Will Nifty consolidate further today?
Good Morning Everyone, Yesterday the market closed with minor gains which felt like the market never moved on a daily chart but on the intraday it had huge volatile moves. Of course the market we consolidating after the huge bull run from 16000, but since DIIs continue to buy at this level, it still gives us the confidence that there is more upmove left in the market. In fact, the market looks like it is just waiting to get some trigger to move up again.
The US market again went to record highs yesterday after the inflation data came to be lower than expected which brought big positivity to the market, driving it higher. The Dow Jones Industrial Average rose 221.22 points, or 0.63%, to 35,485.89, the S&P 500 gained 11.11 points, or 0.25%, to 4,447.86 and the Nasdaq Composite dropped 23.91 points, or 0.16%, to 14,764.18.
U.S. consumer price increases slowed in July even as they remained at a 13-year high on a yearly basis and there were tentative signs inflation has peaked as supply-chain disruptions caused by the pandemic work their way through the economy.
The consumer price index increased 0.5% last month after climbing 0.9% in June, the Labor Department said on Wednesday. In the 12 months through July, the CPI advanced 5.4%. The drop in the month-to-month inflation rate was the largest in 15 months.
Trends on the SGX Nifty indicate a muted start for the day, however, today being expiry, we might continue to see volatility in the market.
BSE yesterday came with the news that it would introduce limits to the upper & lower circuits for some stocks in the market to avoid manipulation in some small-cap & mid-cap companies due to which we could see some sell-off in the small-cap & mid-cap segment. The BSE tightened regulations pertaining to mid and small-cap companies because they were rallying in the market because of heightened trader activity. As regards the road ahead, stocks of weaker companies may see the correction continue, but those that are relatively bigger and stronger will see investor interest come back.
Promoters of mid-and small-cap firms sold their shares worth ₹21,000 cr in the open market.
HDFC Life, Coforge, TVS Motor, CG Consumer, Max Financial Services, Quess Corp, Bharat Forge, and GMR Infra, are some of them.
The bus manufacturers in the country are not in a mood to go for capital expenditure. The move is the aftereffect of poor sales that slumped to 15,000 units in FY21 and 5,000 in Q1FY22 from about 80,000 annually before the pandemic. They think this slow patch will continue throughout the year. Big produces such as Ashok Leyland and Tata Motors are watching markets before any new investments. Now, the focus is also shifted to push electric models.
The grey market premiums for the IPOs are slowing down, This may be because so many IPOs are coming to the market one after another. With increasing borrowing costs to fund IPOs and not-so-great debuts, investors are facing losses. The weak debuts are flagging investors that the IPO bandwagon may derail.
Big private banks with their aggressive plans poaching customers from smaller banks. Larger banks are offering cost-effective loans. They have abundant liquidity and limited avenues to deploy funds. The larger banks can refinance loans with lower rates for corporate borrowers.
Over the next few years, if we expect nominal GDP to grow at an average of 10 percent, then earnings growth could be between 12-15 percent.
Companies in the mid-and small-cap categories that are leaders in their respective industries, and which demonstrate pricing power and have low debt, are likely to gain market share.
Tata Steel, Eicher Motors, Hero MotoCorp, Aurobindo Pharma, BPCL, Oil India, Ashok Leyland, Bharat Forge, Ansal Properties & Infrastructure, Apollo Micro Systems, Ashapura Minechem, Avanti Feeds, Clariant Chemicals (India), Dishman Carbogen Amcis, Dish TV India, Engineers India, Finolex Cables, Gujarat Pipavav Port, GR Infraprojects, HCC, HealthCare Global Enterprises, HUDCO, Ind-Swift Laboratories, IRCON International, IRCTC, JB Chemicals, KNR Constructions, Matrimony.com, Max India, Mazagon Dock Shipbuilders, Mishra Dhatu Nigam, Minda Corporation, Natco Pharma, NMDC, Page Industries, Power Finance Corporation, RailTel Corporation of India, RCF, Redington (India), RITES, Sadbhav Infrastructure Project, Schneider Electric Infrastructure, Skipper, Sundram Fasteners, Suryoday Small Finance Bank, Thyrocare Technologies, Trident, Ujjivan Financial Services, and Venus Remedies will release their quarterly earnings on August 12.
