IRCTC, Tata Power, Hero MotoCorp, rate-sensitive stocks in focus as Street awaits RBI rate decision

The domestic stock market bounced back on Wednesday (August 9) as it settled in the green amid buying in FMCG, auto, metal, IT, and pharma stocks.

The market was off-colour in early trading after Moody's downgraded certain US banks, but it gained momentum later and closed higher.

The NSE Nifty closed 61.7 points, or 0.32 per cent up at 19,632.55, while the BSE Sensex closed 149.31 points, or 0.23 per cent higher at 65,995.81.

With the market edging higher at close, all eyes will now be on the Reserve Bank of India's (RBI) monetary policy decision, which will be announced on Thursday, August 10.

With investors eagerly awaiting the RBI's decision, rate-sensitive stocks such as auto, banks, NBFCs, consumer durables, and realty will be in focus. 

Some of the main companies that declared their results on Wednesday were IRCTC, Berger Paints, Page Industries, Bata, Bharat Forge, GTL Infra, and Matrimony. 

Nearly 500 companies are due to report their earnings on Thursday. Major: Hero MotoCorp, LIC, Pidilite, Biocon, SAIL, Apollo Tyre; other: Page Industries, Campus, Cartrade, Concor, GIC, Alkem Labs, Allcargo, Bajaj Electricals, GR Infra, Indiabulls Real Estate, Ipca Labs, Lemontree, Manappuram, Mazdock, Motherson, MTAR Tech, NBCC, Rolex Rings, Sanofi, Torrent Power.

At around 8:06 AM on Thursday, August 10, the GIFT Nifty futures traded 84 points lower, or 0.43 per cent at 19,597.5, suggesting a negative opening of the market. 

ZeeBiz takes you through the stocks that can be in focus on Thursday.

Results today, August 10

Grasim Industries, Hero MotoCorp, Biocon, Container Corporation of India, IPCA Laboratories, Manappuram Finance, Samvardhana Motherson International, Page Industries, Pidilite Industries, Alkem Laboratories, Apollo Tyres, and Steel Authority of India will announce their June quarter numbers today. 

IRCTC

Indian Railway Catering and Tourism Corp (IRCTC) missed Zee Business research estimates as it reported a 5.4 per cent year-on-year decline in its profit after tax to Rs 232.2 crore for the April-June quarter.

However, the company's revenue jumped to Rs 1,001.8 crore in Q1 FY24 from Rs 852.6 crore a year ago.

Zee Business Research had estimated the company to report a quarterly net profit of Rs 275.4 crore and revenue of Rs 1,025 crore for the quarter under review.

The company's share ended 0.89 per cent higher at Rs 648.30 at market close on Wednesday.

Hero MotoCorp

With the company set to report its first-quarter results on Thursday, its share can also react to the RBI's policy decision.

As per Zee Business research, the auto company is likely to report a 36.8 per cent year-on-year (YoY) jump in its standalone net profit to Rs 855 crore for the April-June quarter.

Analysts expect that the company's quarterly performance is likely to be driven by price hikes and improvements in operating performance, despite a dip in volumes.

The company's share ended the market session on Wednesday, down 0.34 per cent at Rs 3,057.25.

LIC

State-owned life insurance giant, Life Insurance Corp (LIC), is all set to report its quarterly results on Thursday.

The company's shares were flat at Rs 643.95 at close on Wednesday.

In the last two trading sessions, the share has lost more than Rs 10 of its value.

However, the share has performed well in the last month, with a jump of 4.05 per cent as against a rise of 0.56 per cent in Nifty 50.

In the March quarter, the company reported a profit of Rs 13,428 crore. However, its net premium income had slid 8 per cent  to Rs 1.31 lakh crore in the same period.
  

Infosys

The IT giant received an "administrative warning on Wednesday from the Securities and Exchange Board of India (SEBI) over some delays in entries in the company’s Structured Digital Database (SDD), the database of unpublished price-sensitive information (UPSI). 

In its regulatory filing to BSE, Infosys said, "There were certain entries that were logged with a delay in the SDD. It was submitted by INFY that during FY2020–21 due to the ongoing COVID-19 pandemic, most of the workforce was working from their respective homes and not from the office premises.

"Therefore, it was logistically difficult to coordinate and maintain these records. While the information pertaining to UPSI during such a period was available within INFY, it seems that the updating of such information in the SDD system was delayed."

The share price of the company was up 0.28 per cent to Rs 1,394.30 at market close.

