Here are some of the major updates that could move the markets tomorrow:
HDFC Bank Q2 Results: Net profit rises 50% to ₹15,976 crore
HDFC Bank reported a 50% YoY rise in net profit to ₹15,976 crore for the quarter ended September 2023 (Q2 FY24). Net interest income (NII) rose 30.2% YoY to ₹27,385 crore during the same period. However, the bank’s gross non-performing assets (NPA) rose 17 basis points to 1.34% in Q2. Provisions for the quarter fell 10.3% YoY to ₹2,903 crore. This is HDFC Bank’s first quarterly result post-merger.
According to data released by the Ministry of Commerce & Industry, India’s Wholesale Price Index (WPI)-based inflation reached a six-month high of -0.26% in September. This marks WPI’s sixth consecutive month in negative territory. The persistent deflation in factory gate prices is attributed to a high base effect and significant deceleration in food prices. Food inflation fell significantly from 10.6% in August to 3.35% in September.
Jio Financial Q2 Results: Net profit doubles QoQ to ₹668 crore
Jio Financial Services (JFS) posted a 101.3% quarter-on-quarter (QoQ) increase in consolidated net profit to ₹668.18 crore in Q2 FY24. The company’s total income rose 47% QoQ to ₹608 crore during the same period. Share of profit of joint venture and associates rose above 3.25 times over the previous quarter to ₹217.82 crore.
Grasim to raise up to ₹4,000 crore via rights issue
Grasim Industries Ltd’s board has approved raising up to ₹4,000 crore through a rights issue. The company will issue equity shares with a face value of ₹2 each through rights issue for an amount not exceeding ₹4,000 crore to eligible shareholders as on the record date. The record will be announced later. The board or a constituted committee of the board will decide all other terms and conditions of the rights issue.
Federal Bank Q2 Results: Net profit rises 36% YoY to ₹954 crore
Federal Bank reported a 35.54% YoY increase in standalone net profit to ₹953.82 crore in Q2 FY24. Net Interest Income (NII) grew 17% YoY to ₹2,056.42 crore during the same period. The gross non-performing assets (NPAs or bad loans) fell from 2.46% in Q2 FY23 to 2.26% in Q2 FY24.
Domestic PV sales up 2% at 3.61 lakh in September: SIAM
According to the Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle (PV) sales increased by 1.87% YoY to 3.61 lakh units in September, compared to 3.55 lakh units in September FY22. Domestic two-wheeler sales rose to 17.5 lakh units in September FY23, compared to 17.4 lakh units last year.
ICICI Securities Q2 Results: Net profit rises 41% YoY to ₹424 crore
ICICI Securities reported a 41% YoY rise in net profit to ₹424 crore in Q2 FY24. The company had posted a net profit of ₹300.4 crore in the year-ago period. Total income rose 44% YoY to ₹1,249 crore in Q2, led by growth in broking income. During the quarter, ICICI Securities added 2.24 lakh clients, expanding its customer base to 95 lakh.
KPIL secures ₹2,217 crore new orders in India, abroad
Kalpataru Projects International Ltd (KPIL) has secured new orders worth ₹2,217 crore in the domestic and international markets. The company’s Transmission and Distribution (T&D) business secured contracts worth ₹1,993 crore in India and overseas markets. Furthermore, its building and factories (B&F) segment has received ₹224 crore new orders in the domestic market.
Venus Remedies receives marketing approval for chemo drugs from Philippines
Venus Remedies has received marketing approval from the Philippines for six key chemotherapy drugs. The approved drugs are crucial for cancer treatment and include bortezomib, cisplatin, doxorubicin, docetaxel, fluorouracil, and paclitaxel. With this, Venus Remedies has secured 525 marketing approvals for its oncology products across 76 countries.
KEC International Ltd has secured new orders amounting to ₹1,315 crore across its diverse business verticals. Its transmission and distribution (T&D) sector received a series of notable projects spanning India, the Middle East, Australia, and the Americas. These projects include the installation of a 765 kV Transmission line and a 765 kV AIS Substation in India. The company’s cables business also secured orders for the supply of various types of cables, both within India and overseas.
Here are some of the major updates that could move the markets tomorrow:
Vedanta approves issue of NCDs worth ₹2,500Cr
Vedanta’s board has approved raising to ₹2,500 crore through the issue of secured, unrated, unlisted, redeemable non-convertible debentures (NCDs). The company will issue 2.5 lakh NCDs with a face value of ₹1 lakh each. The issue will be done on a private placement basis. The NCDs could be issued in one or more tranches. Vedanta mentioned that this proposal is part of its routine refinancing that is undertaken in the ordinary course of business.
JSW in talks with LG Energy Solution to make EV batteries
According to a report from Reuters, JSW is in early-stage talks with LG Energy Solution (LGES) for jointly manufacturing batteries in India. JSW held talks with senior LGES executives in Korea earlier this month, proposing a partnership to manufacture battery cells in India for EVs and energy storage. The move comes as the company presses ahead with plans to build electric vehicles locally.
Adani Group’s property unit has formed a joint venture (JV) with Mumbai’s slum rehabilitation authority to redevelop the Dharavi. This is a key step towards rebuilding one of Asia’s biggest slums that is mixed in legal controversy. A spokesperson from Adani Group confirmed the formation of a new entity— Dharavi Redevelopment Project Pvt Ltd. This is a significant development as Adani faces an ongoing legal challenge from a rival bidder, Dubai-based SecLink Technologies Corp.
Trucap Finance, HDFC Bank commence co-lending partnership for MSME business
HDFC Bank and TruCap Finance Ltd (TRU) have entered into a co-lending partnership. TRU will leverage its Lending-as-a-Service (LaaS) model to offer quality credit solutions to underserved borrowers. HDFC Bank and TRU will jointly offer MSME business loans and Gold Loans to borrowers predominantly in non-urban locations. TruCap Finance (TRU) is a non-banking finance company dealing in gold and business loans.
Tata Consumer Products Ltd (TCPL) has emerged as the frontrunner to acquire Capital Foods Pvt Ltd at a valuation of ₹5,500 crore. Capital Foods is the maker of condiments, food products and ingredients under the Ching’s Secret and Smith & Jones brands. TCPL will first acquire 65-70% of the company from its three investors, with a pathway to acquire the rest in different phases.
ABB India to provide power to Samskip’s hydrogen-fueled container vessels
ABB India Ltd has secured an order from Netherlands-based global logistics company Samskip to provide a comprehensive power distribution system for two new-built short-sea container ships. The vessels will be among the world’s first of their kind to use hydrogen as a fuel. As part of its services, ABB will deliver Samskip with the new, compact version of the ABB Onboard DC Grid power distribution system to ensure optimal use of energy on board.
IndiGo, British Airways enter into new codeshare partnership
IndiGo and British Airways have signed a codeshare agreement to further boost connections between India and the UK. Through this partnership, British Airways will add its code to a couple of destinations across IndiGo’s network which would allow customers to enjoy improved connectivity between India and the UK for travel from October 12.
