Equity Alert
Asian markets close mixed with KOSPI down 4.5%
This story was originally published at 14:26 IST on 20 July 2026
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Equity Alert: Asian markets close mixed with KOSPI down 4.5%
MUMBAI--1345 IST--Asian stock indices closed mixed amid escalation in the US-Iran war, which pushed crude oil prices higher. South Korea's KOSPI led the losses in the region due to a sell-off in technology stocks, and trading being halted. Index heavyweights fell sharply as well.
Both the indices in China ended higher. China's CSI 300 closed 1.5% higher. Transceivers manufacturer Zhonji Innolight Co. rose as much as 8%, before closing 2.5% higher. This was after the company received approval for its Hong Kong Stock Exchange listing. Hong Kong's Hang Seng closed more than 2% higher. Index heavyweight stock Alibaba rose 3.7% after announcing the launch of its flagship Qwen 3.8 Max model on Sunday.
South Korea's Kospi closed 4.5% lower and small-cap Kosdaq fell 5.3%. Index heavyweights Samsung Electronics and SK Hynix fell more than 4%. Trading was halted on the exchange earlier in the day due to a sharp fall. Automobile major Hyundai Motor Co. fell 6.1%, as the company's labour union went on a four-hour partial strike. The union is expected to continue the strike for the next two days, BusinessKorea reported.
Following are the levels of key indices in the region at 1335 IST:
|
Index |
Level |
Change in % |
|
Nikkei 225 Day |
64141.12 | (-)4.0 |
| TOPIX FIRST SECTION | 3919.21 | (-)2.7 |
| S&P/ASX 200 Index | 8791.3 | (-)0.06 |
| KOSPI Index | 6516.27 | (-)4.5 |
| Hang Seng Index | 25084.26 | 2.13 |
| CSI 300 Index | 4598.32 | 1.5 |
|
FTSE Singapore Strait Times |
5497.39 | (-)0.2 |
(Deesha Jadhav)
Equity Alert: Shyam Metalics hits all-time high on Q1 results; PAT beats view
MUMBAI--1339 IST--Shares of Shyam Metalics and Energy rose nearly 7% to an all-time high of INR 1,090 after the company detailed its June quarter earnings. The company's bottom line and top line rose over 18% and 23%, respectively, and both metrics were above the Street's view.
For the June quarter, the metal company reported a consolidated net profit of INR 3.45 billion, up over 18% on year. The net profit of the company was higher than analysts' estimate of INR 3.09 billion. The revenue rose over 23% on year to INR 54.55 billion, higher than the Street's estimate of INR 52.81 billion. Shyam Metalics' earnings before interest, tax, depreciation, and amortistaion were at INR 8.12 billion for the June quarter, up over 28% on year. The EBITDA margin was 14.9% for the reporting quarter.
At 1337 IST, shares of the company were over 5% higher at INR 1,076.85. Nearly 2 million shares of the company changed hands on NSE, 13 times the number of shares traded till the same time Friday. The stock was the top gainer in the the Nifty 500 index. (Adhithya Aji)
Equity Alert: Indices off lows; Axis Bank, HDFC Bank remain worst hit
MUMBAI--1335 IST--Indices came off lows after shares of index heavyweight ICICI Bank extended gains. Earlier, the Sensex had fallen slightly more while the Nifty 50 was largely unchanged as index heavyweight banking stocks remained in losses. Private sector banks such as HDFC Bank and Axis Bank continued to be the worst performers in the Nifty 50 after the June quarter earnings of these banks disappointed the Street.
At 1334 IST, the Nifty 50 was at 24240.35, down 93.95 points or 0.4%, and the BSE Sensex was at 77735.34, down 416.11 points or 0.5%. Despite being under selling pressure, the 50-stock index continued to be above the psychologically important support level of 24000 points.
Among sectoral indices, the Nifty Private Bank was the worst hit, falling 2.6%, followed by Nifty Financial Services and Nifty Bank, which were down 1.7% and 1.4%, respectively. Volatility gauge India VIX came off highs and was 0.4% higher at 13.2000.
