July 15, 2026

LATEST NEWS

>> 12:30 PM

Union Bank of India: Healthy performance in Q1FY2027

TOP NEWS

War update: US has reimposed its naval blockade across Iranian ports. Attacks were also reported as US continued its strikes for 4^th consecutive day. Iran also has struck the US military bases in Jordan. US president Donald Trump gave warnings of striking the power plants and bridges by next week if Tehran doesn’t return to negotiation table. And just to remind this is not the 1^st time he is threatening it in such a way. Trump also announced US will not impose a 20% reimbursement fee on cargo moving through the Strait of Hormuz, saying it will be replaced by Gulf state investments in the US. The Gulf nations of Kuwait and Bahrain have warned their citizens of incoming threats. Brent crude remains flat at $86/ barrel. Gift nifty indicates a flattish start whereas other Asian markets started in green as an impact of rebound in AI and chip stocks.

India-UK FTA kicks in today: Nearly 99% of Indian exports get duty-free access to UK market. The pact is expected to boost India’s labor-intensive sectors, including textiles, leather, footwear, gems and jewelry, processed food, marine products, engineering goods and auto components, by eliminating tariffs and improving their competitiveness in one of the world’s largest consumer markets. The agreement aims to increase bilateral trade between India and the UK to $100 billion by 2030. Currently, trade between the two countries stands at around $55-60 billion. Our preferred stocks in textiles segments Gokex, SP apparels.

KEC international: Secured new orders worth Rs 1,180 crores across its segments. Transmission & Distribution business secured its first 400 kV transmission line project in Western India to power a Data Centre. Overall order intake stands at Rs 5,200 crore.

Tata Elxsi: Revenue saw a modest growth of 2.8% to Rs 1,021 crore from Rs 994 crore, meeting street expectations of Rs 1,024 crore. Earnings before interest and taxes also took a hit and declined 12.8% to Rs 193.8 crore from Rs 221.3 crore. On the operational front, EBIT margin narrowed to 19% compared to 22.3% in the previous quarter. The company posted a consolidated bottom-line of Rs 171 crore from Rs 220 crore in the preceding quarter, below analysts' estimate of Rs 197 crore.

Hero MotoCorp/Ather Energy: The company announced that its board has approved an additional investment of upto Rs 1,000 crore in electric two-wheeler maker Ather Energy, Hero will invest through a preferential allotment, under which Ather will issue new shares or convertible securities to the former, post the regulatory and shareholder approvals. India’s largest two-wheeler manufacturer currently owns (as of June 30, 2026) 29.48% in Ather on a fully diluted basis.

IOLCP: Centre for Drug Evaluation (CDE) of the National Medical Products Administration (NMPA), China, has approved the Company's  API product “Clopidogrel Bisulfate” (cardiovascular API), on 14th July 2026. This approval is in addition to the valid Certificate of Suitability (CEP) already held by the Company for Clopidogrel Bisulfate, further strengthening the Company's regulatory portfolio and expanding its access to the Chinese pharmaceutical market.

Kirloskar brothers: Secured an international order from Saipem Offshore Construction SPA to supply vertical pumps and spares for total contract value of Rs 149.59 crore.

RBL Bank: The company has informed the stock exchanges that CARE Ratings has upgraded the rating of its Tier II Bonds (₹800 crore) to CARE AAA with a Stable outlook from CARE AA-, while removing the instrument from Rating Watch with Positive Implications. The rating on the Bank’s Certificate of Deposit programme (₹6,000 crore) has been reaffirmed at CARE A1+. CARE Ratings highlighted that the upgrade reflects RBL Bank’s significantly strengthened capital position following a capital infusion of approximately ₹26,016 crore by Emirates NBD (ENBD), which now holds around 60% stake in the Bank and has become its promoter. The rating agency also considered ENBD’s strong financial profile, strategic importance of RBL within the group, and the expectation of continued parental support.

MACRO WRAP

• China reports 1H GDP at up 4.7% YoY; Q1 GDP +5.0% YoY, Q2 +4.3% YoY, and Q2 GDP +0.9% QoQ. the economy's steady operation and shift toward higher-quality growth remain intact, and the Q2 growth wobble chiefly reflects some short-term and external factors, hitting certain petrochemical-related industries and coal production harder while other sectors were normal. China June industrial produciton 5.3% YoY; expected 4.7%, prior 4.5%. year-to-date urban fixed-asset investment -5.7% YoY, vs -4.9% expected and -4.1% prior.
• US Equity markets found themselves in between easing expectations for Fed policy tightening and news flow about escalating situation in the Middle East. The S&P 500 gained 0.4%; however, performance was mixed across sectors – tech posted a gain, with semiconductor stocks remaining very volatile, while consumer staples and healthcare eased notably,
• US June CPI came in below consensus across all measures, triggering a rally in Treasuries and lifting equities off session lows. The probability of a July rate hike, as implied by Fed funds futures markets, fell to around 16% from roughly 40% earlier in the session US annual inflation fell to 3.5% in June 2026 from 4.2% in May, below the 3.8% forecast, as energy inflation eased sharply following a US–Iran ceasefire. Shelter and food inflation also ticked down. Month-over-month, CPI dropped 0.4%, the biggest fall since April 2020, driven by a 5.7% decline in energy and a 9.7% drop in gasoline. Core inflation fell to 2.6% from 2.9%, with core CPI flat on the month.
• US Fed Chair Kevin Warsh delivered his first congressional testimony, pledging to make high inflation “a thing of the past” and stating that policymakers “have no tolerance for persistently elevated inflation”. Warsh provided no signal on the central bank's next steps, continuing his practice of avoiding clear forward guidance on the expected policy path.
• The CPI data saw markets pare back expectations for fed funds rate hikes this year to just over one 25bp increase. This put some downward pressure on the front end of the US Treasury yield curve, with the 2Y yield down 9bp. Moves were more modest at the long end, with the 10Y yield down 3bp to 4.59%.  The DJIA was broadly flat. The S&P500 and Nasdaq Composite rose 0.4% and 0.9% respectively. The Philadelphia Semiconductor Index gained 2.5%. The Eurostoxx 50 edged up 0.2%. The Dollar Index fell 0.3% to 100.92. EUR-USD rose 40 pips to 1.1420, Brent crude rose 1.7% to USD84.73, extending its recent rally driven by Middle East supply concerns. Gold rose 1.3% to USD4,020, recovering from a drop to around USD4,000 on Monday
• Data watch: US June PPI and Empire manufacturing for July.

