Latest Stock Market News

Banks are expected to show weak earnings growth in Q2, with private banks performing slightly better due to higher fees and lower provisions. Loan growth remains slow, impacting net interest income. Top stock picks are ICICI Bank, Axis Bank, and SBI due to their strong growth and asset quality.

The government is set to sell up to 5% stake in Cochin Shipyard through an offer for sale. The floor price for the shares is Rs 1,540 each, representing an 8% discount from the previous closing price. The sale opens today for non-retail investors and on Thursday for retail investors.

In my opinion, the IT sector appears to have bottomed out. While there’s probably limited downside, for investors seeking 18-20% compounded growth, this sector might not offer that kind of potential. Instead, we might see more modest returns of 10-12%, with 2-4% constant currency growth.

One of the big trends that you are seeing is consumer companies are facing margin pressure, individual companies are reporting revenue growth in line with inflation, about 6%, 7%, 8%.

BEML has secured a Rs 866.87 crore contract from the Integral Coach Factory to develop India’s first high-speed train. The project includes designing, manufacturing, and commissioning two trainsets. They will be built in Bengaluru and are expected to be delivered by the end of 2026. BEML shares have shown significant gains over the past year.

Vandana Hari, Founder & CEO of Vanda Insights, discusses current oil market trends and the impact of geopolitical risks. She highlights concerns about sluggish demand growth, with an expectation of crude prices averaging in the low 70s for Q4. She also notes that U.S. elections might not significantly affect oil prices.

The Nifty Index opened positively on Tuesday but failed to sustain gains, resulting in a bearish candle and a close just above its 50 DEMA with a 70-point loss. Current supports are at 25,000 and 24,850 zones. A Bear Put Spread strategy is suggested to benefit from the bearish outlook and market volatility.

Key additions by mutual funds in mid-cap stocks included KPR Mill, Brigade Enterprises, PTC Industries, and Metro Brands.

On valuations, the P/E ratio of the small-cap index (Nifty Small Cap 250) is similar to that of the large-cap (Nifty 100) index, at around 19-20x on two-year forward earnings (excluded loss-making companies in the aggregates). However, the projected earnings growth for small-caps is higher, at 18% for the next couple of years versus 8-10% for large-caps. So, growth-adjusted valuations are not that expensive for small-caps.

HDFC AMC shares gain focus after reporting a 32% YoY increase in Q2 PAT, reaching Rs 576.61 crore. Revenue climbed 38% to Rs 887.2 crore, with total income of Rs 1,058.19 crore. Analysts Jefferies and CLSA express positive sentiments, raising target prices and upgrading ratings.