All broader market indices were trading with gains with mid-cap indices rising more than their small-cap peers. Almost all these indices outperformed the benchmark indices. Nifty Midcap 150, Nifty Midcap 100, and Nifty Midcap 50 were up around 0.6?ch, while Nifty Smallcap 250, Nifty Smallcap 100, and Nifty Smallcap 50 were 0.2-0.4% higher. (Simran Rede)
Equity Alert: PNB shares rise 6% as Q1 PAT beats view, brokerages positive
MUMBAI--1251 IST--Punjab National Bank's shares rose nearly 6% to a one-month high of INR 111.68 after the public sector bank detailed its June quarter earnings on Saturday. The bank's bottom line for the quarter sharply beat the Street's estimate and jumped 214% on year. Brokerages said lower provisions, lower fundings costs, and core operating performance aided Punjab National Bank's earnings for the reporting quarter.
For the March quarter, Punjab National Bank reported a net profit of INR 52.53 billion, up nearly 214% on year and marginally on quarter. This was higher than the Street's expectation of INR 47.24 billion. The total incme of the bank was INR 372.31 billion, up nearly 3% on quarter and unchanged on year. The bank's net interest margin for the quarter was 2.5%, higher than 2.47% reported in the March quarter. The metric was lower than the management's 2026-27 (Apr-Mar) guidance of 2.60-2.70%.
Nirmal Bang Institutional Equities is of the view that the loan growth momentum of the bank is likely to remain healthy on retail, agriculture, and micro, small, and medium enterprise portfolios. The margins for Punjab National Bank are seen improving due to lower reliance on high-cost bulk deposits, run-off of low-yield corporate, healthy core retail growth and incremental foreign currency non-resident deposits. "Operating costs are expected to remain well contained," Nirmal Bang said.
The bank is partnering with foreign banks that are absent in India to attract more FCNR (B) deposits, Executive Director M. Paramasivam told Informist on Saturday. Punjab National Bank plans to mobilise $2.5 billion through FCNR (B) deposits, Chief Executive Officer Ashok Chandra said in a post-earnings conference call. The bank has raised $425 million through the FCNR(B) route till date.
At 1248 IST, shares of the bank were nearly 4% higher at INR 109.65. Nearly 80 million shares of the bank exchanged hands on the NSE, sharply higher than 7 million shares traded till the same time Friday. The stock was among the top gainers among Nifty 200 constituents. (Adhithya Aji)
Equity Alert: HDFC Bank dn 5%; Q1 PAT misses view, net interest margin falls
MUMBAI--1149 IST--HDFC Bank's shares fell over 5% to an intraday low of INR 777.50 after the bank detailed its June quarter earnings on Saturday. The bank missed analysts' estimate for the bottom line, and the net interest margin contracted 12 basis points sequentially.
For the March quarter, India's largest private sector lender reported a consolidated net profit of INR 190.60 billion, down nearly 1% on quarter but up nearly 5% on year. The bottom line was below the Street's expectations of INR 192.82 billion. HDFC Bank's total income was INR 921.84 billion, up nearly 3% sequentially but down 7% on year.
HDFC Bank reported a mixed earnings for the June quarter due to lower fee income and continued net interest margin compression, according to JM Financial. The brokerage said the bank's loan growth for the quarter was robust at nearly 16%, led by wholesale and micro, small, and medium enterprises portfolios. However, deposit growth continued to lag loan growth, down nearly 15% on year, leading to a marginal increase in the credit deposit ratio to around 96%, JM Financial added.
HDFC Bank's ability to grow at a faster pace is limited by the stretched credit deposit ratio and low liquidity coverage ratio of 115%, JM Financial said. The asset quality of the bank remained a positive key, with stable gross non-performing assets ratio and net non-performing assets ratio at 1.17% and 0.41%, respectively, the brokerage said. JM Financial maintained an 'add' call on the stock and raised the target price by over 1% to INR 900.
At 1145 IST, shares of HDFC Bank traded nearly 5% lower at INR 780.55. The stock was the second-worst hit in the Nifty 50. Over 30 million shares of the bank changed hands on the NSE, over four times the number of shares traded till the same time Friday. (Adhithya Aji)
Equity Alert: Brokerages view ICICI Bank as top pick; bk's Q1 PAT beats view
MUMBAI--1137 IST--Shares of ICICI rose over 2% to hit their highest level in nearly a year at INR 1,480 after the private sector lender detailed its June quarter earnings on Saturday, beating the Street's view on its bottom line and net interest income. The bank's Apr-Jun net profit rose 16% on year to INR 148.05 billion, while its net interest income rose 13% on year to INR 243.84 billion. A rise in net interest margin and fall in provisions helped drive the lender's strong operating performance.
