GIFT Nifty ended unchanged at 24,891 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex. Here are the top stocks to watch on Monday October 21, 2024.
GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Monday. Here’s a look at the key stocks to watch in trade.
GIFT Nifty ended unchanged at 24,891 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended up by 104.20 points or 0.42% to settle at 24,854.05 while the BSE Sensex jumped 218.14 points or 0.27% to 81,224.75.
“A sustained selling pressure from FPIs, muted Q2 earnings expectations, and elevated valuations acted as a headwind for the market. Insipid demand and volatility in input prices are the hinderance of a slowdown in earnings during the quarter. Geopolitical tensions and uncertainty ahead of the US presidential election paved the way for haven asset gold to climb a new record high. While a caution from an auto major about weak festival demand further added pressure on the indices. Bank Nifty, on the other hand, recouped the current week losses on account of a positive start to the earnings season with lower-than-expected slippages, supporting large private banks,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair also added that we expect the investment strategies favouring China over India may tactically support for the short term. However, the long-term outlook for the domestic market remains robust with a stability in growth and a pickup in capex. We expect the market to be range-bound in the short term with mixed bias, while investors should turn more sector- and stock-specific in such a time. Focus will be on large caps and growth areas like staples, agriculture, FMCG, consumption, power, digital, and infra. Buy-on dips will be the strategy on a short- to medium-term basis.
Read More: Stock Market Holiday 2024: BSE, NSE open or closed in October 21-27 week? Check full details
Stocks to Watch on October 21, 2024
HDFC Bank
The largest private sector bank reported a 6% increase in consolidated net profit for the September quarter, reaching Rs 17,825.91 crore. On a standalone basis, the largest private sector lender’s net profit rose to Rs 16,820.97 crore, compared to Rs 15,976.11 crore in the same period last year. Core net interest income grew by 10% to Rs 30,010 crore, driven by a 7% increase in gross advances and stable margins at 3.46%.
Tech Mahindra
The IT services firm reported a more than two-fold increase in its consolidated net profit for the July-September quarter, reaching Rs 1,250 crore, driven by special income from the sale of assets. In the same period last year, the Mahindra Group company posted a net profit of Rs 493.9 crore. Revenue for the second quarter of 2024-25 rose by 3.49% to Rs 13,313.2 crore, compared to Rs 12,863.9 crore in the corresponding quarter of 2023-24.
Kotak Mahindra
Kotak Mahindra Bank reported a 5% year-on-year (YoY) increase in standalone profit after tax (PAT) for the July-September 2024 quarter, reaching Rs 3,344 crore, up from Rs 3,191 crore in Q2FY24.
The bank’s net interest income (NII) for Q2FY25 grew by 11% YoY to Rs 7,020 crore, compared to Rs 6,297 crore in the same period last year. However, the net interest margin (NIM) narrowed to 4.91%, down from 5.22% in Q2FY24.
Tata Consumer Products
The FMCG giant reported a flat net profit of Rs 359.3 crore for the second quarter ended September 30, 2024, in line with market expectations. The company’s revenue from operations rose by 13%, reaching Rs 4,214.5 crore, compared to Rs 3,733 crore in the same period last year.
Mastek
Mid-tier IT company Mastek reported a remarkable 104.94% year-on-year (YoY) increase in net profit for the second quarter ended September 30, 2024, reaching Rs 128.7 crore, compared to Rs 62.8 crore in the same quarter last year, according to a regulatory filing.
The company’s revenue from operations also saw a growth of 13.3%, totaling Rs 867.4 crore, up from Rs 765.5 crore in the corresponding period of the previous fiscal.
RBL Bank
RBL Bank reported a 24% year-on-year (YoY) decline in its profit after tax (PAT) for the second quarter ended September 2024, with the figure standing at Rs 223 crore. The bank, however, saw a 9% YoY growth in its net interest income (NII), which rose to Rs 1,615 crore during the quarter. Additionally, the net interest margins (NIMs) were recorded at 5.04%.
JSW Steel
The company announced that Jsquare Electrical Steel Nashik Private Ltd, a wholly-owned subsidiary of JSW JFE Electrical Steel Private Ltd, has signed a share purchase agreement to acquire a 100% equity stake in Thyssenkrupp Electrical Steel India Private Ltd (tkES India). The total purchase consideration for the transaction is Rs 4,051.40 crore, subject to closing adjustments.
ICICI Lombard
The company reported a strong 20.2% increase in net profit for Q2 FY25, reaching Rs 694 crore, up from Rs 577 crore in the same quarter of the previous fiscal year. This profit growth was driven by a 10.4% rise in Gross Direct Premium Income (GDPI), which amounted to Rs 6,721 crore, significantly outperforming the industry’s modest growth of 2.0% during the same period.
Godrej Properties
The realty firm announced the acquisition of a 3-acre land parcel in Vastrapur, Ahmedabad, with a development potential of 0.9 million square feet of saleable area. Based on current business projections, the estimated booking value for the project is around Rs 1,300 crore. The development will primarily feature premium residential apartments in various configurations.
