Sometimes, what is considered a weakness by the street turns into an opportunity by just one policy announcement. Take the case of cement companies which are focussed on the eastern part of the country. The special push to the infrastructure sector in the eastern part of the country is likely to help companies which are primarily focussed in that region. Indian cement companies can be divided into two categories, one which are present in a particular region and other which have a pan India presence. Normally it is pan India companies which get better valuation because if there is an issue with sales in one region, it is made up by that of another. Regional focussed companies tend to get less attention, but for some which are focussed in eastern and southern parts, probably there are better times ahead.

The 30-share BSE benchmark Sensex fell 109 points or 0.14% to settle at 80,039. The broader NSE Nifty dropped 7 points or 0.03% to end at 24,406.

Edelweiss Asset Management Ltd on Thursday said it has garnered over Rs 1,800 crore during the new fund offering (NFO) of its Business Cycle Fund. Edelweiss Business Cycle Fund, an open-ended equity scheme, was open for subscription between July 9 and July 24.

The first Budget for the new government suggests that the government is realigning its priorities as it continues to aggressively follow the path of fiscal consolidation and it is expected that the budget announcements will not have any material impact on near-term corporate earnings.Global brokerage firm Nomura however, states that the valuation multiples of the companies can still face headwinds if the domestic flows into equities slow down following rises in short- and long-term capital gains tax.Nomura is bullish on the following sectors with 33 stocks as its most preferred picks across these:

InterGlobe Aviation, India’s top airline by market share, was expected to see a substantial drop in its year-on-year net profit for Q1FY24 due to higher fuel costs, a weak load factor, and the Delhi T1 terminal roof collapse. Brokerage estimates indicated mixed sequential profit growth and varying revenue projections.

About seven smallcap stocks, held by over 20 mutual fund schemes, have gained over 100% in FY25 so far. In total, there are about 16 small-cap stocks that have gained over 100% in FY25. ETMarkets highlights these seven stocks, which have doubled investors' wealth in less than four months of FY25. If these stocks continue to show strong momentum, and given that they are held by a significant number of mutual fund schemes, investors tend to feel more confident. This is because large institutional investors, who generally conduct thorough research, are backing these stocks. (Data Source: ACE Equity)

Tata Consumer Products announced a Rs 3,000 crore rights issue to eligible shareholders, offering 3.67 crore equity shares at Rs 818 each. The ex-rights date was July 26, and the record date was July 27. The issue opens on August 5 and closes on August 19.

The move aims to reduce its debt and finance capital expenditures. The fundraising will occur in two-three tranches over the next 12-18 months. The formal announcement is expected in a few days. According to the sources mentioned above, the company has approached several bankers for the fundraising process and discussions with ICICI Securities are in the final stage.

It is a matter of a day or two that all the noise of the budget would be over and the market will once again be focussing on what it had been doing for ages, that is earnings of the company and broader macroeconomic picture of the country. Of the two, the macroeconomic picture is the same for every company and for the majority of them it is good. The first is the earnings which are different for each company and that is dependent on the underlying business and how good or not so good the management is about that company. So, focus on them and there are many companies which either after facing a challenge are making a comeback and where the challenge of high valuations has also come down. So it is better to have them on a watchlist.

SBI Life reported a 36% increase in Q1 net profit to Rs 520 crore, leading to shares reaching a 52-week high. Analysts recommend buying the stock due to the company's growth and strategic advantages. Read the full article for details.

JM Financial raised Suzlon Energy's target price to Rs 71 after a stellar Q1 FY25, driven by a record 3,817 MW order book and strong execution momentum. Suzlon's shares, up 231% in the past year, reflected these positive results. However, Nuvama downgraded the stock to 'hold' with a Rs 64 target price as it believes gains are priced in.

Akums Drugs and Pharmaceuticals' Rs 1,857 crore IPO opened from July 30 to August 1, featuring a Rs 680 crore fresh issue and 1.73 crore shares OFS at Rs 646-679 per share. The IPO reserved 75% of shares for QIBs, 15% for non-institutional, and 10% for retail investors. Listing will occur on August 6.

Ashok Leyland reported a 9% YoY decline in net profit to Rs 526 crore for Q1 ending June 2024, missing estimates. Revenue rose 5% to Rs 8,599 crore. The company saw strong demand across all segments, contributing to its highest-ever Q1 CV volumes. EV subsidiary Switch Mobility launched its second e-LCV. Shares traded slightly lower.

After Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25, brokerage firm JM Financial expressed optimism about several sectors. According to their analysis, the budget is expected to positively impact FMCG, consumer durables, real estate, BFSI, and IT services, and they have provided stock ideas for these sectors. Here's a list:

A short buildup is when there is a rise in open interest and volumes along with a decrease in the price of the underlying stock in the Futures and Options segment. Short buildup means more people are expecting the prices to go down and creating short positions. In Thursday's trading session, five stocks witnessed a build of fresh short positions. Here's the list:

PG Electroplast's shares surged 16% to a record high after a stellar Q1 performance. Consolidated net profit rose 151.2% to ₹84.93 crore, with operating revenues up 94.9% YoY. The company's capital efficiency and expanding infrastructure support strong future growth prospects.

Investors' faith fueled Dalal Street’s high valuation multiples, but Nomura cautioned on potential headwinds if domestic equity flows drop due to tax hikes. Nomura's 2024 Nifty target sees little upside. Key stock picks include SBI, ICICI Bank, and others. Sectors like housing, cement, and solar energy may benefit from budgetary changes.

A long buildup occurs when there is an increase in open interest and trading volumes alongside a rise in the price of the underlying stock in the Futures and Options segment, indicating a bullish trend in the market. In Thursday's trading session, five stocks experienced a buildup of fresh long positions. Here's the list:

Indian shrimp farmer stocks soared after new government proposals aimed to boost local aquaculture. Proposals included added financing and reduced taxes on feed imports. India seeks to enhance its global shrimp market share through improved cold-storage and testing facilities.

Larsen and Toubro (L&T)’s shares rose by 2% after it reported a consolidated net profit of Rs 2,786 crore for Q1 FY25. Revenue from operations saw a 15% YoY increase, driven by robust execution in projects and manufacturing. Orders grew by 8%, with strong momentum in the Middle East, per analysts insights.

Shares of RBL Bank fell 4% to Rs 228 on BSE after a block deal involving Rs 1,081 crores was executed. The stake sale represented a 7.9% equity holding, reportedly sold by Maple II BV. The shares were offered at a 5% discount to the previous close. EQT AB held a 7.89% stake as of June 2024.

Emami Ltd surged over 90% to break a 9-year consolidation, hitting a fresh high of Rs 844. Experts suggest further gains with a target above 900. The stock shows strong bullish trends, trading above key moving averages and indicators. Recommended stop loss is set at 730 on a closing basis.

After Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25, brokerage firm JM Financial expressed optimism about several sectors. According to their analysis, the budget is expected to positively impact FMCG, consumer durables, real estate, BFSI, and IT services, and they have provided stock ideas for these sectors. Here's a list:

Tata Motors shares surged nearly 4% on Thursday, reaching a new 52-week high of Rs 1,067 on BSE. This followed Nomura's upgrade of the Nifty stock to buy, setting a target price of Rs 1,294. Nomura cited Tata Motors' shift from premium to luxury vehicles as key to maintaining competitiveness in challenging segments.

Nuvama upgraded United Spirits to buy, raising target price to Rs 1,630 from Rs 1,195, citing strong cost controls and healthy margins. Reasons include margin outperformance, growth potential in premium categories, upcoming festive season, H2 demand recovery, Karnataka tax benefits, Andhra policy changes, and potential India-UK FTA.

Indian equity indices saw a dip for the fifth session, influenced by global market downturns and new tax hikes on investment gains and derivatives trading in the Union Budget. The Sensex fell 650 points and the Nifty50 dropped 195 points. Axis Bank was the biggest laggard, while SBI Life Insurance shares surged on strong profit growth.

Axis Bank's shares declined by 5.8% in early trading on Thursday, dropping to a day's low of Rs 1,168.25 following its announcement of a lower-than-expected net profit of Rs 6,035 crore for the quarter ended June 30, 2024. The profit showed a 4% increase compared to Rs 5,797 crore reported in the year-ago period.

Japan’s Nikkei share average hit a five-week low as the yen's rise against major currencies impacted investor sentiment. Chip-related stocks, following U.S. peers, declined sharply. Renesas Electronics notably fell after a significant profit decline. Nichirei and Sapporo Holdings were among the few gainers. Majority of Tokyo Stock Exchange's industry sub-indexes faced declines.

Following the implementation of the T+1 framework, dividends are distributed to shareholders listed in the company's database on the record date. Normally, the record date and ex-date align unless a market holiday follows the ex-date. Under this framework, shareholders who purchase the stock at least one day before the ex-date qualify for dividends, with settlement occurring the next day.

Budget provision making some old momentum stocks come back in mode.

