MarketBuzz
1299: Marketbuzz Podcast With Hormaz Fatakia: Will Sensex, Nifty sustain the recovery? Vedanta, Bajaj Fin in focus
Good morning and welcome to CNBC TV18's Market Buzz podcast. I am Harmas Patakia. Now, this is a different market. The finance minister, Nirmala Sita Raman, announced changes to the STT, which is a security transaction tax in the futures and options segment and also made changes to the short-term and long-term capital gains rates in her budget speech on Tuesday. And any other day, the market would have had a negative reaction to that and would have continued to reel with the aftermath of such a move for days. But the NFT did see a dip on Tuesday post that budget speech, but in a market driven by domestic liquidity as our market is, as swift as the dip was, the recovery was swifter. The index did end in the red yesterday, but not before recovering 400 points from the lows of the day. The mid-cap index recovered nearly 2000 points from the days low while the small-cap index saw a recovery of over 800 points. The question though is, will that recovery sustain today considering the gift NFT is indicating a slightly negative start for our markets and the NFT too, despite that recovery yesterday, ended marginally below that 24,500 mark, which has been a key support in recent time. So that becomes a key level to watch for the index. Now, what led the recovery yesterday? FMCG. The index emerged as the top sectoral gainer yesterday with plenty of stock specific announcements coming in, Titans saw a cut and customs duty for gold and it reacted to that, ITC reacted to no tinkering on the tobacco taxation bid and these two names were the ones that led the recovery in yesterday's session. ITC is now within touching distance of scaling that 500 rupee mark, which will be an all-time high for the stock. The sector will remain in focus today as well because HUL and United Spirits will react to results that were reported after market hours yesterday, HUL's numbers were better than expected on the revenue and a bit of run while volume growth of 4% was in line with expectations. Tata consumer will be the other FMCG stock in focus today after it announced the details of its rights issue through which it aims to raise up to 3,000 crore rupees. The rights issue price has been fixed at 818 rupees a share, which is a 35% discount to Tuesday's closing price. The shareholders will get one right share for every 26 shares that they hold as on the record date, which has been fixed as 27th of July 2024. The rights issue for Tata consumer will open on the 5th of August and close on the 19th of August. Where did the pressure come from in yesterday's session, real estate and the index sold off very heavily yesterday after the removal of indexation benefits on the capital gains in the budget. But the LTCG, the long-term capital gains rate, was slashed to 12.5% from 20% earlier. We at CNBC TV18 will continue to cover this subject through the day and simplify it as much as we can for our viewers and readers on the channel as well as on our website. So stay tuned for this continued coverage. The other pressure point has been banks and the nifty bank ended 500 points lower yesterday and the index even closed below the mark of 52,000 which has been the lower end of the range that the index has been trading in recent times. Today is also the expiry for the index, so we'll keep an eye out on that. PSU should also be on your radar because the PSE index sold off very heavily yesterday and 4 out of the top 5 most traded stocks yesterday were PSU names. No surprise, RV, NL, IRFC, irreda all saw some very heavy transactions taking place in yesterday's session, so we'll keep an eye out on all of these PSU names as well. In some other stocks to watch today, Vedanta's board will meet on Friday to consider its second interim dividend. It had earlier paid a first interim dividend of 11 rupees a share. The board of Dr. Reddy's will also meet on Saturday which is the 27th to consider a stock split. Bajaj's finances numbers were largely in line with expectations, but brokerages like Citi, Jeffries and Nomura have cut their price targets on the stock. ICICI potential, United Spirit, Schaeffler, India, Torren Pharma, Parag milk, it's an earnings reaction heavy day because all of these names will react to their results that were reported after marketers yesterday and promises to be another earnings heavy day today as well with nifty 50 stocks like Axis Bank, LNT, SBI life reporting results along with other broader market names like Aditya Billa, Sunlife, AMC, Bikaji Foods, Federal Bank, IEX, JSPL, JK, Paper, Syn gene, Oracle Financial, it's a very long list so we keep an eye out on all of these names. Now globally, the US markets ended with a negative bias on Tuesday, but futures are also trading lower after Tesla missed expectations on the profit front for the 4th straight quarter. The stock fell 8% in extended trading. The shares of Alphabet also fell 2% after their earnings which were released after the closing bell. As all for today, we continue to analyze the budget and the various stock specific activities related to that and of course continue to cover earnings as well. So stay tuned to CNBCTV18 and CNBCTV18.com, your budget headquarters. Thank you for tuning in. [BLANK_AUDIO]