Stock Market Live: GIFT Nifty Trades Above 24,600; Tata Motors, IndusInd, Bajaj Auto, Vedanta, Zomato In Focus

UBS on KEI Industries

• Initiates 'Buy', target price of Rs 6,150, implying 40.8% upside

• Highest presence among peers in cables and wires segment

• Sees scope for market share gains in branded housing wires and cables

• Believes ramp up of branded wires to drive returns and cash generation

• Stronger balance sheet and improving brand strength to help expand product range

• Expect topline and EBITDA CAGRs of 22% and 31% during FY25-27E

• Estimate earnings CAGR of 31% between FY24-27E

• Downside risks: Slower domestic infrastructure creation, delays in capex

Citi On M&M

• Maintains 'buy' with target price of Rs 3,180 from 3340 earlier

• New target implies 15% upside

• Tougher terrain ahead for SUVs; tractors treading well

• FY24 was the “year of SUVs” for M&M

• FY25 is expected to see better momentum in tractor segment

• SUV demand for the company has moderated vs our earlier expectations

• Cut volume estimates for SUV segment, resulting in slight cuts in earnings estimates

• Keep tractor estimates unchanged for now

• Could be possible upside risks to tractor numbers on better than expected festive demands

• Top pick in the sector would be Maruti Suzuki

UBS on Polycab India

• Initiates coverage with 'buy' and target price of Rs 8,550, implying 27% upside

• Major beneficiary of electrification infrastructure creation

• Presence in 40% of the domestic electrification market, robust competitive positioning

• Distribution-led export business model offers incremental growth potential

• Growth-levered business model, highest investment among peers

• Led by capacity expansion, ramp up in ad spends and B2B focus

• Significant room to grow addressable market revenue share; 2nd largest to Havells

• FMEG consumer pull is key, expect FMEG Profitability at 5%

• Forecast revenue/earnings growth of 20%/23% in FY24-27

Motilal Oswal on India Consumer

• Overweight stance on staple companies owing to favourable risk-reward dynamics and anticipated volume recovery

• Maintains cautious stance on discretionary stocks; and positive view on jewellery companies

• Expect that the volume improvement trajectory for staples will continue in FY25

• Volumes aided by stable retail inflation, a healthy progress of the monsoon season, and government’s budgetary allocation towards boosting the rural economy

• Paints weak discretionary demand and the changing competitive landscape are adversely affecting growth

• Margins of innerwear companies were affected by increased discounts and volatile raw material prices

• Liquor companies demand faced challenges despite the seasonality due to election-related restrictions and a lack of approvals for interstate transfers

• For QSR’s pace of recovery is expected to be slow, which will likely keep operating margins under pressure

• Optimistic about the jewellery sector and anticipate a continued rapid transition in consumer buying habits from informal/local to formalized channels

• Top picks: HUL, GCPL, and Dabur Kalyan Jewellers and Titan

Citi On BPCL

• Maintains 'buy' on Bharat Petroleum at Rs 333.2 target 14% upside

• Opens 90-day positive catalyst watch on the stock

• Lower chance of fuel rate cuts a positive sign for marketing margins

• Expect gross refining margins to improve sequentially

• Believe integrated margins will improve sharply over Q2-Q3FY25

• Q3FY25 earnings to be boosted if govt announces compensation for LPG losses

• FY25-26 earning estimates remain at 15-20%

UBS on India Consumer durables

• Expects the current $8 billion segment to be worth $20 billion in FY30

• Shifting global supply chain and incumbents' sizeable capacity should lift export revenue from $2 billion in FY24 to $5 billion in FY30

• Revenue and EBITDA CAGRs for UBS's cable and wire coverage to rise 20%/25% in FY24-28E

• Favourable supply-demand dynamics to benefit industry leaders

• Top-line and margin expansions have driven a re-rating for the C&W segment

• Valuations in line with the broader market and seemingly low near-term de-rating risks

