Equity Markets & Sector News Update -July 28, 2025

Market Overview
• Sensex closed at 81,463 (–0.88%), and Nifty 50 at 24,837 (–0.90%) on Friday, erasing recent gains.
• Today indices opened lower with Nifty at ~24,782, Sensex near 81,240. Market sentiment soured amid Kotak Bank’s weak Q1 earnings and stalemate in U.S.–India trade talks ahead of the August 1 deadline.
• With July tracking as the worst month since 2019, investors are watching for a turnaround in August.

Sector Highlights
Information Technology (IT)
• IT index dropped ~1.4%, among worst performers today. Stocks such as TCS, Infosys, HCL Tech, and Coforge under pressure amid global demand concerns and TCS’s plan to cut ~12,000 jobs.
• Persistent weakening of broader IT sentiment as Nifty slides below

Key technical levels.

Banking & Financial Services
• Kotak Mahindra Bank profit disappointment led to ~4.7% fall, dragging the Private Bank index down 1%.
• PSU Banks bucked the downtrend on July 24 gains, outperforming peers.

Results
• J&K Bank (Standalone, YoY):
o Total income rose 10.4% to ₹3,518.6 crore
o Net profit up 16.7% at ₹484.8 crore
o Net Interest Income (NII) up 7% to ₹1,465.8 crore
o Gross NPA: 3.50% (vs 3.37% QoQ), Net NPA: 0.82% (vs 0.79% QoQ)

• Tamilnad Mercantile Bank (YoY):
o Income up 6.8% at ₹1,617.5 crore
o Net profit up 6.1% to ₹304.9 crore
o Gross NPA down to 1.22% (vs 1.25%), Net NPA down to 0.33% (vs 0.36%)

• Bank of Baroda (Standalone, YoY):
o Net profit up 1.9% at ₹4,541 crore
o NII slightly down 1% to ₹11,434.8 crore
o Gross NPA at 2.28% (vs 2.26%), Net NPA at 0.60% (vs 0.58%)

• Kotak Mahindra Bank (QoQ):
o Net profit fell 7.6% to ₹3,282 crore
o Provisions up 33% to ₹1,208 crore
o NIM declined to 4.65% (vs 4.97%)
o Gross NPA rose to 1.48% (vs 1.42%)

• IDFC First Bank (YoY):
o Net profit down 32% to ₹463 crore
o NII up 5.1% to ₹4,933 crore
o Provisions surged 67% to ₹1,659 crore
o NIM dropped to 5.71% (down 24 bps QoQ)

• SBI Cards (YoY):
o NII up 14% to ₹1,680 crore
o Net profit down 6.5% at ₹556 crore

Corporate Activity
• Poonawalla Fincorp: Approves ₹1,500 crore fundraise via preferential allotment at ₹452.51/share
• Aadhar Housing Finance: Blackstone arms launch ₹5,335 crore open offer for 25.82% stake

Infrastructure & Real Estate
• Sobha Ltd (Consolidated, YoY):
o Revenue up 33% to ₹851.9 crore
o EBITDA down 57% to ₹23.8 crore
o Net profit more than doubled to ₹13.6 crore
o EBITDA margin declined to 2.8% (vs 8.7%)
• Real estate sector continued to lag, with Realty index down over 1%.

Energy & Utilities
Results

• Petronet LNG (QoQ):
o Revenue declined 3.5% to ₹11,879.9 crore
o EBITDA down 23% to ₹1,159.7 crore
o Net profit dropped 21% to ₹850.6 crore
o Margin fell to 9.8% (vs 12.3%)
Investments
• Petronet LNG: Approved ₹4,049 crore investment for a new LNG terminal in Odisha
• Reliance Group (Power & Infra): Announced ₹18,000 crore expansion plan into defence, aerospace, and renewables
Chemicals

• Tata Chemicals (Consolidated, YoY):
o Revenue down 1.8% to ₹3,719 crore
o EBITDA up 13% to ₹649 crore
o Net profit up 68% to ₹252 crore
o Margins improved to 17.5% (vs 15.1%)

