Market Bizzz

Berkshire’s results suggest the 93-year-old Buffett, one of the world’s most revered investors, is growing wary about the broader U.S. economy or stock market valuations that have gotten too high. The results were released on Saturday after a stock market selloff that pushed the Nasdaq into correction territory, while a weak jobs report sparked worries about U.S. economic activity and whether the Federal Reserve waited too long to cut interest rates.

The 25,000 level is significant given the events and volatility of recent months and weeks. The markets are currently in a euphoric phase, and it’s beneficial to ride the momentum while it lasts. However, some global factors suggest a need for caution, making level-based trading crucial, says Sahaj Agarwal.

Eveready Industries India saw an 18.1% increase in Q1 net profit, reaching Rs 29.36 crore, while revenue declined by 3.9% to Rs 349.37 crore. The company attributed the revenue dip to multiple factors, including a high base effect and a slowdown in some products, but highlighted gains from premiumisation and innovation.

Sebi member Ananth Narayan compared index options trading near expiry to a slot machine, noting its appeal due to low premiums. He pointed out a twelvefold increase in annual turnover for index options from FY20 to FY24. Over 92 lakh individuals collectively lost Rs 51,869 crores in index derivatives during FY24.

While Nomura India Investment Fund Mother Fund was on buyer’s side, the sellers were promoters Seema Todi, Banwari Lal Todi and Anand Todi who sold 26 lakh shares, 40 lakh shares and 19 lakh shares respectively.

The total income increased to Rs 6,784 crore during the quarter against Rs 6,747 crore in the same period last year, LIC Housing Finance said in a regulatory filing.

Amazon.com experienced a slowdown in online sales growth during the second quarter, as consumers opted for cheaper products. This cautious spending behavior caused an almost 8% decline in Amazon shares. Despite beating analyst expectations in profits and cloud computing sales, stiff competition and budget-conscious shoppers impacted Amazon’s projections for the upcoming quarter.

Numerous companies are expected to reveal their first quarter earnings, including Titan, Hindustan Zinc, and Delhivery. Titan’s performance suffered due to high gold prices and regional competition. Analysts predicted a 6% YoY sales increase but a minor 1% decline in net profit for April-June 2024, highlighting challenges in the jewelry segment.

Dabur India reported an 8.27% rise in consolidated net profit to ₹494.35 crore for the June 2024 quarter, meeting analyst expectations. The company highlighted that rural demand outpaced urban demand by 350 basis points, even amid high food inflation. Almost half of Dabur’s annual sales come from rural areas, essential for FMCG sector growth.

Earnings season commenced with 88 companies announcing results. Key highlights included ITC, Sun Pharma, Tata Motors, Adani Enterprises, and Zomato reporting. ITC and Dabur anticipated revenue growth from cigarettes, hotels, and FMCG segments. Tata Motors projected strong profit growth. Zomato maintained robust performance from prior quarters, offering promising outlooks.