BPCL issues corporate guarantee for $200 million loan availed by a subsidiary
Bharat Petroleum Corp Ltd (BPCL) has turned guarantor for a $200 million loan (~₹1,661 crore) availed by its step-down subsidiary. The company has issued a corporate guarantee in relation to the three-year term loan facility proposed to be availed by BPRL International BV through the State Bank of India, DIFC Branch. BPRL International is a wholly-owned subsidiary of Bharat PetroResources Ltd (BPRL), which is a subsidiary of BPCL.
NIFTY started the day at 19,980 with a gap-down of 152 points. It initially tried to move up, but 20,050 levels acted as good resistance. The index fell throughout the day to 19,880 levels. Nifty closed at 19,901, down by 231 points or 1.15%.
BANK NIFTY (BNF) started the day at 45,493 with a huge gap-down of 486 points. After opening, the index recovered nearly 300 points to 45,750 levels. But selling pressure kicked in, and the index fell nearly 470 points from the day’s high. BNF closed at 45,384, down by 595 points or 1.29%.
All indices closed in red. Nifty Metal (-1.63%) and Nifty Finserv (-1.49%) fell the most.
Major Asian markets closed in the red. European markets are currently trading in the green.
Today’s Moves
PowerGrid (+2.27%) was NIFTY50’s top gainer. The stock hit an all-time high of ₹205.95 today.
Blue Star (+13.4%) surged to hit a record high of ₹946.8 after the company launched a qualified institutional placement (QIP) issue to raise ₹1,000 crore.
SJVN (+6.65%) moved up after the company and Power Finance Corp signed an agreement worth ₹1.18 lakh crore for renewable energy and thermal power projects.
HDFC Bank (-4.01%) was NIFTY50’s top loser. The bank has warned that its merger with HDFC would hit key financial metrics, including margins and bad loan ratios. Several brokerage firms have reduced target prices on the stock.
Heavyweight stock Reliance (–2.23%) fell sharply today. Around 1.9 crore shares (0.3% equity) of RIL changed hands in a block deal.
Public sector banks UCO Bank (-5.7%), IOB (-5.5%), Central Bank (-5.4%), and others closed deep in red.
Markets Ahead
After the huge rally, major indices have come under selling pressure. The Special Session of the Parliament happening this week could also add volatility to the markets.
Markets can be volatile to sideways in the coming days. So traders need to be cautious!
Nifty: The index closed below 20,000. So that level can act as a strong resistance. But the immediate resistance is near 19,950 levels. A breakout on the upside could make the index volatile and sideways. Meanwhile, the important support is near 19,800 levels. A breakdown below today’s low can give us targets of 19,800 and 19,730 as the second target.
Bank Nifty: The indexis now currently taking support from 45,300 levels. A breakdown from here can take the index down to 45,150 and 45,000 eventually. On the other hand, a breakout from 45,460 can take the index to the 45,750 levels (with volatility).
Being Bank Nifty expiry, the option premiums and implied volatility (IV) didn’t cool down on the call option (CE) side till even the second half of the day. So option sellers might have been in some confusion there. But spikes on the put option (PE) side were also manageable. So it was a good day for both option buyers and sellers.
The US Federal Reserve will make its interest rate announcement today (11:30 PM IST), with prevailing expectations pointing towards a decision to maintain the current interest rates without any changes.
Nifty’s expiry tomorrow can be tricky. So watch out for the levels mentioned above and manage your risk.
What levels are you watching out for expiry tomorrow? Let us know in the comments section of the marketfeed app.
Don’t forget to tune in to The Stock Market Show at 7 PM on our YouTube channel!
NIFTY started the day at 20,155 with a gap-down of 36 points. After falling to 20,120 levels in the first candle, the index moved up gradually to 20,195 (the day’s high). Post 12 PM, it fell nearly 80 points (making lower lows) to hit 20,115. Nifty closed at 20,133, down by 59 points or 0.29%.
BANK NIFTY (BNF) started the day at 46,100 with a gap-down of 130 points. After trading in a 110-point range initially, the index broke out of the consolidation, and rose to 46,250 levels. Then, similar to Nifty, Bank Nifty fell sharply by 345 points over the remaining part of the day! BNF closed at 45,979, down by 251 points or 0.54%.
All indices except Nifty PSU Bank (+3.39%), Nifty Auto (+0.84%), and Nifty FMCG (+0.58%) closed in the red. Nifty Realty (-1.37%) fell the most.
Major Asian markets closed mixed. European markets are currently trading up to 1% in the red.
Today’s Moves
PowerGrid (+3.09%) was NIFTY50’s top gainer.
Indian Overseas Bank (IOB) hit a 20% upper circuit amid a strong rally in PSU bank stocks. UCO Bank (+15.1%) and Central Bank (+9.8%) also closed well in the green.
BEL (+3.1%) went up nearly 7% intraday after the company received multiple orders worth ₹3,000 crore on Friday.
Hindalco (-2.43%) was NIFTY50’s top loser amidst selling pressure in metal stocks.
Vodafone Idea (-6.8%) fell sharply after the telecom company denied reports that US-based Verizon, Amazon, and Starlink are in a race to acquire it.
J B Chemicals (-49.79%) shares have turned ex-split. The company had announced a stock split in the ratio 1:2.
Markets Ahead
Nifty and Bank Nifty have closed without major changes, and our market is witnessing small profit booking. In the upcoming days, we can expect decent selling after every intraday rise. To catch this move, you can use simple trendlines.
The major support to look out for in Nifty will be the 20,100-130 zone. However, Bank Nifty is struggling to trade above 46,000 as the region is close to its all-time high (ATH).
Bank Nifty may not show bullishness at least for this week. Here are the reasons:
ICICI Bank is facing resistance near the ₹1,000 mark. If the stock breaks this level, it will be a strong double-bottom breakout and could be a big move after a small retracement.
HDFC Bank failed to break the resistance at ₹1,650. Will be watching how the stock behaves near the ₹1,620 support region.
Bank Nifty might trade in a 1000-points range of 45,480-46,330 for a few more days. Even an ATH breakout would be a trap, because Pivot levels are indicating a strong resistance near the 46,680 region.
Reliance is testing its major trendline support, but proper horizontal-level support is only available near ₹2,400.
The markets will remain closed tomorrow (Sept 19) on account of Ganesh Chaturthi.
How did FIN NIFTY expiry go? Let us know in the comments section of the marketfeed app.
Don’t forget to tune in to The Stock Market Show at 7 PM on our YouTube channel!
Reliance Retail has launched its youth-centric fashion brand ‘Yousta’. It also opened its first store in Sarath City Mall, Hyderabad. The Yousta range is also available on e-commerce platforms Ajio and JioMart. The new brand boasts of having contemporary tech-enabled store layouts while promising high-fashion at affordable prices targeted at young consumers.
Reliance Jio, Bharti Airtel add 36 lakh subscribers in June
Reliance Jio added the highest number of wireless subscribers in June 2023, while financially struggling Vodafone Idea continued to lose ground. Jio added 22.7 lakh subscribers in June, taking its total subscriber tally to 43.9 crore. Bharti Airtel added 14.1 lakh subscribers, and its total wireless subscriber base stood at 37.4 crore. Vodafone Idea lost 13 lakh subscribers during June, and its total subscriber base shrank to 22.9 crore.