SAIL

Zee Business research is estimating the state-run steel producer to report a 71 per cent decline in its net profit to Rs 236 crore against Rs 804 crore registered a year ago.

The decline can be attributed to lower volumes and increased input costs.

The company's revenue from operations, however, may rise 1.3 per cent to Rs 24,344 crore from Rs 24,029 crore in the year-ago period.

The steel producer's share jumped 0.39 per cent to close at Rs 92.98 on Wednesday.

Tata Power 

The company announced its June quarterly number on Wednesday, and the results were in-line with the estimates. The profit was up due to exceptional gains, but operational performance is also good. The company posted a profit of Rs 972 crore against Rs 794.6 crore a year ago. Revenue was up 5 per cent to Rs 15,213 crore. Global brokerage CLSA has maintained 'sell' for a target raised to Rs 195 apiece and Goldman Sachs has also maintained 'sell' for a target of Rs 190 apiece. 

Schneider Electric 

The company posted a 32 per cent rise in net profit to Rs 34.92 crore in the June quarter primarily on the back of higher revenues. The company had registered a net profit of Rs 26.52 crore in the year-ago quarter. The total income of the company rose to Rs 497.57 crore in the first quarter of the current fiscal from Rs 371.98 crore a year ago.

KRBL Ltd

The company will consider share buybacks and dividends, along with the results, in the board meeting.

Bata India 

The company also announced its June quarter number on Wednesday. The shoe maker posted a profit after tax (PAT) of Rs 107 crore against Rs 119 crore, down 10 per cent year-on-year (YoY). The revenue of the company stood at Rs 958 crore against Rs 943 crore, up 2 per cent. 

Abbott India

Abbott India posted a profit after tax (PAT) of Rs 290 crore against Rs 206 crore, up 41 per cent year-on-year (YoY). The revenue of the company stood at Rs 1,479 crore against Rs 1304 crore, up 13 per cent. 

Granules India

The pharmaceutical company posted a 63 percent year-on-year decline in its PAT for the quarter ended June 30, 2023, to Rs 48 crore against Rs 128 crore. The company's revenue stood at Rs 986 crore against Rs 1,020 crore, down 3 per cent. 

PI Industries

The company reported a PAT of Rs 383 crore against Rs 262 crore in a year-ago period, up 46 per cent. The revenue of the company was logged at Rs 1,910 crore against 1543 crore, up 23.8 per cent. 

Orient Paper & Industries

Orient Paper & Industries reported a 15 times increase in PAT at Rs 32 crore for the first quarter that ended June 30, 2023, against Rs 2 crore in the same quarter last year. Revenue was up 15 per cent at Rs 243 crore.

Force Motors

Force Motors reported a PAT of Rs 69 crore for the first quarter that ended June 30, 2023, against a Rs 17 crore loss in the same quarter last year. Revenue was up 59 per cent at Rs 1,488 crore.

Max Financials Services

Max Financials reported Q1 results in line with the estimates. The company reported a PAT of Rs 101 crore against the estimate of Rs 76 crore, up 48.5 per cent. VNB margins stood at 22.2 per cent against the estimation of 22.8 per cent. Global brokerage CLSA has raised the target on the stock and has given a 'buy' rating for a target of Rs 1025.

Axis Bank 

Axis Bank will buy an additional 6.23 per cent stake in Max Life Insurance. The stake will be bought at Rs 113.06 per share and the total deal will be of 1612 crore shares. After the deal, Axis Bank and group companies will increase their stake in the company from 12.99 per cent to 19.02 per cent.

Suzlon Energy 

Wind power major on Wednesday said its board has launched a qualified institutional placement issue at a floor price of Rs 18.44 per share to repay debt and meet working capital requirements. 

Tata Steel 

NCLT, Cuttack Bench, has approved the scheme of amalgamation of Tata Steel Mining with Tata Steel on August 8. 

Adani Enterprises 

Adani Defense Systems incorporated a 100 per cent subsidiary company namely "Atharva Advanced Systems and Technologies Limited" on August 9, 2023.

TVS Motors and Hero MotoCorp

The Federation of Automobile Dealers has asked Minister of Road, Transport, and Highways Nitin Gadkari to reduce GST on entry-level 2-wheelers from 28 per cent to 18 per cent.

Coforge 

UTI Mutual Fund and PAC Secondary acquired a 0.0177 per cent stake through the secondary market on August 8.

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