JM Financial highlighted the private sector lender's sector-leading loan growth, better NIM management, and strong asset quality trends. The brokerage sees the lender commanding a premium valuation among peers and increased its financial year 2026–27 (Apr-Mar) and FY28 earnings per share estimates for the lender by 2–5%. The brokerage raised its target price on the stock by 5% to INR 1710 and maintained its "buy" recommendation on the stock.
IDBI Capital highlighted the bank as its preferred pick among peers. The brokerage believes the lender can compound earnings sustainably through the cycle on the back of the bank's sector-best profitability, accelerating risk-calibrated growth, granular deposits, and fortress capital. The brokerage retained its "buy" recommendation on the stock with a target price of INR 1,730.
Motilal Oswal said that the lender remained its top "buy" recommendation in the sector with a target price of INR 1,750 per share. It also raised its earnings estimate by 4–5%, factoring in return on assets of 2.3% and return on equity of 16.8% for FY28. The brokerage sees the lender's credit costs at 0.4-0.5%. "The bank continued to deliver growth and profitability at a scale that is even beyond the aspirations of most peer banks," the brokerage said in its report.
Nuvama Institutional Equities also stated the lender as its top pick among banks on the back of its system-beating credit growth, superior return on assets and return on equity delivery estimated at 2.2% and 16%, respectively, over financial year 2026-27(Apr-Mar) and FY29, strong provision buffers, and credible management. The brokerage raised its target price on the stock by 3% to INR 1850 and maintained its "buy" recommendation on the stock.
Nirmal Bang expects the lender to sustain its strong earnings trajectory on the back of robust credit growth, benign asset quality cycle, and resilient margin and fee income momentum which the brokerage expects to drive a 2.3-2.4% return on assets. The brokerage raised its target price on the stock by nearly 16% to INR 1820 and maintained a "buy" recommendation.
At 1137 IST, shares of ICICI Bank were at INR 1453.70, up 1% from Friday, on the National Stock Exchange. Over 13 million shares of the bank have changed hands on the exchange so far, nearly five times the number of shares traded till the same time on Friday. (Shruti Nair)
Equity Alert: Indices remain lower; traders turn bullish on PSU banks
MUMBAI--1130 IST--Traders bought into shares of state-owned banks on Monday and offloaded shares of major private banks. The Nifty PSU Bank index gained around 2% and was the top gainer among sectoral indices. Sentiment around the government-owned banks improved after Punjab National Bank reported better than expected earnings for the June quarter on Saturday.
Meanwhile, benchmark indices remained lower but the Nifty 50 remained above 24200 points. At 1125 IST, the 50-stock index was at 24212.85 points, down 121.45 points or 0.5%. The BSE Sensex was at 77649.35, down 502.10 points or 0.6%.
Shares of Punjab National Bank rose 6% to hit a high of INR 111.68 and was the top gainer in the Nifty 200 index. The bank exceeded the Street's estimates and reported a massive on-year surge in its net profit for the quarter under review, led by an extraordinarily low base.
The state-owned bank's net profit skyrocketted 214% on year during the quarter and came in at INR 52.53 billion, sharply higher than the consensus estimate of INR 47.24 billion, However, a sharp rise in provisions and a steady fall in other income during the quarter limited the overall jump in profit. Sequentially, the net profit was largely unchanged.
Nirmal Bang Institutional Equities expects the momentum in loan growth to remain healthy, supported by traction in retail, agricultcure, and medium, small, and micro enterprises segments. "Margin improvement is also likely to continue, aided by lower reliance on high-cost bulk deposits/CDs, runoff of low-yield corporate and IBPC assets, healthy core retail growth and incremental FCNR deposits," the broking firm said.
"Operating costs are expected to remain well contained. However, lower recoveries and a gradual normalisation in credit costs (including lower write-back opportunities and the recurring impact of ECL provisioning) could temper profitability,...," it added. The stock was up 4%.