Emkay On Kalpataru Projects

Maintains Buy with a target of Rs 1,550, implying 26% upside

Management Meet Takeaways

• Positive on tendering environment across key verticals and geographies

• FY25 growth guidance of 20%, Profit Before Tax margin of 4.5%-5%

• Cashflow of INR 550cr on divestment of non-core assets and improving ROCE

• Co is disciplined in order picking and has an impeccable execution track record

Suraj Estate Board Approves Fund Raise

• Board approves raising of funds via issue of 56 lakh shares on preferential basis

• Issue price of preferential issuance of shares at Rs 714/share

• Board approves issuance of 13 lakh fully convertible warrants at issue price of Rs 750/share

Source: Exchange Filing

Global Cues

• U.S. Dollar Index at 101.87

• U.S. 10-year bond yield at 3.87%

• Brent crude down 0.06% at $77.61 per barrel

• Nymex crude down 0.50% at $74 per barrel

• GIFT Nifty was flat at 24,653.00 as of 7:22 a.m.

F&O Cues

• Nifty August futures up by 0.04% to 24,595 at a premium of 23 points.

• Nifty August futures open interest down by 3%.

• Nifty Bank August futures down by 0.27% to 50,485 at a premium of 117 points.

• Nifty Bank August futures open interest up by 3%.

• Nifty Options Aug. 22 Expiry: Maximum call open interest at 25,000 and maximum put open interest at 24,000.

• Bank Nifty Options Aug. 21 Expiry: Maximum call open interest at 53,000 and maximum put open interest at 51,900.

• Securities in ban period: Aarti Industries, Aditya Birla Fashion, Balrampur Chini Mills, Bandhan Bank, Birlasoft, Chambal Fertilisers & Chemicals, GNFC, Granules, Hindustan Copper, India Cements, IndiaMart InterMesh, LIC Housing Finance, Manappuram Finance, NMDC, PEL, PNB, RBL Bank, SAIL, and Sun TV.

Stock Market Today: All You Need To Know Before Going Into Trade On Aug. 20

Trading Tweaks

• Ex/record dividend: Balkrishna Industries, IRB Infrastructure Developers, Titagarh Rail Systems, Dr Lal Path Labs, the Phoenix Mills, PI Industries, Rain Industries, Sun TV Network, Apar Industries, AIA Engineering, the South Indian Bank, and JK Paper.

• Ex/record AGM: Titagarh Rail Systems,Apar Industries, The South Indian Bank, Vodafone Idea, JK Paper, Saregama India.

• Ex/record buyback: AIA Engineering.

• Moved out short-term ASM Framework: Mukka Proteins.

Bulk Deals

• DCX Systems: NCBG Holdings Inc. sold 29.59 lakh shares (2.66%) at Rs 337.95 apiece. Neomile Growth Fund, Series I, bought 7.39 lakh shares (0.66%) at Rs 337.95 apiece and Upadhyaya Ajay Shiv Narayan bought 15 lakh shares (1.35%) at Rs 337.95 apiece.

• Prudent Corporate Advisory Services: Rameshchandra Chimanlal Shah sold 6.12 lakh shares (1.47%) at Rs 2,450 apiece and Sanjay Rameshchandra Shah sold 4.12 lakh shares (0.99%) at Rs 2,450.05 apiece. On the other hand, Societe Generale bought 2.75 lakh shares (0.66%) at Rs 2450 apiece.

• Ujjivan Small Finance Bank: Ardisia sold 1.7 crore shares (0.87%) at Rs 41.11 apiece.

IndusInd Bank Receives RBI Approval For Mutual Fund Business

Block Deals

Ethos: Bandhan Mutual Fund bought 3 lakh shares (1.22%) at Rs 3,346 apiece. Mahen Distribution Ltd. sold 1.6 lakh shares (0.65%) at Rs 3,346 apiece, and Master Capital Services Ltd. sold 1.4 lakh shares (0.57%) at Rs 3,346 apiece.

