Ahead Of RBI, Nerves Show
Indian markets slipped on Tuesday with the Nifty 50 down 0.64% to 24,614.9 and the Sensex off 0.27% to 78,428.95, as investors turned cautious ahead of the RBI's monetary policy decision. Bank Nifty underperformed most of the session before a late recovery back toward the 57,907 mark, though it still closed down 0.58%. The central bank is widely expected to hold rates steady, having forecast average inflation of 5.1% for FY27, but markets will parse Governor Sanjay Malhotra's tone on future policy stance closely.
Wall Street Roars, Oil Retreats
US markets diverged sharply from India's tone, with the Dow surging 1.71% and the S&P 500 up 1.79% to fresh record highs, while the Nasdaq jumped 2.59%, fuelled by hopes of a US-Iran deal that sent crude prices and bond yields lower. Brent crude at $79.7 (+0.43% today) remains well off recent highs, a dynamic that could ease India's import bill if sustained. The Nikkei's 2.89% surge and a flat Hang Seng underline that Asian markets are taking their cue from Wall Street's optimism even as Indian indices lagged.
Bharti Airtel, Marico Beat Estimates
Bharti Airtel reported a 37% jump in Q1 net profit to ₹8,167 crore on 18.3% revenue growth to ₹58,539 crore, with ARPU rising to ₹264, as India and Africa operations outperformed Street expectations. Marico delivered its best quarterly profit growth in years, with net profit up 27% to ₹652 crore, beating estimates on strong volume growth and easing input costs; management does not expect further price hikes near-term. These results stand out against a broader market that saw FMCG and telecom largely resilient even as the index fell.
Block Deals Signal Institutional Rotation
Paytm saw a ₹2,038 crore block deal with NPS, Axis MF and ICICI Prudential Life Insurance as buyers, even as early investors Elevation Capital and SAIF Partners trimmed stakes — a transaction coming after Paytm's Q1 profit jumped 79% to ₹220 crore. Meesho similarly saw Peak XV Partners and Elevation Capital offload a 2.3% stake worth ₹1,949 crore, absorbed by Fidelity, Axis MF and Societe Generale. Such rotation from early venture investors into long-only institutional hands is a pattern worth watching as more new-age listings mature past lock-in periods.
Policy Push On Foreign Capital
The government tabled the Taxation Laws (Amendment) Bill in the Lok Sabha, easing rules for offshore funds and global fund managers operating from India, alongside extended tax exemptions for electronics manufacturing and diamond trading. The bill also proposes no bank charges on notified digital payment modes, even as a separate move edges toward restoring MDR on UPI merchant payments, with the RBI empowered to set these charges. Together these signal a dual-track approach: attracting global capital while seeking sustainable revenue models in digital payments infrastructure.
LIC OFS Draws Strong Institutional Demand
The government's 6.5% stake sale in LIC saw institutional investors oversubscribe with bids worth ₹36,400 crore, ahead of the retail tranche opening August 5 at a floor price of ₹382/share. This robust institutional appetite comes even as LIC itself featured among Tuesday's top losers, a reminder that large secondary offerings can pressure near-term stock price even as they reflect longer-term confidence. Separately, BSE posted a strong quarter with profit up 62% YoY to ₹874 crore, aided by higher investment income and expansion plans in GIFT City's bullion market.
EV And Industrial Earnings Stand Out
Ather Energy shares surged 18% to a record high after Q1 results showed adjusted gross margin up 82.3% and revenue up 88.8%, with Nomura, CLSA and HSBC reiterating bullish views and raising target prices. KEI Industries rallied nearly 7% after a 40% jump in Q1 profit to ₹274 crore on strong cables and wires demand, while L&T secured a mega offshore order worth over ₹15,000 crore from ADNOC in Abu Dhabi. These pockets of earnings-driven strength contrast with the broader index weakness, underscoring a stock-picker's market rather than a uniformly directional one.
IPO Pipeline Stays Active
Coal India's subsidiary Mahanadi Coalfields has appointed bankers for a proposed ₹10,000 crore IPO, while Dhoot Transmission set its IPO price band at ₹829-871 for an issue opening August 10. Poojaa Precision listed on the BSE SME platform at a striking 56% premium, reflecting continued retail enthusiasm for smaller offerings even as broader indices correct. This steady primary market activity alongside a falling secondary market suggests liquidity remains available for selective new-listing demand.