Stock Market Weekly Recap - 29 Jul to 02 Aug

Despite the US Federal Reserve hinting at a rate cut in September, global markets are consolidating as this move has already been priced in. Furthermore, negative results from the US IT industry, a possible increase in unemployment, the probability of further rate hikes by the BOJ, and a slowdown in Chinese GDP are all affecting market optimism.

The domestic market had a broad-based sell-off, indicating that it may have hit a saturation point due to a lack of new triggers for future upward movement. Q1FY25 results have been disappointing thus far, but broader market valuations remain relatively high.

The Nifty 50 achieved an incredible milestone of 25,000 and Sensex recorded a high of 82,129.49 on August 1. However, due to the global sentiments, both the indices fell over 1% on Friday (2 August) with the Nifty 50 closing at 24,717.70 and the Sensex 80,981.95 for the week

Important Highlights of the Week

Adani Enterprises Doubles Q1 Profit

In Q1 FY25, Adani Enterprises saw its net profit more than double to Rs.1,454.5 crore, with revenue increasing by 12.5% to Rs.25,472 crore, driven by strong performance in airports and Adani New Industries (ANIL). Core infrastructure businesses, including ANIL, airports, and roads, boosted their EBITDA contribution to 62%, up from 45% a year ago. 

Eicher Motors share falls after Royal Enfield sales decline in July

Eicher Motors shares fell over 5% on August 2 after the company reported an 8% drop in July motorcycle sales to 67,265 units. Royal Enfield models under 350cc saw a 12% decline, while those over 350cc grew 22%. VECV, Eicher's commercial vehicle arm, posted a 12.7% sales increase to 6,622 units. The stock closed at Rs.4,713 on Friday.

Zomato's Q1 profit jumps 126 times; revenue jumps 75%

Shares of Zomato hit a new 52-week high of Rs. 278.70 on Friday and closed at Rs.262.74 up by 12.24% for the day. Zomato reported a 12,550% surge in Q1 FY25 net profit to Rs.253 crore, driven by a 75% jump in revenue to Rs.4,206 crore. The gross order value of the B2C business grew 53% YoY to Rs.15,455 crore. Blinkit, Zomato's quick commerce arm, narrowed its adjusted EBITDA loss to Rs.3 crore and added 113 stores, exceeding its guidance of 100 stores. The strong results have fueled a rally in Zomato's stock price.

Infosys hit a downfall as the GST notice was issued

On 31st July 2024, the Karnataka State Authorities issued a Pre-Show Cause Notice to Infosys asking them to pay Rs 32,403 crore in GST for the period of July 2017 to March 2022, due to expenses incurred through their overseas branch. This Notice was later Retracted on 2nd August 2024. Despite that, Infosys’s stock fell by 1.81% to an intraday low of Rs 1,819 on the NSE. 

Adani Wilmar Ltd hit 9.99% on the announcement of its demerger

Adani Enterprises Ltd. has approved the demerger of its food FMCG division and strategic investments in Adani Commodities LLP to Adani Wilmar Ltd. This move aims to enhance focus on the food business and unlock shareholder value.  Post-demerger, Adani Wilmar will no longer be a joint venture entity, with the promoter stake decreasing from 87.87% to 76.76%. Shareholders of Adani Enterprises will receive 251 shares of Adani Wilmar for every 500 shares they hold. After hitting an upper circuit of 10% on Friday, the share closed at a price of Rs.383.15. 

Nifty 50: Top Gainers and Losers

Top Gainers

Top Losers

Outlook

Looking ahead, the market is likely to be influenced by stock-specific movements driven by Q1 FY25 earnings. Moreover, there will be close attention on the outflows of foreign portfolio investors (FPI) this week, as they have the potential to affect market sentiment