Indian equities are poised for a subdued start on Friday, with the GIFT Nifty futures indicating a quiet opening. The futures were trading 47 points higher than Nifty50 futures at the 23,330 level. This indicates that while a positive sentiment might be in play, the momentum is likely to remain muted for the time being.
Recap of Thursday’s Performance
On Thursday, the key benchmarks settled in favor of the bulls, with the BSE Sensex closing at 77,042.82, up by 169 points or 0.42%. The Nifty50 also ended the day on a positive note, rising by 98 points or 0.42% to settle at 23,176.05. The positive closing was largely supported by gains in key heavyweights, as investors remained optimistic despite global volatility.
The strong finish on Thursday sets the tone for the upcoming trading session. However, with earnings season in full swing, today’s trading may be influenced by quarterly earnings results, which investors are likely to keep a close eye on.
Stocks that will remain in focus today
Reliance Industries
Reliance Industries, one of India’s largest conglomerates, reported a consolidated net profit of Rs 18,540 crore for Q3, up by 7.39% from Rs 17,265 crore in the previous year. Revenue for the quarter stood at Rs 2,44,000 crore, a 7.02% increase compared to Rs 2,28,000 crore in the corresponding quarter of the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 7.71% to Rs 43,789 crore. Despite rising revenues, the company’s EBITDA margin showed a slight improvement to 17.96% from 17.83%.
Infosys
Infosys reported a strong performance for Q3, with its consolidated net profit rising by 4.77% to Rs 6,810 crore, in line with analysts’ expectations. This compares with Rs 6,500 crore in the previous quarter. Revenue for the quarter grew by 1.85% to Rs 41,760 crore, surpassing the estimate of Rs 41,300 crore. Infosys’ EBIT stood at Rs 8,912 crore, reflecting a 3.03% increase compared to the previous quarter, and the company maintained an EBIT margin of 21.34%, up 0.24 percentage points from the previous quarter.
Axis Bank
Axis Bank’s standalone net profit for Q3 stood at Rs 6,304 crore, up by 3.83% compared to Rs 6,071 crore in the same quarter last year. The bank saw a rise in interest income to Rs 30,950 crore from Rs 27,960 crore, marking a 10.71% year-on-year increase. The gross NPA (non-performing assets) slightly rose to 1.46% from 1.44%, while the net NPA increased marginally to 0.35% from 0.34%. Despite these small increases, provisions were reduced by 2.18% to Rs 2,156 crore, indicating improved asset quality.
Havells India
Havells India reported a slight decline in its consolidated net profit, down by 3.47% to Rs 278 crore for Q3. Revenue, however, increased by 10.75% to Rs 4,889 crore from Rs 4,414 crore in the same period last year. Despite the rise in revenue, the company’s EBITDA margin declined to 8.71% from 9.81% in the previous year. This decline could be attributed to increased operational costs and the challenging market conditions.
LTIMindtree
LTIMindtree’s Q3 consolidated net profit stood at Rs 1,085 crore, marking a decline of 13.2% from Rs 1,250 crore in the previous quarter. Revenue rose to Rs 9,661 crore, up by 2.78%, slightly above analyst expectations. However, the company’s EBIT margin fell to 13.76% from 15.46% in the previous quarter, a cause for concern for investors.
Metro Brands
Metro Brands posted a modest increase in its revenue for Q3, with a year-on-year rise of 11.69%, reaching Rs 688 crore. However, its net profit declined slightly by 1.67%, standing at Rs 94.1 crore, compared to Rs 95.7 crore in the same quarter last year. The company saw strong growth in its EBITDA, which rose by 13.20% to Rs 223 crore, with an EBITDA margin improving to 32.41%.
Radhika Jeweltech
Radhika Jeweltech reported an impressive 44.59% surge in its standalone net profit for Q3, which rose to Rs 22.7 crore, compared to Rs 15.7 crore in the same period last year. Revenue grew by 14.44% to Rs 206 crore, driven by strong demand for its jewelry products. The company also saw a substantial rise in EBITDA and margins, a promising sign for investors looking for opportunities in the consumer goods sector.
TVS Motors
TVS Motors announced its expansion into Morocco in collaboration with its distribution partner, Hindi Motors. The company will launch a wide range of two-wheelers in the country, including the popular TVS NTORQ 125, TVS Raider 125, and TVS Apache models. This marks a significant step in TVS’s international expansion strategy, and investors will be keen to see how this new market venture plays out.
Ravindra Energy
Ravindra Energy received an award for developing 44 MW of solar power projects, with a power purchase agreement (PPA) tariff of Rs 3.10 per unit.
Bharat Petroleum Corporation (BPCL)
Bharat Petroleum Corporation (BPCL) executed a Rs 31,802 crore loan agreement with an SBI-led consortium to fund its petrochemical complex and refinery expansion at Bina.
AIA Engineering
AIA Engineering announced that its subsidiary Vega ME would establish manufacturing facilities in China and Ghana, with plans for further expansion in Indonesia.