Market Bizzz

The S&P 500 eased from a record high the day before, with caution prevailing after Trump on Thursday imposed 50% tariffs on Brazil and as the European Union braced for a possible letter from Trump with details on fresh tariffs.

Housing finance companies (HFCs) are anticipated to reveal modest earnings for the June quarter, supported by an 8% year-on-year rise in loan disbursals. However, margins are expected to face pressure from bank competition and rate cuts. Provisioning costs might increase due to slower recoveries, potentially leading to flat profit growth after tax.

Tata Elxsi’s Q1FY26 consolidated net profit plummeted 22% year-on-year to Rs 144 crore, with revenue also declining 3.7% to Rs 892 crore, impacted by macroeconomic headwinds. Despite challenges, the company secured key deals, including a multi-million-dollar agreement with a US-based technology firm. MD & CEO Manoj Raghavan acknowledged the challenging quarter but emphasized the company’s resilience.

Zee Entertainment Enterprises faces scrutiny as a fundraising proposal falters. Shareholders rejected the warrant issuance plan. This blocked the Goenka family’s attempt to increase their stake. The company aimed to raise funds for growth amidst industry competition. Proxy firms raised concerns about shareholder dilution. Public investors hold a significant portion of Zee’s shares.

Samir Arora of Helios Capital believes that global investors are reducing their US market exposure, favoring ex-US ETFs, which benefits India due to its strong growth narrative. This shift reflects a broader diversification trend as investors seek opportunities beyond the US. Further, he anticipates increased FII flows into India, especially with the resolution of events like the ‘Jane Street’ issue.

Harsha Upadhyaya of Kotak AMC anticipates market consolidation due to a lack of significant triggers, but expects a modest earnings growth pickup in the second half of FY26. Credit growth improvements are predicted to contribute to a gradual market rise. Currently, they are overweight on domestic sectors like financials and cement, favoring resilience over export-oriented businesses, except for chemicals.

Oil India and GAIL India have extended their gas sale agreement for 15 years, effective July 1, 2025. Oil India will supply up to 900,000 SCMD of natural gas from its Rajasthan fields to GAIL, who will transport it for electricity generation by RRVUNL. This collaboration highlights the companies’ commitment to domestic gas production and distribution.

TCS is set to announce its Q1FY26 results, with expectations of modest profit growth between 1% and 3%. Revenue is projected to increase by 2.7% to 3.8% YoY. Analysts anticipate pressure from developed markets and a decline in BSNL revenues, while margins are expected to show sequential improvement. TCS’s Q4 results showed a profit decline but strong TCV.

Dharmesh Shah of ICICI Direct suggests Indian markets are consolidating with strong support around 25,200-25,100 on the Nifty. He recommends focusing on metals, real estate, and PSU banks for medium-term gains. Phoenix Mills is a top pick in real estate due to retail expansion, while JSW Infra is favored in logistics with a target of Rs 336.

BEL has signed a contract with the Indian Navy for the NMDA project to enhance maritime surveillance. The project includes AI-driven upgrades to the NC3I network and aims to strengthen coastal security through improved data sharing among maritime agencies.