Business News Live: Tech Mahindra Q1 revenue falls 1.2% to Rs 13,005 crore

The Securities and Exchange Board of India (SEBI) proposed new guidelines on Thursday for credit rating agencies (CRAs) to provide detailed explanations for their rating actions, particularly in cases of default and rating upgrades from default status.

In its consultation paper, SEBI recommended removing the term "technical default" from CRA policies, citing potential negative market signals and covenant triggers.

Commerce and Industry Minister Piyush Goyal has urged the leather and footwear industry to aim for $50 billion in exports by 2030.

During an interaction with industry representatives on Wednesday, Goyal assured that the ministry will address concerns related to quality control orders (QCOs) to ensure a smoother and more flexible certification process.

The US economy grew faster than anticipated in the second quarter, while inflation eased, maintaining expectations of a September interest rate cut from the Federal Reserve.

Gross domestic product (GDP) increased at an annualised rate of 2.8 per cent last quarter, according to the Commerce Department's Bureau of Economic Analysis' advance estimate of second-quarter GDP on Thursday. Economists polled by Reuters had predicted a 2.0 per cent growth rate, with estimates ranging from 1.1 per cent to 3.4 per cent. In the first quarter, the economy grew at a 1.4 per cent rate.

The US economy grew faster than anticipated in the second quarter, while inflation eased, maintaining expectations of a September interest rate cut from the Federal Reserve.

Gross domestic product (GDP) increased at an annualised rate of 2.8 per cent last quarter, according to the Commerce Department's Bureau of Economic Analysis' advance estimate of second-quarter GDP on Thursday. Economists polled by Reuters had predicted a 2.0 per cent growth rate, with estimates ranging from 1.1 per cent to 3.4 per cent. In the first quarter, the economy grew at a 1.4 per cent rate.

IPO-bound Ola Electric has put its electric car launch plans on hold, choosing instead to concentrate on its e-scooter business, two sources with direct knowledge of the decision told news agency Reuters.

Ola's founder Bhavish Aggarwal had announced plans in 2022 to launch an electric sports car with an all-glass roof within two years, boasting the ability to reach 100 km per hour in just four seconds. Aggarwal reaffirmed these plans as recently as September 2023 in an interview with Forbes. However, the project has been suspended ahead of the company's planned IPO in August, where it aims to raise around $660 million.
 

Shares of Tata Motors were in heavy demand on Thursday, soaring over 6 per cent, in an otherwise weak broader market.

The stock jumped 6.17 per cent to settle at Rs 1,091.05 on the BSE. During the day, it rallied 6.46 per cent to hit the 52-week high of Rs 1,094.10.

Ford Motor's Frankfurt-listed shares took a sharp downturn and dropped by 8 per cent following the auto manufacturer’s announcement of lower-than-expected adjusted profits for the second quarter.

PNB Housing Finance announced a 25 per cent increase in its net profit, reaching Rs 433 crore for the first quarter ending June 2024, compared to Rs 347 crore in the same quarter of the previous year.

According to a regulatory filing, the housing finance company's total income for the quarter grew to Rs 1,832 crore, up from Rs 1,708 crore in the corresponding quarter of the previous fiscal year.

Shares of Adani Green Energy Ltd soared nearly 8 per cent on Thursday following the company's announcement of a nearly 95 per cent increase in consolidated net profit to Rs 629 crore for the June quarter, driven by higher revenues.

The 30-share BSE Sensex ended 109.09 points lower at 80,039.80, while the broader Nifty50 fell 7.40 points to 24,406.10 on Thursday, July 25, 2024.

Gold prices on Thursday tumbled Rs 1,120 to Rs 67,832 per 10 grams in futures trade amid weak global cues.

On the Multi Commodity Exchange, gold contracts for August delivery plummeted Rs 1,120 or 1.62 per cent to Rs 67,832 per 10 grams in a business turnover of 9,352 lots.

Coriander prices on Thursday rose Rs 4 to Rs 7,216 per quintal in futures trade as speculators increased their holdings, tracking a firm trend in the spot market.

