Globally, the stock market has seen a rally with positive signals. The Indian stock market has again hit record highs after a flat start. Sensex and Nifty hit new all-time highs. The realty index is trading higher by more than 1% on increasing buying in shares of real estate sector companies. Market breadth has also been seen positive. The Sensex has hit a historic high for the second time in the month of August. Earlier on August 01, the highest level was recorded. In contrast to large cap, midcap shares have seen an increase in profit booking by investors. The Sensex touched 82,637 with gains in the fund's IT-software services, technology stocks and pharmaceuticals stocks. While the Nifty future has also crossed the all-time high of 25300. Nifty Future has registered a historical high of 25348. Small, mid-cap stocks also saw a record rally on expectations that agriculture, rural economy will register strong growth this year as monsoon succeeds, and Systematic Investment Plan (SIP) investment flow in mutual funds will continue. Healthcare-pharmaceuticals stocks were also bullish by funds. Reports of rising epidemics across the country along with the monsoon and a steady increase in demand for medicines had taken the fund on expectations of better results from auto companies. IT and technology shares also rallied amid strong prospects of the Fed Reserve beginning to cut interest rates. A big announcement was made in the 47th annual meeting of Reliance Industries, the country's most valuable company under the leadership of Mukesh Ambani. Mukesh Ambani has announced to give 1:1 shares as bonus to the shareholders of his company. Future direction of the market… Friends, the stock market has reached new highs again. In the US, IT shares have seen a compelling rally with the possibility of a cut in interest rates by the Fed and signs of an improving economy. In contrast to large cap, midcap shares have seen an increase in profit booking by investors. Investors are now selling and booking profits due to the attractive bullish trend of the last few years. On the other hand, SME, smallcap shares have become risky. In Indian stock markets index management Sensex, Nifty against relatively low growth in small, mid cap stocks has witnessed bullishness as a result of continued buying by mutual funds. Of course, other valuing of capital has been seen against profit booking of funds with portfolio reshuffling. So, against the decline in the prices of some stocks, many other stocks have recorded a big boom. On the global front, Nifty and Sensex may see ups and downs in the coming week along with the trend of the markets due to the release of Japan's consumer confidence data. Indian stock markets are likely to remain rangebound in the coming days amid a bearish environment of rising geopolitical unrest in the Middle East on one hand and a strong possibility of interest rate cuts by the American Federal Reserve on the other. Federal Reserve Chairman Jerome Powell has indicated that interest rate cuts will be made at the next September meeting as the risk in the US is now shifting from inflation to employment. It has become necessary to support the job market by reducing interest rates. However, the amount and timing of interest rate cuts will depend on the data received. The risk to inflation has declined and the risk to employment has increased. The next Federal Reserve meeting is scheduled for September 17 and 18. But as per my personal advice, a wise investor should book profit in stages… why right..!!! Power Grid Corporation of India Ltd. ( BSE CODE – 532898 ) Power Grid Corporation of India Limited was established on 23 October 1989 under the name of National 'Power Transmission Corporation Limited' with the responsibility of planning operation and maintenance of high voltage transmission system in the country. On 23 October 1992, the name of the company was changed to 'Power Grid Corporation of India Limited'. Power Grid Corporation of India Limited (PGCIL) is a public sector undertaking and India's premier electric power transmission company. The company is engaged in the business of implementation and maintenance of Inter-State Transmission System (ISTS) telecom and consultancy services. The company owns and operates 90% of India's interstate and interregional electric power transmission systems. The company has diversified into telecom business to utilize the spare telecommunication capacity of Unified Load Dispatch Center (ULDC) schemes using nationwide transmission infrastructure. The company has also got a place in the 'Forbes Global 2000' list. Power Grid Corporation of India Ltd. A/T+1 Group is a leading company in the Power-Transmission sector. The face value of this company is Rs.10. At current prices, the market cap value of this company is approximately Rs.3,13,802.37 crore. The total turnover of this company is approximately