Nilesh Shah of Kotak AMC emphasizes focusing on resilient companies with reasonable valuations amidst global uncertainties. He highlights India's strong IPO pipeline driven by entrepreneurs from smaller towns, mirroring the evolution of the Indian cricket team. Kotak Mutual Fund favors domestic consumer discretionary sectors, anticipating growth from tax cuts and potential GST rationalization, prioritizing bottom-up stock ideas.
Nifty is attempting a bounce back after breaking the 24,500 support level, now trading in a 24,300-24,500 range. Rajesh Bhosale of Angel One suggests focusing on stock-specific action, highlighting PSU banks' strength. He recommends buying Indian Bank around 662, targeting 690, and Tech Mahindra around current levels, targeting 1580, citing bullish patterns.
The Reserve Bank of India has clarified that individual banks have the autonomy to decide on the minimum average balance (MAB) requirements for savings accounts. While some private banks like ICICI Bank are increasing MAB, several state-owned banks, including SBI, PNB, Canara Bank, and Indian Bank, are eliminating penalties for not maintaining minimum balances to promote financial inclusion.
Market sentiment is currently weak, with a key level to watch at 24,250, as a break below could trigger panic selling. Certain sectors like textiles and gems & jewellery will be significantly affected by tariffs. While PSU banks are expected to perform well due to anticipated credit growth, caution is advised for NBFCs in the retail loan segment.
Jefferies has cautioned that Tata Motors' share price might fall to Rs 550, citing significant YoY declines in Q1 EBITDA and pre-ex PBT, falling below estimates. The brokerage anticipates an EPS decline in FY26, followed by modest growth. Challenges across businesses, including JLR pressures and weak CV demand in India, contribute to the negative outlook.
Shreeji Shipping Global Ltd, specializing in dry bulk cargo solutions, has announced its IPO with a price band of Rs 240-252 per share, aiming to raise Rs 411 crore. The IPO opens from August 19-21, with anchor investor bidding on August 18. Proceeds will fund dry bulk carrier acquisitions and debt repayment.
HBL Engineering a 79% year-on-year profit rise to Rs 143 crore in Q1, driven by higher revenues and improved cost management. During its August 9 meeting, the board approved the reappointment of Dr. Aluru Jagadish Prasad as Chairman and Managing Director for a five-year term beginning October 1, 2025, pending shareholder approval.
Geopolitical events have limited long-term impact on fund flows, with investors often viewing dips as buying opportunities. While some money is slowly exiting the US amidst tariff negotiations, it's primarily moving into liquidity funds. India's fund inflows, previously recovering, have been impacted by new tariffs, particularly on pharmaceuticals, creating uncertainty in the market.
