Indian Equity Markets Remain Flat as Earnings Season Gains Momentum
Investors are closely watching corporate results and upcoming dividend payouts as market volatility persists.
Indian equity benchmarks concluded Tuesday, July 23, largely unchanged after a fluctuating session. Losses in the energy and auto sectors were offset by gains in consumer durables, resulting in a muted performance for both the Sensex and Nifty50 indices. The Sensex ended the day down 13.5 points at 82,186.8, while the Nifty50 shed 29.8 points to close at 25,060.9. Market participants are now focused on the ongoing earnings season for domestic cues.
During Tuesday’s trading, the 30-scrip index experienced a wide intraday range of over 400 points, while the Nifty50 fluctuated within a nearly 150-point band, primarily between 25,050 and 25,200. The India VIX, often referred to as the “fear gauge,” decreased by 4.0 percent, suggesting a slight easing of market anxiety.
Stocks to Watch on Wednesday, July 24
As investors prepare for Wednesday’s session, several stocks are anticipated to be in focus due to corporate actions and earnings releases.
Quarterly Earnings Reports
Approximately 60 companies are scheduled to announce their quarterly results on Wednesday, including major players like Infosys, Tata Consumer Products, Coforge, Bajaj Housing Finance, and Syngene. These reports will be closely scrutinized for insights into the health of the Indian economy and corporate performance.
Dividend Stocks Trading Ex-Dividend
A number of companies will trade ex-dividend on Wednesday, meaning investors who purchase shares on or after this date will not receive the previously declared dividend. These include Greaves Cotton, KPR Mill, Nesco, Novartis, Pidilite, Route Mobile, Sonata Software, Precision Cramshafts, and Metal Coatings.
Corporate Actions: Rights Issues and Buybacks
Mahindra Logistics is slated to trade ex-rights, impacting its share price as existing shareholders are offered the opportunity to purchase additional shares. Meanwhile, shares of Tanla Platforms are set to go ex-buyback, potentially boosting investor interest.
Key Earnings Highlights
Several companies have already released their June quarter earnings, providing a glimpse into sector-specific trends.
Zensar Tech reported a 3.4 percent sequential increase in consolidated net profit, reaching Rs 182 crore for the quarter ended June 30. Revenue also saw a modest rise, increasing from Rs 1,359 crore to Rs 1,385 crore.
Paytm, the digital payments firm, achieved a significant turnaround, posting a net profit of Rs 123 crore for the April-June period, a dramatic shift from the net loss of Rs 839 crore recorded in the same quarter last year. Consolidated revenue also increased substantially, rising from Rs 1,502 crore to Rs 1,918 crore.
Dixon Tech experienced robust growth, with net profit increasing from Rs 134 crore to Rs 225 crore for the June quarter. The company’s profit margin remained stable year-over-year, holding steady at 3.76 percent.
However, not all results were positive. CreditAccess Grameen reported a decline in June-quarter profit, falling from Rs 398 crore to Rs 60 crore. Net interest income also decreased, moving from Rs 927 crore to Rs 906 crore.
