Stock Market LIVE: Gift Nifty suggests subdued start for Sensex, Nifty; US markets end in red

Stock Market Live on Wednesday, July 24, 2024: The benchmarks Sensex, Nifty may see a negative to flat start on Wednesday as the post Budget surprises settle in among the investors. 

The GIFT Nifty futures also suggest subdued open, as they quoted 46 points lower to Nifty50 futures at 24,416 levels. 

On Wednesday, markets across the Asia-Pacific region gave out mixed signals with Japan’s key benchmark, the Nikkei 225 trading flat, down marginally by 0.08 per cent and the broader based Topix index falling by 0.26 per cent. 

South Korea’s Kospi index was down by 0.12 per cent, while the Kosdaq, which focuses on small-cap stocks, edged up by 0.86 per cent. 

Australia’s S&P/ASX 200 was listless, slipping slightly by 0.09 per cent. Hong Kong’s Hang Seng index, too, traded in green and was up by 0.12 per cent. 

In the US overnight, all three major indices fell as tech shares as investors assessed earnings of tech companies. The S&P 500 fell by 0.16 per cent, while the Nasdaq Composite gained 0.6 per cent. Meanwhile, the Dow Jones Industrial Average also increased by 0.14 per cent.

Stocks to watch

Bajaj Finance: It reported a net profit of Rs 3,912 crore, in line with the poll of Rs 3,973.7 crore. Net Interest Income (NII) stood at Rs 8,365 crore, also in line with expectations of Rs 8,445.1 crore. Year-on-year, profit and NII increased by 13.8 per cent and 24.5 per cent respectively. Gross Non-Performing Assets (NPA) rose to 0.86 per cent from 0.85 per cent quarter-on-quarter, while Net NPA increased to 0.38 per cent from 0.37 per cent in the previous quarter.

Hindustan Unilever: It posted revenue of Rs 15,339 crore, surpassing the expected Rs 15,100 crore. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) were Rs 3,606 crore, higher than the anticipated Rs 3,540 crore. Home care revenue grew by 4.6 per cent, exceeding the projected growth range of 2 to 3 per cent.

Tata Consumer Products: The company announced details of its rights issue to raise up to Rs 3,000 crore. The rights issue price was set at Rs 818 per share. Shareholders will receive one rights share for every 26 shares held as of the record date, July 27, 2024. The rights issue will open on August 5 and close on August 19, 2024.

United Spirits: The company reported a 1.7 per cent year-on-year increase in net profit to Rs 485 crore. Revenue rose by 3.5 per cent to Rs 2,761 crore. Ebitda remained unchanged at Rs 713 crore, with Ebitda margin at 25.8 per cent compared to 26.7 per cent last year.

Analysts at CLSA believe the development is unlikely to impact end-users who sell their existing house and reinvest the proceeds in a new house. On the contrary, the development will impact those who sell their house / property and reinvest the proceeds in other asset classes. Read more

ICICI Prudential Life Insurance: The insurance arm of the ICICI Group reported an 8.7 per cent yearly increase in net profit to Rs 225.4 crore in Q1FY25, owing to a rise in expenses (up 33 per cent Y-o-Y). It also saw a contraction of VNB margin to 24 per cent in Q1FY25 compared to 30 per cent in the corresponding period last year. Read more

Brent crude futures for September fell by 84 cents, or 1 per cent, to $81.56 a barrel by 1409 GMT (10:09 a.m. ET). U.S. West Texas Intermediate crude for September dropped 93 cents, or 1.2 per cent, to $77.47 per barrel. Read more

The path to fiscal consolidation remains absolutely clear with the fiscal deficit being lowered to 4.9 per cent from 5.1 per cent stated in the interim Budget. Government borrowing, also, showed a clear declining trajectory and is expected to remain on the same path. This is a clear long term positive for the health of the economy and the rating of the country. Read more

 

Unlike the interim Budget earlier this year, which focussed on the infrastructure segment, the focus of the full Budget was on creating jobs, skilling and tax incentives for the middle class. For the urban consumer, higher standard deductions, increased deductions for family pensions and changes in slab rates would result in savings of Rs 17,500 under the new tax regime. This will result in higher incomes, spurring consumption. Read more

Stock price has surpassed the crucial resistance of double top placed at 780. For last two trading session, stock has been finding support near its 20 DMA, placed at 742.

Stock price has also formed double bottom at 730 and reversed north. Indicators and oscillators have been showing strength on the weekly and monthly charts. Read more

The Nifty Auto index is currently exhibiting a range-bound trend on the charts, confined within the levels of 25,460 and 24,560. This suggests that the best trading strategy in the near term is to sell when the index approaches the upper resistance level and to buy when it nears the lower support level. Read more

At 07:00 AM, GIFT Nifty futures quoted around 24,410, hinting at a likely negative start to the trading action on the Nifty 50 index.

Among the key takeaways from the Budget 2024; were the hike in long-term capital gains tax (LTCG) to 12.5 per cent and short-term capital gains tax (STCG) to 20 per cent. Also, a hike in Securities Transaction Tax to 0.02 per cent for futures trading, and 0.1 per cent in case of options.