Other state-owned banks also gained. Barring State Bank of India, Central Bank of India, and Punjab & Sindh Bank, all other such stocks were higher. Union Bank of India rose around 3% and was up after two sessions of a fall. Bank of Baroda, Canara Bank, amd Indian Bank traded more than 2% higher each. (Gopika Balasubramanium)
Equity Alert: Axis Bank falls 6%; net interest margin contracts in Q1
MUMBAI--1128 IST--Shares of Axis Bank fell almost 6% to INR 1,249.10, their lowest level in over a month, after the lender reported its earnings for the June quarter Saturday. Analysts were cautious given the contraction in the lender's net interest margin sequentially and on year. The bank's net profit was, however, higher than the consensus estimate. Brokerages retained their ratings on the stock.
Sustainability of loan book growth will be key to monitor for the bank, Ambit Institutional Equities said. For the quarter ended June, its net advances rose 19% on year to INR 12.6 trillion. Loan growth in the retail and agriculture segments was subdued, but is expected to pick up in the next few quarters, according to the brokerage. Ambit estimates the lender's loan book to rise around 17% at a compounded annual rate between 2025-26 (Apr-Mar) and FY29. Further, a surge in its unsecured retail loans could exert pressure on operating expenses in the coming quarters, the brokerage said, and hence estimated the bank's cost-to-assets at about 2.1% over FY27-28.
The bank's net interest margin fell by 16 basis points on quarter and 24 bps on year to 3.46% and this was owing to a wholesale-led loan mix, according to Ambit. "...superior growth trajectory is led by high-quality wholesale book which is expected to weigh on margins until retail growth accelerates," the brokerage said in its report. It reaffirmed its 'buy' stance on the stock with a slightly higher target price of INR 1,550, as compared to INR 1,500 earlier.
The fall in the bank's net interest margin suffered by 3 bps due to interest income reversals, 4 bps from shifts in its balance sheet, and 9 bps from loan repricing, Motilal Oswal Financial Services said. Its asset quality deteriorated only slightly. The bank's gross non-performing asset ratio was at 1.28% as of Jun. 30, higher than 1.23% a quarter ago. Its net NPA ratio as of Jun. 30 was 0.39%, marginally higher than 0.37% a quarter ago. Motilal Oswal revised its estimates for the private sector bank's net profit by 1.5% to INR 301.8 billion for FY27 and by over 2% to INR 374.6 billion for FY28. The brokerage maintained its 'neutral' call on the bank and has a target price of INR 1,500.
Axis Bank's margins are expected to improve in the second half of this financial year, Emkay Global Financial Services said. This is anticipated to be driven by lower funding and credit costs. The bank's return on assets is estimated to be 1.6-1.8% over FY27-29 from 1.4% in FY26, the brokerage said. Emkay Global retained its 'buy' call on Axis Bank with an unchanged target price of INR 1,600. The stock's valuation at a price-to-adjusted book value of 1.4 times based on FY28 earnings estimates is "cheap," the brokerage said.
The private sector lender's bottom line for the June quarter rose 22.5% on year to INR 71.14 billion, which was marginally higher than the INR 70.71 billion a quarter ago. During the quarter, the bank reported robust on-year growth of 8% in net interest income at INR 146.46 billion. At 1125 IST, shares of the bank were over 5% lower at INR 1,259.20 on the NSE. Its trading volumes on the bourse were over 15.5 million, over five times higher compared to the same time Friday. The stock was the top laggard in the Nifty 50 index. (Ruchira Kagita)
Equity Alert: Indices pare losses; Nifty 50 bounces back above 24200 pts
MUMBAI--1050 IST--Indices pared some losses and the Nifty 50 bounced back above its crucial support of 24200 points one hour into trading. Shares of major private sector banks continued to fall. Select automobile stocks traded lower, while some state-owned banks and media companies gained. Broader market indices continued to gain and outperformed benchmark peers. The risk-off sentiment in the market was broadly higher, as indicated by a 3% increase in the India VIX.
Traders sold shares of Axis Bank, HDFC Bank, and Kotak Mahindra Bank, resulting in a fall of 3-5% in these. This was after the margins of these banks contracted sequentially in the June quarter. Axis Bank's management expects the margins to start recovering in the upcoming quarters and said this was the "cycle bottom" in Apr-Jun.
In case of Kotak Mahindra Bank, Nirmal Bang Institutional Equities said, "While the management did not provide fresh NIM (net interest margin) guidance, it had earlier indicated that FY27 (2026-27 (Apr-Mar)) margins are likely to be lower than in FY26 due to elevated funding costs." The bank's management also said it anticipates a one-time impact of less than 2% of its net worth on transitioning to expected credit loss norms.
