Today the Indian stock market is expected to start with a decline. The main reason for this is the increasing tension between America and Iran, the effect of which is also being seen on the global markets.
Business News: The impact of increasing geopolitical tension between America and Iran was seen on global financial markets on Monday. Amid growing uncertainty, GIFT Nifty registered weakness before early trade, indicating that the Indian stock market may start with pressure. At the same time, the sharp rise in crude oil prices has created new concerns about global inflation.
Market experts believe that if tensions in West Asia persist for a long time, it could have a cascading effect on energy supplies, global trade and investors’ risk appetite. Its impact can be visible on most of the major stock markets of the world including emerging markets.
Gift Nifty falls, signs of weak start
During pre-open trading, GIFT Nifty was seen trading at the level of 24,044, down by about 190 points (about 0.8%). It is considered an important indicator of the early trends of the Indian equity market. The decline indicates that domestic investors may remain cautious for the time being. Asian markets also witnessed weakness as investors started assessing geopolitical developments and the potential economic impact of rising energy prices.
Uncertainty regarding energy supply in West Asia has increased amid US-Iran tension. Due to this, there was an increase of about 3% in the prices of crude oil in the international market. Rising oil prices are a matter of concern for energy import dependent countries like India. Expensive crude oil could increase fuel costs, putting pressure on transportation, manufacturing and consumer goods prices. If this situation persists for a long time, it may become more challenging for central banks to control inflation.
Today investors keep an eye on the quarterly results of these companies
Today many major companies will release their first quarter (Q1) financial results. These include HCL Technologies, ICICI Prudential Asset Management Company, Bajaj Consumer Care, Nuvoco Vistas Corporation, Leapfrog Engineering Services, Plastiblends India, Simbhaoli Sugars and Vivo Bio Tech. The results of these companies may impact the performance and market sentiment of the respective sectors.
Major Corporate Updates
- LTM recorded strong financial performance with 17.05% growth in net profit at Rs 1,468.6 crore. The company’s revenue also increased by about 18% to Rs 11,608 crore.
- Avenue Supermarts (DMart) reported a 11.3% rise in net profit at Rs 860.4 crore while revenue grew by nearly 15%.
- L&T Finance reported profit growth of 28.7% during the quarter. The company’s net interest income also grew by 28.4%, reflecting its strong loan business.
- Adani Green Energy’s operating capacity grew by 27% to 20,142 MW, while power sales recorded a growth of 30%.
- In contrast, Keystone Realtors saw a 42% decline in pre-sales and 49% decline in sold area, although collections saw a slight increase.
- Fino Payments Bank recorded double-digit growth in new accounts and average total deposits, indicating improvement in the bank’s customer reach.
Important developments related to investment and expansion
- Mankind Pharma has approved the sale of its 100% stake in ‘Broadway Hospitality Services’ for Rs 49 crore as part of restructuring of its non-core assets.
- Lux Industries has laid the foundation stone of a new manufacturing unit in Dunkuni, West Bengal with an investment of Rs 600 crore. The company aims to develop it into a major garment manufacturing hub in Asia.
- RITES has won a consultancy contract worth Rs 79.22 crore for the Patna Metro project, while the JSW Energy subsidiary has received Battery Energy Storage System (BESS) orders worth Rs 443.74 crore.
Other major announcements
- The asset management arm of State Bank of India has reduced the size of its proposed IPO after the pre-IPO placement.
- NTPC has approved Lara Super Thermal Power Project (Stage-III) at a cost of Rs 20,456.70 crore.
- NMDC has announced revised iron ore prices, while Sterlite Technologies has reported a legal victory in a European patent dispute.
Market experts believe that in the near term, investors’ focus will be on US-Iran tension, crude oil prices, direction of global markets and corporate earnings.
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