Category: Corporate

Categories
Corporate

Sensex rallies 450 points, Nifty trades above 24,600

The markets rebounded strongly on Wednesday, August 5, with the Sensex climbing more than 450 points and the Nifty 50 holding above 24,600 in morning trade. Falling crude oil prices, sustained foreign institutional investor buying, positive global cues and the Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% helped lift investor sentiment.

The Sensex rose as much as 0.8% during the session, while the Nifty also moved higher after Tuesday’s decline. At around 11 am, the Nifty was at 24,650.15, while the Sensex was holding gains of more than 400 points. The recovery came after the benchmark indices had snapped a four-session winning streak in the previous session.

Among the major Sensex gainers, InterGlobe Aviation (IndiGo) and Bharti Airtel were at the forefront, with both stocks rising up to around 3% in early trade. Larsen & Toubro, Mahindra & Mahindra and UltraTech Cement were also among the stocks supporting the benchmark. IndiGo led the early Sensex gainers with a rise of about 2.25%, according to market updates.

Ola Electric was another major stock in focus, jumping more than 8%. The electric vehicle maker gained after signing a memorandum of understanding with Axis Energy to deploy up to 20 GWh of battery energy storage systems by 2032. The agreement is the first major partnership for Ola Mahashakti, the company’s planned energy-storage platform.

Deepak Nitrite also attracted buyers, rising around 4% after reporting a sharp 209% year-on-year increase in first-quarter FY27 profit. Revenue rose 36% during the quarter, giving investors another earnings-related trigger for the stock.

However, the market recovery was not broad-based. Protean eGov emerged among the notable losers, with its shares falling around 6% despite a 19% year-on-year rise in first-quarter revenue to ₹251 crore. The weak stock reaction showed that investors remained selective and were not rewarding earnings growth automatically.

BSE Ltd was another stock under pressure, declining around 2% despite reporting a 62% year-on-year jump in first-quarter net profit to ₹874 crore. The contrasting performance highlighted the cautious approach adopted by investors towards several individual stocks despite the broader market rally.

Muthoot Finance also remained under pressure. Its shares had fallen nearly 8% over the previous two trading sessions after the gold-loan company reported weaker net interest margins and loan yields for the June quarter. Higher funding costs and increasing competition from banks and other financial companies are expected to remain concerns for the lender.

Sectoral trends remained mixed. Realty, REITs, PSU banks and auto stocks attracted buying interest, while healthcare, pharma, private banks and IT stocks faced selling pressure. The uneven movement suggested that investors were rotating between sectors rather than making broad-based bets across the market.

A major support for Indian equities came from lower crude oil prices. Brent crude slipped below the $80-a-barrel level amid hopes of a possible agreement between the US and Iran. For India, lower crude prices are generally positive because the country depends heavily on imports to meet its energy requirements. Cheaper oil can ease inflationary pressure, support the rupee and reduce the pressure on the country’s import bill.

The rupee also strengthened, opening below ₹95 per US dollar for the first time since July 8, at around ₹94.92. The stronger currency added to the positive market mood.

Investors were also closely watching the RBI’s monetary policy decision. The Monetary Policy Committee kept the repo rate unchanged at 5.25%, while retaining a neutral stance. The RBI raised its FY27 real GDP growth forecast to 6.7% from 6.6%, while lowering its FY27 CPI inflation forecast to 5% from 5.1%.

The market was also taking cues from global equities. US markets had ended at record highs, while several Asian markets advanced on expectations of easing geopolitical tensions. Japan’s Nikkei futures and Topix were particularly strong, while US stock futures also remained positive.

At the same time, traders remained cautious about the new closing auction session (CAS) for futures and options stocks. The mechanism had contributed to unusual price movements during Tuesday’s expiry session, with differences between prices around 3:30 pm and the final closing levels. Analysts said the changes had increased volatility and created complications for some derivatives-linked strategies and arbitrage funds.

The combination of softer crude prices, stronger foreign fund flows, resilient corporate earnings and supportive global markets has improved sentiment. Still, the mixed sectoral performance and sharp movements in individual stocks such as Protean eGov, BSE and Muthoot Finance show that investors remain selective.

With the Nifty holding above 24,600 and the Sensex gaining more than 450 points, traders will now watch whether the benchmarks can sustain their recovery through the remainder of the session. Earnings, foreign fund flows, crude oil prices, the rupee and developments around the new market closing mechanism are likely to remain key drivers of the next move.

Categories
Corporate

Sensex falls 210 points, nifty ends at 24,615

Indian stock markets ended lower on Tuesday, August 4, snapping a four-session winning streak as investors turned cautious amid heightened volatility linked to the new closing auction mechanism for futures and options (F&O) stocks. The Nifty 50 fell 159 points to close at 24,615, slipping below the 24,650 mark, while the BSE Sensex declined 210 points to 78,429.

The trading session was unusually volatile, with the Nifty swinging sharply during the final part of the day. The new closing auction session, introduced for F&O stocks, added to uncertainty as traders adjusted to a different method of determining closing prices. The weekly derivatives expiry further amplified the moves.

The Nifty had fallen below 24,450 during the afternoon before recovering sharply during the closing auction. It climbed from around 24,463 before the auction to briefly touch 24,650. However, the benchmark ultimately settled at 24,615. The Sensex also remained under pressure for much of the session before ending 210 points lower.

Tuesday marked the second trading session under the new closing-price framework for F&O stocks. Under the revised system, regular cash-market trading in these stocks ends at 3:15 pm. Investors then have roughly 15 minutes to place orders for the closing auction, with the exchange determining an equilibrium price based on available buy and sell orders.