FII and DII data:
Foreign institutional investors (FIIs) net bought shares worth Rs 238.14 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 206.28 crore in the Indian equity market on August 11.
Stock Specific News:
Power Grid Corporation of India | The company’s board has approved infusing fresh equity up to Rs 425 crore in Energy Efficiency Services (EESL), a joint venture company of PowerGrid, NTPC, PFC, and REC.
Zomato | The company’s step-down subsidiary Zomato Inc has divested its stake in Nextable Inc for $100,000.
Bata India | The company’s Q1FY22 net loss narrowed to Rs 69.47 crore from Rs 100.9 crore in Q1FY21, while revenue jumped to Rs 267 crore from Rs 135.1 crore, YoY.
Cummins India | The company’s Q1FY22 consolidated net profit jumped to Rs 247 crore from Rs 53 crore and revenue rose to Rs 1,195 crore from Rs 503 crore, YoY.
Force Motors | The company reported narrowing of Q1FY22 consolidated net loss to Rs 4.36 crore from Rs 64.99 crore, YoY. Revenue stood at Rs 643.33 crore versus Rs 186.40 crore, YoY.
VA Tech Wabag | The company posted a sharply higher net profit of Rs 14.6 crore in Q1FY22 versus Rs 5 crore in Q1FY21. Revenue was up 53 percent at Rs 658 crore from Rs 431 crore, YoY.
HeidelbergCement India | The company will acquire 36.36 lakh equity shares of Lalganj Power for Rs 4.8 crore in order to procure around 22 Gigawatt hours per annum of solar power under a captive arrangement for operating its plant located at Madora, Uttar Pradesh.
Aster DM Healthcare | The company reported a Q1FY22 net profit of Rs 44.47 crore as against a loss of Rs 82.93 crore in Q1FY21. Revenue rose 36 percent to Rs 2,371.6 crore from Rs 1,747.17 crore, YoY.
Credit Access Grameen | The company’s Q1FY22 net profit fell 72.2 percent to Rs 20.3 crore from Rs 73 crore, while net interest income (NII) declined 8 percent to Rs 338.1 crore from Rs 367.6 crore, YoY.
MAS Financial Services | The company reported a higher standalone profit at Rs 36.82 crore in Q1FY22 against Rs 36.59 crore in Q1FY21. Revenue fell to Rs 147.73 crore from Rs 160.35 crore, YoY.
VIP Industries | The company reported Q1FY22 net profit at Rs 2.5 crore versus a loss of Rs 51.3 crore, while revenue is at Rs 206.2 crore as against Rs 40.3 crore, YoY.
Gandhi Special Tubes | The company determined the final buyback price of Rs 550 per equity share.
PTC India | The company reported a 36 percent YoY jump in consolidated net profit to Rs 136.17 crore in Q1FY22, while total income grew to Rs 4,959.99 crore from Rs 4,641.28 crore, YoY.
CESC | The company posted a 34 percent YoY jump in Q1FY22 consolidated net profit to Rs 280 crore, while total income rose to Rs 3,242 crore from Rs 2,662 crore, YoY.
Timken India | HDFC Mutual Fund bought 5.95 lakh equity shares in the company at Rs 1,535.6 per share, whereas Tricot Investments was the seller for these shares on the NSE.
Ugro Capital | The company reported lower profit at Rs 1.7 crore in Q1FY22 against Rs 3.72 crore in Q1FY21, revenue rose to Rs 51.27 crore from Rs 30.78 crore YoY.
Essar Shipping | The company reported consolidated loss at Rs 311.43 crore in Q1FY22 against a loss of Rs 103.22 crore in Q1FY21, revenue rose to Rs 154.79 crore from Rs 149.40 crore YoY.
Prakash Pipes | Promoter Ved Prakash Agarwal acquired 20,000 equity shares in the company via open market transaction, increasing stake to 15.26 percent from 15.18 percent earlier.
HEG | The company reported higher consolidated profit at Rs 56.77 crore in Q1FY22 against Rs 14.33 crore in Q1FY21, revenue jumped to Rs 413.69 crore from Rs 233.29 crore YoY.