Auto sector Q1 preview & more on today's market

The main drivers of the market rally were:

• Strong global cues
• Positive earnings reports from companies
• Expectations of a rate hike by the RBI in August

Jio Financial demerger: Discovered price much higher

At the end of a special trading session, Reliance Strategic Investments Ltd (RSIL) shares were valued at Rs 261.85, significantly higher than the estimated range of Rs 160-190 by analysts, leading to a valuation of approximately Rs 1.45 trillion. RSIL, soon to be renamed Jio Financial Services (JFS), will be demerged from Reliance Industries Ltd (RIL) on 20th July and listed on exchanges at a later date. Meanwhile, RIL's stock settled at Rs 2589 per share on BSE, compared to its previous close of Rs 2853 per share. The company is scheduled to announce its earnings for the June quarter on 21st July. Following the demerger, RIL will retain a 6.1% stake in Reliance Industries.

Auto sector Q1 preview: EBITDA margins set to jump

In the 1QFY24, automobile companies are expected to experience a boost in profit margins, driven by price hikes and stable input costs. InCred Equities stated that the sustained decrease in commodity prices such as aluminium, copper, steel, and precious metals on a quarter-on-quarter (QoQ) basis will continue to positively impact gross margin expansion, similar to trends observed in recent quarters. Analysts following the sector anticipate a significant rise of approximately 33 percent in earnings before interest, tax, depreciation, and amortisation (EBITDA). Furthermore, a shift towards premiumization is expected to further enhance margins in the forthcoming quarters.

Dish TV rises 5%

Dish TV's shares experienced a surge following reports indicating that JC Flowers ARC might consider selling its entire 24.19 percent stake in the company. The potential stake sale could take place through a block deal window, as reported by CNBC-TV 18. The stock saw a nearly 5 percent increase, trading at Rs 19.45 at 2.30 pm. While three potential buyers are said to be interested in acquiring the Dish TV stake, the specific names of these players have not been disclosed yet.

ITC becomes 7th Indian firm to cross Rs 6 lakh crore m-cap

ITC Ltd has become the seventh Indian listed company to surpass the Rs 6 lakh crore market cap mark, driven by a remarkable rally of over 48 percent in its shares so far this year. The stock reached a record high of Rs 489 per share, experiencing a 2 percent intraday gain. Currently trading at Rs 487 on BSE, up 1.8 percent from the previous close, ITC's exceptional performance in all its business segments, including cigarette, FMCG, paper, and hotels, has made it an appealing choice for investors. Its stable cash flow and consistent dividend payouts have positioned ITC as a defensive option in many investment portfolios. Earlier, this milestone was achieved by Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, Hindustan Unilever, and Infosys.