Market Bizzz

On Thursday, benchmark indices dropped nearly 1% after the Reserve Bank decided to keep the policy rate steady. Analyst Kushal Gandhi advised existing investors to hold Symphony, which surged 10.35%. However, he suggested caution for Apollo Tyres and Shree Cement, which experienced declines of 1.48% and 3.66%, respectively.

The earnings season for the first quarter has commenced with 306 companies, including Trent, Grasim, and Info Edge, reporting their results. Grasim’s net profit is projected to range from Rs 104-231 crore, despite a potential YoY decline. Revenue is expected to increase, though profits may be hindered by higher losses in some divisions.

Sudip Bandyopadhyay discussed the US economy’s growth prospects and its impact on IT spending, despite recession concerns. He commented on the performance of Tata Motors, Ola Electric, and Rail Vikas Nigam, while emphasizing cautious optimism about the auto and infrastructure sectors. He also mentioned maintaining investments in infrastructure, construction, power, and new-gen companies like Delhivery.

On Thursday, eleven stocks, including Aditya Birla Capital and ABFRL, faced an F&O trade ban due to surpassing open interest limits. Meanwhile, Chambal Fertilizers & Chemicals and Granules India were removed from the ban. In a volatile market, Nifty50 and Sensex closed over 1% higher, ending at 24,297.50 and 79,468 respectively.

The initial quarter earnings season began with 225 companies, including LIC, Eicher Motors, RVNL, and SAIL, reporting their financial performance. Eicher Motors was expected to achieve a significant profit range, while LIC was projected to see a notable increase in its annual premium equivalent and value of new business on a yearly basis.

Dipan Mehta, Director at Elixir Equities, advised investors to maintain a cautious stance amid potential market corrections. He noted that significant investment opportunities arise during downtrends. Mehta remains skeptical about Jio Financial Services and suggested focusing on established NBFC players. He also expressed caution regarding the automobile sector despite upcoming new model launches.

Axis Capital maintained an Add rating on Tata Power and raised the target price to Rs 500 from Rs 358. Investec also increased its target price to Rs 467 from Rs 412, maintaining a Hold rating. Tata Power, benefiting from strong management and a potential discom privatization push, aims to add 5.3 GW of RES and execute 3 GW of EPC projects.

Bharti Airtel Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 878134.68 Crore) operating in Telecommunications sector.

I believe the focus on policy continuity has been the key driver of gains. Likewise, for the capital gains, I do believe that markets were surprised but have taken these in their stead.

During the first quarter earnings season, 132 companies, including PFC and Tata Power, were scheduled to announce their financial results. Vedanta’s net profit was expected to range between Rs 2,197-3,060 crore, with revenue estimates between Rs 35,440-38,674 crore for June 2024. Different brokerages provided varying growth predictions.