Dutch group threatens lawsuit over Tata Steel pollution
FrisseWind.nu foundation (representing at least 1,400 people) took the first steps toward a lawsuit against Tata Steel, alleging it is responsible for pollution near Amsterdam that has caused illnesses for residents. Tata Steel’s massive plant at the mouth of the IJ River has come under increasing fire from residents and health authorities, who accuse it of being the main source of contamination in the air, soil and water.
Hindustan Zinc to ramp up zinc production to 1.5 MT
Hindustan Zinc Ltd (HZL) chairperson Priya Agarwal Hebbar said that the company will ramp up production of zinc to 1.5 million tonnes (MT). HZL is the second largest zinc-lead miner in the world after Swiss firm Glencore and the fourth largest zinc-lead smelter globally. It has now also broken into the top 10 list of silver producers in the world.
Tata Power partners with Zoomcar to promote EV adoption
Tata Power EV Charging Solutions has partnered with car-sharing platform Zoomcar to promote electric vehicle adoption. The collaboration aims to promote Tata Power’s EZ Charge points on the Zoomcar platform. It will focus on supporting existing and aspiring EV owners along with Zoomcar’s existing customers.
USFDA issues ‘EIR’ for Torrent Pharma’s manufacturing facility
The US Food & Drug Administration (USFDA) has issued an Establishment Inspection Report (EIR) for Torrent Pharmaceuticals’ manufacturing facility in Dahej, Gujarat. EIR means the closure of inspection. The drug regulator had conducted a re-inspection of the site in May this year from May 17-25 and issued Form 483 with 2 observations.
SBI attracts top distressed asset buyers’ interest for bad loans: Report
According to an ET report, several global and local distressed asset investors are considering buying some of State Bank of India’s (SBI) bad loans put up for sale in the financial year that began in April. Earlier this month, SBI identified a list of 331 non-performing assets with a combined outstanding value of ₹96,000 crore. Investors that have expressed interest include New York-based Cerberus Capital Management LP and Hong Kong-headquartered SC Lowy.
Chinese fintech giant Ant Financial is looking to offload a 3.6% stake or 2.27 crore shares in digital payments firm Paytm through block deals on August 25. Citigroup has been appointed as the broker for the deal. The transaction’s floor price has been established at ₹880 per share.
Tata Communications plans to raise ₹1,750 crore through the issuance of non-convertible debentures (NCDs). The date of allotment of NCDs is August 29, and they will mature after three years of the allotment date. The NCDs will be listed on the wholesale debt market segment of the National Stock Exchange.
Gujarat Ambuja Exports gets GPCB approval for new plant
Gujarat Ambuja Exports Ltd (GAEL) has received clearance from the Gujarat Pollution Control Board (GPCB) to set up a greenfield corn-wet milling plant at Himmatnagar, Gujarat. The proposed facility would have the capacity to process corn up to 900 tonnes per day (TPD). GAEL is one of India’s leading manufacturers and exporters of cotton yarn, maize starch, liquid glucose, etc.
HDFC Bank’s asset quality continues to be stable: Official
Asset quality of the HDFC Bank continues to be stable even as many of its peers are facing challenges, said the bank’s head for payments business and consumer finance Parag Rao. He added that the bank is witnessing “good traction” on the Unified Payments Interface (UPI) for credit cards. Rao did not share the exact number of NPAs (bad loans) from the credit card business, but added that the number is half of that of its nearest competition.
People often have money they want to save for later instead of spending it right away. A savings bank account allows you to deposit your money safely with the bank, so you don’t have to carry it around or hide it in that rusted old steel safe at home. It is the most basic account that you can open at any bank. In this article, we will discuss a few of the best savings bank accounts available in India that can provide a seamless banking experience.
How to Choose a Savings Bank Account?
Here are some of the key factors to consider before opening a savings bank account:
1. Interest rates
Compare the interest rates offered by different banks. Look for accounts that offer competitive or relatively high interest rates to maximise your savings.
2. Minimum Balance
Check the minimum balance requirement for each account. Choose an account that aligns with your financial situation and can be easily maintained to avoid penalties.
3. Fees and charges
Take note of any fees and charges associated with the savings account, including maintenance, ATM, or transaction fees. Choose an account with minimal or no charges, particularly if you plan to conduct regular transactions.
4. Withdrawal and transaction limit
Transaction and withdrawal limits on savings bank accounts refer to the maximum amount of money that can be transacted or withdrawn from the account within a specified period. The banks set these limits to ensure security, manage liquidity, and prevent misuse or fraudulent activities.
Look out for daily withdrawals, transactions, and other transfer limits before you open an account.
5. Customer service
Evaluate the quality of customer service provided by the bank. Check online reviews and ratings to gauge customer satisfaction and responsiveness to queries or complaints. Opting for a bank with an extensive network of branches can enhance your banking experience. Additionally, ensure the availability of a nearby branch for your convenience.
6. Bank’s financial health
Before opening a savings account, assess the bank’s financial health. Look for indicators like capital adequacy, asset quality, profitability, and liquidity. Consider credit ratings, regulatory compliance, reputation, and track record to ensure the safety and growth of your funds.
Best Savings Bank Accounts in India
1. State Bank of India (SBI)
State Bank of India (SBI) is a multinational public sector bank and the largest bank in India. SBI offers a variety of savings accounts with different interest rates. The interest rate on SBI savings accounts ranges from 2.70% to 4.25%, depending on the balance. Furthermore, SBI offers several other features, such as free ATM withdrawals, online banking, and mobile banking.
As of March 31, 2023, the State Bank of India (SBI) has 28,802 branches in India. SBI also has a network of over 62,617 ATMs and 71,968 Business Correspondent (BC) outlets across India. Additionally, SBI has a market share of 27.24% as of FY23, making it the largest bank in India.
The various types of saving accounts offered by SBI are:
Basic Savings Account (under Pradhan Mantri Jan Dhan Yojna)
Savings Bank Account
Basic Small Savings Account
Savings Account for Minors
Savings Plus Account
Insta Plus Video KYC Savings Account
Interest rate offered by SBI savings account
Balance
Interest Rate (per annum)
Less than ₹10 crore
2.70%
₹10 crore & Above
3.00%
2. HDFC Bank
HDFC Bank is the largest private-sector bank in India by assets. The bank offers a savings account with an interest rate of 3%. HDFC Bank has branch networks across several countries outside India, including the United States, the United Kingdom, Singapore, and the United Arab Emirates. The bank’s international presence is growing, and it plans to open more branches in other countries in the coming years.
As of March 31, 2023, HDFC Bank has 7,821 branches in India. HDFC Bank also has a network of over 19,727 ATMs and 5,200 Business Correspondent (BC) outlets across India. HDFC Bank has a market share of 18.71% in the Indian banking sector. After the State Bank of India (SBI), it is the second-largest bank in India in terms of market share.
