SBI after Q1 & more on today’s market

SBI top Sensex loser after Q1

On August 4, State Bank of India, the leading lender in the country, witnessed the most significant decline among Sensex companies. Despite reporting a notable 178 percent surge in net profit to Rs 16,884 crore in the June quarter, SBI fell short of estimates due to lower-than-expected net interest income and a doubling of fresh slippages on a sequential basis. By 2.40 pm, the bank's stock had decreased by 2.22 percent, trading at Rs 577.50 on the BSE, while its net profit for the April-June quarter of the previous year was Rs 6,068 crore.

JK Tyre hits 52-week high

JK Tyre and Industries saw its shares reach a 52-week peak on Friday following robust earnings in the recently concluded April-June quarter. The company experienced a remarkable four-fold year-on-year surge in quarterly net profit, amounting to Rs 153.87 crore. This surge in profit appeared to be attributed to a consistent sequential increase in revenue and a one-time exceptional expense of Rs 34.50 crore recorded in the base quarter of Q1FY23. As of 2.15 pm, JK Tyre's stock was valued at Rs 283, marking a 6.79 percent rise or Rs. 18. The stock has shown an impressive 48.95 percent year-to- date increase, with trading volume reaching nearly 57 lakh shares, exceeding the monthly average of 26 lakh shares on both exchanges. According to its Q1FY24 results released on August 4, the company reported a 2.1 percent year-on-year growth in operational revenue, reaching Rs 3,718.1 crore compared to Rs 3,643 crore in Q1FY23.

Kalyan Jewellers to open 200th outlet

Kalyan Jewellers has disclosed its expansion strategy for August, outlining the launch of 11 new showrooms across India, culminating in the inauguration of their 200th outlet in Jammu. Presently, the company operates across 22 Indian states and union territories, along with a presence in four Middle Eastern nations. With a current distribution of 76 showrooms in South India, 48 in North and Central India, 23 in West India, 16 in East India, and 33 in the Middle East, the company is focused on extending its reach, particularly in non-South markets, as part of its commitment to strengthen its nationwide presence. Managing Director Mr. T S Kalyanaraman expressed delight at the company's growth and emphasized their intention to tap into the potential of Tier-2 and Tier-3 markets with their service-oriented shopping experience and unique design philosophy.

Cipla surges to record high on talk of Blackstone

On August 4, shares of Cipla experienced a remarkable surge of over 6 percent in early trade, reaching an all-time high of Rs 1,238.70. This surge was driven by speculations that Blackstone, the world's largest private equity fund, is poised to present a non-binding bid, potentially next week, to acquire the complete promoter stake in the pharmaceutical company. The Hamied family, who hold a combined stake of 33.47 percent in Cipla, India's third-largest pharma generics player by revenue, are reportedly considering reducing their holdings as part of the company's succession plan, a notion that has boosted Cipla's shares by more than 15 percent since the news surfaced on July 27. As of 10.37 am, Cipla's shares were trading at Rs 1,215.30, reflecting a 4.2 percent increase on the National Stock Exchange.

Conclusion

In conclusion, today's market news reflects a mixed but mostly positive trend in various sectors. The major indices - NIFTY 50, SENSEX, and NIFTY BANK - closed higher, with NIFTY 50 and SENSEX surpassing their 200-day moving averages, indicating a bullish sentiment. The State Bank of India faced a significant decline despite a substantial rise in net profit due to lower net interest income and increased slippages. JK Tyre demonstrated robust performance with a four-fold increase in quarterly net profit attributed to sequential revenue growth and exceptional expenses. Kalyan Jewellers' expansion plans to establish its 200th outlet reflect its dedication to broadening its presence, particularly in non-South markets. Lastly, Cipla's shares surged to a record high on speculations of Blackstone's potential bid, fueled by reports of the Hamied family's plan to reduce holdings as part of a succession strategy. Overall, these developments showcase the dynamic nature of the market and the various factors influencing stock performance.

Source - Moneycontrol