F&O trading itself continues until 3:40 pm, giving derivatives traders additional time to respond to the official closing price. The new system is designed to improve price discovery and reduce the impact of large last-minute orders, but its early implementation has resulted in sharp divergences between prices seen before and after the auction.

Market experts described Tuesday’s volatility as an initial adjustment to the new mechanism rather than a sign of a fundamental deterioration in the Indian economy.

Despite the broader weakness, select stocks attracted buying interest. Hindalco Industries, Trent, Apollo Hospitals, Jio Financial Services and Eternal were among the notable Nifty gainers, showing that investors continued to pick stocks selectively even as the benchmark remained under pressure.

Metal stocks were among the stronger pockets of the market. Hindalco benefited from buying interest, while select consumer and financial stocks also managed to stay in positive territory. The Nifty’s sectoral picture, however, remained largely weak, with most sectors ending in the red.

The resilience in some individual stocks came against the backdrop of strong corporate earnings and continued expectations that domestic economic growth will support equities over the longer term.

On the other side, Grasim Industries, HDFC Life, Max Healthcare, Hindustan Unilever and Nestle India were among the top Nifty losers. Selling pressure was particularly visible across information technology, realty, infrastructure, consumer and several financial stocks.

The Nifty Realty and IT sectors were among the weaker performers during the session, while banking, FMCG, pharma and healthcare stocks also faced pressure. Metal stocks stood out as one of the few areas showing relative strength.

LIC remained under pressure after the government launched an offer for sale at a discount to the prevailing market price. The stock fell sharply during early trade as investors assessed the impact of the government’s stake sale on supply and valuation.

Dabur shares also declined after the Food Safety and Standards Authority of India (FSSAI) barred the company from selling certain products carrying 100% claims, adding another stock-specific pressure point to an already cautious market.

Meanwhile, several companies reported their June-quarter results. Bharti Airtel reported a quarterly profit of ₹8,167 crore, up 11.5% sequentially, while revenue rose 6% to ₹58,539 crore. Nykaa reported a 248% year-on-year jump in profit to ₹80 crore, with revenue rising 29% to ₹2,782 crore.

KEI Industries also gained after reporting a 40% rise in Q1 FY27 profit and a 23% increase in revenue. GE Shipping was another notable stock, rallying after reporting a 160% year-on-year increase in quarterly net profit and a 67% rise in revenue.

The market’s attention now shifts towards the Reserve Bank of India’s monetary policy decision, along with global cues, crude oil prices and upcoming US economic data.

Earlier in the week, optimism over possible US-Iran talks had helped drive a strong rally in Indian equities. On Monday, the Nifty had jumped 1.6% and the Sensex gained 0.7%, helped by falling oil prices and improved geopolitical sentiment.

Despite Tuesday’s fall, market strategists continue to see the broader economic backdrop as supportive. Geojit’s VK Vijayakumar noted that strong credit growth, healthy auto numbers, improving GST collections and renewed foreign investor buying were positive signals for the market.

Categories
Corporate

Sensex holds steady, Nifty falls below 24,600

The equity markets turned volatile on Tuesday, August 4, as investors took a breather after the sharp gains recorded in the previous session. The Sensex traded largely flat, while the Nifty 50 slipped below the 24,600 mark as selling emerged in several heavyweight stocks. Investors remained cautious ahead of the Reserve Bank of India’s policy decision, while crude oil prices, foreign fund flows and global cues continued to influence sentiment.

The market opened on a cautious note after the Nifty’s strong 1.6% jump on Monday. The benchmark index had closed at 24,774.30 after gaining more than 390 points, while the Sensex had surged 544 points to settle at 78,639. Tuesday’s session, however, saw investors booking some profits following the recent rally.

The divergence between the two benchmark indices was also notable. While the Sensex managed to hold close to the previous close, the Nifty came under pressure and moved below 24,600. Traders were also assessing the unusual volatility witnessed towards the end of Monday’s session following the introduction of the new Closing Auction Session mechanism.

The new system is intended to improve price discovery during the closing phase of trading. However, its first session resulted in significant late-day movements in the Nifty, prompting investors to remain cautious about interpreting Monday’s sharp gains. Market participants are now watching whether the recent rally can sustain once the impact of the new mechanism settles.

Among individual stocks, KEI Industries was one of the notable gainers, rising around 7% after the company reported strong June-quarter results. Its consolidated profit increased about 40% year-on-year, while revenue rose 23%. The numbers encouraged buying in the cable and wire maker, making it one of the stronger performers in the broader market.

Ather Energy also witnessed strong buying interest, with its shares rising sharply after the electric two-wheeler maker reported an improvement in its quarterly performance. The company’s loss narrowed to around ₹51 crore, giving investors some confidence about its path towards profitability.

On the losing side, Life Insurance Corporation of India (LIC) shares came under heavy selling pressure. The stock declined sharply after the government announced an offer for sale of a 6.5% stake in the insurer. The issue was priced at a discount to the prevailing market price, putting pressure on LIC shares during the trading session.

DLF was another prominent loser, with its shares falling around 2%. The decline followed the real estate company’s quarterly results, which showed a sharp fall in revenue. While the numbers weighed on the stock, analysts continued to maintain a relatively positive long-term view, supported by expectations of new project launches and sustained demand in the residential real estate market.

