Market Highlights, July 16: Sensex, Nifty end flat after hitting record highs; RIL, HDFC Bank weigh

Stock Market Highlights today, Tuesday, July 16, 2024: In the broader markets, the BSE MidCap slipped 0.29 per cent, but the BSE SmallCap added 0.32 per cent

8:47 AM

Brokerage Call :: Nuvama Institutional Equities on HDFC Life

>> Strong ULIP sales aided HDFC LIFE deliver Q1FY25 APE of Rs 28.7bn (-1.4% versus estimate.).

>> Product mix shift towards linked products and change in operating assumptions led to VNB of Rs 7.2bn (0.7% versus estimate). Hence, Q1 VNB margin dipped 116bp YoY to 25%.

>> Management continues to be focused on growth and willing to forego margins somewhat given competitive intensity. Furthermore, they stated higher surrender values H2 onwards would have limited impact on margins.

>> We are revising FY25E/26E VNB by (0.5)%/(2.5)%; this along with a rollover to Sep-26E edges up our target price to Rs 780 (from Rs 760), i.e. DCF-derived FY25E/26E P/EV of 3x/2.6x; reiterate ‘BUY’.
 

8:44 AM

Brokerage Call :: Nuvama Institutional Equities on HDFC AMC

>> HDFC AMC reported a stellar operational performance — with QAAUM growth (+9.6% QoQ), equity AUM market share (+80bp YoY to 12.9%), SIP flows (+69.8% YoY), and unique individual accounts share (+500bp to 23%).

>> Strong equity markets (Nifty50 + 7.5% QoQ), and inflows led to an increased share of equity in QAAUM to 64.3% (+1010bp YoY/+130bp QoQ).

>> This drove revenue/EBIT by 34.9%/39.8% YoY while APAT clocked 26.4% YoY/11.6% QoQ growth to Rs 603.8bn.

>> We are increasing FY25E/26E NOPLAT by 2.4%/0.7%.

>> Maintain ‘BUY’ with an unchanged Sep-25E TP of Rs 4,910, valuing the stock at FY25E/26E EV/NOPLAT of 50.9x/43.3x.

8:43 AM

Brokerage Call :: Nuvama Institutional Equities on Emami

>> We reckon Emami shall deliver a strong FY25, with near double-digit top-line growth and margin expansion.

>> The company is poised to capitalise on heatwaves in Q1FY25 through its brands ‘Dermicool’ and ‘Navratna’–driven by talcum powder category. With expectations of an above-average monsoon, rural is also likely to see a good revival.

>> We are raising FY25E/26E EPS by 8.8%/1.6%. Despite a sharp up move (~47% in past two months), we retain 'BUY' with TP of Rs 915 (earlier Rs 645) and raise target P/E to 40x (from 30x).

>> Triggers: top-tier Q1 show, likely strong winter performance in Q3 on La Nina and beneficiary of rural revival.

 

8:36 AM

Aviation stocks in focus :: India implements uniform 5% IGST on aircraft parts

>> Union Civil Aviation Ministry has announced the implementation of a uniform IGST rate of 5% on all aircraft and aircraft engine parts, effective July 15, 2024, onwards.

>> This decision marks a significant milestone for the domestic Maintenance, Repair, and Overhaul (MRO) industry, aimed at making India a global aviation hub.

Source: Govt statement

8:31 AM

Stocks to watch, July 16: Vedanta, HUL, Lupin, SpiceJet, Jio Fin Services

SpiceJet: SpiceJet's consolidated net loss in the third quarter of 2023-24 stood at Rs 297.2 crore, as opposed to a net profit of Rs 112.1 crore in the corresponding period of 2022-23. The airline posted a consolidated net profit of Rs 127.4 crore in the fourth quarter of 2023-24. In the corresponding period of 2022-23, the airline had posted a net loss of Rs 124 crore.
 

Jio Financial Services: In Q1FY25, the net profit rose 0.64 per cent to Rs 312.6 crore compared to Rs 310.6 crore. Its revenue dipped 0.07 per cent to Rs 417.8 crore from Rs 418.1 crore. READ MORE

8:25 AM

Jatin Gedia of Sharekhan recommends buying these two stocks today

GAIL India

GAIL has broken out of a resistance zone of Rs 233 – Rs 235. The breakout has been accompanied with above average volume. Daily Bollinger bands are expanding indicating that the upmove is likely to continue. READ MORE

8:20 AM

Nifty Bank, Fin Svcs eye breakout: Should you wait or buy near support?

Given this defined range, the best trading strategy for traders would be to wait for a clear breakout before making significant moves. This approach helps mitigate risks associated with premature entries and ensures that trades are made in alignment with the market direction. However, for risk-tolerant traders, a strategy of selling near the resistance levels (the upper end of the range) and buying near the support levels (the lower end of the range) can be employed. READ MORE

8:15 AM

Bajaj Auto, Asian Paints, VBL: Top picks by Jigar S Patel of Anand Rathi

Asian Paints

Recently, Asian Paints has successfully surpassed its critical resistance level of 2940 and is now holding steady around the Rs 2,950-mark. This breakout, characterised by substantial trading volume, is a promising indicator of the stock's potential upward movement. READ MORE

8:10 AM

Sensex, Nifty outlook July 16: Q1 nos, trading holiday may sway market mood

Foreign institutional investors (FIIs) were net buyers of stocks worth Rs 2,684.78 crore in the cash market on July 15. Domestic institutional investors (DIIs), on the other hand, net sold shares to the tune of Rs 331 crore yesterday. READ MORE

8:05 AM

ALERT :: Hahnair selects RateGain to power pricing for over 350 airlines globally

>> RateGain Travel Technologies Limited has announced a partnership between its airline pricing solution, AirGain, and Hahnair, a renowned German airline

>> This collaboration is set to power Hahnair's airline distribution landscape by integrating AirGain's cutting-edge pricing intelligence technology with 100 Hahnair partners using the products H1-Air and X1-Air.

8:00 AM

Temasek likely to invest $10 billion in India in the next three years

"Our total mark-to-market India exposure, including our indirect exposure in Airtel through Singtel, is $37 billion, as of March end. We see the potential to deploy an additional $10 billion in the next three years, subject to finding the right opportunities,” Lambah told Business Standard on Monday. “This figure excludes what our subsidiaries will invest in India as they are also investing in the country," he said. READ MORE

7:56 AM

Asia Pacific :: Hang Seng sheds over 1%, Nikkei bucks trend

7:51 AM

US index futures :: Wall Street to likely hold gains Tuesday

7:46 AM

ALERT :: Powell indicates Fed won't wait until inflation is down to 2% before cutting rates

>> Federal Reserve Chair Jerome Powell said Monday that the central bank will not wait until inflation hits 2% to cut interest rates.

 

>> Speaking at the Economic Club of Washington DC, Powell referenced the idea that central bank policy works with "long and variable lags" to explain why the Fed wouldn't wait for its target to be hit.

>> Instead, the Fed is looking for "greater confidence" that inflation will return to the 2% level, Powell said.

Source: CNBC

7:41 AM

Wall Street check :: US indices end higher after Powell's comments