HDFC Bank's June quarter earnings disappointed traders, primarily due to weaker-than-expected net interest margin when all the other metrics were more or less in line with expectations. "The medium term outlook remains positive, supported by improving credit growth, best-in-class asset quality and strong capital," IDBI Capital Markets & Securities. "AI-led productivity, branch maturation and gradual margin recovery should drive steady earnings growth," the report said.
At 1029 IST, the Nifty 50 was at 24227 points, down 107.30 points, or 0.4%. The highest level the index hit so far Monday was 24262.35 points. The BSE Sensex was at 77699.56 points, down 451.89 points, or 0.6%. (Gopika Balasubramanium)
Equity Alert: UltraTech Cement trades tad higher ahead of Apr-Jun results
MUMBAI--1048 IST--Shares of UltraTech Cement were higher ahead of the company's June quarter earnings later in the day. The company is expected to detail its results during market hours, possibly during the second half of the trading session, according to past trends. An increase in operating costs is expected to offset gains in sales for the company and slow down the bottom line growth. At 1045 IST, the stock was up 0.5% at INR 11,782 on the NSE.
The cement-maker's operating profit is expected to grow at a slower pace than its revenue due to the impact of higher rise in freight, packaging, and other input costs. The company is expected to report a consolidated net profit of INR 24.99 billion, up 10% on year, according to the average of estimates from 12 brokerages. The net profit estimates for the company range from a high of INR 27.45 billion by Prabhudas Lilladher to a low of INR 21.48 billion by Nuvama Wealth Management Ltd. From the March quarter, the net profit is seen falling 17%.
UltraTech's consolidated revenue from operations for the quarter is estimated at INR 240.46 billion, up 13% on year and down 6.8% on quarter, as per the average of 12 estimates. The highest estimate for net sales is INR 245.50 billion from Elara Securities (India) Pvt. Ltd. and the lowest is INR 231.91 billion from Prabhudas Lilladher.
Of the 17 brokerage reports on UltraTech Cement available with Informist, 15 recommend a "buy" with an average target price of INR 14,077 per share, which is nearly 20% higher than the current market price. Two have a "hold" call on the stock. (Gopika Balasubramanium)
Equity Alert: Indices open lower; major banks fall, RIL up marginally
MUMBAI--0940 IST--Benchmark stock indices opened lower on Monday, with traders aggressively selling shares of major private banks as their results for the June quarter were disappointing with contraction in their net interest margins. A sudden spike in crude oil prices also dampened traders' sentiment. The near-month futures contract of Brent crude oil was at around $90 a barrel Monday, as the conflict in West Asia continued to escalate.
At 0936 IST, the Nifty 50 index was at 24189.80 points, down 144.50 points or 0.6%. The 50-stock index breached the intraday support of 24200 points within 20 minutes into trading. It has fallen as low as 24149.90 points so far. The BSE Sensex was at 77573.61, down 577.84 points or 0.7%. Broader market indices quickly recovered from the slight fall during open and were marginally higher now.
Private banks such as Axis Bank, HDFC Bank, and Kotak Mahindra Bank were hit the hardest among Nifty 50 stocks. While some of them surpassed consensus estimates for June quarter net profit, contraction in margins led to negative sentiment around these stocks. The three banks traded over 3-5% lower. Meanwhile ICICI Bank, which did exceptionally well during the quarter, gave up initial gains and was marginally higher.
InterGlobe Aviation fell around 2% at open amid a spike in crude oil prices. However, upstream oil companies such as Oil & Natural Gas Corp. and Oil India were 1-2% higher as they benefit from higher crude oil prices. Reliance Industries traded about 0.6% higher as the oil-to-chemicals major's net profit for Apr-Jun was better than expected, even as the metric fell 22% on year. (Gopika Balasubramanium)
Equity Alert: Analysts say long-term growth intact for HDFC Bk despite Q1 miss
MUMBAI--0905 IST--Though HDFC Bank's earnings for the June quarter broadly missed the Street's expectations, analysts remain constructive on the bank's long-term growth trajectory, given its portfolio mix, scope for lower funding costs and better operating leverage. A rise in foreign currency non-resident bank deposits is seen supporting the bank. Brokerages maintained their recommendations on the stock.
