Analysis Financial News

Cholamandalam Investment & Finance Company Ltd. traded 0.51 per cent down at Rs 1454.0 at 11:55AM (IST) on Monday, even as BSE benchmark Sensex dropped 171.78 points to 81052.97. The scrip had closed at Rs 1461.55 in the previous session. The stock quoted a 52-week high price of Rs 1650.0 and 52-week low of Rs 1011.5, respectively. As per BSE data, total traded volume on the counter till 11:55AM (IST) stood at 5591 shares with a turnover of Rs 0.82 crore.

smallcap company Netweb Technologies surged 10% to its new all-time high of Rs 2,949.65 on the BSE after reporting a 69.7% YoY (year-on-year) jump in its profit after tax (PAT) to Rs 25.7 crore. The same stood at Rs 15.14 crore in the second quarter of the financial year 2024.

Manappuram Finance slid 17% to Rs 145.50 in the last 2 trading sessions after the Reserve Bank of India (RBI) imposed restrictions on four NBFCs (including Manappuram’s subsidiary) citing material supervisory concerns. The restrictions will be effective from October 21, 2024 on four NBFCs Asirvad Micro Finance (a subsidiary of Manappuram Finance), Arohan Financial Services, DMI Finance, and Navi Finserv.

Bajaj Holdings & Investment Ltd. gained 0.65 per cent to Rs 10313.0 in Monday's session as of 11:51AM (IST) even as the equity benchmark Sensex traded 163.68 points lower at 81061.07. Earlier in the day, the stock witnessed a gap down start to the session. The stock quoted a 52-week high price of Rs 11348.5 and a 52-week low of Rs 6634.6 on NSE. Around 882 shares changed hands on the counter till 11:51AM (IST).

Punjab National Bank slipped 0.62 per cent to Rs 102.6 in Monday's trade as of 11:46AM (IST). It hit a high of Rs 104.45 and low of Rs 102.5 during the session. The stock quoted a 52-week high price of Rs 142.9 and a low of Rs 67.34. The return on equity for the stock stood at 8.92 per cent. About 264,187 shares have changed hands on the counter so far.

GAIL (India) Ltd. gained 0.2 per cent to Rs 221.9 in Monday's trade as of 11:41AM (IST). The stock hit a high price of Rs 223.55 and low of Rs 220.6 during the session.

Sebi for an initial public offering of Rs 570 crore, a statement said on Monday. The initial public offering (IPO) comprises a fresh issue of shares worth up to Rs 170 crore and an Offer for Sale (OFS) of shares worth up to Rs 400 crore, Jaro Education said in the statement. Promoter Sanjay Namdeo Salunkhe is selling equity shares worth Rs 400 crore through the OFS route.

Tube Investments of India Ltd. traded at Rs 4484.95 on BSE at 11:31AM (IST) on Monday, down 0.03 per cent from previous close. The stock quoted a 52-week low price of Rs 2881.3 and a high of Rs 4666.0.

KKV Agro Powers Ltd.(up 8.68%), Ravindra Energy Ltd.(up 5.00%), Tata Power Company Ltd.(up 1.86%), JSW Energy Ltd.(up 0.84%), Voltamp Transformers Ltd.(up 0.47%), Jyoti Structures Ltd.(up 0.36%), RattanIndia Power Ltd.(up 0.14%), Adani Green Energy Ltd.(up 0.11%), Inox Wind Energy Ltd.(up 0.01%) and KEC International Ltd.(up 0.01%) were among the top gainers.

Tech Mahindra today surged 4% in an intraday session to their new 52-week high of Rs 1,761.30 after the company on Saturday reported a 153.1% year-on-year (YoY) to Rs 1,250 crore for the second quarter, while its revenue rose by 3.5% YoY to Rs 13,313 crore in the said quarter. On a sequential basis, profit and revenue saw growth of 46.81% and 2.36%, respectively.

Domestic benchmark index NSE Nifty fell 63.3 points to 24790.75, while the BSE Sensex traded 70.24 points down at 81154.51.

IndiaMart InterMesh-operated IndiaMart today fell by 18% to Rs 2,466.80 on the BSE even as the company reported nearly a 95% YoY jump in its Q2 PAT at Rs 135.1 crore. Additionally, the company also reported an 18% jump in its revenue on a year-on-year basis (YoY) at Rs 348 crore for the second quarter ended September 2024, which stood at Rs 295 crore in the same quarter of the previous fiscal year.