IPO offering

Interarch Building Products: The public issue was subscribed 3.2 times on day 1. The bids were led by non-institutional investors (7.85 times), retail investors (2.76 times), and qualified institutional investors (0.27 times).

Listing day

• Saraswati Saree Depot: The company’s shares will debut at an issue price of Rs 160 on the stock exchanges on Tuesday. The Rs 160-crore IPO was subscribed 107.52 times on its third and final day. The bids were led by non-institutional investors (358.65 times), institutional investors (64.12 times), and retail investors (61.88 times).

Vedanta Cuts Hindustan Zinc Shareholding To 63.42% Through Share Sale

Stocks to Watch

• Tata Motors: The company sets Sept. 1 as the record date for determining shareholders eligible for DVR share swaps.

• Bajaj Auto: The company will make a Rs 211 crore provision in the second quarter due to the withdrawal of the indexation benefit and the change in tax rate.

• IndusInd Bank: The bank receivedthe RBI’s nod for undertaking mutual fund business via a new subsidiary.

• HCL Technologies: Shiv Walia will replace Prateek Aggarwal as the chief financial officer, effective Sept. 6.

• Vedanta: The company’s shareholding in Hindustan Zinc was reduced to 63.42% after an offer for sale.

• Hazoor Multi Projects: The company emerged as the lowest bidder for Maharashtra State Infra Development Corp.’s project worth Rs 274 crore.

• Share India Securities: The company has rescinded its investment by acquiring equity shares of DSM Fresh Foods Ltd., considering the negative feedback received from the company’s investors and stakeholders.

• Poly Medicure: The company opened its qualified institutional placement and set the floor price at Rs 1,880.69 per share.

• Sequent Scientific: The company received prequalification approval from the World Health Organisation for albendazole, an active pharmaceutical ingredient.

• Hi-Tech Pipes: The company approved raising Rs 600 crore via QIP or other means.

• Olectra Greentech: The company’s stake in a special purpose vehicle for executing a MSRTC contract falls to 1% from the initial 34%.

• Motilal Oswal Financial Services: The company approved the proposal to raise Rs 200 crore through non-convertible debentures on a private placement basis.

Tata Motors Sets Sept. 1 As Record Date For Share Capital Reduction

GIFT Nifty Trades Above 24,600

Share indices in Asia-Pacific region were trading higher during early trade on Tuesday as market participants await China's loan prime rate and the Reserve Bank of Australia's August policy minutes.

The Nikkei 225 was 1.36% higher at 37,898.52, and the S&P 500 was 0.97% higher at 5,608.25 as of 6:15 a.m.

US stocks rose for the eighth consecutive session, marking the longest winning streak of 2024, as investors anticipate that the Federal Reserve may soon signal a shift towards reducing interest rates.

On Monday, the S&P 500 and Nasdaq Composite settled 0.97% and 1.39% higher, respectively. The Dow Jones Industrial Average ended 0.58% higher.

Brent crude was trading 0.18% lower at $77.52 per barrel as of 06:18 a.m. The Bloomberg Spot Gold was 0.07% higher at $2,506.06 as of 06:19 a.m.

GIFT Nifty's August futures contract was trading flat at 24,652.50 as of 7:06 a.m.

The Indian benchmark indices ended mixed on Monday as the NSE Nifty 50 closed 31.50 points or 0.13%, higher at 24,572.65, and the S&P BSE Sensex settled 12.16 points or 0.02%, lower at 80,424.68.

Overseas investors turned sellers of Indian equities on Monday after a session of buying. Foreign portfolio investors offloaded stocks worth Rs 2,667.5 crore, while domestic investors stayed net buyers for the 11th consecutive session and bought equities worth Rs 1,802.9 crore, according to provisional data from the National Stock Exchange.

The Indian rupee strengthened by 8 paise to end at 83.87 against the US dollar.

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