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Government-owned Rashtriya Ispat Nigam Ltd (RINL) missed a payment to lenders due to financial stress, raising alarms among stakeholders. With Rs 14,000 crore in term loans and Rs 15,000 crore in fund-based limits, the company defaulted on a Rs 410 crore payment on June 30. The State Bank of India is the major lender, followed by Canara Bank and Indian Bank. Some banks have made precautionary provisions of 15% of their exposure. The Reserve Bank of India mandated that banks sign an inter creditor agreement to take immediate action. The company is operating at a low capacity of 30% and faces additional issues due to unpaid customer invoices. The government may sell non-core assets to reduce debt. Minister HD Kumaraswamy assured assistance to increase production capacity.

In a week that also brings a Federal Reserve interest-rate decision, investors will focus primarily on results from Microsoft on Tuesday, followed by Meta Platforms, Apple and Amazon over the next two days.

Apart from the seasonal impact, heightened due to general elections and heat waves across the country that affected business activities, most private lenders saw a higher formation of fresh bad loans emanating from retail, especially personal loans and credit cards. Agriculture loans also contributed to some stress, according to post-results commentary by several banks.

​On the weekly chart, the index has formed a bullish candle with a lower shadow, indicating buying at lower supports. Nifty has experienced volatility previously and has found support from its 20-day moving average.

A look at some of the stock recommendations by analysts of late. These stocks are expected to return between 12% and 25% as per analysts’ price targets.

The one-month implied volatility being priced by the foreign exchange options market has been below 2% for six months now, much lower than 3.5% a year ago, he said. On Friday, the rupee ended trade at an all-time low of 83.73/$1, having depreciated around 0.1% versus the US currency for the week, LSEG data showed. The weakness in the rupee has been driven by sharp volatility in the Chinese yuan, as well as foreign outflows from stock markets, which turned choppy after the government raised capital gains taxes on equities in the budget for FY25.

After initially cheering the deal, the stock market gave its thumbs-down to Mankind acquiring BSV at the premium valuations of eight times its FY24 revenues and 23 times its estimated ebitda of FY25. The Mankind stock opened 4.5% higher on Friday but closed 3.6% lower. Worries over funding of expensive deal and taking of debt for a debt-free company dragged down the positive sentiment.

Broad-based buying pushed Sensex up 1,300 points and Nifty50 to a record high. Nifty’s next targets are 25,000-25,100; support at 24,650. Here are 4 stock picks for Monday.

Foreign investors injected over Rs 33,600 crore into Indian equities so far this month on the expectation of continued policy reforms, sustained economic growth and a better-than-expected earnings season.