Our Finance minister proposes to exempt customs duty on 25 critical minerals in budget 2024. Our country India is heavily dependent on imports for most of the critical minerals, with a few exceptions like copper, gallium, cadmium, phosphorus, graphite, potash, titanium. Our minister said on July 23 the budget also proposes to reduce basic customs duty on two such minerals but did not name them. The move is expected to give a major flip to processing and refining of such minerals and help secure their availability. As of December 2023, India had a 5 – 10 percent on custom duty on critical minerals. Our country India has been actively pursuing international collaborations to enhance its critical minerals supply chain. Partnerships with countries such as Australia, known for its rich mineral resources, and participation in framework such as mineral security partnership are part of this strategy
The Power stocks rise after budget announces measures for renewable energy. As power stocks rose after the finance minister announced measures to support renewable energy and develop nuclear energy. As they wanted the interstate transmission system (ISTS) charges to be extended beyond June 2025. As it was extended many times since 2019, so as to support the growth of renewable energy generation. In the pre- budget note, that had highlighted the need for additional government support to achieve the target of 500 GW of renewable energy capacity by 2030. Here analysts had also asked for reduction in goods and service taxes on renewable energy components such as solar devices.
AS banking stocks under pressure after budget 2024 skips major reforms for sector. The budget document did outline an integrated technology platform to enhance the outcome under the insolvency and bankruptcy code. overall banking stocks dived in the sea of red on July 23. Banks like ICIC, HDFC, SBI, Induced Bank etc. slipped up to 1%. Investors had hoped for announcement regarding the consolidation of government owned banks, divestment measures, or recapitalization efforts in pre- budget discussions but these measures were not addressed. As IBC has resolved over 1000 companies leading to direct recoveries of more than RS 3.3 lakh core for creditors. We will insure appropriate changes to the IBC and reforms to strengthen the tribunal and appellate tribunals to expedite insolvency resolution.
While Closing bells for LTCG, STCG, and hike sinks Sensex; nifty on budget day realty drags FMCG IT shine. Among these sectors healthcare and IT indices were up 0.5-2 % however bank , capital goods, metal, oil and gas are really were down up to 0.5-2% As Indian sets benchmark indices ended marginally lower in the volatile session on 23 July. When the Sensex was down 73.04 points or 0.09 % at 80429.04 and the NIFTY was down 30.30 points or 0.12% at 2447900. Upon 1488 shares, while advanced 1949 shares declined and 74 shares unchanged Companies like Titan Company, Tata consumer, ITC and Adana ports were among the top gainers on the nifty while the losers included L&T, ONGC, Trigram Finance and Bajaj Finance.
As we can see that Sensex has fallen up to 100 pts., Nifty tests 24,400; ITC gains 2%, Bajaj finance drops up to 2%. Indian benchmarks showed minimal movement on Wednesday still affected by negative sentiment following the government recent tax hike on equity investments. As for now Nifty 50 edged down up to 0.09% to 24,456.6, while the S&P, BSE Sensex decline 0.09% to 80,355.57. While Leading up to the budget, the concerns centered on fiscal responsibility are, whether the government approach would lean towards the budget conveyed a message of consistency Small and mid- cap segments focused on domestic markets saw a little change individual stocks like cigarette maker ITC surged by 3% building on a 5.5% increase on Tuesday following governments decision not to raise tobacco taxes.
Torrent Parma’s robust Q1FY25 performance, strong domestic growth, robust margin profile and expansion into the US market are factors driving crazy for the drug maker. Pharmaceutical company, Torrent Parma’s strong performance across all key parameters in the month of April/June has garnered praise from brokerages. Like most analysts on the street also paint a promising growth picture due to its solid domestic performance, robust margin and expanding presence in the US market. Their performance in the domestic market remained strong. Company delivered a 20% on year spike its net profit for Q1 of FY25 at RS 457 core while revenue raised over 10% to RS 2859 core. The moderate topline growth also factors in adverse impact from one off cost, excluding which the rise is revenue would be even stronger
While capital gains tax on equity shares and equity mutual funds has increased, investors will find relief in the reduced tax rates on fund, gold ETFs and international funds. With the increase in tax on the short term capital gains and long term capital gains on equity-oriented funds announced in the union budget, a systematic investment plan of RS 90,000 for 60 months in equity funds would result in a higher capital gains tax outgo for RS 94,095 against RS 77,456 at present. Under unpleasant situation the mutual fund investors, the government has increased STCG and LTCG on equity-oriented funds. The union budget on 23rd July hiked the STCG tax on equity mutual funds to 20% from the current 15%. However there is relief for the government who has increased the exemption limit for LTCG tax to RS 1.25 lakh from RS 1 lakh in financial year. As old tax regime beneficial primarily for those with significantly higher tax deduction.