The various types of saving accounts offered by HDFC Bank are:
Regular Savings Account
Women’s Savings Account
Savings Max Account
Specialé Gold and Specialé Platinum
DigiSave Youth Account
Senior Citizen’s Account
Kids Advantage Account
Basic Savings Bank Deposit Account
Super Kids Savings Account
Instant Savings Account Online
Interest rate offered by HDFC Bank savings account
Balance
Interest Rate (per annum)
Less than ₹50 lakh
3.00%
₹50 lakh & Above
3.50%
3. Axis Bank
Axis Bank is a private-sector bank and is the fourth-largest bank in India by market capitalization and the fifth-largest bank in India by assets. The bank’s market share in the Indian banking sector is 5.64% as of March 31, 2023. This makes it the fourth-largest bank in India by market share.
The bank has 5,238 branches in India. The bank also has a network of over 15,953 ATMs and cash recyclers across India.
Axis Bank’s market share has been growing steadily over the past few years. In 2018, the bank’s market share was 3.9%. This growth is due to several factors, including the bank’s strong financial performance, a wide range of products and services, and strong brand reputation.
The various types of saving accounts offered by the bank are:
EasyAccess Savings Account
Prime Savings Account
Future Stars Savings Account
Senior Privilege Savings Account
Pension Savings Account
Insurance Agent Account
Basic Savings Account
Small Basic Savings Account
Liberty Savings Account
Prestige Digital Savings Account
Priority Digital Savings Account
Burgundy Digital Savings Account
Government Scholarship Savings Account
Interest rate offered by Axis savings account
Balance
Interest Rate (per annum)
Less than ₹50 lakh
3.00%
₹50 lakh to ₹800 crore
3.50%
4. ICICI Bank
ICICI Bank is a multinational banking and financial services company headquartered in Mumbai, India. It is the third-largest bank in India by market capitalization and the second-largest private-sector bank in India by assets.
As of March 31, 2023, ICICI Bank has 6,612 branches, over 15,589 ATMs, and 13,135 Business Correspondent (BC) outlets across India. ICICI Bank has a 14.01% market share.
The various types of saving accounts offered by ICICI Bank are:
Insta Save Account
Advantage Woman Aura Savings Account
Advantage Woman Savings Account
Seniors Club Savings Account
Young Stars Savings Account
Smart Star Savings Account
Retire Happy Savings Account
Family Savings Account
Regular Savings Account
Silver Savings Account
Basic Savings Bank Account (BSBDA)
Easy Receive Savings Account
Professional Savings Account
ICICI Bank@Campus Savings Account
Interest rate offered by ICICI Bank savings account
Balance
Interest Rate (per annum)
Less than ₹50 lakh
3.00%
₹50 lakh & Above
3.50%
5. Kotak Mahindra Bank
Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers banking products and financial services for corporate and retail customers in personal finance, investment banking, life insurance, and wealth management.
Kotak Mahindra Bank’s market share in the Indian banking sector is 3.51% as of March 31, 2023. The bank has 1,780 branches and 2,963 ATMs across India.
Interest rate offered by Kotak Mahindra Bank savings account
Balance
Interest Rate (per annum)
Less than ₹50 crore
3.50%
₹50 lakh & Above
4.00%
In conclusion, several top savings bank accounts in India offer various benefits and features suited to different individuals’ needs. It is essential to consider factors such as interest rates, minimum balance requirements, customer service, fees, and digital banking facilities while choosing the best savings account. Moreover, every savings account has account-specific minimum balance requirements, withdrawal, and transaction limits. Overall, the best savings bank account is the one that best meets all your needs!
Credit cards have become a popular method of payment among many Indians, offering convenience, flexibility, and a range of benefits. Recent data from the Reserve Bank of India showed that credit card transactions have surpassed debit card usage in India. However, a credit card is a double-edged sword and can hurt you if not used carefully. This article explains what credit cards are, their advantages and disadvantages, and factors to consider while getting a credit card. We also compare a few of the best credit cards in India.
What is a Credit Card?
A credit card is a plastic card issued by a financial institution, typically a bank. The cardholder can borrow funds to purchase products or pay for services. It provides a line of credit that you can use for various transactions. When you use a credit card for a payment, you borrow money from the issuer (bank). The borrowed amount gets recorded as a debt, which you should repay within a specified time frame. Interest charges are applied if the balance is unpaid on the due date.
What are the Factors to Consider While Choosing a Credit Card?
Before getting a credit card, it’s important to consider several factors and technicalities involved. Here are some key factors to consider before getting a credit card:
Credit Card Types and Features
Understand the different types of credit cards available, such as cashback cards, rewards cards, travel cards, and secured cards. (Secured cards are those backed by fixed deposits. Your FD amount acts as collateral for your credit limit. First-time borrowers and those with a poor credit history could look into secured cards). Research their features, benefits, annual fees, interest rates, and other associated charges. Compare multiple options to find a card that aligns with your needs and financial goals.
Interest Rates
Credit cards typically charge interest on unpaid balances each month. Familiarise yourself with the interest rates associated with different credit cards, as high rates can significantly impact the cost of borrowing and debt repayment. Look for cards with lower interest rates, or consider paying off the balance in full to avoid interest charges.
Credit Score Requirements
Most credit card applications consider your creditworthiness, which is a reflection of your credit score. Understand the credit score requirements of the credit card you’re interested in. Some cards may require a higher credit score for approval. Review your credit report and ensure its accuracy before applying for a credit card.
Charges & Fees
Credit cards may come with various fees, including annual, late payment, cash advance, and foreign transaction fees. Carefully review the fee structure of the credit card you’re considering to understand the potential costs involved. Some cards may offer fee waivers or benefits that offset the fees, so weigh the fees against the card’s features.
Rewards and Benefits
If earning rewards interests you, take the time to explore the rewards programs and benefits offered by different credit cards. Consider the earning potential, redemption options, and any restrictions or limitations on rewards. Assess whether the rewards align with your spending habits and provide value for your preferences.
Credit Limit
The credit limit on credit cards signifies the maximum borrowing capacity available to cardholders. Understand the credit limit associated with the card you’re considering and evaluate whether it meets your financial needs. Using your credit limit responsibly is crucial to ensure you don’t exceed your capacity to repay.
Terms and Conditions
It’s crucial to thoroughly read and understand the terms and conditions linked to the credit card you’re considering. Pay attention to interest rates, grace periods, payment due dates, and other vital details. Be aware of any changes to terms and conditions that may occur in the future.
What are the Advantages and Disadvantages of Credit Cards?
Here are some of the pros and cons of owning a credit card:
Advantages
Disadvantages
Convenience and flexibility in making purchases, eliminating the need for cash.
Risk of accumulating debt due to overspending and high-interest rates.
Online transaction capabilities and easy access to funds.
Potential for credit card fraud and identity theft.
Rewards programs, cashback, and discounts that allow for savings and perks.
The temptation to overspend and exceed budgetary limits.
Opportunity to build credit history and establish a positive credit profile.
Additional fees, such as annual fees, late payment fees, and cash advance fees, increase the cost of credit card usage.
Which are the Best Credit Cards in India?
