LIC Sees Profit Rise, NMDC Faces Decline, HUDCO and HBL Power Systems Report Strong Growth

Opening Bell: 

Gift Nifty is down by 9.0 points in the early morning trade, indicating a negative opening for Indian stock market                        

Asian markets traded within a narrow range on Tuesday following indications from European Central Bank officials that rate cuts might be forthcoming. Japan’s Nikkei 225 and Topix indices remained unchanged. South Korea’s Kospi saw a slight increase, while the Kosdaq rose by 0.42%. Meanwhile, futures for Hong Kong’s Hang Seng index suggested a marginally weaker opening.

US markets were closed on Monday for a holiday. However, the futures on the Nasdaq 100 rose 0.4% to a record high, while European markets gained marginally.

Stocks News:

👉 LIC (Life Insurance Corp. of India): Despite selling fewer policies this fiscal year, LIC managed to record a 12% rise in annual profit, reaching ₹40,676 crore in FY24. This increase is attributed to higher income from renewal premiums, better returns from investment activities, and a slight increase in the value of new business (VNB).

👉 NMDC (National Mineral Development Corporation): NMDC reported a 37.8% year-on-year decline in consolidated net profit for the March quarter due to increased expenses and interest and penal charges. However, the company’s consolidated revenue saw a 10.9% rise.

👉 Housing & Urban Development Corporation (HUDCO): HUDCO reported a revenue of ₹2,065.22 crore, an 11.49% increase from the previous year. The company posted a quarterly net profit of ₹700.16 crore, up 9.55% from the previous year. EBITDA stood at ₹2,185.90 crore, marking an 8.36% rise from the previous year.

👉 HBL Power Systems: The company reported a revenue of ₹610.09 crore, a 51.53% increase from the previous year. The quarterly net profit reached ₹81.45 crore, reflecting a 134.03% rise from the previous year. EBITDA was ₹138.04 crore, up 176.91% from the previous year.

👉 Foreign institutional investors turned net sellers on May 27 as they sold Indian equities worth Rs 541.22 crore. On the other hand, domestic institutional investors bought Rs 922.6 crore worth of equities on the same day.

Domestic and International Events

• India has recorded a trade deficit, the difference between imports and exports, with nine of its top 10 trading partners, including China, Russia, Singapore, and Korea, in 2023-24, according to official data. The data also showed that the deficit with China, Russia, Korea, and Hong Kong increased in the last fiscal compared to 2022-23, while the trade gap with the UAE, Saudi Arabia, Russia, Indonesia, and Iraq narrowed. The trade deficit with China rose to USD 85 billion, Russia to USD 57.2 billion, Korea to USD 14.71 billion and Hong Kong to USD 12.2 billion in 2023-24 against USD 83.2 billion, USD 43 billion, USD 14.57 billion and USD 8.38 billion, respectively, in 2022-23.

• The US stock market will shift to T+1 (Trade + 1) trading cycle from Tuesday as per the Securities and Exchange Commission rule to shorten the settlement cycle for securities transactions from two business days after the trade to one.

• Crude oil prices rose as geopolitical tensions in the Middle East escalated. West Texas Intermediate gained 1.22% from Friday’s close to $78.67 a barrel, with no settlement on Monday due to a US holiday, while Brent traded flat at $83.06.