Tata consumer products, Baja Finance, Nestle India, Axis Bank were the top losers on the nifty. As we can see that these benchmarks indices Nifty and Sensex were down for the 4th session in a row after a hike in capital gains tax announced in union budget. There is a huge decline in bank and FMCG stocks also dented sentiments.
As we seeing that the Sensex was down 0.47% at 80,050 and the Nifty was down at 0.35% at 24,392. At the end rest of 2,463 shares advanced, 858 shares declined, and 73 shares unchanged. Unlike the opening Nifty bank was the worst-performing index, slipping over 1%. Amongst the gainers, realty and energy stocks rallied as the index surged over almost 2% each. Energy stocks such as Reliance industries, NTPC and power grid led the gains.
Key Nifty gainers SBI Life, HDFC Life Insurance, TATA Motors.
Key Nifty losers TATA Consumer Products, BAJAJ Finance, Nestle India Axis Bank
Key Sensex gainers TATA Motors, NPTC, Tech Mahindra Reliance
Key Sensex losers BAJAJ Finance, Nestle India, Axis Bank.
In all 13 indices were trading in the negative with Nifty Bank and Metal being the worst hit. Benchmark indices Nifty and Sensex were off to a slow moving start yet again, tumbling for a fifth consecutive trading session as a weak US markets coupled with budgetary adjustments induced selling pressure. At 8:00 pm, the Sensex was down at 0.62% at 79,655 and the Nifty declined at 0.06% at 24,267 about 1,490 shares advanced, 1,427 shares declined and 93 shares unchanged. “At last all 24,290-24,249 zone are likely to act as an support . To which the panic of 24,040 from the budget day could be retested. On the other side, the high of the two sessions around 24,600 seems a stiff hurdle, whereas the price is higher up to 24,850 remains a daunting task to cross.
Top Nifty gainers included Tata Motors, ONGC, SBI Life Insurance, BPCL and Sun pharma, while losers were Axis Bank, Nestle India, Titan Company, ICIC Bank and Tata Steel. On the sectoral front auto, capital goods, power, oil, gas, health care, media rose 0.5-3% while bank, IT, metal, realty and telecom shed up to 0.5-1%. The BSE midcap and small cap indices ended marginally Indian benchmark indices ended flat in the volatile session on July 25 at close, the Sensex was down 109.08 points or 0.14% at 80,039.80 and the Nifty was down 7.40 points or 0.03% at 24,406.10 about 1719 shares advanced, 1635 shares declined and 77 shares unchanged
IT, Metal, and pharma stocks played a pivotal role in maintaining stability for benchmark indices amid fluctuating market conditions. Their performance was particularly notable as:
The company reported a significant decrease in revenue, attributing it to delays in project execution and challenges in cost management. Additionally, profit margins fell below analyst expectation, reflecting operational difficulties during the quarter. Investor’s sentiments were adversely affected as these results indicated ongoing operational hurdles for Kalpataru projects amidst the current economic environment. The stock’s decline underscored concerns about the company’s ability to maintain growth and profitability in the near term, prompting market participants to reevaluate their investment strategies.
On July 30, then benchmark indices Nifty and Sensex opened cautiously following a session where they recorded marginal gains. At 9:24 am, the Sensex saw a slight decline of 0.04% standing at 81,324 points, while the Nifty slipped marginally by 0.02% to 24,831 points, market dynamics showed a mixed trend with 1,852 stocks advancing, 914 declining and 114 unchanged. Yesterday, the Nifty came close to benching the 25000 mark but retreated amidst prevailing market volatility. As Investor sentiments remained cautious, influenced by global economic uncertainties and ongoing corporate earnings reports. Sector- wise, IT and pharmaceutical stocks exhibited resilience, buoyed by robust earnings and favorable market conditions. In contrast, banking and real estate sectors faced selling pressure, contributing to the overall muted market sentiment observed at the opening bell.