Credit cards in India come in various categories, each catering to specific needs and preferences. Whether you’re seeking cashback, rewards, travel benefits, or specialised perks, there is a credit card that suits your requirements.
Axis Bank Insta Credit Card
Axis Bank Insta Easy Credit Card is a credit card that is issued against your Fixed Deposit with Axis Bank.
The credit limit offered on this card is flexible, up to 80% of the principal amount of the fixed deposit.
Cash withdrawals are allowed up to 100% of the credit limit given.
Interest-free credit is offered for 50 days.
A 1% fuel surcharge is waived for fuel transactions all over India.
ICICI Instant Platinum Card – Secured Credit Card
ICICI Bank Instant Platinum Credit Card is a secured credit card from ICICI Bank. You can get this card if you have a fixed deposit with ICICI Bank of at least ₹20,000. The pledged fixed deposit will continue to earn interest for cardholders.
The card has no annual or joining fees.
Cardholders earn two reward points for every ₹100 they spend. The cardholder can redeem the reward points for cash. It also offers attractive movie offers, rewards, and dining benefits.
Citibank Cashback Credit Card – Cashback Card
Citi Cashback Credit Card from Citibank offers exciting cashback deals to cardholders.
You can earn 0.5% cashback on all spending and 5% cashback on movie tickets, telephone bills, and utility bills.
Cardholders can also save on dining, flight bookings, and hotel bookings. Cashback is credited to your account automatically in multiples of ₹500.
HDFC Platinum Plus Credit Card
HDFC Bank Platinum Plus Credit Card is one of the popular credit cards that rewards you on every purchase.
The card offers two reward points on all general purchases and 50% more rewards for every Rs. 150 you spend above Rs. 50,000 per statement cycle.
A 1% fuel surcharge is waived off on fuel transactions of a minimum ₹400 with a maximum cashback of ₹250.
Disclaimer: The credit cards mentioned in the article are purely for educational purposes. Please do your own research and consider the risks involved before applying for a credit card.
A dividend is a payment made by a company to its shareholders out of its earnings or accumulated profits. Listed companies usually pay dividends in cash and are an additional source of income for shareholders. They also issue dividends as additional shares of stock or other forms of property. Dividends serve as a way for companies to reward shareholders for their investments. However, companies are not legally bound to pay dividends. All companies can choose to issue dividends at their own discretion. In this article, we will examine the top dividend-paying stocks in India.
Why Should You Invest in Dividend Paying Stocks?
Passive Income
Dividends can be an excellent source of passive income. Passive income refers to earnings that require minimal effort or ongoing involvement of the investor. Dividend payments fit this definition because once you invest in dividend-paying stocks, you can receive regular income without actively working for it.
Regular Cash Flow
Dividend payments are often made quarterly or annually. This regularity provides a predictable income stream. Additionally, since companies pay dividends in cash, there will be a regular cash flow.
Increased Total Return
Dividend income can contribute to the total return of an investment. Total return refers to an investment’s overall profit or loss over a specific period. It considers both capital appreciation and any other income from the investment, such as dividends. When you reinvest dividends in the company’s shares, it can supercharge the total return through compounding.
Cushioning Market Volatility
Dividend-paying stocks can act as a cushion during market downturns. Even if the stock price temporarily declines, investors still receive dividend payments, which can help offset potential losses. This dividend income can provide stability to your portfolio and reduce the impact of market volatility.
Indicator of Financial Health
Companies that consistently pay dividends often exhibit stability and predictability in their financial performance. These companies are typically well-established, generate steady profits, and have a history of sharing their earnings with shareholders. Dividend payments can reassure investors of the company’s financial health and stability.
Factors to Consider Before Investing in Dividend-paying Companies
Not all companies that pay dividends are good. Before choosing a company to invest in, you should consider different factors. A few of them are listed below:
Dividend History
A company that has paid consistent dividends over the years tends to continue paying dividends in the future. Examine the company’s dividend payment history. Look for companies with a history of paying dividends consistently over a significant period. Consider whether the dividends have been maintained or increased over time. A stable or growing dividend history indicates the company’s commitment to rewarding shareholders.
Dividend Yield Ratio
The dividend yield ratio of a share is the ratio of the annual dividend per share to the share’s market price. It evaluates the dividend amount relative to the stock price. A higher dividend yield may indicate a potentially attractive income-generating opportunity. However, the dividend yield ratio is dynamic, as the value ratio changes with the stock price. It is essential to compare the yield with industry peers and assess its sustainability.
Dividend Payout Ratio
The dividend payout ratio represents the proportion of earnings paid out as dividends. A lower payout ratio indicates that the company retains a sizeable portion of its earnings for reinvestment or future growth, which can be positive for long-term stability. On the other hand, a high payout ratio may indicate that the company is distributing a significant portion of its profits, potentially limiting its ability to invest in growth opportunities or withstand economic downturns.
Payout Ratio = Dividends Per Share/Earnings Per Share × 100
Payout Ratio = Dividends per share/Free Cash Flow Per Share × 100
Company’s Financial Health
Look into the company’s financial health by reviewing its financial statements, including revenue growth, profitability, debt levels, and cash flow. A company with robust financials and a healthy balance sheet holds a solid position to sustain and potentially increase dividend payments.
Growth Prospects
Consider the company’s growth prospects and future earnings potential. While dividends provide income, assessing whether the company can grow its earnings over time is essential. Sustainable dividend payments often align with a company’s ability to generate consistent profits and reinvest in its business for future growth.
Economic and Market Conditions
Evaluate the broader economic and market conditions. Some industries, such as utilities or consumer staples, tend to have more stable cash flows. They are better positioned to maintain dividend payments during economic downturns. Consider the impact of economic factors, interest rates, and market volatility on the company’s ability to sustain its dividend payments.
Valuation
Assess the company’s valuation relative to its peers and its historical valuation. A company with an attractive valuation may provide an opportunity for capital appreciation in addition to dividend income. However, be cautious of excessively high dividend yields that may signal
underlying risks.
Best Highest Dividend Paying Stocks In India
Given below are a few of the best highest-dividend paying stocks in India:
No.
Name
Sector
1
Infosys
Information Technology
2
Hindustan Unilever
FMCG
3
ITC
FMCG
4
Oil & Natural Gas Corp
Energy
5
HDFC Bank
Financial
Infosys Ltd
Infosys Ltd is engaged in consulting, technology, outsourcing, and next-generation digital services. The IT company’s core services include application management services, proprietary application development services, independent validation solutions, product engineering & management, infrastructure management services, traditional enterprise application implementation, and support & integration services. Its products and platforms include Finacle, Panaya, Skava, and LEAP.
The company offers services to enterprises in the financial services & insurance, manufacturing, retail, consumer goods, logistics, energy, communication, telecom, and media sectors. Infosys has grown into the 2nd largest information technology company in India behind TCS.
Hindustan Unilever Ltd
Hindustan Unilever Ltd is a consumer staples company. It manufactures and sells food, home care, personal care, and refreshment products in India and internationally. The company operates through Home Care, Beauty & Personal Care, Foods & Refreshments, and other segments.
