Q1FY22 consolidated net loss at Rs 138.29 crore versus a loss of Rs 184.04 crore, while consolidated revenue rose 98 percent to Rs 491.9 crore from Rs 248.4 crore, YoY. The company’s board approved the re-appointment of P Venkatesalu as Executive Director and Chief Executive Officer for a term of three years with effect from October 6, 2021.

Galaxy Surfactants | The company reported a 36 percent YoY jump in Q1FY22 net profit at Rs 76.8 crore and revenue growth of 36.7 percent YoY at Rs 830.9 crore.

Insecticides India | The company’s Q1FY22 consolidated net profit rose 43.5 percent to Rs 34.96 crore from Rs 24.36 crore and revenue increased 14.3 percent to Rs 468.26 crore from Rs 409.59 crore, YoY.

Prestige Estates Projects | The company reported an over four-fold jump in its consolidated net profit at Rs 92.5 crore in Q1FY22. Its board also approved raising of up to Rs 1,000 crore through the issuance of non-convertible debentures.

Cochin Shipyard | The company’s Q1FY22 net profit fell 30 percent to Rs 28.65 crore from Rs 41.43 crore and revenue declined to Rs 329.42 crore from Rs 332.47 crore, YoY.

Reliance Infrastructure | The company posted a consolidated net loss of Rs 95.15 crore in Q1FY22 against a loss of Rs 288.41 crore, YoY. Total income rose to Rs 4,623.17 crore from Rs 3,786.85 crore, YoY.

IRB Infrastructure Developers | The company’s Q1FY22 net profit stood at Rs 71.9 crore as against Rs 30.13 crore and revenue was 59 percent higher at Rs 1,625.7 crore from Rs 1,022.3 crore, YoY.

Brookfield India Real Estate Trust | The trust reported a 3.8 percent YoY rise in net operating income at Rs 169.6 crore for Q1FY22 and announced the distribution of Rs 181.7 crore to unitholders.

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