M&M Dominates Vehicle Segments

Aaj Ka Bazaar

The Asian markets were seen to be trading in the red with NIKKEI tumbling down by 3%, as the Yen continues to strengthen, clouding the outlook of Japan's exporters. The Bank of Japan (BOJ) also decided to raise its interest rates in Wednesday and signalled for more tightening in future. Hang Seng also witnessed a decline as China's factory outputs reported a dip, further darkening the country's economic outlook. The Indian bourses are expected to start off the day with a jump up, indicated by GIFT Nifty. The market participants will be closely following on the manufacturing data released today.

Markets Around Us?

BSE Sensex - 81,962.03 (0.27%)

Nifty 50 - 25,046.85 (0.38%)

Bank Nifty - 51,754.10 (0.39%)

Dow Jones - 40,937.65 (0.24%)

Nasdaq - 17,599.40 (2.64%)

FTSE - 8,367.98 (1.12%)

Nikkei 225 - 38,019.84 (-2.77%)

Hang Seng - 17,311.49 (-0.19%)

Sector: Automobiles

Maruti posts strong Q1FY25 numbers

MSIL has reported healthy annual numbers for the first quarter, despite some pullback on a sequential basis. The company sold a total of 521,868 vehicles during the quarter, a 4.8% increase in comparison to the same period last year. The sales did see some hiccups in the month of May, which can be attributed to heatwaves and Lok Sabha elections. With the help of lower commodity prices along with favourable forex realization and efficient operating leverage, the company was able to maintain healthy margins. Going ahead, we would closely monitor management commentary on their strategy to improve their product mix with better contribution of hybrid and CNG models along with some colour on the advertisement and promotional costs ahead of the upcoming festive season. We would also watch for some insights on dealer inventories, planned product launches, capex plans, strategy to revive the entry level portfolio and progress on the EV portfolio.

Why it Matters:

The strong quarterly performance and strategic focus areas suggest a positive outlook for MSIL. Investors should consider these factors and monitor upcoming management insights and market trends to make informed investment decisions. The company’s ability to adapt to market changes, manage costs effectively, and innovate with new products will be key drivers for future growth and profitability.

NIFTY 50 GAINERS

POWERGRID - 357.85?(2.77%)

COALINDIA - 536.20?(2.68%)

MARUTI - 13,460.00?(2.62%)

NIFTY 50 LOSERS

M&M - 2,869.00?(-1.33%)

SUNPHARMA - 1700.05?(-1.12%)

HEROMOTOCO - 5,401.50?(-0.86%)

Sector: Automobiles

M&M expands market share

Mahindra & Mahindra Ltd. reported healthy financial performance and continued growth in market share across various segments. The company maintains its leadership position in SUVs, LCVs, tractors, and electric three-wheelers (E3Ws). The efficient cost management through value engineering and semiconductor pricing normalization contributed to their performance. Additionally, the company anticipates positive industry response in the tractor sector due to favourable monsoon forecast, increased government spending in rural areas, and farmer-friendly policies. The company further plans to expand SUV and electric vehicle (EV) capacities, aligning with the rising consumer preference for utility vehicles.

Why it Matters:

Investors should view M&M’s strong financial performance, market leadership, and strategic expansion plans as positive indicators of future growth. The company’s ability to manage costs effectively and its focus on high-demand segments like SUVs and EVs suggest a solid foundation for continued success.

Around the World

The US benchmark indices on Wednesday recorded their biggest single day gains since February 2022. The rally was witnessed on the back of the chip stocks soaring and Federal Reserve's decision to keep the US interest rate unchanged while giving cues for a possible easing of interest rates in September. The Fed decided to keep its benchmark overnight interest rate in the range of 5.25%-5.50% while giving hints on rate cut in September if the inflation starts to cool.

Option Traders Corner

Max Pain

Nifty 50 - 25,000

Bank Nifty - 53,300

Nifty 50 - 24,930 (Pivot)

Support - 24,876, 24,802, 24,748

Resistance - 25,005, 25,058, 25,133

Bank Nifty - 51,517 (Pivot)

Support - 51,371, 51,190, 51,044

Resistance - 51,699, 51,844, 52,026

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Godrej's booking goes up!

The value of sales bookings reported by Godrej Properties in the June quarter stood at Rs 8,637 crore, compared to Rs 2,254 crore in the year ago period.

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