The Home Care segment engages in detergent bars and powders, detergent liquids, scourers, water business, purifiers business, etc. The Beauty & Personal Care segment provides oral, skin, and hair care products; soaps, deodorants, talcum powder, color cosmetics, salon services, etc. The Foods & Refreshment segment sells fruit-based products, soups, tea, coffee, health food drinks, ice-creams, and frozen desserts.
The company is also involved in job work, real estate, and discharge trust activities. Hindustan Unilever is a subsidiary of Unilever Plc.
ITC Ltd
ITC Ltd is a consumer staples company. The company operates through four segments: FMCG (fast-moving consumer goods), Hotels, Paperboards, Paper and Packaging, and Agri-Business.
Cigarettes, branded packaged foods, education & stationery products, personal care products, safety matches, agarbattis, and apparel forms its FMCG business. The company operates a chain of over 100 hotels across India. Its Agri Business segment includes agri commodities such as soya, spices, coffee, and leaf tobacco. ITC owns and operates brands such as Aashirvaad, Bingo!, Candyman, Fiama, Vivel, Classmate, Superia, Engage, Mangaldeep, Aim, and Homelites.
ITC also offers information technology services and branded residences.
Oil & Natural Gas Corporation Ltd
Oil and Natural Gas Corporation (ONGC) Ltd is the largest producer of crude oil and natural gas in India. The primary activities of the company include exploration, development, and production of crude oil, natural gas, and value-added products. ONGC has two business segments— Exploration and Production and Refining and Marketing.
ONGC contributes nearly 71% to India’s total production of crude oil. The crude extracted by the company is used as raw material by downstream companies such as Indian Oil Corp. (IOCL), BPCL, and HPCL. Moreover, ONGC contributes ~63% to the total gas production in our country.
Mangalore Refinery and Petrochemicals Ltd, ONGC Videsh Ltd, and Petronet MHB Ltd are its subsidiaries.
HDFC Bank
HDFC Bank Ltd is the largest private sector bank in India. It offers a comprehensive range of banking and financial services, including retail banking, wholesale banking, and treasury operations. The company is also the market leader in the credit card business in India. As of 31 March 2023, the bank’s distribution network was at 7,821 branches across 3,203 cities.
In conclusion, investing in dividend-paying stocks can create additional income, supercharging long-term wealth creation. While investing, it is crucial to look beyond the absolute dividend values and consider other factors such as payout ratios. This investing style is best suitable for people who need regular cash flow!
Disclaimer: The stocks mentioned in the article are solely for educational purposes. Please do your own research before investing.
Investing your hard-earned income in stocks can be quite challenging. There are thousands of companies across diverse segments to choose from. However, it’s vital that we invest in those enterprises that have a solid business model, strong financial growth, and follow good corporate governance practices. Historical records have proven that investing in such reputed firms over the long term can help us beat inflation and secure our financial goals. In this article, we analyse some of the best stocks to invest in for the long term in India.
Factors to Consider While Looking for Stocks to Invest for Long Term:
Company Fundamentals: Evaluate the financial health of all companies, their profitability, competitive advantage, and growth prospects to ensure they have a solid foundation for long-term success.
Industry Analysis: Assess the growth potential of the industry a company operates in, market dynamics, and competitive landscape. Investing in sectors with favourable long-term prospects can increase the chances of sustained stock performance.
Management Quality: Examine the experience and track record of the company’s management team. Strong leadership and effective execution are crucial for long-term value creation.
Valuation: Consider a stock’s valuation relative to its earnings, cash flows, and industry peers. Buying stocks at reasonable prices or at a discount to their intrinsic value improves the potential for long-term returns.
Dividends and Shareholder Returns: Look for companies with a history of consistent dividend payments or share buybacks. These factors indicate a commitment to returning value to shareholders and can contribute to long-term total returns.
Stocks to Invest for the Long Term:
Stock
5-Year Return
Reliance Industries Ltd.
122.3%
Tata Power Company Ltd.
202.5%
Tata Consultancy Services Ltd.
74.5%
Asian Paints
147%
HDFC Bank
52.5%
(Returns as of July 24, 2023)
Note: These are not stock recommendations. Please do your own research before investing.
Reliance Industries Ltd.
Reliance Industries Ltd (RIL) is the largest private-sector corporation in India. The Mukesh Ambani-led conglomerate is primarily involved in the energy, petrochemicals, retail, textiles, telecom, entertainment, and digital services sectors. RIL owns the world’s largest refining hub in Jamnagar (Gujarat), which has a crude processing capacity of 1.24 million barrels per day.
The company’s subsidiary, Reliance Retail Ventures, is our country’s largest retailer in terms of revenue and profitability. Meanwhile, Reliance Jio is the biggest player in the telecom sector, with a 37% market share and nearly 43 crore subscribers. RIL is currently focusing on dominating the gradually evolving green energy sector. Thus, Reliance’s products and services portfolio touches almost all Indians every day.
Over the past five years (FY19-FY23), RIL’s revenue and net profit have shown an impressive Compounded Annual Growth Rate (CAGR) of 17.25% and 13%, respectively. [In simple terms, CAGR is a measure of the average year-on-year growth rate of a metric over several years.] They have been able to significantly reduce debt during this period. Reliance has cemented its position as a market leader in almost all sectors it operates in.
Tata Power Company Ltd.
Tata Power Company Ltd is engaged in the generation, transmission, and distribution of electricity across India. It has a total generation capacity of 14,110 megawatts (MW) from thermal, hydro, and renewable power (solar, wind) projects. Since its inception in 1915, Tata Power has developed expertise in executing critical projects and driving green initiatives. The company holds a dominant position in the growing electric vehicle (EV) charging station market in our country.
Going forward, the integrated power company plans to expand its clean & green energy capacity to 80% by 2030. It aims to become carbon neutral by phasing out thermal projects by 2050. Additionally, it plans to construct 1 lakh EV charging stations by 2025.
Tata Power currently holds a ~41.83% market share in India’s power transmission & distribution sector. Its revenue has grown at a CAGR of 14.76% over the past five years, while net profit has grown at 6.74%. The company has also been maintaining a healthy dividend payout of 31.7%. Based on its recent order wins and top-class project execution capabilities, Tata Power is expected to post good results in the upcoming quarters.
Tata Consultancy Services Ltd.
Tata Consultancy Services (TCS) is the flagship company of the Tata Group. It is a management and technology consultant, which means that they provide services to other enterprises and government agencies and help them transform the way technology is used. The company’s services include application development, business processing outsourcing (BPO), payment processing, and much more. TCS essentially helps organizations simplify their digital systems and reduce costs.
TCS is almost debt-free. Over the last 5 years, its revenue has grown at a yearly rate of 12.5%. The company’s Return on Capital Employed (ROCE) is the highest amongst its competitors in the IT sector at 59.1%. [It means that for every ₹100 worth of capital employed, TCS earns ₹59.1 on it.] The company has been maintaining a healthy dividend payout of 61.4%. As the flagship company of Tata Group, Tata Consultancy Services has time and again exceeded its targets and is continuing its path as a global leader in the IT industry.
