Equity Markets & Sector News Update -July 24, 2025

Markets & Macroeconomic Indicators

• India’s composite Flash PMI surged to 61.0 in July—a 14 month high, indicating strength in both manufacturing (58.4) and services (60.7) despite global uncertainties

• Global trade momentum reflected in firm GIFT Nifty and Asian markets—buoyed by U.S.–Japan trade deal, India–UK optimism

Policy & Regulation

• SHAKTI Coal Policy 2025 revised to boost transparency, especially benefitting Telangana industries tied to coal

Market Strategy & Stocks to Watch

• Top stock picks by Nuvama: Balkrishna Industries, Sona BLW, Hindalco—highlighted as smart short-term plays

Investor Insights

• Macro drivers: Strengthening PMI + India–UK trade deal = positive backdrop for export-driven sectors, IT, metals, and logistics.
• Earnings watch: Infosys beat & raised outlook; Bajaj Finance preview upbeat; Dr Reddy’s steady—Q1 earnings season dominating.
• Policy tailwinds: Coal & trade reforms support energy and industrial sectors.

Banking & Financial Services

• India-UK Free Trade Agreement approved by Union Cabinet July 22; expected to sign July 24. This will lower tariffs on key exports like textiles, leathers, and footwear—boosting volumes for banks (e.g. Axis, ICICI) handling trade financing

Bajaj Finance Q1
• Total Income: ₹2,618.45 crore, up 18.6% YoY
• Net Profit: ₹583.3 crore, up 20.9%
Strong growth trajectory sustained.

Industrials & Heavy Goods
• Prateek Agrawal favors long-term plays in renewables, EVs, and defence—structural tailwinds ahead

Key Corporate Earnings – Q1 FY26 (Consolidated)

IT & Tech
Infosys
• Revenue: ₹42,279 crore, up 3.3% QoQ (vs ₹40,925 crore)
• EBIT: ₹6,921 crore, down 1.6% QoQ
• EBIT Margin: 20.8% (vs 21%, ↓ 20 bps)
• Net Profit: ₹6,921 crore, down 2% QoQ
• Large Deal TCV: $3.8 billion (vs $2.6 billion prior)
• Attrition: Slight uptick to 14.4% (vs 14.1%)
Solid revenue growth and deal wins; margin dip reflects cost pressure.

Persistent Systems
• Revenue: ₹3,334 crore, up 2.8% QoQ
• EBIT: ₹518 crore, up 2.5%
• Net Profit: ₹425 crore, up 7.4%

Steady growth with improving profitability.

Cigniti Technologies
• Revenue: ₹534 crore, up 0.8% QoQ
• EBIT: ₹81.5 crore, flat
• Net Profit: ₹65.9 crore, down 10%

Muted bottom-line due to higher costs.

Pharma & Healthcare

Dr. Reddy’s Laboratories
• Revenue: ₹8,572 crore, up 11.4% YoY
• EBITDA: ₹2,174 crore, up 2%
• Net Profit: ₹1,418 crore, up 1.8%
• Margins: 25.4% (vs 27.7%)
• Segmental Performance:
o North America: ₹3,410 cr (↓11% YoY)
o Europe: ₹1,270 cr (↑142% YoY)
o India: ₹1,470 cr (↑11% YoY)

Strong India/Europe growth; US headwinds visible.

Thyrocare Technologies
• Revenue: ₹193 crore, up 23% YoY
• EBITDA: ₹57.8 crore, up 35.5%
• Net Profit: ₹38.9 crore, up 61%

Strong margin improvement and volume uptick.

Auto & Engineering

Force Motors
• Revenue: ₹2,297 crore, up 21.9% YoY
• EBITDA: ₹332 crore, up 33.3%
• Net Profit: ₹176 crore, up 52.4%

Strong volume and margin expansion.

Consumer & FMCG

Bikaji Foods
• Revenue: ₹653 crore, up 14.2% YoY
• EBITDA: ₹96.2 crore, up 5%
• Net Profit: ₹59.9 crore, up 2.8%
• Margin: 14.7% (vs 16%)

Growth intact; margins under slight pressure.

Tata Consumer Products
• Revenue: ₹4,779 crore, up 9.8% YoY
• EBITDA: ₹607 crore, down 9%
• Net Profit: ₹334 crore, up 15.1%
• Margin: 12.7% (vs 15.3%)
• Highlights:
o Tea/salt up 31%; coffee +67%
o Tata Sampann & Intl. biz up 5% (CC basis)

Strong topline growth, margin contraction led by input cost pressures.

Real Estate

Sunteck Realty

• Entered JDA for 3.5-acre project in Mumbai.

Expansion into key Mumbai micro-markets.

Key Corporate Developments

• Natco Pharma: Acquired 35.75% in Adcock Ingram for ₹2,000 crore to expand in South Africa.

• RITES: Signed agreement with Coal India’s arm for mining & renewables.

• Angel One: Invested ₹104 crore in LivWell Holdings for life insurance JV (26% stake).

• Tanla Platforms: Partnered with overseas telecom operator to deploy AI-native platform.

• Birlasoft: CFO Kamini Shah resigned; Chandrasekar Thyagarajan to replace from Aug 8.

• Inox Wind: Approved ₹1,200 crore rights issue at ₹120/share.
• MCX: Delayed market open due to technical clearing, issue resolved.

More Q1 results to watch today: Nestle, ACC, Bajaj Finance, Canara Bank, Motilal Oswal, UTI AMC.