HDFC Bank continues to outpace the industry with around 15% on-year deposit growth, Ambit Institutional Equities said in a report. The lender's mobilisation is intact and will also be supported by FCNR(B) deposits, it said. Ambit maintained its 'buy' stance on the bank with a target price of INR 1,050. It in fact prefers it over ICICI Bank, State Bank of India, and Axis Bank. The brokerage does not see material funding risks for the lender and expects its deposits to grow 15% at a compounded annual rate between 2025-26 (Apr-Mar) and FY29.
Though the June quarter was relatively soft for the banking giant, it will be a key beneficiary of the ongoing mobilisation of FCNR(B) deposits and this will support its credit growth and margins in the future, Nuvama Institutional Equities said. The bank posted on-year credit growth of 15% while its margin narrowed 13 basis points to 3.4%. Its net profit of INR 190.60 billion missed the brokerage's estimate by 5%. HDFC Bank's strong franchise, robust capital, provision buffers, and "undemanding valuation" offer an attractive risk-reward, Nuvama said. The brokerage maintained its 'buy' call on the stock with a target price of INR 1,025 apiece.
The private bank's net interest margin remained the key miss, Motilal Oswal Financial Services said. The net interest margin for the June quarter had contracted 12 basis points on quarter to 3.26%. Its loan book was supported by small and medium enterprises and corporate segments, the brokerage noted. "...meaningful scope for improvement remains as INR400–500b of high cost borrowings mature over the next two years," the brokerage said. These high-cost borrowings maturing should lead to the bank's funding costs declining, according to Motilal Oswal. For now, the brokerage cut its earnings estimates for the bank by 2% for FY27 and FY28 by 2?ch. It expects the bank's return on assets to be 1.84% in FY28 and return on equity to be 14.7%. Motilal Oswal maintained its 'buy' recommendation on the stock with a target price of INR 1,050.
India's largest private sector lender reported a net profit of INR 190.60 billion for Apr-Jun, compared to INR 181.55 billion a year ago. The figure missed analysts' estimate by over INR 2 billion. Its bank's total income fell over 7% to INR 921.84 billion in the June quarter. Friday, shares of the bank had closed over 1% up at INR 819.60 on the NSE. (Ruchira Kagita)
Equity Alert: Brokerages retain 'buy' on Kotak Bk; lender's Q1 PAT beats view
MUMBAI--0855 IST--Several brokerages maintained their "buy" recommendation on Kotak Mahindra Bank after the lender's net profit for the June quarter surpassed analysts' estimates. For Apr-Jun, the private sector lender reported a 26% on-year jump in its net profit at INR 41.23 billion. The bank's net interest income rose to INR 79.28 billion from INR 72.59 billion in the year-ago period. However, the lender's margin fell to 4.53% from 4.67% in the March quarter.
Nuvama Institutional Equities increased its target price on the stock by over 2% to INR 1,765 and upgraded its recommendation on the stock to "buy" from "hold", citing reasonable valuation after the stock correction. The brokerage also raised its earnings estimates by 2–3% over financial year 2026–27 (Apr-Mar)-FY29 after the lender beat the June quarter expectations. The brokerage factored in a healthy return profile, foreseeing return on assets of 2% and return on equity of 12–13% over FY27–29. Any re-rating would depend on credible changes in the managing director and chief executive officer profiles, the brokerage said in its report.
ICICI Securities echoed a similar view, stating valuations have turned favourable following the recent correction in the stock. The brokerage retained its "buy" recommendation on the stock with an unchanged target price of INR 475. It foresees steady margins and stable asset quality, but underscored that deposit growth needs to pick up. For the June quarter, the lender's deposits came in at INR 5.73 trillion, broadly unchanged from a quarter ago. The brokerage also highlighted leadership transition, something to watch out for.