Rs.13.55 crores. The share of this company increased to Rs.362.30 and decreased to Rs.182.70 during the fifty-second week. Share Holding Pattern : Promoters holding 51.34% and public holding 48.66% in June-2024 quarter. Bonus Share: 1:3 share bonus is given in the year 2021. Dividend: Dividend paid by the company in the year 2020 is Rs.15.00 per share, in the year 2021 is Rs.10.00 per share and in the year 2022 is Rs.12.75 per share. Financial Results : (1) Full financial year April 2023 to March 2024 : Net sales decreased to Rs.42,391.16 crores from Rs.43,343.05 crores at NPM of 36.50% Net profit increased from Rs.15,333.02 crores to Rs.15,474.61 crores earning earnings per share 16.54 has registered. (2) First quarter January 2024 to March 2024 : Net sales increased from Rs.10,676.59 crore to Rs.11,050.54 crore and net profit increased to Rs.4127.77 crore from NPM of 37.35% compared to Rs.3970.23 crore and recorded earnings per share of Rs.4.44 . (3) Second quarter April 2024 to June 2024 : Net sales fell to Rs.10,068.16 crore from Rs.11,050.54 crore, net profit fell to Rs.3412.15 crore from Rs.3412.15 crore at NPM of 33.89% compared to Rs.3412.15 crore and recorded earnings per share of Rs.3.67 . The share price of this company, a leader in the power-transmission sector, is currently trading around Rs.330. Buyable with a stoploss of Rs.313, this stock is likely to register a price of Rs.347 to Rs.360 in a short period of time…!! Bullish focus at Rs.363. Engineers India Ltd. ( BSE CODE – 532178 ) Engineers India Limited (EIL) was established on March 15, 1965 to provide engineering and related technical services for petroleum refineries and other industrial projects. EIL is a Government of India enterprise under the Ministry of Petroleum and Natural Gas. The company operates in two main segments namely Consultancy and Engineering Projects and Turnkey Projects. EIL is an engineering consultancy company providing design engineering procurement construction and integrated project management services focused on oil & gas and petrochemicals industries in India and internationally. It operates in a diverse set of other sectors including non-ferrous mining and metallurgy and infrastructure. They are also the primary provider of engineering consultancy services for the Government of India's Energy Security Initiative under its Integrated Energy Policy for Strategic Crude Storage. The company's business is organized into two main operating segments: 'Consultancy and Engineering Segment' and 'Lumpsum Turnkey Projects Segment'. With a corporate office in New Delhi, EIL operates a Gurugram branch office in Mumbai as well as three regional engineering offices in Kolkata, Chennai and Vadodara and has monitoring offices at all major manufacturing locations in the country. The company's overseas presence is marked by an engineering office in Abu Dhabi that caters to business needs in the UAE/Middle-East region. It also has offices in London, Milan and Shanghai to coordinate international procurement and marketing activities. Engineers India Ltd. A/T+1 Group is a leading company in the civil construction sector. The face value of this company is Rs.05. At current prices, the market cap value of this company is approximately Rs.12,235.66 crore. The total turnover of this company is approximately Rs.3.19 crores. The share of this company rose to Rs.304.00 and fell to Rs.116.50 during the fifty-two week period. Share Holding Pattern : Promoters holding 51.32% and public holding 48.68% in the quarter June 30-2024. Bonus Share : 1:1 share bonus given in year 2016. Dividend: The company has declared a dividend of Rs.5.15 per share in the year 2020, Rs.2.00 per share in the year 2021, Rs.3.00 per share in the year 2022, Rs.3.00 per share in the year 2023 and Rs.3.00 per share in the year 2024. Financial Results : (1) Full financial year April 2023 to March 2024 : Net sales decreased to Rs.3232.17 crores from Rs.3283.76 crores NPM 11.04% Net profit increased from Rs.342.15 crores to Rs.356.99 crores Earnings per share Rs. .6.35 registered. (2) First Quarter January 2024 to March 2024 : Net sales fell to Rs.790.28 crore from Rs.856.33 crore, net profit increased by 11.51% from Rs.50.23 crore to Rs.90.94 crore from NPM to Rs.1.62 per share. . (3) Second quarter April 2024 to June 2024 : Net sales fell to Rs.610.62 crore from Rs.790.28 crore, NPM of 8.97%, net profit fell to Rs.90.94 crore from Rs.54.78 crore, earning Rs.0.97 per share. . The share price of this company, a leader in the civil construction sector, is currently trading around Rs.217. Buyable with a stoploss of Rs.202, this stock is likely to register a price of Rs.233 to Rs.240 in a short period of time…!! Bullish focus on Rs.244…!! The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
INVESTMENT POINT-Indian stocks may remain rangebound: Indian stocks remain bullish after rebounding decline