Jio Financial Services
The financial services arm of Reliance Industries Ltd reported a 3.1% year-on-year (YoY) increase in net profit for the second quarter ending September 30, 2024, reaching Rs 689.1 crore, compared to Rs 668.2 crore in the same quarter last year. Revenue from operations saw a 14.1% rise, climbing to Rs 693.5 crore, up from Rs 608 crore in the corresponding period of the previous fiscal.
MCX
Leading commodity bourse Multi Commodity Exchange reported a net profit of Rs 153.6 crore for the second quarter ended September 30, 2024, rebounding from a loss of Rs 19.1 crore in the same quarter of the previous fiscal, according to a regulatory filing. The company’s revenue from operations surged by 73%, reaching Rs 285.6 crore, compared to Rs 165.1 crore in the corresponding period last year.
L&T Finance
The company reported strong financial results for the quarter ended September 30, 2024, with total revenue from operations rising 25% year-on-year to Rs 4,019.34 crore, up from Rs 3,213.84 crore in Q2 FY24.
This growth was driven by increased interest income, fees, and commission income across key business segments. Net profit grew 16.8% to Rs 695.58 crore, compared to Rs 595.11 crore in the same period last year, while profit before tax increased by 17.8% to Rs 939.57 crore, up from Rs 797.39 crore in Q2 FY24.
Oberoi Realty
Mumbai-based reported a 28% year-on-year (YoY) increase in net profit for the second quarter ended September 30, 2024, reaching Rs 589.4 crore, compared to Rs 456.8 crore in the same period last year, according to a regulatory filing. The company’s revenue from operations rose by 8.4%, totaling Rs 1,320 crore, up from Rs 1,217.4 crore in the corresponding quarter of the previous fiscal.
UCO Bank
State-owned UCO Bank reported a 50% year-on-year (YoY) increase in net profit for the second quarter ended September 30, 2024, reaching Rs 602 crore, up from Rs 401.7 crore in the same quarter last year.
The bank’s net interest income (NII), which represents the difference between interest earned from lending and interest paid to depositors, grew by 20%, totaling Rs 2,300.4 crore, compared to Rs 1,916.5 crore in Q2 FY24.
Dalmia Bharat
The cement maker reported a 60.5% year-on-year (YoY) decline in net profit for the second quarter ended September 30, 2024, posting Rs 49 crore, down from Rs 124 crore in the same quarter of the previous fiscal, according to a regulatory filing.
MRPL
Mangalore Refinery and Petrochemicals reported a loss of Rs 683.6 crore for the second quarter ended September 30, 2024, compared to a net profit of Rs 1,059 crore in the same quarter of the previous fiscal, according to a regulatory filing.
Despite the loss, the company’s revenue from operations increased by 29%, reaching Rs 24,967.9 crore, up from Rs 19,353.3 crore in the corresponding period last year.
Jindal SAW
Homegrown company Jindal SAW reported a 32.4% year-on-year (YoY) increase in net profit for the second quarter ended September 30, 2024, reaching Rs 499 crore, compared to Rs 377 crore in the same quarter of the previous fiscal, according to a regulatory filing. The company’s revenue from operations also rose by 2%, totaling Rs 5,571.9 crore, up from Rs 5,466.2 crore in the corresponding period last year.
JM Financials
The Reserve Bank of India (RBI) has lifted the restrictions on JM Financial Products, a material subsidiary of JM Financial, with immediate effect. The central bank had imposed these restrictions in March this year, preventing the company from providing financing against shares and debentures. With the latest move, JM Financial Products is now permitted to resume financing activities involving shares and debentures.
Garden Reach Shipbuilders & Engineers
The company has secured letters of intent for a contract valued at Rs 491 crore from the Ministry of Defence. The contract entails the design, development, construction, and integration of equipment for an Acoustic Research Ship (ARS). It also includes testing, certification, commissioning, and supply of the vessel.
VA Tech Wabag
iShares Global Water UCITS ETF has acquired a 1.03% stake in the company at an average price of Rs 1,875.14 per share, amounting to a total investment of Rs 120.2 crore. Meanwhile, UBS Principal Capital Asia sold a 0.81% stake in the company at an average price of Rs 1,869.73 per share, resulting in a transaction worth Rs 94.32 crore.
Alembic Pharma
The pharmaceutical company has secured final approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Diltiazem Hydrochloride extended-release capsules USP, available in 120 mg, 180 mg, and 240 mg strengths. These capsules are indicated for the treatment of hypertension.
Key Earnings To Watch Today
UltraTech Cement, Union Bank of India, Bajaj Housing Finance, 360 ONE WAM, Authum Investment & Infrastructure, Aurionpro Solutions, Bhansali Engineering Polymers, CG Power and Industrial Solutions, City Union Bank, Cyient DLM, Gravita India, HFCL, Jana Small Finance Bank, Mahindra Logistics, NELCO, Route Mobile, Solara Active Pharma Sciences, and Supreme Petrochem
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