Stock Market Weekly Recap - 05 Aug to 09 Aug

Concerns over a potential U.S. recession were reignited by weaker-than-expected July jobs data, raising fears about the impact of the Federal Reserve's high interest rates. Simultaneously, the Bank of Japan's unexpected rate hike led to a global market sell-off, with Japan's Nikkei 225 plummeting over 12%, and Indian stock markets also witnessing significant falls. 

On Monday, August 5, 2024, the Indian stock market experienced a significant decline, with the Nifty closing down by 2.68% and the Sensex closing down by 2.74%. On Friday, August 9th, the Nifty 50 closed at 24367.50, marking a 1.4% decrease, while the Sensex closed at 79,705.91, reflecting a 1.58% decline compared to the previous Friday's closing.

Nifty 50: Top Gainers and Losers

Top Gainers

Top Losers

Important Highlights of the Week

RBI Monetary Policy Announcement: 

The Reserve Bank of India (RBI) has chosen to maintain the benchmark interest rate at 6.50%. This decision was based on a thorough evaluation of the overall economic conditions. The RBI Governor emphasized that the Monetary Policy Committee (MPC) continues to prioritize scaling back accommodation to bring inflation in line with the RBI's target.

The upcoming RBI MPC meeting is set to take place from October 7-9. This determination reflects the ninth consecutive occasion on which the MPC has opted to keep the repo rate unchanged in the prior eight policy assessments.

Ola Electric's Stock Surges 20% on Debut Despite Tepid IPO Response

Ola Electric Mobility made its stock market debut on Friday with a strong 20% surge, reaching the upper circuit limit on its first trading day. This performance came despite a lukewarm response to its initial public offering (IPO), which was the largest in India in over two years. The IPO garnered only 4.3 times subscription, with some investors hesitant due to the company's lack of profitability and market selloff concerns related to US recession fears.

The shares closed at Rs 91.2 on the NSE, up from the issue price of Rs 76, valuing the company at Rs 40,218 crore. This positive market reaction suggests investor confidence in the long-term shift from petrol to electric two-wheelers in India, despite current profitability concerns.

Starlineps Approves Stock Split, Bonus Shares, and Capital Increase

Starlineps announced significant changes in its August 8 board meeting. The company increased its authorized share capital from Rs 22 crores to Rs 37 crores. It also approved a stock split, dividing each Rs 5 face value share into five Rs 1 shares, aiming to improve liquidity and attract smaller investors. Additionally, the board sanctioned a 1:5 bonus share issuance. These strategic decisions are expected to impact the company's share structure and accessibility in the market. The record date for the stock split will be announced later.

JSW Steel Reports 9% Growth in July Production

JSW Steel reported a 9% year-over-year increase in consolidated crude steel production for July 2024, reaching 22.15 lakh tonnes. Indian operations grew by 13% to 21.40 lakh tonnes, with 91% capacity utilization. JSW Steel USA - Ohio contributed 0.75 lakh tonnes to the total. This performance aligns with JSW Steel's expansion plans to increase capacity from 35.7 MTPA to 43.5 MTPA by September 2027. The Vijayanagar plant in Karnataka, India's largest single-location steel facility with 17.5 MTPA capacity, remains crucial to this growth strategy. The company's robust production figures indicate strong demand and operational efficiency in the steel sector.

Eicher's Q1 Profit Jumps 20% on Record Motorcycle Sales

Eicher Motors reported impressive Q1FY25 results on August 8, showcasing strong growth across key financial metrics. Net profit surged 20% to Rs.1,101 crore, up from Rs.918 crore in the same quarter last year. Revenue from operations saw a 10.2% increase, reaching Rs.4,393 crore compared to Rs.3,086.4 crore in Q1FY24.

The company achieved record-breaking quarterly figures, marking its highest-ever net profit, revenue, and operating results. This exceptional performance was primarily driven by robust sales in its motorcycle division, particularly from popular models. The results underscore Eicher's strong position in both the commercial vehicle and two-wheeler markets, reflecting growing demand and effective business strategies.