The broader sectoral picture remained mixed. Realty and IT stocks were among the major areas of weakness, while cement stocks also faced selling pressure. The IT sector, which had participated strongly in Monday’s rally, saw some profit booking. Banking, FMCG, pharma and healthcare stocks also traded on the weaker side, although the extent of losses varied across individual counters.

Metal stocks, meanwhile, offered some support to the market. The relative strength in the sector helped limit the broader decline, although investors remained selective rather than making broad-based purchases.

Another major factor influencing the Indian stock market was crude oil. Oil prices had fallen sharply in the previous session after hopes of diplomatic progress between the United States and Iran reduced concerns about a prolonged disruption to global supplies. Brent crude had declined nearly 5%, while West Texas Intermediate also recorded a steep fall.

For India, lower crude prices are generally positive because the country depends heavily on imports to meet its energy requirements. A sustained decline in oil prices could ease inflationary pressures, improve the current account balance and reduce the pressure on the rupee. It could also benefit sectors such as aviation, paints, chemicals and automobiles.

However, investors remain alert to developments in the Middle East. Any renewed escalation between the US and Iran could push crude prices higher again and quickly alter the market outlook.

Foreign investor activity is another factor being closely tracked. Foreign institutional investors have recently returned to the buying side in the cash market, helping trigger short covering and supporting large-cap stocks. Continued foreign inflows could provide an important cushion for Indian equities, particularly at a time when valuations remain a concern in some pockets of the market.

Investors are also awaiting the RBI monetary policy decision, which could provide fresh direction to interest-rate sensitive sectors. Market participants will watch the central bank’s assessment of inflation, economic growth, liquidity and the global environment.

For the Nifty, analysts are closely watching the 24,500 level as an immediate support zone, with 24,300 emerging as another important level. A sustained recovery above 24,800 could bring the 25,000 mark back into focus, while a decisive break below support could lead to further consolidation.

Overall, Tuesday’s session reflected a market taking a pause after a strong run. The combination of corporate earnings, crude oil movements, foreign fund flows, RBI policy expectations and global geopolitical developments is likely to keep the Sensex and Nifty volatile in the near term. With investors becoming more selective, individual stock performance could increasingly depend on earnings and company-specific developments rather than broad market momentum alone.

Categories
Corporate

Muthoot Finance Q1 profit rises 43% to ₹2,825 cr

Muthoot Finance reported a strong start to FY27, with consolidated net profit rising 43.1% year-on-year to ₹2,825 crore in the April-June quarter. The gold loan-focused non-banking financial company (NBFC) benefited from strong loan growth, higher interest income and continued demand for loans backed by gold.

The company had reported a consolidated net profit of ₹1,974 crore in the first quarter of FY26. However, on a sequential basis, profit declined from ₹3,398 crore in the March quarter, indicating some moderation in earnings momentum despite the sharp annual growth.

The biggest highlight of the quarter was the expansion in Muthoot Finance’s loan book. Consolidated loan assets under management (AUM) rose 43% year-on-year to ₹1,91,532 crore, compared with ₹1,33,938 crore a year earlier. The figure puts the company’s loan assets just short of the ₹2-lakh-crore milestone.

The growth underlines the continued strength of India’s gold loan market, where households and small businesses use gold jewellery as collateral to access funds. With gold prices remaining elevated, borrowers can raise larger amounts against the same quantity of pledged gold, helping lenders expand their portfolios.

Muthoot Finance’s core business remains heavily dependent on gold-backed lending. The company has benefited from customers increasingly turning to secured credit at a time when lenders are paying greater attention to risk and underwriting standards in unsecured loans.

The company’s net interest income also remained strong during the quarter. According to market data, net interest income rose around 30% year-on-year to ₹5,099 crore. The increase reflects the continued expansion of the company’s lending operations and the growing size of its gold loan portfolio.

However, the quarter also showed some pressure on margins. Analysts have pointed to a decline in gold loan yields compared with the previous quarter. The moderation has been linked partly to a normalisation from unusually high yields in the previous quarter and changes in the mix of products and repayment structures.

This is important because Muthoot Finance is growing rapidly, but investors will also be watching whether the company can maintain its profitability as competition in the gold financing sector intensifies.

Banks and other NBFCs have been expanding their gold loan operations, attracted by the strong demand for secured borrowing. For customers, gold loans can offer faster access to money compared with some traditional forms of credit, particularly when funds are needed for business requirements, education, medical expenses or household needs.

At Muthoot Finance, the rise in gold prices has also changed borrowing patterns. As the value of pledged jewellery increases, customers can obtain bigger loans without necessarily pledging more gold. This has contributed to the company’s ability to grow its gold loan AUM rapidly.

The latest numbers also reflect the scale that Muthoot Finance has achieved in the country’s lending industry. Moving towards ₹2 lakh crore in consolidated AUM puts the company among the largest specialised gold lenders in India.

Still, rapid growth brings its own challenges. Higher competition could put pressure on interest rates and yields, while regulatory changes can affect how lenders value gold collateral, determine loan-to-value ratios and manage repayments. Muthoot Finance will therefore need to balance aggressive growth with asset quality and risk management.

The company’s strong year-on-year profit growth also comes against a high base. Muthoot Finance had already delivered a 65% rise in consolidated net profit in Q1 FY26, when profit reached ₹1,974.2 crore from ₹1,195.7 crore a year earlier. Its consolidated loan assets had then risen 37% year-on-year to ₹1,33,938 crore.

The latest results show that the company’s expansion has continued at a similar pace, with AUM growth accelerating to 43% year-on-year.

