Equity Alert
KPIT Tech tanks to 52-week low on weak updates for H1FY27
This story was originally published at 11:49 IST on 1 July 2026
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Equity Alert: KPIT Tech tanks to 52-week low on weak updates for H1FY27
MUMBAI--1120 IST--Shares of KPIT Technologies tanked more than 15% to INR 559.20 on the NSE, their lowest level in 52 weeks, after the company said its dollar revenues are seen declining around 1% on year in the June quarter. This, the company said, was not foreseen and was realised in recent weeks. The deterioration in outlook was largely due to sudden actions by some European original equipment makers, it said. In a separate filing Wednesday, the company said it sees revenue in the September quarter similar to that in the June quarter. Brokerages turned cautious after the management's updates.
JM Financial Institutional Securities downgraded the stock to 'reduce' from 'buy'. The brokerage trimmed its target price by nearly 28% to INR 620 from INR 860. The revised target price implies an upside of 11% from the stock's 52-week low. The implications of this reduced guidance by the company may extend beyond the June quarter, the brokerage said in a report, while adding that 2026-27 (Apr-Mar) will likely be a soft year for the company. JM Financial lowered its FY28–29 earnings estimates for the company by 12–13%.
The brokerage expects the company's earnings per share in FY28 to be INR 31.3, down from INR 36.1. In the same year, KPIT Technologies' earnings before interest and tax margin is now seen at 14.6%, down 100 basis points. However, "...client pressures will likely lead to more outsourcing in the medium to long run," JM Financial said. The company will likely benefit once outsourcing goes up, according to the report. The company has commanded a premium multiple due to its consistent execution and sector-leading growth, the brokerage said.
Its earnings before interest, tax, depreciation, and amortisation margin and net profit margin for the quarter ended June "would decline sequentially, proportionately higher than the revenue decline," the company said. There is no scope for cost optimisation during this short period, it added.
Brokerage JPMorgan downgraded the stock to 'underweight' from 'neutral' while also revising its target price downwards to INR 550 from INR 700. The company's weak guidance reflects profit warnings earlier from its largest client BMW, CNBC-TV18 reported the brokerage as saying in a report. BMW accounts for 12% of its KPIT Technologies' revenue. The company is expected to post a decline in its organic revenue for the second straight year in FY27, JPMorgan said. The brokerage projects the company's revenue to fall 2.6% in FY27, compared to a 1.4% drop in FY26. JPMorgan cut its revenue estimates for the compnay by 5-8% over FY27-29, the media outlet reported.
Equirus Securities downgraded the stock to 'add' from long' and reduced its target price by 28% to INR 715 from INR 990. Challenges for the company likely came up due to the West Asia war, issues from US tariffs, and competition from Chinese original equipment makers, the brokerage said. However, the challenges are not likely to lower the company's total addressable market, the broking firm said in a report. The long-term view for the company remains positive, Equirus Securities said. KPIT Technologies is looking to spend 3-5% of its sales on research and development in the coming years and this is likely to make it one of the biggest beneficiaries of spends on artificial intelligence-led software-defined vehicles, the brokerage said. (Ruchira Kagita)
Equity Alert: Waterways Leisure lists at 16% discount to issue price on NSE
MUMBAI--1040 IST--Shares of Waterways Leisure Tourism Wednesday listed at INR 681 on the NSE, a discount of nearly 16% to the issue price of INR 808. At 1108 IST, the stock was over 12% lower at INR 707.95. So far in the day, over 1.6 million shares of the company have changed hands on the exchange. On BSE, the stock listed at INR 690, a discount of nearly 15% to the issue price.
The initial public offer of Waterways Leisure was subscribed nearly 1.46 times, closing on Jun. 25. The issue received bids for 6.09 million shares, against 4.18 million shares on offer. Prior to the bidding, the company raised INR 2.63 billion from anchor investors at INR 808 per share.
Waterways Leisure Tourism is a domestic ocean cruise operator. It intends to introduce new cruise itineraries and destinations catering to various traveller segments. For financial year 2025-26 (Apr-Mar), the company had reported a consolidated net profit of INR 521.43 million on revenues of INR 5.80 billion. (Shruti Nair)
Equity Alert: M&M rises over 3%; co's June sales jump 37%, SUV sales up 28%
MUMBAI--1030 IST--Shares of Mahindra & Mahindra rose over 3% to a high of INR 3,166.30 in early trade after the company reported a 37% on-year rise in its total vehicle sales in June at 106,207 units. The automobile manufacturer's exports more than doubled on year to 5,918 units last month. Following the trend, most automobile stocks rose, with Maruti Suzuki India, Ashok Leyland, and Hero Motocorp leading the gains, up 2-2.4% each, at 1027 IST.
