Benchmark Index:
Nifty closed at 24,056, remaining above 24,000 despite pressure and the benchmark BSE Sensex crashed 2,686 points, or 3.3%, in intraday deals to hit an intraday low of 78,296. While Nifty Midcap 100 and Smallcap 100 fell by 3.55% and 4.57%.
Moreover, the India Volatility Index (VIX) experienced a remarkable surge of over 50 percent, marking its largest single-day increase since August 2015.
Reason behind the fall:
The Indian stock market benchmarks, the Sensex and the Nifty 50, fell more than 3% in intraday trade on Monday, August 5, reflecting the global pattern as US recession concerns grew and escalating tensions in the Middle East put investors on edge.
● Recession Fears
US economy has slowed with only 1.14 lakh jobs added in July, far below the expected 1.75 lakh jobs, while the Sahm rule states that reaching the 0.5% level means there’s a recession. The rule basically states that when the unemployment rate is increasing rapidly, the economy is likely in a downturn.
● Japan’s interest rate hike
Bank of Japan (BoJ) increased its key interest rate to “around 0.25%” from the previous range of 0-0.1%.
● Middle East Tensions
The conflict between Israel, Iran, Hamas and Hezbollah is escalating, increasing market uncertainty.
● Disappointing Q1FY25 Earnings
The June quarter (Q1FY25) results were mixed, failing to boost market sentiment. Slower earnings growth led to profit booking after recent rallies.
| Top 5 Gainers in Today’s Trade: | Top 5 Losers in Today’s Trade: |
| Glenmark Life Sciences Ltd (5.54%) | Samvardhana Motherson International Ltd (9.2%) |
| Marico Ltd (1.45%) | Thermax Ltd. (8.9%) |
| Cera Sanitaryware Ltd (5.65%) | Computer Age Management Services Ltd (8.6%) |
| Dr. Lal PathLabs Ltd (1.98%) | Adani Energy Solutions Ltd (8.1%) |
| PCBL Ltd (0.92%) | LIC Housing Finance Ltd (8.3%) |
Earnings Call:
● Websol Energy System – 5% upper circuit
Net profit stood at ₹22.8 Cr in Q1FY25 from a loss of ₹5 Cr in Q1FY24 and ₹58.6 Cr in Q4FY24. Revenue from operations – 350% QoQ and 61900% YoY
● ArrowGreentech:- 20% Upper Circuit
Its Revenue from operations grew by 51% YoY from ₹43.86 Crores in Q1FY24 to ₹66.11 Crores in Q1FY25 and Its Net Profit grew by 116% YoY from ₹9.32 Crores in Q1FY24 to ₹20.16 Crores in Q1FY25.
● Tinna Rubber and Infrastructure Limited:- 4% up
Its Revenue from operations grew by 69 percent YoY from ₹80.47 Crores in Q1FY24 to ₹136 Crores in Q1FY25 and Its Net Profit grew by 135 percent YoY from ₹7.05 Crores in Q1FY24 to ₹16.39 Crores in Q1FY25.
Corporate Announcements:
● Sahaj Solar Limited (jumped 17% | hit new 52-week high) – secured orders worth a total of ₹64.2 Cr from Maharastra Energy Development Agency and Dakshin Gujarat Vij Co. Ltd. (DGVCL) for Off-Grid Standalone Solar Photovoltaic Water Pumping Systems.
● Ashoka Buildcon Limited jumped 3% after emerging as the lowest bidder for two projects worth ₹1,280.8 crore from the Mumbai Metropolitan Region Development Authority for EPC work.
● TIL Limited (5% up | hit new 52-week high) – signed a partnership agreement with Snorkel Europe Limited to serve as its official Sales and Service partner for Northern and Eastern India, Andaman and Nicobar Islands, Nepal and Bhutan.
● Solex Energy Limited (4% up):- It received multiple work orders worth ₹13.4 Crores from District Panchayat Raj Officer, Patna, and Apar Industries Limited for providing comprehensive maintenance including a remote monitoring system for the Smart Solar Street Light Systems and a 1,217 kw Solar Roof Mount Power Plant.
● Kaushalya Logistics Ltd-5% up: The company announced the commencement of operations at a new cement depot located in Ahmednagar, Maharashtra, starting from August 1, 2024. The company will handle essential logistics services for Adani
Cement, covering rake point operations, depot management, and secondary transportation. This new initiative will benefit both ACC and Ambuja Cement brands.
Stock Recommendations:
● CLSA has revised its target price for State Bank of India shares from ₹1,000 to ₹1,075, suggesting a potential 32% rise from the current price of ₹811.25.
Written by:- Shivani Singh
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