There is also a leadership transition underway at Muthoot Finance. The company has recommended Alexander George as its next Managing Director, subject to shareholder approval. He is expected to take over from George Alexander Muthoot, who will move into the role of Executive Vice Chairman.

K R Bijimon is also set to become Chief Executive Officer. The changes are part of the company’s broader succession plan as it prepares for its next phase of expansion.

For investors, the results present a mixed picture. The headline numbers are strong: profit rose 43%, AUM increased 43% and net interest income climbed nearly 30%. But the sequential decline in profit and pressure on yields suggest that maintaining the current pace of earnings growth may become more challenging.

Muthoot Finance shares also came under pressure after the results, with reports showing a sharp fall as investors focused on weaker sequential performance and margin concerns despite the strong year-on-year profit growth.

The company’s performance will therefore be closely watched through the remaining quarters of FY27. Gold prices, customer borrowing trends, competition from banks and NBFCs, funding costs and regulatory changes will all influence the outlook.

For now, the message from the Muthoot Finance Q1 FY27 results is clear: demand for gold-backed credit remains strong, and the company’s lending engine continues to expand rapidly.

With consolidated AUM already at ₹1.92 lakh crore, Muthoot Finance is approaching the ₹2-lakh-crore mark. The next challenge will be to turn that scale into sustainable growth while protecting margins and maintaining asset quality in an increasingly competitive gold loan market.

Categories
Corporate

ITC shares rise 4% as cigarette volumes show resilience

ITC shares bounced back sharply on Monday, August 3, after analysts found some comfort in the company’s better-than-feared cigarette volumes despite a steep hit to earnings from higher taxes. The ITC share price climbed as much as 4% to ₹292.45 on the BSE in early trade, making the stock one of the top gainers on the Sensex.

The rally came even though ITC’s June-quarter results showed a significant decline in profitability. Investors appear to be looking beyond the weak Q1 FY27 numbers and focusing instead on whether the worst of the cigarette tax shock is now behind the company.

That shift in sentiment is important for ITC, which has faced considerable pressure since the government announced higher taxes on cigarettes. The stock had fallen around 30% in calendar 2026 up to July 31 and touched a 52-week low of ₹275 on June 4. Against that backdrop, Monday’s recovery reflects renewed hopes that the company can gradually rebuild cigarette earnings.

The biggest positive from the Q1 results was cigarette volume. ITC’s cigarette volumes declined by around 4-5% during the April-June quarter, according to analysts at ICICI Securities. That was significantly better than the 8-10% decline the Street had expected.

For investors, the volume number matters because it suggests that consumers have not moved away from ITC cigarettes in large numbers despite higher prices. It also indicates that the company’s strategy of raising prices gradually may be helping it protect its market share.

The cigarette business, however, remains under pressure. ITC’s cigarette earnings before interest and tax, or EBIT, declined 35% year-on-year during Q1 FY27. The decline was particularly sharp in April, but profitability improved month-on-month as staggered price increases started taking effect.

ITC has not passed the entire tax burden on to consumers at one time. The overall tax impact on the cigarette business is about 35%, while the company has so far passed on roughly two-thirds of that increase through price hikes.

That leaves ITC with more pricing action ahead. Analysts expect the company to continue raising cigarette prices gradually through the second and third quarters of FY27. While this could put some additional pressure on cigarette volumes in the near term, the strategy is also aimed at protecting demand and limiting the shift towards cheaper or illegal cigarettes.

Nomura has taken a more optimistic view of the recovery. The brokerage expects gradual price hikes to improve ITC’s unit economics while keeping the impact on volumes manageable. It expects ITC to bring cigarette EBIT per stick back towards pre-tax-hike levels by Q4 FY27.

That is a much faster recovery than Nomura had previously anticipated. The brokerage has raised its target price for ITC to ₹340 from ₹300 and upgraded the stock, reflecting what it sees as a more favourable risk-reward balance. Nomura expects cigarette volumes and EBIT to decline 5% and 20%, respectively, in FY27, before recovering in FY28.

ICICI Securities, meanwhile, expects cigarette volumes to face greater pressure in Q2 and Q3 as more of the tax increase is passed on through prices. However, it expects the business to start seeing margin recovery from Q4 FY27 as the higher prices and volumes begin to normalise.

The brokerage also pointed to encouraging trends outside cigarettes. ITC’s FMCG business continues to show strong margin improvement, helped by a better balance between pricing and volumes. The paperboards business is also recovering sequentially, supported by a more favourable input-cost environment.

The strength of ITC’s diversified business is becoming increasingly important for investors. While cigarettes remain the company’s biggest earnings driver, the FMCG portfolio, paperboards and other businesses provide additional support when the cigarette segment faces regulatory or tax pressure.

Still, not all brokerages are convinced that the recovery will be smooth. Motilal Oswal Financial Services retained a Neutral rating with a target price of ₹300. It said ITC’s slower-than-expected cigarette price increases could protect consumer volumes and reduce the shift to illegal cigarettes, but would also keep earnings under pressure in the near term.

The brokerage expects cigarette revenue and EBIT to remain volatile while ITC works through the transition. It also cautioned that pressure on the cigarette business could offset the benefits coming from the recovery in FMCG and paper businesses.

This leaves investors with a fairly clear set of numbers to watch in the coming quarters: cigarette volumes, the pace of price hikes and the recovery in cigarette margins. The immediate earnings picture may remain weak, but the market is increasingly willing to look beyond one difficult quarter.