In the domestic utility vehicles segment, Mahindra & Mahindra sold 60,393 vehicles in June, up 28% on year. This was the highest year-on-year growth in the sale of its SUVs since October 2025, when wholesale volumes had risen over 31% on year. Overall utility vehicles sales including exports was 61,504 in June, the company said in an exchange filing. Its domestic commercial vehicles sales grew 35% on year to 26,076 units last month.
At 1024 IST, shares of Mahindra & Mahindra was 3.1% higher at INR 3,162.40 and were among the top gainers in the Nifty 50 index. So far in the day, over 1 million shares of the company changed hands on the National Stock Exchange, compared to 555,019 shares traded till the same time Tuesday. (Arya S. Biju)
Equity Alert: Emkay says IT cos' earnings for June quarter to be subdued
MUMBAI--1021 IST--The June quarter earnings of information technology companies are expected to be subdued due to weak discretionary spending and slower decision-making amid persistent macroeconomic uncertainties, according to Emkay Global Financial Services. Rising client expectations for artificial intelligence-led efficiency gains in cost optimisation and vendor consolidation deals are also likely to weigh on IT majors, the brokerage said.
"AI-led tech landscape is weighing on the decision-making process, influencing enterprise spending and investment priorities," Emkay said. Tier-I companies are likely to continue to face growth challenges, with Infosys and Tech Mahindra expected to lead sequential growth. Revenue in US dollar terms of Tier-I companies are expected to contract 10-30 basis points. Tier–II companies' revenue in US dollar terms is expected to compress 10-60 bps, the brokerage added.
"Among verticals, BFSI continues to show healthy growth trends, though some moderation is visible, while Manufacturing (especially auto) remains soft," Emkay said. Engineering research and development players continue to face pressure due to weakness in automobiles, even though select industrial segments showed resilience. Emkay expects Infosys to revise its revenue growth in constant currency terms to 2–4% on year from the earlier view of 1.5-3.5%. HCL Technologies is likely to retain its revenue growth guidance of 1-4% in constant currency, the brokerage added.
The margins of IT players for the June quarter are expected to be mixed due to a weak rupee, wage hike, business-related seasonality, and mergers and acquisitions, according to Emkay. Tier–I players such as Tata Consultancy Services and Wipro are expected to post margin expansion seasonality. Meanwhile, mid-cap companies may see a wider margin fluctuation ranging from a fall of 100 bps to growth of 40 bps sequentially, the brokerage added. "Net hiring is likely to be muted", Emkay said.
The managements' revenue and margin guidance for 2026–27 (Apr-Mar), commentary on IT spending budgets for 2026, and incremental AI spending against reallocation of existing IT budgets would be the key factors to monitor during the June quarter earnings of IT companies, Emkay said.
At 1020, the Nifty IT was 0.3% lower at 26232, among the worst hit sectoral indices. (Adhithya Aji)
Equity Alert: Indices open higher; Nifty 50 tad below 24000 points
MUMBAI--0945 IST--Domestic benchmark indices opened with marginal gains, after closing lower on Tuesday. The Nifty 50 index opened below the 24000 level for the first time in four days. Major equity indices in the Asia-pacific region were mixed in early trade amid ongoing concerns around US-Iran peace negotiations. Crude oil prices inched up a tad after Iran said it would not hold direct talks with US officials. At 0933 IST, the September futures contract of Brent crude was 0.4% higher at $73.24 a barrel.
At 0922 IST, the Nifty 50 was 0.2% higher at 23915.65, or 49.90 points from Tuesday's close. The BSE Sensex was also 0.2% higher at 76650.05, up 171.38 points. The 50-stock index is over 80 points below the 24000 level. Analysts say only a significant move from this psychologically crucial level could dictate the next directional trend for the market.
Most broader market indices slightly outperformed their benchmark peers. All small-cap indices were 0.4–0.6% higher, while mid-cap indices were up around 0.3% each. Barring the Nifty Metal, Nifty Energy, and Nifty PSU Bank, all sectoral indices were up in early trade. The Nifty Media was the top gainer among them, up nearly 3%. The Nifty FMCG and Nifty Consumer Durables were up around 1% each.
