Vinod Nair, Head of Research at Geojit Financial Services.
Taking positive momentum from the robust US economic data, the domestic market opened with gains, while worries over the US-China conflict kept investors on the defensive, leading to heavy volatility.
Weak PMI and trade deficit data witnessed downside pressure on the Indian rupee & equity market. However, sustained foreign interest in Indian equities is led to buying on dips, resulting in a late recovery.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty remained highly volatile before closing flat for the day. On the higher end, it found resistance around 17500 and slipped lower. The momentum indicator RSI is in bullish crossover.
The trend is likely to remain sideways to negative as long as it remains below 17500. On the lower end, support exists around 17100-17000.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank Nifty index witnessed high volatility a day before the RBI Policy with movements on both sides. The bulls and the bears are trying to fight from both ends with support at 37,200 and resistance at 38,200 levels. The index needs to break on either side on a closing basis for a trending move on either side. The index is already trading in an overbought zone and a correction cannot be ruled out from the current level.
Rupee Close:
Indian rupee ended lower by 31 paise at 79.47 per dollar against previous close of 79.16.
Market Close: Indian benchmark indices ended marginally lower in the highly volatile session on August 4.
At Close, the Sensex was down 51.73 points or 0.09% at 58,298.80, and the Nifty was down 6.20 points or 0.04% at 17,382. About 1515 shares have advanced, 1735 shares declined, and 141 shares are unchanged.
Cipla, Sun Pharma, Nestle India, Infosys and Apollo Hospitals were among the major gainers on the Nifty. The losers included NTPC, Tata Consumer Products, Coal India, SBI and Reliance Industries.
Among sectors, Metal, IT and Healthcare up 1-2 percent, while Realty index down 1 percent.
BSE midcap and smallcap indices ended with marginal gains.
Britannia Industries Q1 Earnings:
Net profit was down 13 percent at Rs 336 crore against Rs 387 crore, YoY. Revenue stood at Rs 3,701 crore for the quarter ended June 2022.
SBI Q1 Preview: Net profit seen 16% up but treasury could be a drag
Healthy loan growth may be offset by mark-to-market losses on the bank’s bond portfolio after a surge in yields in the June quarter.
Prabhudas Lilladher View on InterGlobe Aviation
“IndiGo reported impressive performance on revenue front led by improved yield. However, soaring fuel costs and higher forex losses continue to play spoilsport,” the brokerage said.
Load factor at 79.6 percent remains considerably below pre-COVID levels of 89 percent, impacted by price hikes. We anticipate the September quarter to be a weak one impacted by seasonality and weak macros,” it added.
“We believe IndiGo is better placed than peers with 55 percent market share. The company will benefit in the medium to long term from (1) demand recovery along with capacity deployment (2) local and global network expansions (3) commodity softening (4) superior balance sheet (4) better than industry cost structure and (5) strong management,” the brokerage added.
“However, inflationary cost environment and rupee depreciation will continue to drag profitability. Maintain ‘hold’ with a revised target price of Rs 1,900 (Rs 1,800 earlier),” it said.
The Board of Directors of Bharat Electronics at their meeting held on 4th August, 2022 has considered and approved the issue of bonus shares to the shareholders of the company in the ratio of 2:1 by capitalizing 4,87,31,85,886 standing to the credit of the free reserves and surplus of the company.
Jefferies On ThermaxForeign research firm Jefferies has maintained buy rating on Thermax with a target at Rs 2,615 per share. The Q1 EBITDA was 8% above the expectations as higher revenue offset lower margin.The margin weakness is in-line with management’s prior quarter commentary. It is a play on corporate India’s focus on ESG.Company’s intention to limit overseas investments is the added sweetener. The margin outlook should sustain/improve and see the stock to rerate, reported CNBC-TV18.
Paytm’s revenue may see a Rs 400 crore hit if rentals for all Soundbox devices brought to zero: Macquarie
The report comes a day after Moneycontrol reported that Paytm’s Soundbox, which announces receipt of payments for shopkeepers, is seeing tough competition from rival PhonePe.
Market at 3 PMBenchmark indices were trading lower in the volatile session with Nifty above 17300.The Sensex was down 131.22 points or 0.22% at 58219.31, and the Nifty was down 32.60 points or 0.19% at 17355.60. About 1328 shares have advanced, 1774 shares declined, and 125 shares are unchanged.
