Broad Strokes, July 22, 2024

Budget 2024 sector stocks expectations

1. The Union Budget 2024 is expected to focus on infrastructure, agriculture, and rural development, impacting stocks in these sectors.
2. Increased budget allocations anticipated for defense, railways, and power utilities, benefiting companies like HAL, BEL, L&T, NTPC, and Power Grid.
3. Investors should monitor fiscal deficit, tax policies, and capital formation as key indicators post-Budget for potential market movements.

Amazon, Swiggy in talks for Instamart stake

1. Amazon India is reportedly in discussions with Swiggy regarding a potential stake in Instamart, Swiggy’s quick commerce business.
2. The talks involve a stake in the ongoing pre-IPO placement or a buyout proposal for Instamart, but face challenges due to the deal’s complexity.
3. This development underscores the evolving landscape of e-commerce in India, with a focus on quick deliveries and strategic partnerships in the competitive market.

Sensex, Nifty may face 5-10% correction

1. Emkay Global has issued a warning of a potential 5-10% correction in the Sensex and Nifty indices.
2. Analysts caution about froth building up in the market, with stretched valuations posing a risk for a correction.
3. Sectors like staples, energy, and technology are suggested as potential safe havens amidst market uncertainties.

Economic Survey warns of speculative market activity

1. The Economic Survey 2024 has raised concerns about speculative market activity in India.
2. The market capitalization to GDP ratio reached 124% in FY24 and is estimated to hit 136% by June 2024, indicating potential market instability.
3. The survey underscores the need for caution and investor awareness amidst bullish market trends to mitigate potential risks.

Biden exits US presidential race, Asian stocks react

1. Asian markets reacted cautiously as US President Joe Biden exited the 2024 presidential race, endorsing Vice President Kamala Harris.
2. The US dollar slipped, and Asian shares fell, with Japan and South Korea experiencing stock declines.
3. The market is assessing the potential impact of Biden’s withdrawal on the US election dynamics and its implications for trade policies and international relations.

SME IPO stocks debut with significant premiums

1. Aelea Commodities and Sati Poly Plast made strong stock market debuts on the BSE SME and NSE SME platforms, respectively.
2. Aelea Commodities saw high investor interest with its issue oversubscribed nearly 170 times, while Sati Poly Plast’s IPO was oversubscribed nearly 500 times.
3. The successful listings reflect robust investor confidence in these SME IPO stocks, showcasing the market’s appetite for new offerings.

Investment trends in Indian markets and sectors

1. Foreign Portfolio Investors (FPIs) are favoring India’s discretionary consumption and capital expenditure sectors.
2. Significant investments are seen in capital goods, auto, and telecom sectors, offsetting outflows from financial services and FMCG.
3. India led the world in IPOs in FY24, creating substantial capital through various modes, indicating a robust primary market activity.

Wipro stock plunges on weak Q1 earnings

1. Wipro’s stock witnessed an 8% decline following disappointing Q1 earnings.
2. Analysts expressed concerns over Wipro’s underperformance compared to peers like TCS and Infosys.
3. The market reacted negatively, with Wipro’s ADRs falling nearly 12% on the NYSE, indicating investor apprehension towards its future prospects.

Indian Hotels stock surges on strong Q1 performance

1. Indian Hotels Company (IHCL) witnessed an 8% surge in its stock price following a strong Q1 performance.
2. IHCL reported record-high revenue and a 12% YoY increase in profit after tax, despite facing headwinds like General Elections and a heat wave.
3. Analysts foresee continued momentum in FY25, supported by robust demand-supply dynamics and strategic initiatives.

Oberoi Realty stock surges on strong Q1 performance

1. Oberoi Realty’s stock surged by 4.01% following a strong Q1 performance.
2. The company reported a significant increase in net profit by 82% year-on-year and a 54.4% growth in revenue.
3. The market reacted positively to the results, with shares rising over 6% as investors welcomed the solid earnings performance.