Benchmark equity indices settled at record highs on Wednesday, extending their winning run to the fourth day on gains in metal, power and select auto shares. The BSE Sensex jumped 285.94 points or 0.35 per cent to close at 81,741.34. The NSE Nifty rose 93.85 points or 0.38 per cent to close at an all-time high of 24,951.15. Majority of the sectors ended in green with buying seen in Pharma, Metals, and Financials.
Markets ended the month of July on a positive note with Nifty just shy away to achieve 25,000 mark.
“Indian markets have remained resilient despite of various actions coming in on taxation in the budget and SEBI’s effort to reduce the speculative trading in the derivatives segment. Clearly, the movement in the broader market is governed by quarterly results and guidance on the growth outlook,” said Jaykrishna Gandhi, Head of Business Development – Institutional Equities at Emkay Global Financial Services.
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“US Fed meet outcome would be keenly watched. While the market expects a status quo on policy rates, investors will look for hints on the future path of interest rates. One would advise to trade cautiously in this market and use corrections to buy into names with some valuation comfort and growth visibility,” he added.
The US Federal Reserve kept the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent for the eighth straight time on July 31 after a two-day Federal Open Market Committee (FOMC) meeting.
Here are the key stocks to watch on August 1:
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Infosys: The IT major has received a pre-show cause notice for alleged evasion of goods and services tax (GST) amounting to Rs 32,403 crore. In a recent BSE filing, the company informed that Karnataka GST authorities have issued a pre-show cause notice demanding Rs 32,403 crore in GST for the period from July 2017 to March 2022. The notice relates to the expenses incurred by overseas branch offices of Infosys Ltd. The company has responded to the pre-show cause notice.
"The Company believes that as per regulations, GST is not applicable on these expenses. Additionally, as per a recent Circular (circular number 210/4/2024 dated June 26, 2024) issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by the overseas branches to the Indian entity are not subject to GST," it said.
Maruti Suzuki: The auto major reported a 47 per cent jump in its net profit to Rs 3,650 crore for the April-June quarter compared to Rs 2,485 crore in the year-ago period. The growth came on account of cost reduction efforts, favourable commodity prices, and foreign exchange gains. Net sales increased to Rs 33,875 crore in the reported quarter as compared with Rs 30,845 crore in the year-ago period. The company sold 5,21,868 vehicles during the June quarter, up 5 per cent as compared to the same quarter previous fiscal.
Tata Steel: The steel major reported a 75 per cent growth in net profit to Rs 918.57 crore in the June 2024 quarter as against Rs 524.85 crore in the year-ago period as the company managed to reduce its expenses. The total income slipped to Rs 55,031.30 crore in the reported quarter from Rs 60,666.48 crore in the year-ago quarter. The board of the company also has approval to acquisition of 26 per cent stake in TP Parivart Ltd.
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Bank of Baroda: The public sector bank reported a 10 per cent increase in standalone net profit to Rs 4,458 crore in the June 2024 quarter compared to Rs 4,070 crore in the year-ago period, helped by a decline in bad loans. Total income rose to Rs 32,116 crore from Rs 29,878 crore, BoB said in a regulatory filing. The bank’s interest income increased to Rs 29,629 crore against Rs 26,556 crore in the year-ago quarter.
Adani Power: The Adani Group company reported over 55 per cent decline in its consolidated net profit to Rs 3,913 crore in the June quarter compared to Rs 8,759 crore in the corresponding quarter of previous fiscal. Total income fell to Rs 15,474 crore in the April-June quarter of FY25 from Rs 18,109 crore in the same quarter of the last year.