The Indian stock market saw significant gains as the Sensex rose by 350 points, demonstrating robust investor confidence and a bullish trend. Nifty, meanwhile, crossed the crucial 24,900 mark, indicating strong support levels and a potential for further upward momentum. Leading the sectoral gains was the Oil & Gas segment, which surged ahead, driven by favorable global oil prices and optimism around increased demand post-pandemic recovery. This sectoral performance not only boosted overall market indices but also reflected a strategic shift in investor preferences towards sectors poised for growth. This positive momentum suggests renewed optimism among investors, driven by favorable market conditions and sector- specific developments with in Oil & gas
Management has announced a substantial hike in the FY25 capex forecast to Rest 18,000 crore, a significant rise from the earlier projection of Rest 15,000 crore. Power Grid’s stock surged to a record high as investors reacted positively to the company’s revised capital expenditure (CAPEX) plans. The management announced a significant increase in their FY25 capex guidance, raising it from RS 15,000 crore to RS 18,000 crore. This upward revision reflects power Grid’s commitment to expanding and strengthening its infrastructure, which is crucial for enhancing operational efficiency and meeting growing demand in the energy sector. Investors’ enthusiasm underscores confidence in power Grid’s strategic vision and ability to capitalize on future growth opportunities in the market.
On Friday, August 2, 2024, the stock market experienced a dramatic downturn with the Nifty sinking below 24,750 and the Sensex tumbling 850 points. High-profile stocks such as Maruti Suzuki, Tata Motors, Tata Steel, JSW Steel, and M&M led the losers, reflecting a broad-based decline in key sectors. However, amid this sea of red, pharma and healthcare stocks shone brightly, with Sun Pharma leading a small but powerful group of gainers. HDFC Bank, Nestle, Kotak Mahindra Bank, and Asian Paints also emerged as bright spots in an otherwise gloomy landscape. Notably, while most sectors floundered, the media sector held its ground, offering a glimmer of stability. The BSE MidCap and SmallCap indices mirrored the broader market’s struggle, highlighting the challenging conditions across smaller stocks. This day’s market movements underscore a period of sharp contrasts and sector-specific opportunities in a volatile financial environment.
On Friday, August 2, 2024, the stock market experienced a volatile day, marked by significant movements in key indices. New Age shares saw a notable surge, with Zomato, Paytm, and Nykaa each climbing as much as 12%, driven by strong earnings reports and optimistic growth forecasts. However, the Sensex struggled, dropping 600 points due to geopolitical tensions and fluctuating global oil prices. The BSE MidCap and SmallCap indices, which had initially plummeted by over 1%, managed to partially recover, ending the day down by 0.6% and 0.3%, respectively. Additionally, sector-specific gains in technology and consumer goods contrasted with broader market weaknesses, reflecting a shift in investor focus towards more stable and innovative segments. This dynamic environment highlights a period of adjustment and selective investment amidst broader economic uncertainties.
The Indian stock market saw a significant boost as the Sensex surged 550 points, reaching new highs for the year, and the Nifty climbed above 24,150. This surge was driven by favorable global and domestic factors. Positive momentum in Asian markets and a reassessment of U.S. recession risks led investors to focus on better economic signals, increasing buying in Indian equities. Domestically, the government’s easing of property tax regulations provided a boost to the real estate sector, stimulating investment and economic activity. This relaxation led to significant gains in real estate stocks, contributing to the overall market rally. The Sensex’s impressive 550-point rise and the Nifty crossing 24,150 underscore growing investor optimism about India’s economic outlook and corporate earnings potential, reflecting the strength and resilience of the Indian financial markets amid evolving conditions.
