Larsen & Toubro Profit Up; Axis Bank and SBI Life Show Mixed Results, Jindal Steel & Power Faces Profit Decline

Opening Bell:             

Gift Nifty is down by 229.0 points in the early morning trade, indicating a negative opening for Indian stock market                                

Asian markets plunged after overnight losses on Wall Street, with Japan’s Nikkei extending its six-day losing streak. Japan’s Nikkei 225 fell by 2.64%, while the Topix dropped 2.24%. South Korea’s Kospi declined 1.8%, and the Kosdaq decreased by 2.32%. Futures indicated a lower opening for Hong Kong’s Hang Seng index.

The US stock market ended sharply lower on Wednesday, with the S&P 500 and Nasdaq closing at multi-week lows. The Nasdaq Composite recorded its largest single-day percentage decline since October 2022, finishing at its lowest point since June 10. The Dow Jones Industrial Average fell by 504.22 points, or 1.25%, to 39,853.87. The S&P 500 dropped 128.61 points, or 2.31%, to 5,427.13, and the Nasdaq ended 654.94 points, or 3.64%, lower at 17,342.41.

Stocks News:

👉 Larsen and Toubro’s Q1 consolidated year-over-year results showed significant growth. Profit rose by 11.7% to ₹2,785.7 crore, up from ₹2,493 crore. Revenue increased by 15.1% to ₹55,119.8 crore, compared to ₹47,882.4 crore.

👉 Axis Bank’s Q1 standalone year-over-year results demonstrated growth in profit and revenue, alongside an increase in non-performing assets (NPAs). Profit rose by 4.1% to ₹6,034.6 crore, up from ₹5,797.1 crore. Revenue jumped by 12.5% to ₹13,448.2 crore, compared to ₹11,958.8 crore. The Gross NPA climbed to 1.54% from 1.43% quarter-over-quarter, and the Net NPA increased to 0.34% from 0.31%.

👉 SBI Life Insurance Company’s Q1 year-over-year results showed notable growth across several metrics, though there was a slight decline in the VNB margin. The new business premium grew by 13% to ₹7,030 crore from ₹6,210 crore. The annualised premium equivalent jumped by 20% to ₹3,640 crore, compared to ₹3,030 crore. The value of new business increased by 12% to ₹970 crore, up from ₹870 crore. However, the VNB margin dropped to 26.8% from 28.80%. Profit surged by 36% to ₹520 crore, compared to ₹380 crore.

👉 Jindal Steel & Power’s Q1 consolidated year-over-year results showed a decline in profit but an increase in revenue. Profit fell by 20.9% to ₹1,337.9 crore, down from ₹1,691.8 crore. Revenue rose by 8.2% to ₹13,617.8 crore, compared to ₹12,588.3 crore.

👉 The foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 5,130 crore on July 24, while domestic institutional investors extended their buying as they bought equities worth Rs 3,137 crore on same day.

Domestic and International Events

• The Indian government has allocated a record budget of ₹10,000 crore for price stabilisation measures aimed at curbing food price volatility. This funding will be used by the Department of Consumer Affairs to enhance procurement of essential food items like pulses and onions.

• Disappointing earnings from Alphabet and Tesla led a selloff in US megacap technology stocks resulting in the Nasdaq Composite posting its largest single-day percentage decline since October 2022 to finish at its lowest point since June 10. Alphabet shares slid 5%, while Tesla shares plunge 12% in the worst single-day drop since 2020. Other megacaps, Apple, Microsoft, Amazon.com, Meta Platforms and Nvidia shares, all closed lower between 2.9% and 6.8%.

• Gold prices remained flat as investors awaited US economic data for hints on the timing of central bank interest rate cuts. Spot gold was steady at $2,398.17 per ounce, while US gold futures fell 0.8% to $2,397.40.

• Crude oil prices traded lower, with Brent crude oil falling 0.40% to $81.38 a barrel, and US West Texas Intermediate (WTI) crude futures declining 0.37% to $77.30 a barrel.