The lender's outlook remains favourable on the back of healthy loan growth, benign asset quality, and continued cost discipline, Nirmal Bang said in a research report. The brokerage expects these factors to support 2% return on assets trajectory and maintained a "buy" recommendation on the stock and raised the target price by nearly 5% to INR 475. Prabhudas Lilladher kept its target price unchanged at INR 480, retaining its "buy" recommendation on the stock, citing the possibility for better operating efficiency to sustain on the back continued investment in technology. (Shruti Nair)
Equity Alert: RIL Q1 oil-to-chemicals earnings beat view, brokerages positive
MUMBAI--0835 IST--Reliance Industries' earnings from its oil-to-chemicals operations in the June quarter beat analysts' expectations, even as the retail segment displayed a weak performance. The company's Jio vertical was largely in line with the Street's estimates. The company's net profit also beat consensus estimates. Brokerages maintained their ratings on the stock and several expect the company's oil-to-chemicals to drive near-term growth.
The June quarter reflects stronger middle-distillate cracks and firmer petrochemical spreads and these supported the company's earnings before interest, taxes, depreciation, and amortisation in the oil-to-chemical vertical, Equirus Securities said. Its EBITDA per tonne rose 24% sequentially to about $115, the brokerage noted, higher than the $111 it had pencilled in. Reliance's Jio business "sustained its run," the brokerage said. Jio's average revenue per user had risen 1% on quarter to INR 216. Tariff hikes by the telecommunications player will be the next catalyst the brokerage will keep an eye out for, it said. However, the company's retail business was soft, with revenues in the segment increasing 7% on year and EBITDA falling to a 15-quarter low, Equirus said. The brokerage maintained its target price at INR 1,537 with a 'long' recommendation.
Reliance's June quarter earnings beat Emkay Global Financial Services' estimates, driven by earnings in the oil-to-chemicals and upstream divisions. "O2C (oil-to-chemical) benefited from elevated fuel cracks and downstream deltas," the brokerage said, adding that gains were partly offset by disruptions due to the West Asia war. The company's Jio business saw margin expansion, supported by operating leverage, Emkay Global said. The brokerage retained its earnings per share estimates for the company for 2027-28 (Apr-Mar) and FY29 while raising it for FY27 by 2% on strong oil-to-chemicals earnings. Emkay Global reaffirmed its 'buy' call with a target price of INR 1,680.
Weakness in the richly-valued retail diluted the beat in the company's EBITDA supported by the oil-to-chemicals business, Nuvama Institutional Equities said. The company's retail segment is valued at an enterprise multiple of 27, the broking firm said. The oil-to-chemical segment's EBITDA jumped over 17% on year to INR 170.10 billion. For the March quarter, the EBITDA was at about INR 145 billion. "O2C positioned to benefit from stronger refining cracks amid West Asia disruptions," the brokerage said. Nuvama maintained its 'buy' stance with an unchanged target price of INR 1,765.
For the June quarter, Reliance's consolidated net profit fell over 22% on year to INR 209.46 billion, but was above analysts' expectation of INR 190 billion. The company had reported a one-time income of INR 89.24 billion in the June quarter last year. Adjusting for the one-time income, its consolidated net profit for the reporting quarter rose nearly 16%. Its revenue rose over 25% on year to INR 3.12 trillion. Friday, shares of the company closed over 2% higher at INR 1,327.20. (Ruchira Kagita)
Equity Alert: Mkt to open tad down; index heavyweights' Apr-Jun results eyed
MUMBAI--0832 IST--Traders are expected to react to the June quarter earnings of index heavyweights and the indices are seen moving in tandem with that. Over the weekend, about four banks and Reliance Industries, which together hold over 34% weightage in the Nifty 50, detailed their results. Traders may also factor in the fresh spike in crude oil prices to $90 a barrel, after the US attacked Iran for the second week since the former ended the truce. The July contract of GIFT NIFTY was sharply lower, indicating a negative open for the market.
At 0724 IST, the July contract of GIFT NIFTY was at 24289.50, down 115 points or 0.5%. The 50-stock index Friday settled a percent higher 24334.30 points. The BSE Sensex closed at 78151.45 points, up 964.58 points or 1.3%. On Monday, sustenance above 24330 points is crucial and it is expected to be a muted open for Indian equities, Vipin Kumaar, assistant vice president – Globe Capital Market said. This level is expected to be breached in the near term, and the index is seen inching towards 24500-24550 points. If the 50-stock index falls below 24200 points, the index may be pushed back to move in a range, he added.
Meanwhile, foreign investors started to sell Indian stocks after making a brief comeback to the market in early July. They have been net sellers ever since the US ended the interim peace deal with Iran, and on Friday they sold domestic stocks worth INR 3.76 billion. Meanwhile, inflows from domestic investors helped the Indian market stay put, with them net buying for ninth session.