For ITC, the challenge is now about finding the right balance. Passing on higher cigarette taxes too quickly could hurt volumes and push consumers towards cheaper alternatives. Moving too slowly, on the other hand, would prolong the pressure on margins and profitability.

The real test will come over the next two quarters. If ITC can gradually recover cigarette profitability without losing significant volumes, the current tax-related earnings setback could prove temporary. For now, the market appears to be betting that the worst may have passed and that ITC shares could have room to recover as the company works through the cigarette tax impact.

Categories
Corporate

Sensex rises 600 points, Nifty surpasses 24,750

Indian benchmark indices extended their winning run on Monday, August 3, as strong buying across key sectors lifted the Sensex by 600 points and pushed the Nifty 50 above the 24,750 mark. The rally reflected a combination of positive global cues, softer crude oil prices and growing optimism over corporate earnings.

The broader market also remained firm, with buying seen across several sectors as investors continued to take fresh positions in equities.

A sharp fall in crude oil prices provided an important boost to sentiment. Brent crude prices dropped after US President Donald Trump indicated that talks with Iran could take place, easing concerns over a wider escalation in West Asia. Lower crude prices are particularly positive for India, which imports a large portion of its oil needs. Cheaper oil can help contain the import bill, ease inflationary pressure and reduce input costs for several businesses.

The improvement in geopolitical sentiment also supported global markets and encouraged investors to return to riskier assets. For Indian equities, the combination of favourable global cues and strong domestic buying helped sustain the upward momentum through the session.

Among individual stocks, ITC was one of the prominent gainers on the benchmark indices. The stock advanced despite the company’s quarterly profit declining, with investors focusing on its operating performance and cigarette business. Divi’s Laboratories was another strong performer, gaining more than 3% as investors responded positively to its quarterly performance.

Financial stocks also contributed significantly to the market’s gains. Several banking and financial services stocks traded higher, helping the Nifty maintain its upward momentum. SBI, ICICI Bank and IndusInd Bank were among the stocks that attracted buying interest.

The broader market also witnessed strong stock-specific action. Urban Company surged around 16% after its quarterly results, highlighting the growing investor appetite for companies reporting strong business momentum. The gains in mid-cap and small-cap counters added to the overall positive tone in the Indian stock market.

However, not every stock participated in Monday’s rally. Zee Entertainment emerged as one of the biggest losers, with the stock plunging around 11%. The sharp decline came after market regulator Sebi imposed a penalty and barred the company’s CEO and founder from the securities market for one year over regulatory violations.

The fall in Zee Entertainment showed that stock-specific developments continued to influence trading even as the broader market remained firmly positive. Investors remained selective, particularly in stocks facing regulatory or company-specific concerns.

The ongoing Q1 earnings season was another key factor shaping market sentiment. Investors are closely watching quarterly results for signs of sustained earnings growth and stronger demand. Results from sectors such as banking, automobiles, pharmaceuticals and consumer businesses are expected to influence the direction of individual stocks as well as the broader market.

The market‘s recent gains have also been supported by expectations that domestic economic conditions will remain resilient. Strong consumption, improving corporate performance and continued investment activity have helped Indian equities maintain their appeal despite global uncertainties.

Monday’s rally, however, does not eliminate the possibility of near-term volatility. Investors will continue to track crude oil prices, developments in US-Iran relations, foreign institutional investor flows, the rupee and upcoming corporate earnings. Global market movements will also remain important as traders assess the impact of geopolitical developments and changing expectations around interest rates.

With the Nifty 50 now firmly above 24,750, market participants will watch whether the index can sustain the momentum in the coming sessions. The Sensex’s 600-point gain also reflects a renewed appetite for equities after recent bouts of volatility.

The market breadth also remained encouraging, with buying extending beyond the heavyweight stocks. Investors appeared more comfortable taking positions in sectors that could benefit from lower input costs and steady domestic demand. Oil-sensitive sectors gained from the decline in crude prices, while pharmaceutical and financial stocks also supported the broader indices.

At the same time, traders remained cautious about elevated valuations in parts of the market. The sharp moves in individual stocks following quarterly results showed that investors are increasingly differentiating between companies on the basis of earnings quality, growth prospects and management commentary. This could keep stock-specific volatility high through the earnings season.

For the coming sessions, the focus will remain on corporate results, foreign fund flows, crude oil prices and global market cues. Any sustained easing in geopolitical tensions could provide further support to Indian equities, while a reversal in crude prices or renewed global risk aversion could limit the market’s gains.

Categories
Corporate

Sensex surges 650 points, Nifty climbs above 24,550

The equity markets staged a strong rally on Monday, with the Sensex gaining more than 650 points and the Nifty 50 crossing the 24,600 mark as falling crude oil prices, easing geopolitical concerns and broad-based buying lifted investor sentiment.

The rally came after US President Donald Trump indicated that talks with Iran could take place, raising hopes of reduced tensions in West Asia. The development triggered a sharp decline in crude oil prices, providing relief to oil-importing economies such as India. Brent crude fell around 5%, becoming one of the key drivers behind Monday’s gains in Indian equities.

Investors also took comfort from improving global signals and expectations of continued foreign institutional investor buying. The Indian rupee strengthened at the opening, rising 0.25% to ₹95.1450 against the US dollar from the previous close of ₹95.38.

Global markets were mixed. S&P 500 futures rose 0.5%, while Hong Kong’s Hang Seng gained 0.6%. Japan’s Topix, however, declined 2.2%, while the Shanghai Composite slipped 0.4%. Euro Stoxx 50 futures were up 0.6%.