HDFC Bank
Housing Development Finance Corporation (HDFC) was one of the pioneering institutions to receive preliminary approval from the Reserve Bank of India (RBI) to establish a private sector bank. In August 1994, HDFC Bank was incorporated with its headquarters in Mumbai, India. It offers a comprehensive range of banking and financial services, including retail banking, wholesale banking, and treasury operations. Today, it stands as the largest private-sector bank in India. It is a market leader in the credit card business in India. As of 31 March 2023, the bank’s distribution network was at 7,821 branches across 3,203 cities.
The bank’s revenue has grown at a CAGR of 15.09% over the past five years, while net profit has grown at 19.97%. It has been maintaining a healthy dividend payout of 19%.
HDFC Bank aims to launch more products and services under its ‘Digital 2.0’ drive in the upcoming years.
Hindustan Unilever Ltd.
Hindustan Unilever Ltd is a consumer goods company headquartered in Mumbai. It is a subsidiary of the UK-based Unilever plc. Foods, drinks, cleaning supplies, toiletries, water purifiers, and other fast-moving goods are among its offerings. The company’s Beauty & Personal Care segment forms a majority of its revenue (42%). This is followed by the Home Care segment (29%) and Food and Refreshment Segment (29%).
HUL’s revenue has grown at a yearly rate of 11.2% over the past five years, while its net profit has grown at 14.18%. The company is almost debt free. It has also been maintaining a healthy dividend payout of 99.9%.
Now you know some of the best stocks to invest for long term. In conclusion, invest in well-established companies for the long term, and you will understand the magic of the eighth wonder of the world— compounding! You will be safe from short-term market volatility and risks. Develop patience and let your money grow multifold.
Disclaimer: The stocks mentioned in the article are solely for educational purposes. Please do your own research before investing.
Here are some of the major updates that could move the markets tomorrow:
HDFC Bank Q1 Results: Net profit jumps 30% YoY to Rs 11,952 crore
HDFC Bank reported a 30% YoY jump in net profit to ₹11,952 crore for the quarter ended June (Q1 FY24); meeting street estimates. The total income for the quarter increased 39% YoY to ₹57,817 crore. The net interest income (NII) rose 21% YoY to ₹23,599 crore during the same period. The bank’s gross non-performing asset (NPA) declined to 1.17% against 1.28% in Q1 FY23. This is the first earnings of the bank following its merger with HDFC.
Ashok Leyland has secured significant orders in the defence sector. The orders are collectively valued at ₹800 crore. The contracts awarded also include the procurement of the Field Artillery Tractor (FAT 4×4) and the Gun Towing Vehicle (GTV 6×6). The FAT 4×4 and GTV 6×6 are specialised vehicles employed by the Indian Artillery for towing light and medium guns, respectively.
LTIMindtree Q1 Results: Net profit jumps 4% YoY to Rs 1,151 crore
LTIMindtree reported a 4% YoY increase in consolidated net profit to ₹1,151 crore in Q1 FY24. Its revenue from operations rose 14% YoY to ₹8,702 crore. EBITDA rose 9% YoY to ₹1,635 crore during Q1. The company has added 19 clients in the quarter, taking the total number of active clients to 723. The deal wins for the first quarter stood at $1.41 billion.
Reliance Brands to buy kidswear range for ₹300 crore: Report
According to an Economic Times report, Reliance Brands is planning to buy Ed-a-Mamma, a kidswear brand promoted by actress Alia Bhatt. Talks between Reliance and Ed-a-Mamma are in the final stages and an agreement is likely in the next 7-10 days. The brand has been selling largely through online platforms like FirstCry, AJIO, Myntra, Amazon, and Tata CLIQ, apart from its own webstore. Reliance Brands is part of Reliance Retail Ventures Ltd (RRVL).
Tata Elxsi Q1 Results: Net Profit up 2% YoY to Rs 189 cr
Tata Elxsi reported a 2% YoY increase in net profit to ₹189 crore in Q1 FY24. Its operating revenue stood at ₹850 crore, up 17% YoY in Q1. The company’s EBITDA also rose 4.15 YoY to ₹230 crore. Its financial performance was also altered due to the increase in the Effective Tax Rate (ETR). The increment was on account of lower tax exemption due to the completion of 5 years for 2 of its Special Economic Zone (SEZ) units.
GQG acquires 5.96% stake in Patanjali Foods via OFS
GQG Partners bought a 5.96% (2.15 crore shares) stake in Patanjali Foods on July 14. The stocks were bought through the stock exchange settlement process via an offer for sale (OFS). Last week, Patanjali Foods concluded a 7% stake sale, with the promoter group stake falling to 73.82% from 80.82% earlier, meeting the minimum shareholding norms.
L&T’s construction unit bags ‘large’ orders from UP Water and Sanitation Mission
Larsen and Toubro’s subsidiary L&T Construction has secured orders for water supply-related works. The orders are from the Uttar Pradesh government and NTPC, with an approximate value of ₹2,500-5000 crore. The order is for constructing a water supply scheme in Ballia and Firozabad districts in Uttar Pradesh. The projects are aimed at providing safe and potable drinking water to 50.85 lakh rural citizens in the two districts.
USFDA recommends no regulatory action for Aurobindo Pharma’s Andhra Pradesh unit
Aurobindo Pharma Ltd received an Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA). The company’s Andhra Pradesh unit received the EIR with a ‘Voluntary Action Indicated’ status. The VAI inspection classification indicates that investigators found and documented objectionable conditions during the inspection. However, no regulatory or enforcement action is recommended.
Sheela Foam to pick 94.66% in Kurlon for Rs 2,150 cr
Sheela Foam is set to acquire a 94.66% stake in Kurlon Enterprise. The company will acquire Kurlon at a valuation of ₹2,150 crore. Additionally, Sheela Foam has purchased a controlling stake in the furniture rental company Furlenco. The company would infuse a primary fund of ₹300 crore to buy a 35% stake in Furlenco at a valuation of ₹857 crore.
Sheela Foam will fund the acquisition through a mix of equity, internal accruals, and debt.
PNGRB rejects Adani’s application for Noida city gas licence
The Petroleum and Natural Gas Regulatory Board (PNGRB) has rejected Adani Total Gas Ltd’s application for a licence to retail CNG to automobiles. The application to retail piped gas to household kitchens in Noida and on the outskirts of New Delhi has also been rejected. The rejection comes as the company does not meet the criteria. Adani has been eyeing a city gas distribution (CGD) licence for cities adjoining the national capital for nearly two decades now.
Indian Oil signs long-term LNG import deals with ADNOC LNG, TotalEnergies
Indian Oil Corp has signed long-term liquefied natural gas (LNG) import deals with United Arab Emirates’ s Abu Dhabi Gas Liquefaction Co Ltd (ADNOC LNG) and France’s TotalEnergies. The company signed both deals during Prime Minister Narendra Modi’s Visit to France and UAE last week. ADNOC LNG would supply up to 1.2 million metric tonnes per year of LNG to IOC for 14 years.
Here are some of the major updates that could move the markets today:
Stocks
Avenue Supermarts Ltd reported a mere 2% rise in net profit for the quarter ended June to Rs 695 crore, despite a double-digit growth in revenue.