On the National Commodity and Derivatives Exchange, coriander contracts for August delivery traded higher Rs 4 or 0.06 per cent at Rs 7,216 per quintal with an open interest of 27,725 lots.
 

Guar seed prices on Thursday rose Rs 11 to Rs 5,412 per quintals in futures trade after speculators widened their positions following a firm trend in the spot market.

On the National Commodity and Derivatives Exchange, guar seed contracts for August delivery rose Rs 11 or 0.20 per cent to Rs 5,412 per quintals with an open interest of 47,720 lots.
 

The Directorate General of Civil Aviation (DGCA) is investigating the Air India Express cabin crew strike in May, which resulted in numerous flight cancellations. Civil Aviation Minister K Rammohan Naidu announced that penalties would be imposed on the airline if any regulatory non-compliance is found. Addressing queries in the Lok Sabha regarding flight cancellations, Minister Naidu emphasised that Civil Aviation Requirements (CARs) are in place to ensure passengers receive compensation in case of delays or cancellations. "We acknowledge the issues with Air India Express, particularly related to its merger with AirAsia India, which led to a mass strike on May 7," said Naidu during the Question Hour. The strike caused significant flight cancellations.

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MMDR Act and state tax authority: In a significant legal development, the Supreme Court of India has upheld the power of state governments to levy taxes on mineral rights, in a landmark ruling delivered by a nine-judge constitution bench.

The bench, led by Chief Justice of India DY Chandrachud, ruled by an 8-1 majority that states possess the authority to impose taxes on mineral rights, affirming their legislative competence in this domain. The ruling rejects challenges from miners and the central government against the imposition of cess by state governments on minerals extracted.

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The government plans to manage its cash position by adjusting Treasury bill (T-bill) sales rather than altering the bond auction schedule, two government officials told Reuters. This approach is preferred because it is more flexible and avoids market disruption, explained Finance Secretary T.V. Somanathan on Wednesday.

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Foreign investors sold nearly $1 billion worth of Indian equities in the two days following the government’s announcement of increased taxes on derivatives trades and capital gains from equity investments in its annual budget.

Foreign portfolio investors (FPIs) net sold shares worth Rs 8,106 crore on Tuesday and Wednesday, according to provisional data from the National Stock Exchange.

Before the budget presentation, these investors had bought equities worth a net amount of $2.20 billion over six sessions. So far this year, FPIs have invested a net $5.1 billion in Indian equities.

Microsoft has unveiled a new generative Artificial Intelligence (AI) tool for Bing, which is currently being tested on a small percentage of user queries. 

Nestle India reported a smaller-than-expected rise in its first-quarter profit on Thursday, attributing the shortfall to price hikes that drove consumers towards cheaper alternatives, affecting sales volumes.

The subsidiary of the Swiss food giant Nestle reported a net profit of Rs 747 crore for the quarter ended June, missing analysts' estimate of Rs 816 crore, according to LSEG data.

Shares of Axis Bank, the country’s leading private sector lender, saw a drop of 6.37 per cent to hit an intraday low of Rs 1,160.75, marking their worst single-day performance in over two years since October 27, 2021. The decline followed the bank's announcement of first-quarter profits that fell short of market expectations.

Axis Bank's net profit increased by 4 per cent year-over-year to Rs 6,034.64 crore for the June quarter, compared to Rs 5,797 crore in the same period last year. However, this result was below analysts' average estimate of Rs 6,450 crore, as per LSEG data. The primary reason for the profit miss was a sharp rise in provisions for potential bad loans, which nearly doubled to Rs 2,039 crore from Rs 1,034 crore in the June quarter of the previous year.
 

Shares of Larsen & Toubro (L&T), India's largest infrastructure developer, rose by 2.46 per cent on the BSE after the company reported first-quarter earnings that surpassed analysts' expectations.

L&T's consolidated net profit for the quarter ended June 30 was Rs 2,786 crore, 11.7 per cent higher year-over-year, exceeding the analysts' estimate of Rs 2,744 crore, according to LSEG data. The company's revenue from operations rose 15.1 per cent to Rs 55,120 crore, also beating the expected Rs 53,784 crore.