INVESTMENT CALL

First Cut: LTTS – Revenue and Adj PAT meet expectations:

• LTTS revenue stood at USD 310 million, up 1.5% q-o-q CC (up 1.9% y-o-y CC), driven by strong traction in Sustainability, recovery in Mobility partially offset by continued headwinds in HiTech.
• LTTS revenue from continuing operations stood at Rs 2,940 crore, up 2.9% q-o-q (+11.5% y-o-y). The numbers for this and the preceding quarters have been restated removing the effect of the divested business of SWC. EBIT Margin stood at 15.7%, up 47bps q-o-q (204bps y-o-y), moving closer to the aspiration of achieving 16-17% band. PAT from continuing operations stood at Rs 352 crore, down 1.3% q-o-q (up 17.4% y-o-y).
• Demand trends remained favourable in the US (1.4% q-o-q) and RoW (6.0% q-o-q), supported by resilience in automotive, Trucks & Off-Highway and broader engineering spending. Europe continued to face headwinds (-0.8% q-o-q) with OEMs and Tier-1 suppliers from weak China-linked demand, model launch delays and ongoing industry consolidation.
• Management expects sequential EBIT margin improvement through FY27, driven by a richer revenue mix led by Mobility and Sustainability, improving Tech margins, productivity gains from Engineering Intelligence, and continued operational discipline. The company remains on track to achieve its mid-16% EBIT margin target by Q4FY27.
• Guidance: Revenue CAGR of 13–15% over FY27–FY31, EBIT margins in the 16–17% band, and an effective tax rate (ETR) of 26.5–27.0%.

Actuals Vs Variance

Stock Idea: Sky Gold & Diamonds Ltd

Rating: Buy     Reco Price: Rs 620     Price Target: Rs 850

• Contribution of value-added products to revenues grew to ~50-55% in FY26 from <10% in FY23,emerging as the key driver for gross margins.
• Advance Gold model to drive ~30% of volumes by FY30, significantly rising from 11.5% in FY26, enabling capital-light volume growth.
• Monetising land assets and adopting an asset-light, leased-facility expansion approach to reduce net borrowings by ~20% and improve capital efficiency.
• Product mix upgrade towards complex designs and with targeted expansion the emerging segments would drive growth in the long run.
• We initiate coverage on Sky Gold & Diamonds (SKYGOLD) with a Buy, assigning a price target of Rs. 850. Stock trading at 22.6x/16.8x its FY27E/FY28E earnings.

Valuation                                                                                                                                                                             Rs Crore

OTHER NEWS

Jindal Saw: In the first quarter of fiscal year 2027, Jindal Saw disclosed a subdued performance. The total operating income was ₹4,452 crore on a consolidated basis, which represents a 9% increase year-over-year and a 4% decrease quarter-over-quarter. The standalone sales volume was 3.6 lakh tons, which represents an 11% increase year-over-year and a 6.5% decrease quarter-over-quarter. The ongoing conflict in the West Asia region had an impact on the revenue. As a result, the reported EBITDA for the quarter was ₹397 crore, which represents an 18% decrease from the previous quarter. The margins were 8.9%, which represents a 150 basis points decrease from the previous quarter.

India has gained a greater duty-free steel export quota under the India-UK Comprehensive Economic and Trade Agreement (CETA), boosting the tariff-rate quota (TRQ) from around US$200 million to US$350 million. The increased quota is likely to boost steel exports to the UK, with shipments expected to reach over US$1 billion in FY27. However, discussions on the UK's proposed Carbon Border Adjustment Mechanism (CBAM), effective January 2027, remain ongoing.

Dalmia Bharat Sugar and Industries Limited: Dalmia Bharat Sugar has approved a US$132 million (~Rs. 1,100 crore) greenfield investment in Tanzania to establish an integrated sugar manufacturing and cogeneration power plant. The project marks the company’s international expansion, diversifies its revenue base with USD earnings, and reduces dependence on India’s regulated sugar pricing environment.

Delhivery Limited: Delhivery’s wholly owned subsidiary, Delhivery Financial Services Private Limited, has received RBI approval for a Certificate of Registration as a Type II NBFC-ND, subject to submission of certain documents. The approval enables Delhivery to expand into financial services and offer credit-related solutions to its logistics ecosystem.