Magellanic Cloud had set July 27 as the record date for its 1:5 stock split, requiring investors to purchase shares by today. The multibagger stock also merged with IVIS International and announced a Rs 0.15/share dividend. Trading on an ex-split basis begins Friday, with shares having already yielded significant returns this year.

The Nasdaq indexes tumbled more than 3% for the worst days since October 2022. The list of laggards was a who’s-who of AI technology darlings, led by semiconductor companies such as Nvidia Corp., Broadcom Inc. and Arm Holdings Plc. The selloff was triggered by a middle-of-the-road earnings report from Alphabet Inc. late Tuesday that featured a bloated capital expense.

The sell-off in stocks saw investors ramp up bets on rate cuts globally, with futures implying a 100% chance of a Federal Reserve easing in September. A spike in market volatility fuelled a vicious squeeze on carry trades which saw the dollar sink another 0.6% to 152.85 yen on Thursday.

Stocks that were in focus include names like Dr Reddy's, which fell 0.79%, Suzlon Energy, which rose 5%, and United Spirits, whose shares declined 4.76% on Wednesday.

The S&P 500 and Nasdaq reached multi-week lows after disappointing earnings from Alphabet and Tesla. Investor confidence in megacap stocks was shaken, causing significant declines in both indices. The S&P 500 saw its worst performance since December 2022, while the Nasdaq had its biggest drop since October 2022. The Dow also posted a notable decrease.

Tesla's shares fell 12%, wiping out $100 billion in stock value. CEO Elon Musk's talk on future products couldn’t ease investors' concerns over shrinking profit margins and missed earnings estimates. Tesla's EV deliveries dropped for two consecutive quarters, forcing price cuts. Analysts doubt Tesla's ability to deploy robotaxis soon. Its market value has fallen significantly from its peak in 2021.

Alphabet's stock dropped over 3% amid concerns about rising AI infrastructure investments squeezing margins and strong competition for YouTube ad dollars. Q2 saw a higher-than-expected $13.2 billion capital expenditure. Despite these setbacks, analysts noted positive signs in AI-driven cloud revenue growth and minimal disruption to Search revenue.

Companies like Adani Energy, Ashok Leyland, Canara Bank, Chalet Hotels, Cyient, Glenmark Life, Laurus Labs, L&T Foods, Mahindra Holidays, PNB Housing Finance, Venus Pipes, Vivanta Industries among others will also declare their results

"The recovery noticed from today's low will be evident only post the monthly expiry on Thursday. At the same time, the ongoing Q1 results, which till date is muted, will decide the near-term trend," said Vinod Nair, Head of Research, Geojit Financial Services

“Gujarat Gas stock has bounced off from its horizontal trend line on the daily chart, indicating a potential upward move. Traders can buy for a target of Rs 655 in the next few weeks,” Kkunal V. Parar, Vice-President of Technical Research and Algo, Choice Broking, said.

Stocks in Japan and South Korea both fell over 2%, with chipmaker SK Hynix Inc. tumbling even with solid earnings. In the US, the S&P 500 slumped 2.3%, its worst showing since December 2022 and one that ended the best stretch without a 2% drop since the start of the global financial crisis.

Incidentally, the silver lining has been the underlying volume growth at 4% - the highest in the past five quarters - aided by the spending on advertising and promotion. The company spent nearly 11% of its revenues on advertising. It took price corrections especially in fabric wash and household care products - passing on the benefit accruing from the softening of commodity prices.

In her budget speech on Tuesday, finance minister Nirmala Sitharaman proposed to hike the short-term capital gains tax on all listed equity instruments to 20% from 15%. Long-term capital gains on listed equity instruments and specified financial and non-financial assets have been hiked to 12.5% from 10%. Moreover, the indexation benefit has also been removed from all the assets for computing long-term capital gains which will disallow any inflation adjustment, increasing the tax outgo.

After the budget, global brokerage Jefferies upgraded the stock from hold to buy and raised the target price to ₹585 from ₹435, citing ITC's clear advantage. The stock, which surged 17% in the past month compared to a 3.6% gain in the Sensex, ended at ₹494 on Wednesday, up 0.4%.

Axis Bank on Wednesday reported a standalone net profit of Rs 6,035 crore for the quarter ended June 30, 2024 which was up by 4% year-on-year.

"The recovery noticed from today's low will be evident only post the monthly expiry on Thursday. At the same time, the ongoing Q1 results, which till date is muted, will decide the near-term trend," said Vinod Nair, Head of Research, Geojit Financial Services

ET spoke to three top wealth managers for their portfolio recommendations for an investable sum of Rs 20 lakh. All three of them still recommend a majority allocation of 60-70% to equities and the rest to debt and gold.