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Business Recorder
15 hours ago
- Business
- Business Recorder
India's stock benchmarks end flat
MUMBAI: India's equity benchmarks ended little changed on Tuesday, as the post-earnings surge in Zomato parent Eternal was offset by a drop in Reliance Industries and uncertainty over a trade deal with the United States. The Nifty 50 fell 0.12% to 25,060.9 points, while the BSE Sensex ended 0.02% lower at 82,186.81 on the day. The prospects of an interim trade deal between India and the US before Washington's August 1 deadline have dimmed, with talks deadlocked over tariff cuts on key agricultural and dairy products, Reuters reported, citing two Indian government sources. 'Until there is clarity on India-US trade deal, we are likely to continue seeing stock-specific action based on earnings,' said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.
Business Recorder
a day ago
- Business
- Business Recorder
India's stock benchmarks end flat as Reliance, trade jitters offset Eternal gains
India's equity benchmarks ended little changed on Tuesday, as the post-earnings surge in Zomato parent Eternal was offset by a drop in Reliance Industries and uncertainty over a trade deal with the United States. The Nifty 50 fell 0.12% to 25,060.9 points, while the BSE Sensex ended 0.02% lower at 82,186.81 on the day. The prospects of an interim trade deal between India and the U.S. before Washington's August 1 deadline have dimmed, with talks deadlocked over tariff cuts on key agricultural and dairy products, Reuters reported, citing two Indian government sources. 'Until there is clarity on India-U.S. trade deal, we are likely to continue seeing stock-specific action based on earnings,' said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities. HDFC Bank, ICICI Bank lead India's stock benchmarks higher, Reliance caps gains Among 13 major sectors, financials was the only one to avoid losses, remaining close to flat, thanks to gains in top two lenders, HDFC Bank and ICICI Bank. HDFC Bank and ICICI Bank rose 0.3% and 0.4%, respectively, extending their post-earnings gains from Monday. The broader, more domestically focused mid-and small-caps fell 0.6% and 0.3%, respectively. Eternal jumped 10.3% and hit record high intraday after the online delivery firm said margins in its quick commerce segment have likely bottomed out, indicating easing competition and a potential turnaround. The stock lent the biggest boost to the benchmarks, and also lifted its rival Swiggy's shares by 5.7%. Reliance Industries was the biggest drag on the benchmarks, losing 1.1%, as weakness in its oil-to-chemicals and retail businesses continued to weigh, extending the previous session's 3.2% drop. Among other stocks, exchange operator BSE, and brokerages Nuvama Wealth Management and Angel One gained as the markets regulator said trading curbs on U.S.-based Jane Street have been lifted. Media firm Zee Entertainment Enterprises fell 5.7% after posting a 14% drop in its consolidated total income due to lower advertisement revenue.
Time of India
14-07-2025
- Business
- Time of India
Negatives mostly priced in for tier 1 IT companies; correction likely in midcaps: Sunny Agrawal
Sunny Agrawal , Head of Fundamental Equity Research, SBI Cap Securities , says The IT sector faces a weak demand environment as clients seek productivity gains through Gen-AI while expecting cost benefits. While tier I IT company negatives are priced in, midcap IT firms face potential correction due to expensive valuations. KPIT Tech is expected to deliver muted growth commentary for FY26 amid global automobile industry uncertainties. What is your take on the IT pack? The market has digested TCS earnings and given that the company is not that bullish on the growth outlook and are anticipating some pressure on discretionary spending, we have already seen very tepid moves coming in the other IT majors as well. But within the lot, KPIT Tech is holding on to the gains of 2% right now. How do you analyse the overall IT space and any stock that you would like to bet on in this correction? Sunny Agrawal: The way the commentary of TCS and Tata Elxsi has played out, it clearly seems there is a lot of uncertainty in terms of demand environment and at the same time, clients want to increase productivity using various Gen-AI tools and at the same time they want the benefit to be passed on to him or her. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo So, overall, a pretty weak demand environment as far as the IT sector is concerned. Coming to a stock specific action or price action, most of the negatives are already in the price at least for tier I IT companies – be it TCS, Infosys or HCL Tech . The issue is with the midcap IT companies. The valuations are very expensive there compared to their largecap peers. In case the demand environment or the commentary is on weaker front from midcap companies, we see a sharp correction in the midcap IT pack. Moving on to the KPIT, the company during the mid-quarter update has already alerted the street that the deal execution is not playing out as per expectation and the deal wins are likely to slow down. Thus the negative news is already priced in for KPIT Tech and any positive development on the automobile side can act as a positive. Live Events You Might Also Like: Where to park money and where to create wealth now? Jyotivardhan Jaipuria answers But given the trade uncertainty going on in the global automobile industry, the transition from ICE engine to electric or for that matter hybrid, the dynamics of the industry are changing very rapidly. We expect KPIT to deliver a very muted set of commentary as far as growth for FY26 is concerned. So, let us wait and see what is the commentary of management on KPIT. You Might Also Like: Market very delicately poised; any bad news and we run the risk of downside: Aashish Somaiyaa TCS management on use-case based approach to AI; identifies 4 areas of focus
Business Recorder
11-07-2025
- Business
- Business Recorder
India's equity benchmarks log weekly losses as IT stocks drag
Indian equity benchmarks posted a second straight weekly loss, weighed down by uncertainty over a potential U.S. trade deal and weak earnings from IT major Tata Consultancy Services. The Nifty 50 fell 1.22% to 25,149.85 points this week, while the BSE Sensex lost 1.12% to 82,500.47. IT was the biggest sectoral loser as it fell 3.8% this week due to weak TCS earnings and uncertainty over U.S. President Donald Trump's tariffs. U.S. President Donald Trump on Thursday said he would impose a 35% tariff on Canadian imports starting next month and consider blanket tariffs of 15% to 20% on most other trading partners. Meanwhile, investors continued to wait for a trade deal between the U.S. and India. 'The market is in dilemma as the wait for a trade deal with the U.S. continues. Traders are not confident about taking any major positive bets in this uncertain environment,' said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities. Indian equity benchmarks edge lower as Reliance, metals losses outpace consumer gains Agrawal said the Jane Street episode has further impacted sentiments, with derivatives volumes taking a hit. On Friday, the benchmark indexes slid about 0.8% each, dragged by losses in IT stocks. TCS lost 3.4% after weak results, which also pulled its peers Infosys and Wipro lower. Eleven of the 13 major sectors fell during the week. The broader small- and mid-caps lost 1.4% and 1.7%, respectively, snapping a two-week winning streak. Bucking the trend, Hindustan Unilever jumped 7.7% for the week, marking its best performance in a year, as the consumer goods maker named Priya Nair, an insider at parent Unilever, as its chief executive. Among other stocks, Glenmark Pharmaceuticals surged 14.6% on Friday after its unit signed an exclusive licensing deal with U.S. peer AbbVie for its cancer treatment.