The domestic market was also supported by encouraging June-quarter earnings and healthy economic indicators. Analysts noted that better-than-expected credit growth, strong auto sales, resilient earnings and stabilisation in the rupee were improving the outlook for Indian equities.

Geojit Investments Chief Investment Strategist VK Vijayakumar said falling Brent crude, a healthy monsoon and foreign investors turning buyers were positive triggers for the market. Another Geojit strategist, Anand James, identified 24,600 as an immediate hurdle for the Nifty, with 24,100 emerging as a key support zone.

Buying was visible across several sectors, with ITC emerging as one of the strongest Nifty 50 performers. ITC shares gained around 3.8%, touching an intraday high of ₹292.50. The buying came despite a decline in quarterly profit, with investors focusing on revenue growth and the company’s longer-term recovery prospects.

Shriram Finance was another major Nifty gainer, rising nearly 2.9%. Financial stocks remained strong as investors continued to favour banks and non-banking financial companies.

Bajaj Finserv also gained more than 2% after reporting a 12% year-on-year increase in consolidated net profit to ₹3,132 crore for the June quarter. Revenue increased 19%, prompting Motilal Oswal to upgrade the stock to ‘Buy’ and raise its target price to ₹2,490.

Among mid-cap stocks, Aditya Birla Capital gained more than 5%, while Godfrey Phillips, Jubilant FoodWorks, Paytm and LG Electronics were also among the notable gainers.

Sectoral performance reflected the broad nature of the market recovery. The Nifty FMCG index rose 1.80%, while Nifty PSU Bank gained 1.48%. Nifty IT advanced 1.36%, Nifty Financial Services rose 1%, and Nifty Bank gained 0.90%.

Metal, auto, realty, infrastructure and consumption stocks also traded higher. In contrast, the Nifty Media index declined 1.61%, making it the weakest sectoral performer.

The broader market also remained supportive, suggesting that Monday’s rally was not limited to a few heavyweight stocks.

Despite the strong market-wide rally, several stocks faced sharp selling pressure.

Zee Entertainment was among the biggest losers after shares plunged more than 10%. The decline followed Sebi’s decision to bar founder Subhash Chandra and CEO Punit Goenka from the securities market for one year in connection with an unauthorised property pledge case. The regulator also imposed penalties and flagged governance-related issues.

Muthoot Finance also witnessed heavy selling, falling more than 9% and emerging as the biggest loser on the Nifty Next 50. GAIL declined around 4.4%, while Thermax and Persistent Systems were among the notable mid-cap losers.

Within the Nifty 50, Sun Pharma fell around 1.2%, while Bharti Airtel, Maruti Suzuki, Bajaj Auto and NTPC also traded in the red. Maruti Suzuki’s shares slipped despite strong July sales, highlighting some profit booking in stocks that had already performed well.

Automobile stocks continued to attract attention following strong July sales numbers. Eicher Motors gained nearly 1.8% after total sales jumped 34% year-on-year to 1,18,232 units. Domestic sales increased 38.1%, while exports rose 10%.

Escorts Kubota also advanced after reporting a 22% increase in July tractor sales to 8,731 units, led by strong domestic demand.

Several companies also reported strong operational updates. Sterlite Technologies gained 5% after securing a ₹960-crore multi-year fibre cable supply agreement from a domestic telecom operator. HFCL rose around 5% after winning an international order worth ₹522.73 crore.

With the Sensex up more than 650 points and the Nifty holding above 24,600, investor sentiment has clearly improved. However, analysts expect some volatility as the benchmark approaches key resistance levels. The RBI‘s upcoming monetary policy decision, crude oil prices, foreign fund flows and the continuing Q1 earnings season will remain important triggers for the market in the days ahead.

Categories
Corporate

Tata Steel clears ₹33,870 cr NINL expansion plan

Tata Steel has approved a major ₹33,873-crore expansion of Neelachal Ispat Nigam Limited (NINL), marking one of its biggest bets on India’s long-term steel demand and strengthening its domestic growth strategy.

The company’s board has cleared the first phase of the NINL expansion, which will add 4.8 million tonnes per annum (MTPA) of steelmaking capacity. Once completed, the Odisha-based facility will have a total capacity of 6.2 MTPA. Tata Steel said the project has already completed its engineering phase and is at an advanced stage of readiness for execution.

The investment is aimed particularly at expanding Tata Steel’s long-products business, including branded steel products used extensively in construction, infrastructure and retail markets. The company sees NINL as an important platform for increasing its presence in higher-margin and value-added steel products.

The decision comes after a significant turnaround at NINL. Tata Steel acquired the Odisha-based company in 2022 for ₹12,100 crore, when the plant was facing financial and operational difficulties. Since then, the facility has been brought back to stable operations and has been running at its rated capacity for the past two years, according to the company.

NINL’s recent performance has strengthened the case for further investment. In FY26, the plant produced around 0.95 million tonnes of crude steel and delivered 0.91 million tonnes. While revenue moderated to ₹5,282 crore amid softer steel prices, its EBITDA improved to ₹1,236 crore from ₹1,067 crore a year earlier. The facility reported an EBITDA margin of about 23%.

During the June quarter of FY27, NINL generated EBITDA of ₹498 crore, giving it a margin of 29%. Tata Steel said the performance provides confidence in the proposed expansion.

NINL is strategically located in Odisha, close to Tata Steel’s Kalinganagar operations. The company also has access to a captive iron ore mine, giving the facility an important raw-material advantage as it expands.