On Saturday, major private banks such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank declared their results. HDFC Bank's net profit for the quarter came in slightly below estimates and its net interest margin contracted 13 basis points on quarter to 3.4%. On the other hand, ICICI Bank's net profit for the quarter was better than expected and rose 16% on year. The private lender's NIM also improved on a sequential basis and was at 4.36%. The expansion in NIM was a positive surprise as the margin of its peers more or less contracted.
Others private banks such as Kotak Mahindra Bank and Axis also reported higher-than-expected profits for the quarter under review. However, overall margins contracted for both the players. Kotak's management indicated that acquisition of Deutsche Bank's retail portfolio should be give return-on-equity accretive over time. Nuvama upgraded Kotak Mahindra Bank to 'buy' and increased target price to INR 460 as against Friday's close of INR 389.95. (Gopika Balasubramanium)
Equity Alert: Asian markets open mixed amid West Asia escalations
MUMBAI--0738 IST--Asian markets opened mixed Monday as the war in West Asia escalated as the US military began its ninth consecutive night of strikes against Iran Sunday. Japanese markets are closed Monday for Marine Day.
South Korea's Kospi opened 4% lower as index heavyweights SK Hynix and Samsung Electronics both opened almost 3% lower. The China Securities Regulatory Commission has invited market participants to a meeting Monday to collect opinions for policymaking to promote stable market stability, the official Securities Times reported.
State-owned China Reform Holdings Corp. has spent 50 billion yuan buying stocks to stabilise the market and will continue to increase equity holdings. The company said it "is unwaveringly confident in the outlook for China's capital markets, and will resolutely support tech innovation and high-quality growth of state-owned companies," according to Reuters.
China's CSI opened almost 2% higher. Hong Kong's Hang Seng opened 2% higher and was the best performer among its peers. China's stock market had tumbled more than 5% last week on concerns over liquidity among investors. Australia's S&P/ASX 200 Index traded almost flat.
Following are the levels of key indices in the region at 0744 IST:
|
Index |
Level |
Change in % |
|
Nikkei 225 Day |
64141.12 | (-)4.0 |
| TOPIX FIRST SECTION | 3919.21 | (-)2.7 |
| S&P/ASX 200 Index | 8799.1 | 0.03 |
| KOSPI Index | 6543.52 | (-)4.1 |
| Hang Seng Index | 25115.25 | 2.25 |
| CSI 300 Index | 4614.90 | 1.9 |
|
FTSE Singapore Strait Times |
5521.52 | 0.2 |
(Deesha Jadhav)
Equity Alert: US mkt closes down on AI sell-off despite good earnings season
MUMBAI--0700 IST--Major US indices closed lower Friday as the risk-off sentiment grew and took chips stocks down despite good corporate earnings for the second quarter so far. The West Asia war escalated as the US military began its ninth consecutive night of strikes against Iran on Sunday.
The Dow Jones Industrial Average lost almost 1% and the S&P 500 also fell 1%. The Nasdaq Composite lost 1.4% as index heavyweights Nvidia and Alphabet Inc. closed 4.6% and 7.7% lower respectively. Shares of Netflix fell more than 7?ter the company's earnings forecast for the June quater weighed on investor sentiment.
So far, 49 of the S&P 500 companies have reported their earnings. Of these, 90% have delivered better-than-expected results, according to LSEG data. Analysts now see year-on-year S&P 500 aggregate earnings growth of 26.0%, up from the 19.2% expected in April.
The VanEck Semiconductor ETF dropped almost 9%. The semiconductors segment was hit hard after the Chinese startup Moonshot AI unveiled a new model which will narrow the gap with the top offerings in the US. The Philadelphia SE Semiconductor Index is now down over 18% in July but is still up 65% year-to-date as compared to the S&P 500's nearly 9% gain over the same time.
Following are the closing levels of major US indices on Friday:
|
Index |
Level |
Change in % |
|
Dow Jones Industrial Average |
52146.42 | (-)0.77 |
|
NASDAQ Composite |
25520.24 | (-)1.4 |
|
S&P 500 |
7457.69 | (-)1 |
(Deesha Jadhav)
US$1 = INR 96.38
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.
All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.
All times are Indian Standard Time.
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