Metals & Mining
• SAIL (Consolidated, QoQ):
o Revenue declined 11.6% to ₹25,921.8 crore
o EBITDA down 21% to ₹2,768.7 crore
o Net profit dropped 40% to ₹744.6 crore
o Margin down to 10.7% (vs 11.9%)

Technology
• Wipro:
o Wipro Holdings Hungary voluntarily liquidated, effective July 23, 2025

Pharma & Healthcare
• Pharma index provided stability, recording modest gains and outperforming broader market amid risk-off sentiment.
Industrials / Capital Goods
• Some positive momentum in engineering and infrastructure-related stocks like Phoenix Mills, REC, BEL, eClerx, IEX that reported strong earnings and order wins.
• REC Ltd Q1 PAT surged 29% YoY (~₹4,465cr), accompanied by higher NII and an interim dividend

Stocks in Focus Today
• Watchlist includes IndusInd Bank, Adani Green, NTPC Green, Ola Electric, Kotak Mahindra Bank, TCS, all in focus due to recent news/events or Q1 earnings. Technical Outlook & Commentary
• Nifty has breached key support zones (24,900–25,000), forming bearish patterns and trading below its 50-day EMA. Immediate downside support is pegged at 24,740–24,650, resistance near 24,920–25,000.
• Derivative flow shows high call open interest at 25,000 strikes and strong put writers at 24,500–24,700 zones. The Put/Call ratio sits near 0.70, indicating potential support.
• FII net selling continues, with domestic institutional investors buying.

Pharmaceuticals
Alembic Pharmaceuticals has received final USFDA approval for its Carbamazepine Extended‑Release Tablets USP (100/200/400 mg). This drug targets treatment of seizures and trigeminal neuralgia, with an estimated US market size of ~$71 million for the twelve months ending March 2025

Concord Biotech successfully completed a USFDA inspection of its API facility at Dholka, concluding with an Establishment Inspection Report (EIR) that raises no regulatory concerns

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Engineering & Infrastructure
VA Tech Wabag secured a Rs 380 crore, World Bank-funded contract from Bangalore Water Supply & Sewerage Board. The scope includes design, EPC, tertiary treatment plants, biogas generation, solar sludge drying, and O&M support over 10 years

RITES Ltd has received a Letter of Intent worth Rs 177.23 crore from Bharat Electronics Limited, to undertake design, PMC, and construction of a mass manufacturing facility (Electro-Mechanical SBU) in Andhra Pradesh, under a cost-plus contract with a 24‑month timeline

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Banking & Finance
Dr Reddy’s Laboratories has injected Rs 565.40 crore into its Russian step-down subsidiary (DRL Russia), acquiring a 45.19% stake to support working capital. The subsidiary posted annual revenue of ~Rs 2,347 crore in FY25

IndusInd Bank’s CHRO Zubin Mody resigned after a two-decade tenure, effective October 24, 2025. Meanwhile, RBI has extended the tenure of the bank’s interim executive oversight committee until August 28, 2025, or until a new MD & CEO takes charge

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Why This Matters:
Pharma: Alembic’s FDA nod opens a niche injectable market; Concord’s clean audit clears the way for international growth.

Infrastructure: Major contract wins for VA Tech Wabag and RITES underscore momentum in public-private urban development projects.

Banking & Strategy: Dr. Reddy’s capital infusion underlines global expansion strategy; IndusInd’s leadership transition and RBI oversight maintain governance stability.

Investor Takeaways
• Financials (esp. private banks) and IT remain under pressure, which could persist if macro headwinds and earnings disappointments continue.
• Defensive plays in pharma, PSU banks, and some industrial names offered relative resilience.
• Large-cap earnings—from IndusInd, BEL, Adani Green, etc.—are poised to drive intraday momentum.
• Strategic investors should closely watch July 29 for signs of a trend reversal following persistent market weakness