Nestle India, Eternal, Hindustan Unilever and Titan Co. were among the top gainers in the Nifty 50 index, up around 2% each. Automobile companies also gained, with Mahindra & Mahindra and Bajaj Auto gaining 1.3–2.2%. The total sales of M&M in June rose 37% on year, the company said in its monthly update.
In the Nifty 200 index, Dabur India was the top gainer, up 4%. Multi Commodity Exchange of India and Page Industries were up over 3% each in the index. Among the Nifty 500 gainers, RITES was the top performer, up over 9%. Shares of the company rose after it got an INR 1.75-billion order for project management services. Reliance Power was the second-biggest gainer in the Nifty 500, up nearly 9%.
Among the major losers, Tech Mahindra was the key drag in the Nifty 50 index, down nearly 2%. Shares of Bajaj Finserv were also down nearly 2% in the index. Metal companies JSW Steel and Hindalco Industries were down 1% each. In the Nifty 200, KPIT Technologies fell the most, down 14.5%. Shares of the company fell after it said it expected an on-year fall in its sales, net profit, and earnings before interest, tax, depreciation, and amortisation margin in the June quarter. The stock was also the key laggard in the Nifty 500 index.
Waterways Leisure Tourism and Advit Jewels were listed on BSE Wednesday. Shares of Waterways Leisure were listed at INR 690, a discount of 15% to the issue price. Advit Jewels was listed at INR 187, a premium of 36% to the issue price. (Arundathi A R)
Equity Alert: Indices may open higher; crude up as US-Iran talks hit hurdle
MUMBAI--0828 IST--Benchmark indices are expected to open on a positive note Wednesday after falling for two straight sessions. Asian markets were largely mixed in early trade and US stock futures were largely flat as investors continue to assess progress in US-Iran negotiations. However, technical analysts believe that any meaningful move from the psychologically important 24000 point mark, would provide clues about the directional trend of Nifty 50 going forward.
Crude oil prices edged higher in early trade, after Iran said it would not hold direct talks with US officials, raising fresh concerns over the fragile ceasefire that has temporarily halted the four-month-long conflict between the two countries. Further, US President Donald Trump weighed a return to an all-out war with Iran, holding conversations with Defence Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff General Dan Caine on conducting more strikes, The Wall Street Journal reported, citing US officials familiar with the discussion. However, Trump also told aides that he believes another round of full-scale attacks could derail diplomacy and hurt Washington's chances of ultimately dismantling Iran's nuclear program. Trump is fine if negotiations with Iran go past the Aug. 18 deadline for a nuclear deal, according to the officials.
The US and Iran are more than a week into negotiations since agreeing to 60 days of talks two weeks ago. A key point of contention is Iran's insistence upon charging service fees for ships transiting the Strait of Hormuz, the report said. The US says the waterway should be free to transit, as it was before the war began. "The sovereignty of the Strait of Hormuz lies with Iran and Oman, and traffic in the Strait is subject to arrangements determined by Iran," Reuters quoted Iran's top negotiator, Mohammed Baqer Qalibaf as saying on state TV. Iran also says it won't accept severe restrictions on its nuclear work despite Trump insisting that Iran already has made that commitment.
US Vice-President J.D. Vance, in an interview released Tuesday, noted that oil flows through the Strait of Hormuz had returned to pre-war levels, even exceeding that on some days, without citing figures. Market participants will now focus on the upcoming address by US Federal Reserve Chair Kevin Warsh at the European Central Bank Forum on Wednesday for more cues on interest rates, after the central bank struck a hawkish note in its June meeting. Higher interest rates in global markets, could lead to investors pulling out money from emerging markets like India.
The July futures contract of the Gift Nifty indicates a positive opening for the domestic market. At 0807 IST, the futures contract was at 23991.50, around 126 points above the Nifty 50's previous close. Technically, the Nifty 50 index ended around the lower band supports of the past 11 days' consolidation range (23800-24260 spot levels), Vipin Kumar, technical and derivatives analyst at Globe Capital Market, said. Going ahead, a decisive fall below the 23800 spot levels could drag it towards the 23600-23500 spot levels. On the other hand, crossing and sustaining above the 24000 spot levels might lead the index back to the upper band of the consolidation range at 24260 spot levels.