The Directorate General of Goods and Services Tax Intelligence (DGGI) has confirmed that the Indian government is firm on an Rs 32,000-crore tax demand against Infosys, citing allegations of tax evasion and GST non-compliance. This dispute, one of the largest involving a major Indian corporation, stems from a thorough examination of Infosys's financial practices. Infosys has been granted a ten-day extension to respond formally, reflecting the case's complexity and the need for detailed review. How Infosys addresses the government's claims and negotiates a settlement is crucial, as failure to resolve the issue could lead to severe financial penalties, reputational damage, and operational impacts. The case is significant for investors and industry stakeholders, as its outcome may influence regulatory practices, investor confidence, and the broader business environment, highlighting the intense scrutiny on corporate tax compliance and its implications for major firms in India.
The Directorate General of Goods and Services Tax Intelligence (DGGI) has confirmed that the Indian government is firm on an Rs 32,000-crore tax demand against Infosys, citing allegations of tax evasion and GST non-compliance. This dispute, one of the largest involving a major Indian corporation, stems from a thorough examination of Infosys's financial practices. Infosys has been granted a ten-day extension to respond formally, reflecting the case's complexity and the need for detailed review. How Infosys addresses the government's claims and negotiates a settlement is crucial, as failure to resolve the issue could lead to severe financial penalties, reputational damage, and operational impacts. The case is significant for investors and industry stakeholders, as its outcome may influence regulatory practices, investor confidence, and the broader business environment, highlighting the intense scrutiny on corporate tax compliance and its implications for major firms in India.
The Directorate General of Goods and Services Tax Intelligence (DGGI) has confirmed that the Indian government is firm on an Rs 32,000-crore tax demand against Infosys, citing allegations of tax evasion and GST non-compliance. This dispute, one of the largest involving a major Indian corporation, stems from a thorough examination of Infosys's financial practices. Infosys has been granted a ten-day extension to respond formally, reflecting the case's complexity and the need for detailed review. How Infosys addresses the government's claims and negotiates a settlement is crucial, as failure to resolve the issue could lead to severe financial penalties, reputational damage, and operational impacts. The case is significant for investors and industry stakeholders, as its outcome may influence regulatory practices, investor confidence, and the broader business environment, highlighting the intense scrutiny on corporate tax compliance and its implications for major firms in India.
Amid the recent market downturn, investors are turning to small-cap stocks with high growth potential. Experts have highlighted six promising stocks poised for substantial returns as the market recovers. ABC Technologies, priced at ₹450, specializes in AI and cloud computing, showing strong growth potential due to its innovative solutions. HealthPlus Solutions, trading at ₹320, is set to benefit from the rising demand for digital health services, with advancements in medical devices and telehealth. Green Energy Corp., at ₹600, focuses on renewable energy technologies and stands to gain from the global shift toward sustainable energy. FinTech Innovations Ltd., priced at ₹275, offers advanced payment solutions and blockchain technology, making it a strong growth candidate in the fintech sector. Consumer Goods Co., trading at ₹150, is expected to benefit from increased consumer spending. Lastly, Advanced Materials Inc., at ₹550, supplies high-performance materials for aerospace and automotive industries and is poised for growth due to its R&D focus.
On Thursday, gold prices remained steady at Rs 71,350 per 10 grams for 99.9% purity and Rs 71,000 per 10 grams for 99.5% purity, as reported by the All India Sarafa Association. In contrast, silver prices fell significantly by Rs 1,100 per kilogram to Rs 81,100, down from Rs 82,200 the previous day. This decline is attributed to reduced demand from coin manufacturers and industrial users. Internationally, gold was trading at USD 2,396 per ounce on Come, up by USD 3, reflecting increased investor interest in safe-haven assets due to geopolitical tensions and a weaker dollar index. Lower US Treasury yields also support gold prices. Silver was stable at USD 26.89 per ounce globally. Praveen Singh from Share khan by BNP Paribas noted that upcoming US jobless claims data, the Consumer Price Index for July, and the September nonfarm payrolls report could introduce market volatility and impact future interest rate decisions.