Cameron Brandt, Director of Research, EPFR Global, says China's equity market, in some senses, has been the only game in town for domestic investors. There has been eye-catching inflows since the second quarter of this year, which peaked at a record weekly total of $40 billion two weeks back. But last week, they had significant outflows, the biggest single weekly outflow of $4 billion since 2015. So, even in China, this spirit of “what have you done for me lately” seems to be the determinant for flows. I just want to touch upon what is going on in the US because it has been a fairly robust few days of trade. Do you think that investors are still mindful about stretch valuations, the US presidential elections, and the fact that there are geopolitical risks? Cameron Brandt: I do not think they have forgotten, but there is so much good stuff in the proverbial punch bowl at the moment that it is hard to resist. There are some fairly rosy assumptions about the trajectory of interest rates over here. Oil prices have come down, which makes driving cheaper for people here, always good for the mood. And neither of the presidential candidates are saying anything about fiscal discipline. So, there is an assumption that this sort of expansionary fiscal policy will continue into next year.

Lupin Ltd. gained 0.69 per cent to Rs 2191.4 in Monday's trade as of 10:35AM (IST). It hit a high of Rs 2203.6 and low of Rs 2173.2 during the session. The stock quoted a 52-week high price of Rs 2312.0 and a low of Rs 1113.0. The return on equity for the stock stood at 13.5 per cent. About 2,097 shares have changed hands on the counter so far.

Kotak Mahindra Bank shares fell over 4% to Rs 1,793.85 on NSE after the private sector lender after its net interest margin (NIM) moderated 11 bps sequentially to 4.91% and card delinquencies drove an increase in slippage run-rate. «Factoring in slower growth and rising NPAs, we cut our earnings by 1-5% over FY25-27E, while we retain our REDUCE rating with TP of Rs1,700 rolling forward on 1.7x Sep-26E Standalone ABV and subs/inv value at Rs550/share,» Emkay Global analyst Anand Dama said.

Motilal Oswal Financial Services has a neutral call on Axis Bank with a target price of Rs 1,225. The current market price of Axis Bank Ltd. is Rs 1195.25. Axis Bank, incorporated in 1993, is a bank with a market cap of Rs 370216.15 crore. Axis Bank's key products/revenue segments include interest & discount on advances & bills, income From investment, interest and interest on balances with RBI and other Inter-Bank Funds for the year ending 31-Mar-2024.

Although it comes on a higher base, October is turning out to be the highest-ever month in terms of FII selling. Back in March 2020, when FIIs had sold Indian stocks worth $7.9 billion (Rs 58,632 crore), Nifty had the month down 23% despite domestic institutional investors (DIIs) matching the selling with buying of Rs 55,595 crore.

HDFC Bank on Monday jumped 3% to Rs 1,734 on BSE after India's largest private sector lender reported steady performance in Q2 with PAT growth of 5.3% year-on-year (YoY) beating Street estimates. HDFC Bank's board approval to launch the IPO of its NBFC subsidiary – HDB Financial Services — to the tune of Rs 12,500 crore (including OFS of Rs 10,000 crore) to meet regulatory guidelines will also unlock value for shareholders.

Rahul Malani, Banking Analyst, Sharekhan, says if one has an investment horizon of around three years, then this is a good entry point for HDFC Bank from a medium-term perspective. In the near term, it will continue to be guided by the news flows and the quarterly numbers. Malani does not see more than 10-15% upside in the next one to two years. But over three to four years, there is a scene for good re-rating. As for Kotak Mahindra Bank, the Street seeks a timeline for the lifting of the RBI embargo on issuing credit cards and onboarding more online customers via and also the overall submissions to the RBI were unclear. So, until and unless that clarity comes to the Street, Kotak Bank will continue to remain range-bound and trade with a negative bias. Let us start off with Kotak because that is an out-and-out disappointment. Do you think that is much in the price, given that the stock has languished for quite some time now? Rahul Malani: As you rightly alluded, the valuation mostly reflects all the intermittent headwinds. So, we do not feel that there will be a much negative reaction on the stock because the results were weak but that was on expected lines. However, the Street was looking at the timelines for the lifting of the RBI embargo, plus the overall submissions to the RBI that were unclear. So, until and unless that clarity comes to the Street, Kotak Bank will continue to remain range-bound and will trade with the negative bias.

Dalmia Bharat will be in focus on Monday after the firm’s profit slumped by 60% in the September quarter as weak prices of cement weighed on earnings, even as the cement maker sold more cement during the quarter as compared to the previous year. The New Delhi-based company clocked in a net profit of Rs 49 crore for the quarter, down over 60% on year, while income from operations was more than 2% lower at Rs 3,087 crore.

Since the majority of Nifty Bank constituents are yet to announce their figures, traders appeared more inclined to take a risk-on approach, especially since we are coming off a low base, says Anand James, Chief Market Strategist, Geojit Financial Services. «Though the 20-day SMA at 52375 could pose some challenge to Nifty Bank’s ascent, we are counting on the oscillator divergences as well as Friday’s bullish engulfing pattern to provide enough momentum to see 53000,» he says.