Stock Market Today: Nifty, Sensex End The Choppy Session At Record Highs As Infosys, TCS Lead

• Revenue down 1% at Rs 5,633 crore vs Rs 5,692 crore

• EBITDA up 6.4% at Rs 1,124 crore vs Rs 1,056 crore

• EBITDA margin at 19.9% vs 18.6%

• Net profit up 3.4% at Rs 333 crore vs Rs 322 crore

• Revenue up 20% to Rs 5,806 crore from Rs 4,834 crore

• Ebitda up 42% at Rs 572 crore from Rs 402 crore

• Margin up 160 basis points at 9.9% from 8.3%

• Net profit up 42% at Rs 408 crore from Rs 287 crore

• Mahindra & Mahindra Financial Services Ltd. is in pact with Tata AIG to broaden distribution of non-life insurance products.

Source: Exchange filing

• Net profit fell 3.6% at Rs 93 crore vs Rs 96 crore

• EBITDA fell 1.5% at Rs 133 crore vs Rs 135 crore

• Margin18.9% vs 20.2%

• Revenue rose 5.6% at Rs 706 crore vs Rs 668 crore

• Net NPA at 0.38% vs 0.40% (QoQ)

• Gross NPA at 1.32% vs 1.40% (QoQ)

• NII rose 14% at Rs 1,024 crore vs Rs 897 crore (YoY)

• Net profit rose 28% at Rs 459 crore vs Rs 359 crore (YoY)

• EBIT margin 12.8% vs 12.5%

• EBIT rose 6.4% at Rs 104 crore vs Rs 98 crore

• Revenue rose 4.3% at Rs 813 crore vs Rs 779.73 crore

• Net profit fell 24% at Rs 71.5 crore vs Rs 94.4 crore

• NII up 12% at Rs 3,548 crore vs Rs 3,176 crore

• Net profit at Rs 880 crore vs Rs 418 crore

• Gross NPA at 4.54% vs 4.50% QoQ

• Net NPA at 0.73% vs 1.23% QoQ

Welfare Schemes May Get Higher Allocation

• Share of revenue expenditure in total expenditure down from pre-pandemic average of 88%

• Expect FY25 revenue expenditure to grow by 6.8%

• Govt expected to do higher allocation towards agriculture, welfare schemes, job creation and rural housing

Major schemes/ministries that can see higher allocation:

• MNREGA

• PM Awas Yojana

• PM Gram Sadak Yojana

• PM Kisan Samman Nidhi

• Schemes related labour intensive MSME sectors

Key Budget Themes: Employment Generation

• Textile: Introduction of PLI scheme for cotton-based apparel and garment manufacturing.

• Hospitality and Tourism: Incentives like tax breaks or subsidies to promote investments

• Real Estate Infra; Higher fund allocation to PMAY/schemes focused on affordable housing

• Infra: Boost in construction activity via more project awards across PPP & EPC mode

PLI Allocation in Budget

• Allocation under major PLI schemes have grown significantly in FY25

• Large Scale Electronics, IT Hardware, Auto, Pharma dominate most of the allocation

• Govt may increase allocation, include labor-intensive sectors like textiles, leather, footwear and toys

• BASF India is to sell flocculants business for mining applications to specialty chem producer, Solenis.

Source: Exchange filing

• Lloyds Metals & Energy Ltd. has recorded the highest-ever quarterly iron ore production in April-June.

• Lloyds Metals & Energy Ltd. recorded 6% increase in iron ore production in April-June at 4 ton.

• The quarter one direct reduced iron rose 16% to 76,000 ton.

Source: Exchange filing

• Tata Power Renewable Energy signs MoU with NHPC Renewable Energy for solar initiatives

• Arm's pact with NHPC Renewable Energy aims for 100% solarisation of govt buildings

Source: Exchange filing

• Achieves highest sales volume in Q1

• Q1 sales volume rose 45% on the year to 1.2 lakh ton

Source: Exchange filing

• Nomura retained 'Reduce' on Eicher Motors Ltd. with a target price Rs 4,119, which implied a 16% downside.

• Royal Enfield (RE) Guerrilla 450 launched at a starting price of INR239k

• Taking several cues from the Himalayan 450

• Lower pricing, ~16% economical than the Himalayan 450

• Focussed on increasing its reach with more focus on in-city usage

• Price at 35% premium to RE 350cc bikes, and a ~3% premium to Triumph Speed 400

• Do not expect much improvement in the overall growth for RE

• Maintain our sales estimate for RE

• Earnings growth could be the slowest amongst our 2W coverage universe

• BJAUT remains our top pick in the 2W segment

• Aurobindo Pharma Ltd. is to buy back shares at Rs 1,460 per share via tender offer.

• Aurobindo Pharma Ltd. has approved buyback of 0.88% stake worth up to Rs 750 crore.

Source: Exchange filing

Market breadth was skewed in favour of sellers. Around 1,607 stocks declined, 1,392 stocks advanced, and 139 stocks remained unchanged on BSE.

• Bernstein maintained a 'Market perform' on the stock with the an unchanged target price at Rs 4,800.

• Modest TCV makes growth recovery difficult in FY25

• Margins miss on estimates

• Deal wins started to flow in revenue

• Clients starting to scale up high priority programs

• Utilisation improved above management’s band

• Noted greenshoots in demand

• Clients beginning to deploy savings towards high priority transformation programs

At pre-open, the NSE Nifty 50 was trading 0.28% lower at 24,543.80, and the S&P BSE Sensex was trading 0.25% lower at 80,514.25.

• The yield on the 10-year bond opened flat at 6.97%.

• It closed at 6.96% on Tuesday.

Source: Cogencis

• The local currency opened flat at 83.58 against the US dollar.

• It closed at 83.59 on Tuesday.

Source: Bloomberg

• Broader macro environment has remained unchanged

• Growth improvement was led by the resumption of paused projects

• Many large clients restarted paused transformation projects

• Wins in certain vendor consolidation should drive revival of demand

• Expects demand to be led by cost-takeout, select high-priority transformation projects

• Clients deploying savings towards high-priority transformation programs

• Clients are also making foundational investments for AI

• Ramp-up in deals reflecting in revenues

• Expect wage hike in Q3FY25

• Looking to take margins to pre merger levels of 18%

• Maintain Reduce with a target price Rs. 8,300 from Rs. 7,900, which implied a downside of 14%.

• Domestic 2W prospects are healthy

• Though the company position has slipped

• Response to newly-launched CNG motorcycle needs to be watched

• Mgmt guided for exports recovery to be gradual

• Raise FY26E EPS by 2.6% see 13% EPS CAGR FY24-27E

• Rates neutral with a target price of Rs. 2,800 from earlier Rs. 2,870, which implied a downside of 6%.

• The company's success in premium segments will be crucial

• Expects negative share price reaction

• Intensive competition to threaten margins

IREDA To Invest Rs 290 Crore With SJVN In Nepal's Karnali Hydro Project

Crisil Sees Indian Telecom User Revenue Rising 25% By FY26

• Zomato: Motilal Oswal Mutual Fund sold 2.84 crore shares (0.32%), while Societe Generale bought 1.27 crore shares (0.14%) and Polar Capital Funds bought 63.5 lakh shares (0.07%), among others, at Rs 226.85 apiece.

Motilal Oswal Mutual Fund Offloads Zomato Stake Worth Rs 645 Crore

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