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In this weekly market roundup we will look at the top 10 gainers and losers. The market was highly volatile this week. The week began with high level of optimism as the budget was to be presented on Tuesday, 23rd July 2024.
FY24-25 Budget – High expectations
While the FY24-25 budget was being presented in the parliament, the market crashed at one point because of disappointment due to increase in tax on Long Term Capital Gains and Short Term Capital Gains. The FY24-25 budget increased the tax on LTCG from 10% to 12.5%, the tax on STCG was increased from 15% to 20%. The LTCG below ₹125,000 for a financial year has been made tax-exempt.
The market was expecting big tax benefits to be extended to the salaried class. But the budget did not extend huge benefits to the salaried class, only the Standard Deduction under the new tax regime was increased from ₹50,000 to ₹75,000. As the Finance Minister was speaking, Nifty 50 touched the day’s low of 24,074 which was down 435 points from previous day’s close.
On the budget day itself, the market made a late comeback to end the day down just 30 points down from the previous day’s close. The market seems to have made peace with the budget, Nifty 50 was up 429 points on Friday, 26th July 2024. The rally was broad based.
The top Nifty 50 gainers were:
- Shriram Finance (9.52%)
- Cipla (5.76%)
- Divi’s Lab (5.39%)
- Bharti Airtel (4.32$)
- Apollo Hospitals (4.14%)
The overall market was quite good this week. The top weekly gainers among the companies with market cap of ₹10,000 crore or more were:
- Gravita India
- MMTC
- IFCI
- Quess
- IDBI Bank
- Nava
- Deepak Fertilizers
- Suzlon Energy
- Techno Electric
- Tata Motors
It was reported by The Economic Times that the stake sale process of IDBI Bank is at an advanced level. The DIPAM secretary confirmed the news. It was reported that Government of India will divest 30.48% and LIC will sell 30.24% shares of IDBI Bank. The stake sale process is expected to be completed by the end of FY25.
The top losers among the stocks with market cap of ₹10,000 crore or more were:
- IRCON International
- HMT
- The Phoenix Mills
- Garden Reach Shipbuilders
- Rail Vikas Nigam Ltd.
- Shipping Corporation of India
- Axis Bank
- Poonawalla Fincorp
- RITES
- Tejas Networks
Along with the budget came some of the key results for Q1FY25. The results of Reliance Industries, Hindustan Unilever and Ultratech Cement were declared this week. Results of a few more IT companies were announced this week. The results of IT companies were overall positive. The results of Hindustan Unilever were very disappointing as the PAT grew only by 2.19% YoY. The consolidated PAT of Reliance Industries fell by 4.45% YoY due to poor performance of Oil and Gas, and Refinery and Petrochemicals businesses. Jio and the retail businesses saved the day for RIL. L&T reported a good set of numbers for Q1FY25. While revenue grew by 15.12%, PAT jumped by 11.28% YoY. The EBITDA for Q1FY25 was ₹5,615 crore.
Adani Green too reported its results this week. The consolidated result was highly impressive as the revenue grew by 30.24% and the PAT jumped by 95% when compared to the numbers reported for Q1FY24. Nestle’s results was relatively better than that of HUL. The PAT increased 6.91% YoY and revenue was up 3.34%. Another FMCG company, Jyothy Labs reported an increase of 5.65% in PAY on YoY basis. The revenue for the quarter was up 7.96%.
The market looks quite buoyant and the momentum is not going to slow down unless some adverse news comes from the other side of the world or some kind of political crisis appears from nowhere.