Shares of HDFC Bank, LTIMindtree, and Tata Elxsi will be in focus today as the companies will announce their first quarter results.
Leading broker Angel One has been from onboarding new authorised persons (APs) for alleged failure to monitor the operations of its APs.
What to Expect Today?
NIFTY opened with a gap-up at 19,495 on Friday. There was weakness in the morning due to the long unwinding on Thursday. The market picked up and rallied, especially in the last hour. NF closed at 19,564, up by 151 points or 0.78%.
BANK NIFTY opened with a gap-up at 44,861. It was a down-trending day till 3 PM. There was a huge up-move at 3 PM and BN closed at 44,819, up by 154 points or 0.35%.
IT shot up by 4.5%.
The US markets and the European markets closed mixed with a negative bias.
The Asian markets are trading lower.
The U.S. Futures and European futures are trading lower.
GIFT NIFTY is trading at 19,633.
All the factors combined indicate a flat opening.
NIFTY has supports at 19,500, 19,450 and 19,385. We can expect resistances at 19,600, 19,650 and 19,700.
BANK NIFTY has supports at 44,650, 44,500 and 44,440. Resistances are at 44,950, 45,100 and 45,370.
NIFTY has the highest call OI build-up at 19,600. The highest put OI build-up is at 19,500.
BANK NIFTY has the highest call OI build-up at 45,000. The highest put OI build-up is at 44,500.
We were expecting a tick mark-like price action as we discussed on Friday’s Pre Market Analysis. The reason is that there was long unwinding on Thursday. The market moved exactly like a tick mark but there was a huge up-move at 3 PM.
Bank Nifty saw immense short covering towards the end. Will there be a continuation to the up-move? 45,000 is going to be the testing zone.
India’s Wholesale Price Inflation came out at -4%, better than expected. As we discussed earlier, negative figures are fine for now.
We do not have major events this week from the global front. However, there are results coming out and more importantly, Reliance demerger.
HDFC Bank will announce their results today. Let us watch the stock closely. It is more important this time as the weightage has increased.
I will watch 19,385 on the downside in NIFTY. 19,600 can be watched on the upside.
Make sure that you tune in to The Stock Market Show at 7 PM on our YoutTube channel ‘marketfeed by Sharique Samsudheen’. Follow us on the marketfeed app’s Signal section to get real-time updates from the market. All the best for the day!
Here are some of the major updates that could move the markets tomorrow:
Wipro Q1 Results: PAT rises 12% YoY to Rs 2,870 crore
Wipro reported a 12% YoY rise in consolidated net profit to ₹2,870 crore for the quarter ended June (Q1 FY24). The company’s operating revenue stood at ₹22,831 crore, up 6% YoY. Wipro’s IT services operating margin for the quarter was at 16%, up 1.12% YoY. However, revenue in constant currency (CC) terms declined nearly 3% sequentially in the quarter.
Granules India’s Gagillapur facility gets clearance certificate from the USFDA
Granules India Ltd has received an Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA). The company’s Gagillapur facility in Hyderabad received the EIR. Granules uses this facility to manufacture finished dosages and Pharmaceutical Formulation Intermediates (PFIs). In January, USFDA inspected the Gagillapur facility of Granules India as part of a pre-approval inspection (PAI) and issued three observations. It responded to the USFDA’s observations within the stipulated period.
Samvardhana Motherson completes acquisition of 51% in Saddles Intl
Samvardhana Motherson International Ltd has completed the acquisition of a 51% stake in Saddles International Automotive & Aviation Interiors Private Ltd (SIAAIPL). SIAAIPL is engaged in the manufacturing of premium upholstery for passenger vehicles. In January this year, Samvardhana Motherson International announced that it was acquiring a majority stake in SIAAIPL for ₹207 crore.
Federal Bank Q1 results: Net profit rises 42% to Rs 854 crore
Federal Bank reported a 42% YoY rise in net profit to ₹854 crore in Q1 FY24. The bank had reported a net profit of ₹600.7 crore in Q1 last financial year. The net interest income (NII) for the quarter rose 20% YoY to ₹1,919 crore from ₹1,605 crore in Q1 FY23. The bank’s gross non-performing asset (NPA) stood at ₹4,434.8 crore as against ₹4,183.8 crore in Q4 FY23, up 2.38%. Net NPA was also up 0.69% to ₹1,274.6 crore in Q1.
Ramco Cements to sell entire stake in Lynk Logistics to Swiggy’s parent
Ramco Cements’ board has approved the sale of its entire equity stake in Lynk Logistics to Bundl Technologies Pvt. Ltd. Lynk Logistics operates the food delivery platform Swiggy. Ramco Cements will sell 49.95 crore shares in Lynk Logistics to Bundl, as approved in its board meeting. In exchange, Ramco will subscribe to 24.18 lakh Compulsory Convertible Preference Shares (CCPS) of Swiggy’s parent company.
HDFC Bank onboards 1 lakh customers, 1.7 lakh merchants on CBDC platform
HDFC Bank has onboarded over 1 lakh customers and 1.7 lakh merchants under the Central Bank digital currency (CBDC) pilot programme. The bank also announced the launch of a UPI QR code interoperable with India’s sovereign digital currency. With this, HDFC Bank has become one of the first banks in the country to complete the integration process. The interoperable UPI QR code allows HDFC Bank’s onboarded merchants to accept customer payments in Digital Rupee currency.
Larsen & Toubro (L&T) has supplied various components for India’s moon mission Chandrayaan-3. Parts like “middle segment and nozzle bucket flange” were manufactured at its facility in Powai. Components like ground and flight umbilical plates were from the company’s aerospace manufacturing facility at Coimbatore. L&T delivered all these subsystems ahead of schedule. Additionally, L&T is involved in the production of a range of hardware for Chandrayaan-1 and 2, Gaganyaan and Mangalyaan missions of ISRO.
USFDA issues Form-483 with two observations for Lupin’s Nagpur plant
Lupin’s Nagpur oral solid dosage facility has received Form 483 with two observations from the US FDA. Form 483 is issued to a firm’s management if there are violations of the Food Drug and Cosmetic (FD&C) Act and related Acts. The FDA Form 483 notifies the company’s management of objectionable conditions. The US FDA inspected the facility from July 3 To July 11, 2023.
Godrej Properties emerged as the highest bidder for two land parcels in Gurgaon
Godrej Properties has emerged as the highest bidder for two luxury group housing plots in Golf Course Road micro-market, Gurugram. The two prime projects spread over 2.76 acres and 5.15 acres will have a combined estimated revenue potential of approximately ₹3,100 crore. The average rate for plots in this market is around ₹100 crore per acre. Golf Course Road is an established micro-market renowned for its upscale residential and commercial developments.
PVR Inox has introduced two new offers on snacks and drinks, claiming it is an “unbeatable price”. The announcement comes after a journalist highlighted the bill of an average-sized popcorn and Pepsi at a PVR cinema hall. The company has introduced the new offers in response to the widespread criticism regarding the exorbitant prices of snacks at its multiplexes.