Shares of KPIT Technologies will be in focus after the company said its revenue for the June quarter is expected to decline about 1% year-on-year in dollar terms, primarily due to sudden actions by some European original equipment manufacturers, triggered by an adverse business outlook. The net profit and operating profit margin for the quarter are also likely to decline sequentially, the company said in an exchange filing post-market hours Tuesday. Automobile stocks will also be in focus with companies announcing their June monthly sales data. (Arya S. Biju)
Equity Alert: Asian indices mixed amid fresh hurdles in US-Iran negotiations
MUMBAI--0805 IST--Stock indices in Asia were mixed in early trade on Wednesday as investors evaluated new hurdles in negotiations between the US and Iran. Tuesday, Iran said it would not meet top US envoys who flew to the region, raising uncertainties regarding lasting peace between the two warring parties. Subsequently, crude oil futures saw an uptick and climbed above the $73 per barrel mark.
Iran refused to meet US envoys Jared Kushner and Steve Witkoff, who arrived in Doha for what the White House described as "high level" talks. Instead, the West Asian nation and host Qatar said the US envoys would meet with mediators rather than Iranian officials, according to a Reuters report. "No meeting at any level with the American side has been scheduled for the coming days," Reuters reported, quoting Iranian Foreign Ministry spokesperson Esmaeil Baghaei.
Japan's Nikkei 225 was marginally higher after climbing nearly 3% earlier in the session, led by gains in shares of electronics and metal companies. With the Japanese yen plummeting to new 40-year lows, investors in the region are keeping an eye on possible intervention by the Bank of Japan. Expectations for a gradual pace of interest rate hikes by the Bank of Japan, along with growing possibility of the US Federal Reserve raising the Fed funds rate this year, are putting pressure on the yen and pushing the dollar higher, according to a report by Dow Jones Newswires.
South Korea's Kospi was the worst-hit index in the region. The benchmark shed over 3% in early trade, giving up its opening gain of 1.4%. Heavyweight constituents SK Hynix and Samsung Electronics were down over 5-6%. Among other laggards, Australia's S&P / ASX 200 was down 0.6% during early trade. Markets in Hong Kong are shut on Wednesday on account of a public holiday.
Following are the levels of key indices in the region at 0759 IST:
| Index | Level | Change in % |
| CSI 300 Index | 4974.26 | (-)0.1 |
| Nikkei 225 Day | 70246.66 | 0.3 |
| TOPIX FIRST SECTION | 4001.68 | 0.2 |
| KOSPI | 8149.80 | (-)3.9 |
| FTSE Singapore Strait Times | 5177.86 | 0.1 |
| S&P/ASX 200 Index | 8728.8 | (-)0.6 |
(Shruti Nair)
Equity Alert: US mkt ends up as chip stocks gain; Dow sets new closing high
MUMBAI--0730 IST--US equity indices ended higher on Tuesday, marking the end of the second quarter and the first half of the year. Stocks of chipmakers led the gains. The Dow Jones index witnessed a record closing high for the second session in a row, though peers S&P 500 and Nasdaq saw sharper gains. Shares of Advanced Micro Devices were among the highest gainers. The stock ended nearly 8% higher, while peer Intel closed 6% higher. Sector leader Nvidia was also among the gainers and ended nearly 3% higher.
Despite the geopolitical volatility that characterised the first half of the year, major indices rose 8–13% over the period. Volatility in energy prices due to the US-Iran war as well as scepticism towards artificial intelligence-related spending were the main factors that played on the market sentiment in the first half. Nevertheless, all major indices hit their respective record highs during this period. Further, stocks fared better in the second quarter of the year, as fears around the AI trade eased and a resolution to the war appeared to be in sight, according to a CNBC report.
The Dow Jones Industrial Average gained over 8% in the first six months of the year, while the S&P 500 climbed over 9%. The Nasdaq outperformed its peers during this period with a near 13% gain, CNBC reported. "For me the lesson of the first half of 2026 is that earnings matter more than just about anything, except for maybe interest rates," Tim Holland, chief investment officer at Orion, told CNBC.
Unless hostilities resume between the US and Iran, Holland expects the bull market to continue for the rest of the year and sees investors moving more into cheaper areas of the market. "Interest rates are probably going to be a little elevated, which tends to be a headwind for higher-price growth stocks, but tends to be a tail wind for economically sensitive stocks and the like," according to Holland.
Following were the closing levels of major US indices on Tuesday:
US Indices | Levels | Change in % |
Dow Jones Industrial Average | 52319.2 | 0.3 |
NASDAQ Composite | 26213.72 | 1.5 |
S&P 500 | 7499.36 | 0.8 |
(Shruti Nair)
US$1 = INR 94.73
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
All prices from National Stock Exchange, unless otherwise specified.
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