Stocks to Watch: LIC, Cochin Shipyard, Eicher Motors And Others in News

Equity benchmark indices plunged sharply on Thursday after the Reserve Bank of India decided to keep the policy rate unchanged for the ninth consecutive time and called the food inflation “stubborn”.

The BSE Sensex fell 581.79 points or 0.73 per cent to settle at 78,886.22 in a volatile trade. The NSE Nifty declined by 180.50 points or 0.74 per cent to close at 24,117.

The RBI Monetary Policy Committee (MPC) voted 4-2 to maintain the repo rate at 6.50 per cent. Consequently, Marginal Standing Facility (MSF) and Standard Deposit Facility (SDF) rates remain steady at 6.75 per cent and 6.25 per cent, respectively. The MPC upheld its stance of "withdrawal of accommodation” by a vote of 4-2.

Deepak Jasani, head of retail research at HDFC Securities says global equities dropped, prolonging the volatility that has gripped global markets for days as the discussion around central bank policy decisions continues to fuel investor anxiety. Persistent concerns over slowing economic growth, further yen volatility and higher interest rates kept markets volatile.

“Nifty formed a bearish candle on daily charts on Aug 08. It has not been able to enter the down gap area of 24383-24687 band despite repeated attempts. Bearish outlook for the near term stays till the highs of 24800 is breached. Nifty could stay in the 23894-24343 band for the near term. Volumes continue to be a worry even as the participation in the broader markets remains limited,” Jasani said.

Here are the key stocks to watch on August 9:

Life Insurance Corporation: The insurance giant reported a 10 per cent increase in net profit to Rs 10,461 crore for April-June quarter of FY25, compared to Rs 9,544 crore in the year-ago period. The company’s total income also surged to Rs 2,10,910 crore as against Rs 1,88.749 crore in the June 2023 quarter.

Cochin Shipyard: The state-owned company posted a 75.6 per YoY growth in net profit to Rs 174.2 crore in the June 2024 quarter compared to Rs 98.7 crore in the year-ago period. The company’s revenue from operation surged by 61.1 per cent to Rs 771.5 crore as against Rs 475.9 crore in the corresponding quarter of previous financial year.

Eicher Motors: The company reported a rise of 19.9 per cent YoY to Rs 1,101.5 crore from Rs 918.3 crore in the year-ago period. Revenue surged 10.2 per cent to Rs 4,393 crore compared to Rs 3,986 crore in the corresponding quarter of previous fiscal. The company’s EBITDA rose 14.2 per cent to Rs 1,165.4 crore and EBITDA margin expanded to 26.5 per cent compared to 25.6 per cent.

Container Corporation of India (CONCOR): The state-owned company reported a 5.8 per cent YoY increase in net profit to Rs 259.4 crore in the June 2024 quarter compared to Rs 245 crore in the year-ago period. The company’s revenue also increased by 9.4 per cent to Rs 2,103.1 crore, up from Rs 1,922.8 crore in the corresponding quarter of previous financial year.

Biocon: The company reported a significant 550.6 per cent YoY surge in consolidated net profit to Rs 659.7 crore for the June 2024 quarter compared to Rs 101.4 crore in the year-ago period. The company’s revenue rose marginally to Rs 3,432.9 crore as against Rs 3,422 crore in the corresponding quarter of previous fiscal.