Indian equity markets are likely to open with gains on Monday, hinted SGX Nifty. Nifty futures traded 31 points, or 0.18% higher at 17,262.50 on the Singapore Exchange signaling that Dalal Street was headed for a positive start. “Nifty has surpassed the crucial hurdle of June month’s high i.e. 16,800 decisively and we’re now eyeing 17,400. Participants should align their positions accordingly and look for buying opportunities on dips,” said Ajit Mishra, VP – Research, Religare Broking. In the previous session, Sensex jumped 712 points or 1.25 per cent to close at 57,570.25, while its broader peer Nifty 50 rose 229 points or 1.35 per cent to settle at a 3-month high and close above the 17,100 mark.
Stocks to focus on 1 August, Monday
Reliance: A renewable energy unit of Mukesh Ambani-led Reliance Industries, Ola Electric Mobility and Rajesh Exports are planning to manufacture batteries in the country as the world’s fourth-largest automobile market accelerates its switch to electric vehicles. The firms will get incentives under the Rs 18,100 crore advanced chemistry cell program, the Ministry of Heavy Industries said in a statement Friday. Under the battery plan, companies are expected to build a manufacturing output of about 95 gigawatt-hours, it said.
HDFC, SBI: HDFC on Friday said it will acquire its venture capital subsidiary HVCL by buying out State Bank of India’s 19.5 per cent stake in the company. HDFC holds 80.50 per cent equity share capital of HVCL and the remaining shares are held by SBI. “The Corporation on July 29, 2022 entered into a share purchase agreement (SPA) with SBI for acquisition of 97,500 equity shares of HVCL representing 19.50 per cent of its paid-up share equity capital, at a consideration of Rs 10 per share,” HDFC said in a regulatory filing.
Dr Reddy’s: The pharma major entered into a licensing agreement with Slayback Pharma to obtain exclusive rights in the first-to-file ANDA for the private label version of Lumify in the US. Lumify is an over-the-counter (OTC) eyedrop that can be used to relieve redness of the eye due to minor eye irritations. The agreement also provides Dr Reddy’s exclusive rights to the product outside the US.
Yes Bank: The bank is going to raise Rs 8,898.47 crore from the Carlyle Group and Verventa Holdings (affiliate of Advent) by selling 10% stake each. The board of directors has approved the allotment of 369.61 crore equity shares at a price of Rs 13.78 per share and 256.75 crore warrants exchangeable into equity shares, at a price of Rs 14.82 per share, through preferential allotment on a private placement basis, which is subject to approval of shareholders and RBI. The Carlyle Group and Verventa Holdings will pour in money into the bank against 184.8 equity shares each and 128.37 crore warrants each.
Bank of Baroda: The public sector lender reported a 79.4 per cent on-year growth in standalone profit at Rs 2,168 crore for the quarter ended June 2022, despite fall in other income and pre-provision operating profit. The significant decline in bad loans provisions aided the bottom line. Net interest income grew 12 per cent on-year to Rs 8,838.4 crore in Q1FY23, with credit growth at 18 per cent and 10.9 per cent increase in global deposits on an yearly basis.
IDFC First Bank: The bank reported highest-ever standalone profit of Rs 474.33 crore in Q1FY23, against a loss of Rs 630 crore in the corresponding period of the previous fiscal. The increase in core operating income and fall in provisions aided the profitability, with the sequential growth in profit at 38 per cent. Net interest income grew 26 per cent to Rs 2,751.1 crore on-year during the quarter, with 39 bps on-year improvement in net interest margin at 5.89 per cent for the quarter. But there was 38 bps decline in net interest margin on a sequential basis.
Q1 Results today: ITC, UPL, Zomato, Arvind, Bajaj Consumer Care, Barbeque-Nation Hospitality, Carborundum Universal, Castrol India, Escorts Kubota, Eveready Industries India, Indo Count Industries, Kansai Nerolac Paints, Max Financial Services, Prudent Corporate Advisory Services, Punjab & Sind Bank, The Ramco Cements, RateGain Travel Technologies, Thyrocare Technologies, Triveni Turbine, and Varun Beverages will declare their June quarter earnings today (August 1).