The expansion is expected to play a central role in Tata Steel’s strategy to grow its long-products portfolio. These products include steel used in housing, construction, infrastructure and other applications.

Tata Steel said demand for its branded products remains strong, particularly in the retail market. Brands such as Tata Tiscon have continued to see strong growth, supporting the company’s decision to increase domestic long-product capacity.

The company has also pointed to the sizeable land bank available around NINL. According to Fortune India, the site has the potential to support capacity of up to 10 MTPA over the longer term. This gives Tata Steel room to develop NINL into a much larger steel hub over time.

The proposed expansion is therefore more than a simple capacity addition. It is intended to create a larger integrated manufacturing base for Tata Steel’s India operations and strengthen its position in value-added steel.

The NINL investment comes at a time when Tata Steel’s Indian operations are providing a strong cushion against difficulties in its overseas businesses.

For the April-June quarter of FY27, Tata Steel reported consolidated revenue of ₹60,794 crore and EBITDA of ₹9,370 crore. EBITDA increased 25% year-on-year despite a challenging global operating environment.

India remained the strongest part of the business. The India segment reported revenue of ₹36,989 crore and EBITDA of ₹9,908 crore, with an EBITDA margin of 27%. Domestic deliveries also grew strongly, with Tata Steel reporting an 11% year-on-year increase to 4.85 million tonnes.

The company’s consolidated profit after tax stood at ₹2,385 crore in the June quarter, compared with ₹2,007 crore a year earlier. Tata Steel’s India business helped offset pressure from its European operations, where operational disruptions and restructuring challenges continued.

Tata Steel is moving ahead with the NINL project while maintaining a close watch on its balance sheet.

The company spent ₹3,579 crore on capital expenditure during the June quarter. Its net debt stood at ₹84,173 crore at the end of the quarter, while net debt-to-EBITDA was 2.3 times. Group liquidity remained strong at ₹45,950 crore, including ₹13,221 crore in cash and cash equivalents.

The numbers indicate that Tata Steel has financial headroom to continue investing in India even as it manages restructuring and operational challenges in Europe.

The company has also been pursuing other domestic projects, including the ramp-up of its 0.75 MTPA electric arc furnace at Ludhiana and expansion of downstream facilities.

Tata Steel expects the proposed NINL expansion to be the first phase of a broader growth programme. The company has indicated that the facility’s location, land availability and raw-material access could support further expansion in the future.

The company also expects the merger of NINL with Tata Steel to be completed during FY27. The integration is expected to simplify the corporate structure and create operational synergies.

For Tata Steel, the ₹33,873-crore investment signals a clear strategic preference: expand where India’s steel demand is expected to remain strong, build scale in domestic manufacturing and move further into value-added products.

With NINL set to increase its capacity from its current level to 6.2 MTPA, the Odisha facility is poised to become an increasingly important part of Tata Steel’s India growth story. The project also underlines the company’s broader ambition to strengthen its domestic steelmaking footprint while building a more competitive and integrated portfolio for the years ahead.

Categories
Corporate

Bajaj Finance shares surge 7% after strong Q1 results

Shares of Bajaj Finance delivered a strong performance on Friday, July 31, surging beyond 7% to hit a fresh all-time high after the company reported a better-than-expected performance for the June quarter.

The sharp rally added significantly to investor wealth and pushed Bajaj Finance’s market capitalisation beyond ₹7 lakh crore for the first time. On the BSE, the stock touched ₹1,128.80 during the session. The latest rally reflects growing investor confidence that the non-banking financial company (NBFC) can sustain strong loan growth while keeping credit costs and bad loans under control.

The immediate trigger was Bajaj Finance’s Q1 FY27 earnings. The company reported a 27.4% year-on-year rise in profit attributable to owners to ₹5,986 crore for the quarter ended June. Net interest income (NII), a key measure of lending performance, increased 23% to ₹12,571 crore.

The numbers were supported by continued expansion in the company’s loan book. Assets under management (AUM) grew 24% year-on-year to ₹5.47 lakh crore. During the quarter, Bajaj Finance added ₹36,969 crore to its loan book and disbursed 16.13 million new loans. Its customer franchise also expanded to 124.43 million.

For investors, however, the most encouraging part of the results was not just growth but the improvement in asset quality.

Bajaj Finance’s gross non-performing assets (GNPA) declined to 0.96% from 1.03% a year earlier. Net NPA also improved to 0.39% from 0.50%. Loan losses and provisions stood at ₹1,993 crore, including an additional ₹296 crore provision made as a precaution against macroeconomic risks.

Excluding that additional provision, loan losses fell 14% year-on-year. The loan loss ratio also improved to 1.31% from 1.87% in the year-ago quarter. The company said credit performance across recent loan vintages continued to improve.

That combination of growth and improving asset quality appears to have changed the market’s view of Bajaj Finance. Concerns about credit costs and stressed loan segments had weighed on the NBFC in previous periods. The latest results, however, suggest that the company is managing those risks while continuing to expand.

The company’s profitability metrics also remained strong. Annualised return on assets improved to 4.7% from 4.5% a year earlier, while return on equity rose to 20.4% from 19%. Capital adequacy remained comfortable at 20.9%, with Tier-I capital at 20.01%.

Brokerages have responded positively to the earnings. Motilal Oswal upgraded Bajaj Finance to ‘Buy’ from ‘Neutral’ and raised its target price to ₹1,300. The brokerage expects the company to enter a phase of structurally stronger earnings growth, supported by broad-based loan expansion, stable margins, improving asset quality and lower credit costs.

