Broad Strokes,October 24, 2024
- 8sapience
- Market update , Multibagger , Stocks
- 24 Oct, 2024
📉 Escorts Kubota Shares Drop on Business Sale
Cause: Escorts Kubota announced the sale of its Railway Equipment Division to Sona BLW Precision Forgings for Rs 1,600 crore, aiming to refocus on its core agri- and construction equipment sectors.
Effect: Escorts Kubota’s shares dropped over 6%, while Sona BLW’s shares surged 10% after the acquisition, which is expected to bolster Sona’s product offerings and contribute to its earnings from FY26 onwards.
📉 LT Foods Shares Drop 14% Post Q2 Results
Cause: LT Foods reported a 4.86% year-on-year decline in consolidated net profit, despite a 6.57% increase in revenue from operations for Q2 FY25.
Effect: The company’s shares plummeted 14%, reaching Rs 348.20. Meanwhile, Zomato exceeded expectations, prompting global brokerages to predict a 25% upside, and Swiggy reduced its IPO valuation amid market volatility.
📉 Hindalco Shares Drop 7% on Demand Concerns
Cause: Hindalco faced weakened demand in the automotive and industrial sectors, following a disappointing Q3 report from Constellium SE, a peer of its subsidiary Novelis.
Effect: Hindalco’s shares dropped 7% on the BSE to Rs 666.80, contributing to a broader decline in the Sensex and Nifty, which also saw sectoral pressures from FMCG and metals.
🧠 TCS Launches Nvidia AI Business Unit
Cause: Nvidia expanded its presence in India by partnering with Tata Communications and TCS to drive AI adoption in various industries.
Effect: Tata Communications’ share price surged 3.5%, with Nvidia now employing over 10,000 engineers in India, positioning the country as a leader in AI innovation.
📈 Piramal Pharma Shares Surge on Q2 Profit
Cause: Piramal Pharma posted a four-fold increase in Q2 profit, driven by a 17% revenue rise, primarily from its CDMO segment.
Effect: Shares surged 15% after the earnings report, with Aster DM Healthcare’s stock also climbing 14% on strong earnings growth.
📈 CARE Ratings Shares Soar on Q2 Earnings
Cause: CARE Ratings reported a 31.05% year-on-year growth in profit after tax (PAT) and a 22% rise in revenue from operations.
Effect: The company’s shares soared 20%, hitting a one-year high of Rs 1,409.15, while KPIT Technologies’ stock dropped 17% following a slight profit decline.
📈 Adani Wilmar Shares Surge on Q2 Results
Cause: Adani Wilmar reported an 18% year-on-year revenue increase, driven by strong performance in the edible oils and food segments.
Effect: Shares surged 8%, with the stock trading above key moving averages. In contrast, ACC is expected to face challenges in its upcoming Q2 earnings report, with analysts predicting a 49% decline in profit.
📉 Market Correction Concerns for Long-Term Investors
Cause: Recent market volatility has led to a 10-12% correction, raising concerns among long-term investors.
Effect: Experts suggest this is a healthy correction, with opportunities for consolidation, particularly in robust sectors like banking and IT. Large-cap stocks are showing resilience despite market fluctuations.
