Opening Bell:
Gift Nifty is up by 4.5 points in the early morning trade, indicating a positive opening for Indian stock market.
Asia-Pacific markets were largely down as investors brace for the U.S. Federal Reserve’s rate decision on Wednesday. The Fed is expected to approve what would be the 11th interest rate increase since March 2022. In Australia, the S&P/ASX 200 climbed 0.78%, its highest point since Feburary 2023. Australia’s inflation rate on an annual basis grew 6% in the June quarter, slower than the 7% seen in the first quarter, official data showed. South Korea’s Kospi led losses in the region and fell as much as 2%, dragged by tech and consumer services stocks. The index eventually ended the day 1.67% lower, while the Kosdaq saw a larger loss of 4.18%. In Japan, the Nikkei 225 was down marginally, extending its losses from Tuesday and closing at 32,668.34, while the Topix also sunk 0.1%. Hong Kong’s Hang Seng index retreated from Tuesday’s rally and inched down 0.31%, while mainland Chinese markets also all fell. The Shanghai Composite was down 0.26%.
S&P 500 futures were little changed in overnight trading after the Federal Reserve instituted a quarter%age point hike, bringing rates to the highest level in more than 22 years. Futures linked to the S&P 500 traded flat, while Dow Jones Industrial Average futures lost 0.13%. Futures connected to the Nasdaq-100 rose 0.2%. In regular trading Wednesday, the Dow Jones Industrial Average rose for a 13th straight session, gaining 0.23%, to notch its longest win streak since 1987. The S&P 500 dipped 0.02%, while the Nasdaq Composite lost 0.12%. The moves came after the Fed implemented a widely expected 25 basis point hike, bringing interest rates to their highest level since 2001.
Stocks News:
👉Axis Bank: The private sector lender has recorded profit lower than analysts’ estimates at Rs 5,797.1 crore for quarter ended June FY24, rising 40.5% year-on-year despite sharp spike in provisions, driven by surge in other income and pre-provision operating profit. Net interest income grew by 27.4% to Rs 11,959 crore compared to year-ago period, with net interest margin expanding 50 bps YoY to 4.1%, while loan growth was at 22% YoY and deposits growth stood at 17% YoY On the asset quality front, gross non-performing assets dropped 6 bps sequentially to 1.96%, but net NPA increased 2 bps QoQ to 0.41%.
👉Dr Reddy’s Laboratories: The pharma major has registered an 18% on-year growth in consolidated profit at Rs 1,402.5 crore for June FY24 quarter despite drop in operating margin. Revenue from operations grew by 29% YoY to Rs 6,738.4 crore with double-digit healthy growth in North America (up 79% YoY), Europe (up 22%) and Emerging Markets (up 28%). Operating profit margin dropped to 31.7% in the quarter ended June FY24, from 34.1% in year-ago period, with 14% YoY rise in selling, general & administrative expenses, and 15% increase in R&D expenses.
👉Tech Mahindra: The IT services provider has started off the financial year 2023-24 on a disappointing note as the profit tanked 38% sequentially to Rs 692.5 crore with Rohit Anand, Chief Financial Officer saying the quarter was a challenging one as revenue growth faced strong headwinds and that had an impact on profitability. Revenue fell 4% QoQ to Rs 13,159 crore. Revenue in dollar terms dropped 4% QoQ to $1,601 million for the quarter, while revenue in constant currency terms declined 4.2%, missing analysts estimates.
👉Tata Consumer Products: The FMCG company has clocked 22% on-year growth in consolidated profit at Rs 338 crore for the quarter ended June FY24, with strong growth in the India branded business and improved performance in international and non-branded business. Revenue from operations grew by 12.5% year-on-year to Rs 3,741.2 crore mainly driven by strong growth of 16% in India business, 3% (constant currency) in international business and 5% in non-branded business. Consolidated EBIDTA increased by 19% to Rs 547 crore compared to year-ago period.
👉Foreign institutional investors (FII) bought shares worth Rs 922.84 crore, while domestic institutional investors (DII) purchased shares worth Rs 470.10 crore on July 26, provisional data from the National Stock Exchange (NSE) shows.
Domestic and International Events
- Telecom equipment worth Rs 6,911 crore has been exported by companies selected under the PLI scheme till May 31, 2023. The PLI scheme was launched on February 24, 2021, to promote domestic manufacturing of specified telecom and networking products including 4G, 5G products, and also design-led manufacturing in the country.
- The US Federal Reserve raised its benchmark lending rate on Wednesday to the highest level since 2001 to tackle above-target inflation and signalled the possibility of further increases ahead. The quarter percentage-point rise lifts the Fed’s key lending rate to a range between 5.25% and 5.5%, the US central bank said, adding that it will “continue to assess additional information and its implications for monetary policy.” The rate-setting Federal Open Market Committee (FOMC) used similar language when it voted to hold rates steady in June, and the latest statement suggests that policymakers are mulling another pause at their next meeting in September.
- Oil prices fell about 1 percent on Wednesday, after data showed U.S. crude inventories fell less than expected and the Federal Reserve raised interest rates by a quarter of a percentage point. Brent crude futures closed down 72 cents, or 0.9 percent, at $82.92 a barrel, while U.S. West Texas Intermediate (WTI) crude settled at $78.78, down 85 cents, or 1.1 percent.
- Gold prices extended gains on Wednesday, helped by a weaker dollar and bond yields after the U.S. Federal Reserve delivered a widely expected interest-rate hike and investors digested comments from Chair Jerome Powell. U.S. gold futures settled 0.5 percent higher at $1,974.90.
Key Equity Indices
| EMERGING | LATEST | % 1D |
| Hang Seng | 19,365 | (0.4) % |
| Shanghai Composite | 3,223 | (0.3) % |
| DEVELOPED | LATEST | % 1D |
| Dow Jones | 35,520 | 0.2 % |
| DAX | 16,131 | (0.5) % |
| FTSE 100 | 7,677 | (0.2) % |
| Nikkei | 32,668 | (0.0) % |
| Straits Times | 3,305 | 0.6 % |