JM Financial retained its ‘Buy’ rating and raised its target price to ₹1,250 from ₹1,220. HDFC Securities also retained its ‘Buy’ recommendation with a target price of ₹1,100, although it cautioned that the stock’s elevated valuation could restrict near-term upside.

Reuters reported that at least six brokerages raised their target prices after the results. Analysts pointed to falling bad loans and stronger loan growth as key reasons for their improved outlook. CLSA noted that the calculated net slippage ratio fell 90 basis points year-on-year to 1.2%, while Nomura highlighted a decline in gross Stage-2 assets to their lowest level since the Covid-19 pandemic.

Bajaj Finance is also preparing for its next phase of technology-led expansion. Under its FINAI transformation programme, the company plans to expand its dedicated artificial intelligence team to 400 employees during FY27 and add another 300 people to its digital platforms unit.

AI is already being used in areas such as customer acquisition, underwriting, collections and servicing. The company has deployed 62 AI agents and 23 agentic AI use cases, while AI-generated loan offers have increased sharply.

For FY27, Bajaj Finance expects to disburse 60-62 million new loans and add 18-20 million customers. It also plans to open 150-175 new physical locations and expand its gold loan business.

The question now is whether Bajaj Finance shares still offer enough upside after the latest rally. The fundamentals remain strong, but the stock’s valuation has also moved higher following its record-breaking run. Analysts broadly remain constructive because of the company’s earnings growth, improving asset quality and strong franchise, while acknowledging that much of the optimism is already reflected in the share price.

In short, Bajaj Finance has given investors a powerful combination of growth, profitability and improving credit quality. The next challenge will be sustaining that momentum without allowing valuations or credit risks to get ahead of fundamentals.

Categories
Corporate

Sensex rises 160 points, Nifty ends above 24,350

Equity markets ended higher on Friday, with the Sensex gaining 166 points and the Nifty50 closing above the 24,350 mark. Strong buying in financial and automobile stocks, led by Bajaj Finance, Bajaj Finserv and Mahindra & Mahindra, helped the benchmarks overcome selling pressure in information technology stocks.

The BSE Sensex rose 166.49 points, or 0.21%, to close at 78,094.64, while the NSE Nifty50 advanced 66.45 points, or 0.27%, to settle at 24,383.60. The gains extended the market’s winning streak to a third session and helped both indices post their second consecutive monthly advance.

Bajaj Finance emerged as the biggest gainer on the Sensex, jumping 8.11% after the company reported strong June-quarter earnings. Bajaj Finserv followed with a 6.60% rise, while Mahindra & Mahindra climbed 3.58%. Adani Ports gained 2.12%, Tata Steel advanced 1.52% and Reliance Industries added 1%.

Bajaj Finance was the key driver of Friday’s rally after investors responded positively to its quarterly performance. The strong showing from the Bajaj companies also lifted the broader financial services space, which remained one of the strongest parts of the market.

Mahindra & Mahindra was another major contributor. The stock gained 3.58% as investors continued to respond to its quarterly performance and the broader strength in automobile stocks. The Nifty Auto index rose 1.64%, making it the best-performing major sectoral index during the session.

However, gains remained limited because of heavy selling in IT stocks. TCS was the biggest loser among the major benchmark constituents, falling 2.73%. Eternal declined 2.72%, while Infosys dropped 2.26%. Tech Mahindra fell 1.03% and HCLTech slipped 0.50%.

The weakness in technology shares came after a strong run earlier in July. The Nifty IT index fell 1.56% on Friday, although it remained the standout sector for the month, rising 16.8% in July. HCLTech was among the strongest monthly performers, gaining 25.7%, while Infosys, TCS and Tech Mahindra also posted double-digit monthly gains.

Other sectors performed better. The Financial Services Ex-Bank index jumped 2.91%, while Media rose 2.09%. Financial Services gained 1.17%, Oil & Gas advanced 1.08% and Pharma added 0.72%. FMCG, however, declined 1.05% alongside IT.

The broader market also remained positive. The Nifty 100, Nifty 200 and Nifty 500 gained around 0.46% each, while the Midcap and Smallcap indices also moved higher. India VIX, a measure of market volatility, fell 3.29% to 11.76, indicating relatively calmer trading conditions.

Friday’s performance also marked the end of a positive month for Indian equities. The Sensex gained about 2.1% in July, while the Nifty50 rose 2.2%. This followed gains of 2.3% and 1.4%, respectively, in June, giving both benchmarks two consecutive months of gains for the first time this year.

Foreign investor activity also improved during July. Foreign institutional investors, which had sold nearly $29.3 billion worth of Indian equities in the first six months of the year, turned net buyers in July with investments of around $1.6 billion. Improved domestic earnings and measures to support the rupee also helped sentiment.

The rupee strengthened to 95.38 against the US dollar on Friday, gaining 0.3% during the session. It recorded its strongest weekly performance since March. However, the currency still ended July around 0.7% lower as elevated crude oil prices continued to weigh on India’s import bill and market sentiment.

Crude remained a key concern for investors. Brent crude was trading around $88.16 a barrel, putting it on course for a monthly gain of about 21%. WTI crude was around $82.24 and was headed for an approximately 18% monthly increase.

The mixed performance of the top gainers and losers showed that investors remained selective. Financial and auto stocks attracted fresh buying on the back of earnings, while IT stocks saw profit booking after their strong July rally.