Economic Times
08-07-2025
- Business
- Economic Times
Vedanta shares down 2% in 1 year but giving 7% dividend. Is it enough to buy the stock?
Metal major Vedanta, one of the top 10 dividend-yielding stocks, has seen its share price struggle on Dalal Street over the past year. Despite offering a healthy 12-month dividend yield of 7%, the large-cap stock has declined 2% in the same period. This raises a crucial question if investors should consider buying it purely for its attractive dividend, despite its uninspiring stock performance. ADVERTISEMENT Stock's dividend yield in FY24, FY23 and FY22 stood at 7%, 24.2% and 10.7%, respectively according to a note by SBI Securities. Kranthi Bathini, Director-Equity Strategy at WealthMills Securities said that Vedanta shares draw their popularity among investors from high dividend yield. He attributed the current underperformance to the demerger overhang while highlighting that the company has suffered corporate governance issues in the past. His advice to investors is to wait till the time the demerger is similar sentiments, Sunny Agrawal, Head - Retail Fundamental Desk at SBI Securities told ETMarkets to buy the stock only when the demerger takes place as it will unlock value for the analyst Nilesh Jain also does not find Vedanta's current proposition attractive on charts. In the absence of any clear trend, it is best to avoid the stock for now, the Head Vice President, Equity Research Technical and Derivatives at Centrum Broking opined. ADVERTISEMENT However, brokerage firm Emkay takes a contra view on Vedanta stock as it recommends a 'Buy' view on the counter for a price target of Rs 525. The reason for its optimism is Hindustan Zinc (HZL), a key profit driver for Vedanta. The company plans to double its capacity to 2mt by the end of the decade from 1.1mt currently and the first step includes a 250kt zinc smelting expansion at Debari with Rs120bn capex, targeting completion in 36 months. Vaibhav Vidwani, Research Analyst at Bonanz's Vidwani has also recommended a 'Buy' on Vedanta riding on the prospects of HZL. The profitability will be supported by the price of silver (Hindustan Zinc) and aluminium, while the company's core business remains solid, he said. "Expansion in both upstream and downstream in the aluminium industry, the Sijimali bauxite mine and backward integration for the aluminium smelter will support revenue growth in the upcoming year," he added. ADVERTISEMENT Also read: IT stocks hit decade-high 3.2% dividend yield as FIIs flee. Should you buy TCS, Infosys, Wipro before Q1 results? Vedanta shares have delivered modest returns of 2% so far in 2025, underperforming the Nifty, which is up 7.2% year-to-date and 4.7% over the past 12 months. In comparison, the Nifty Metal index — a benchmark for the sector — has gained 10% YTD but remains down 3.6% on a 12-month prices have not moved despite the merger news. In March, Vedanta extended the deadline of the demerger of its businesses from March 31, 2025, to September 30, 2025, citing pending approvals from government authorities and the National Company Law Tribunal (NCLT). The mining conglomerate is looking to demerge its businesses - aluminium, oil & gas, power and steel- as separate entities. At present, these businesses are subsumed within Vedanta Ltd, which is an Indian arm of UK-based Vedanta Resources. There will be no change in the overall shareholding structure. ADVERTISEMENT Chairman Anil Agarwal in a letter to company shareholders had said that he envisions each of the four newly demerged companies to potentially grow into a $100 billion company. Post the demerger, every Vedanta shareholder - both retail and institutional - will receive one new share in each of the newly demerged major Vedanta posted strong operational performance in Q1FY26 across its portfolio. The Lanjigarh Refinery reported a record quarterly alumina production of 587 kt, marking a 9% year-on-year and a 36% quarter-on-quarter jump. The mining major had reported stellar Q4FY25 earnings posting a 154% year-on-year rise in consolidated net profit to Rs 3,483 crore while the revenue from operations grew 14% YoY to Rs 40,455 crore. ADVERTISEMENT Also read: Titan shares give Rs 900 crore shock to Jhunjhunwalas. What brokerages say on Tata's bluechip stock Vedanta has also been focusing on debt reduction and the company's CFO Ajay Goel in a company filing had said that Vedanta's balance sheet deleveraged by $500 million in Q4 with a closing net Debt of $6.2 billion, enabling substantial improvement in leverage to 1.2x. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