The strong performance was attributed to robust execution in projects and the manufacturing portfolio, supported by a large order book. L&T's consolidated order book at the end of June stood at Rs 4.91 lakh crore, growing 19 per cent year-over-year.

Union Finance Minister Nirmala Sitharaman's announcement to abolish the angel tax in her annual Union Budget presentation has been hailed as a transformative step by leading figures in the Silicon Valley startup community. 
 

Stock market news: Benchmark indices opened lower on Thursday, driven by disappointing quarterly results from private lender Axis Bank and continued negative sentiment following recent tax hikes announced in the Union Budget. As of 9:21 am, the NSE Nifty 50 index fell by 0.75 per cent to 24,234.5 points, while the S&P BSE Sensex decreased by 0.74 per cent to 79,544.08 points. All 13 major sectors experienced losses, with small-cap and mid-cap indices dropping approximately 1 per cent each.

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Ola Foods has come under fire following a viral incident involving one of its delivery partners. The controversy erupted when a customer, Jaiswal, shared a video on Instagram showing the delivery driver allegedly eating the food he was supposed to deliver. According to Jaiswal, the delivery driver initially demanded an additional Rs 10 for the delivery, beyond the standard delivery charge. Despite his initial refusal, Jaiswal eventually agreed to the extra fee. However, the delivery was further delayed as Jaiswal waited for 45 minutes. Upon locating the driver, Jaiswal reportedly found him sitting on his motorcycle and eating the food that was intended for Jaiswal.

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Stock market news: Benchmark indices are set to open lower on Thursday as investor sentiment sours following the government's tax hikes on equity investment gains and derivatives trading. Quarterly earnings from Larsen & Toubro (L&T) and Axis Bank will also be in the spotlight.

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LTCG tax updates India: There will be no reconsideration of changes made to the Long-Term Capital Gains (LTCG) tax in the Union Budget 2024-25, news agency ANI reported quoting government sources amid concerns regarding the removal of the indexation benefit on property sales for tax calculation. \

"There will be no rethink on LTCG provisions made in the budget as it is beneficial for the taxpayers," the report said.

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Pre-opening market comment by Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd

Nifty has declined for four consecutive days, with a rough start expected today due to July F&O expiry-induced volatility. The Union Budget, praised for fiscal prudence and employment focus, targets a 4.9% fiscal deficit and Rs 11.11 trillion in infrastructure spending for FY25. However, a capital gains tax hike is dampening sentiment. Technically, a bearish engulfing pattern suggests downside risk towards 24,000.

Nifty's options data indicates a trading range of 23,500-25,000, with 25,000 as key resistance. Q1 results are anticipated from companies like ASHOK LEYLAND and NESTLE. Recommended trades: sell Nifty between 24,500-24,550 (targets: 24,250/24,071, aggressive: 23,600-23,750) and Bank Nifty between 51,500-51,700 (targets: 50,900/50,591, aggressive: 48,913-49,000). Bullish picks include BALRAMPUR CHINI and NTPC, with NTPC expected to break out above 393 (buy between 382-385, target: 403/417, aggressive: 441).

Tesla experienced a significant 12 per cent drop in shares on Wednesday, wiping out nearly $100 billion in market value. This plunge followed CEO Elon Musk's discussion of future ventures like humanoid robots and driverless taxis, which failed to assuage investor concerns over the company's dwindling profit margins.

The electric vehicle manufacturer reported its lowest quarterly profit margin in five years on Tuesday, missing earnings per share estimates for the fourth consecutive quarter. This resulted in the largest one-day percentage drop in Tesla’s stock since 2020, reducing its market capitalisation to just under $700 billion, down from over $1 trillion in 2021.

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A significant sell-off in US stocks on Wednesday led to a three-month high in Wall Street's primary volatility indicator and a surge in options trading volume. Despite the market turbulence, strategists noted a lack of panic among investors. 

The S&P 500 dropped 2.3 per cent, marking its steepest daily decline since late 2022, following disappointing earnings reports from Tesla and Alphabet. This raised doubts about the sustainability of the 2024 rally driven by Big Tech and artificial intelligence.

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