Market Bizzz

On Tuesday, Bharti Airtel, Eicher Motors, and NTPC declared August 7 as the record date for dividend eligibility. Bharti Airtel announced a dividend of Rs 8 per share, Eicher Motors Rs 51, and NTPC Rs 3.25. Yesterday was the final day to buy shares to qualify for these dividends.

Manish Sonthalia of Emkay Investment Managers stated that the yen carry trade had limited impact on India’s markets. He highlighted sector rotation favoring banks, IT, pharma, FMCG, and consumer discretionary stocks. Despite some overvalued sectors like capital goods and infra correcting, the Indian market remains fundamentally strong and resilient to global uncertainties.

The equity benchmarks experienced notable declines, breaking a five-day upward trend amidst a global sell-off. Key stocks included Zomato, which gained significantly, ITC, which saw slight losses, and Adani Wilmar, which increased. Analysts highlighted bullish trends in Zomato and Adani Wilmar, while ITC may see a pivotal move if it surpasses 500 levels.

In the first quarter earnings season, 109 companies released their financial results. Bharti Airtel was projected to achieve Rs 38,488 crore in revenue for Q1 2024, showing a 2.6% annual rise. Estimated net profits varied between Rs 3,922 crore and Rs 2,068 crore, with challenges noted in the DTH sector and ARPU stabilization.

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.