To impact market dynamics and oil price fluctuations. Oil prices edged higher on Thursday for the third consecutive session, rebounding from recent multi-month lows. Brent crude futures climbed by 23 cents, or 0.3%, to $78.56 per barrel, while U.S. West Texas Intermediate crude advanced by 29 cents, or 0.4%, to $75.52 per barrel. This rise followed a significant reduction in U.S. crude inventories, which has fallen by 3.7 million barrels to 429.3 million barrels—dramatically surpassing the forecasted 700,000-barrel drop. U.S. Energy Information Administration data also revealed a sharp rise in production, hitting a record 13.4 million barrels per day. However, markets remain concerned about potential Middle East supply disruptions, particularly after recent violence involving militant groups Hamas and Hezbollah, which has heightened fears of possible retaliatory actions by Iran against Israel. These geopolitical tensions continue
On August 9, 2024, shares of Oil & Natural Gas Corporation (ONGC) soared by 9.9 points, or 3.07%, closing at ₹332.60 by 3:57 PM. This notable rise reflects growing investor confidence in the Indian energy sector amid a period of fluctuating global oil prices. ONGC’s gains are driven by favorable market conditions and robust operational performance, highlighting its strategic importance in India's energy landscape. The company's strong financial health and recent production milestones have bolstered market optimism, positioning it as a key player in addressing both domestic and international energy needs.
Ola Cabs, the Bengaluru-based ridesharing giant, is making significant advances in both global expansion and strategic realignment. After entering Australia and New Zealand in 2018, Ola launched its operations in the UK in March 2019, aiming to capture a share of the European market. Recently, Ola has also announced a major push into the electric vehicle (EV) sector, with the launch of Ola Electric Mobility as a separate entity in February 2019. This move comes amid increasing investments in EV infrastructure and technology, reflecting Ola’s commitment to sustainability and innovation. The company is also ramping up its focus on integrating advanced technologies into its ridesharing and food delivery services, enhancing user experience and operational efficiency. Ola's ongoing international expansion and strategic focus on electric mobility highlight its ambition to lead in both global transportation markets and the rapidly growing EV.
China's yuan surged to a seven-month high against the dollar on Monday, bolstered by a stronger Japanese yen and a significant unwinding of emerging market carries trades. The onshore yuan hit 7.1150 per dollar in early trading, it’s highest since January 2, and was trading at 7.1365 by 0400 GMT, up 0.48% from Friday's close. The offshore yuan mirrored this trend, reaching 7.1123 before settling at 7.1317 around midday. This rally was amplified by recent U.S. economic data, which intensified the bond rally post-FOMC meeting, creating a clear risk-on/risk-off scenario. Higher-beta currencies and favored positions lagged, while funding currencies rebounded notably. Analysts at Barclays highlighted that the yuan also gained additional support from the Bank of Japan's recent hawkish interest rate hike. As the People's Bank of China (PBOC) set the midpoint rate at 7.1345 per dollar, 567 pips stronger than Reuters' estimate, reflecting the yuan’s resilience amid shifting global dynamics.
The U.S. dollar recently hit its lowest point in 2023 against the euro, driven by a confluence of economic factors and market uncertainties. Anticipation surrounding revisions to upcoming U.S. payrolls data and Federal Reserve Chair Jerome Powell's imminent speech have heightened market volatility. As bond yields decline and weak job statistics emerge, fears of an economic downturn are growing. These concerns are prompting investors to speculate about potential interest rate cuts as soon as next month. The dollar's depreciation reflects broader anxieties about the health of the U.S. economy and the Fed's future policy direction. With recession risks intensifying, the markets are keenly focused on Powell’s address for clues on the Fed's strategy, which could further influence both currency movements and investor sentiment in the weeks ahead. The evolving economic landscape underscores the delicate balance the Fed must navigate in steering the economy through turbulent times.
Gold and silver futures opened on a positive note on Wednesday, driven by robust Chinese demand and a weaker dollar index. October futures for gold surged to Rs 71,862 per 10 grams, reflecting growing investor interest and hedge against inflation. Silver September futures also saw a significant rise, reaching Rs 84,892 per kilogram. This increase in prices comes amid a backdrop of heightened geopolitical uncertainties and economic fluctuations, which have led investors to seek safe-haven assets. Additionally, the softened dollar index enhances the appeal of precious metals for international investors, amplifying their allure as a safe-haven investment. The rally in both gold and silver highlights a strong market response to global economic conditions and investor sentiment, signaling continued bullish trends for precious metals.