Broad Strokes, July 26, 2024

Nifty hits fresh record high

1. Nifty index surged to a new record high of 24,834.85, up 1.76%, with strong performances in sectors like Healthcare, Auto, FMCG, IT, and Pharma.
2. The bullish trend snapped a five-day losing streak, supported by strong buying across sectors, with technical analysts predicting further upside potential towards 25,250.
3. Notable gainers included Shriram Finance, Divis Labs, Apollo Hospitals, and Bharti Airtel, while ONGC and Tata Consumer Products were among the losers.

Sanstar IPO lists at premium on NSE

1. Sanstar’s IPO debuted on the NSE at a 14.7% premium over its issue price of Rs 95 per share, though it fell short of pre-listing expectations due to market volatility post-budget.
2. The IPO was subscribed nearly 83 times, driven by strong demand from institutional and retail investors, with analysts advising profit booking due to high valuations.
3. The company plans to use the IPO proceeds for expanding facilities, debt repayment, and general corporate purposes, reflecting strong investor confidence in its growth potential.

SJVN stock price surges on Mizoram project win

1. SJVN’s stock price jumped over 13% after securing the 2,400 MW Darzo Lui pumped storage project in Mizoram, marking its first venture in the state.
2. The project, estimated to cost Rs 13,947.50 crores, is expected to generate significant annual energy output and be completed within 72 months.
3. Investor confidence was bolstered by SJVN’s expansion into new energy projects, with a formal agreement with the Mizoram government pending.

Sobha stock falls amid block deal

1. Sobha Ltd’s stock dropped 4.5% after a block deal involving 5% of its equity, worth Rs 865 crore, with Anamudi Real Estate LLP, linked to the Godrej family, likely being the seller.
2. Despite this decline, Sobha shares have surged 190% in the past year, outperforming the Nifty’s 23% returns, though recent technical indicators show bearish signals.
3. The company reported an 86% drop in Q4 FY24 profit to Rs 7.02 crore, with income at Rs 791.25 crore, and is yet to announce its Q1FY25 results.

Paytm stock surges on government FDI approval

1. Paytm’s stock surged by 10% after the government approved its FDI proposal for the payment aggregator business, allowing it to apply for an RBI license.
2. Despite this positive development, Paytm reported widened Q1FY25 losses of Rs 840.1 crore, with a significant revenue decrease.
3. Investor optimism was reflected in the stock hitting the upper circuit at Rs 509.05, amid broader market gains.

IndiGo and IndusInd Bank Q1 results

1. IndiGo reported an 11.7% YoY decline in Q1 FY25 profit to Rs 2,728.8 crore, despite a 17.3% revenue increase to Rs 19,570.7 crore, with rising expenses impacting margins.
2. IndiGo’s shares rose 1.37% post-earnings, maintaining a strong cash balance of Rs 36,100.6 crore and a total debt of Rs 52,526.4 crore.
3. IndusInd Bank saw a 2.2% YoY increase in Q1 profit to Rs 2,171 crore, with a stable NIM at 4.25% and balanced growth in loans and deposits.

IT Sector Outperforms, Sensex and Nifty Surge

1. Indian IT stocks showed resilience with minor cuts and intraday recoveries following a Nasdaq drop, supported by strong Q1 results from large IT companies.
2. The NiftyIT index outperformed the Nifty by 35% over the past year, despite mixed revenue and profit growth.
3. Seven Nifty50 stocks, including Infosys and TCS, hit fresh 52-week highs, contributing to a 1,150-point surge in the Sensex driven by IT and metal stocks.

Cyient stock plunges 9% on weak Q1FY25 results

1. Cyient’s stock dropped 9% following weak Q1FY25 results, with a 23.8% sequential decline in net profit to Rs 144 crore and an 18.6% YoY decline.
2. Revenue decreased by 0.6% YoY, mainly due to project execution delays, with the DET segment showing a 5% QoQ decline.
3. Analysts downgraded Cyient’s stock, citing concerns over growth predictability and valuation, despite optimism for a recovery in the second half of the fiscal year.

Stocks with short and long buildup in various sectors

1. Tata Consumer Products and Federal Bank saw short buildup, while Axis Bank and Jubilant FoodWorks experienced short covering, and Eicher Motors and Mphasis had long buildup.
2. The market ended the week positively, driven by gains in pharma stocks and other heavyweights, supported by better-than-expected US GDP data.
3. Technical analysis suggests a bullish trend for the Nifty, with potential upward movement towards 25,250, as long as it stays above 24,500.

F&O Market Activity at Record High

1. The F&O market activity surged to record highs as the August series began with a bullish bias, driven by sectoral rotations and strong momentum.
2. The Nifty ended the July series with a 1.5% gain, led by IT, FMCG, and Pharma sectors, while Banking and Metals faced downward pressure.
3. Sector-specific OI additions were seen in FMCG, Pharma, Oil & Gas, and Chemicals, with shorts build-up in Banks and Metals, and key stock picks including Polycab, Havells, ABB, Crompton Greaves, Trent, Vedanta, Ashok Leyland, and Maruti Suzuki.