In today’s briefing:
- NIFTY200 Momentum30 Index Rebalance Preview: 69% One-Way Turnover & US$1.9bn Trade
- This Friday’s RBI Decision: Nifty Bank Slips Either Way, History Suggests
- State Bank of India (SBIN IN): Reserve Bank of India Day Patterns Offer a Tactical Trade Setup
- NMDC Ltd (NSE: NMDC) – Volume-Led Growth Story with Re-Rating Potential
- Action Construction Equipment: Record Performance, Defence Opportunity, Agri Turnaround
- Dollar Industries: Navigating Market Headwinds with Strategic Investments and Focus
NIFTY200 Momentum30 Index Rebalance Preview: 69% One-Way Turnover & US$1.9bn Trade
- There could be 20 changes for the Nifty200 Momentum 30 Index that will be implemented at the close on 27 June.
- If all changes are on expected lines, one-way turnover is estimated at 68.7% and that will result in a round-trip trade of INR 159bn (US$1.87bn).
- Financials are expected to gain 9 index spots and Materials are expected to gain 3 spots. Consumer Discretionary could lose 5 spots and Information Technology could lose 4 spots.
This Friday’s RBI Decision: Nifty Bank Slips Either Way, History Suggests
- The Reserve Bank of India (RBI) will announce its monetary policy decision on Friday, June 6, 2025. Market consensus expects a rate cut to 5.75%.
- Analysis of the NSE Nifty Bank Index over the past decade shows consistent negative returns on rate decision days when a cut is expected—regardless of whether the cut is delivered.
- This Insight highlights actionable insights for traders by revealing historical patterns in the Nifty Bank Index’s behavior on RBI rate decision days and breaking down market reactions by scenario.
State Bank of India (SBIN IN): Reserve Bank of India Day Patterns Offer a Tactical Trade Setup
- The Reserve Bank of India (RBI) will announce its monetary policy decision on Friday, June 6, 2025. Market consensus expects a rate cut to 5.75%.
- Analysis of the State Bank Of India (SBIN IN) over the past decade shows mostly negative returns on rate decision days when a cut is expected.
- This Insight highlights actionable insights for traders by revealing historical patterns in the State Bank Of India’s behavior on RBI rate decision days and breaking down price dynamics by scenario.
NMDC Ltd (NSE: NMDC) – Volume-Led Growth Story with Re-Rating Potential
- Last 3 Years: NMDC’s PAT grew steadily from Rs3,774 Cr in FY23 to Rs6,693 Cr in FY25 (CAGR ~33%), driven by volume growth and margin expansion.
- Guidance & Plans: Targets 55.4 MT (24% growth) in FY26 and 100 MT by 2030, backed by infra, EC capacity, and pellet expansion.
- Re-Rating Potential: Meeting volume, margin, and execution targets could trigger valuation re-rating from current below-peer multiples.
Action Construction Equipment: Record Performance, Defence Opportunity, Agri Turnaround
- Action Construction Equipment (ACCE IN) achieved record revenue and profits in FY25 and Q4, demonstrating strong execution and margin expansion.
- Secured single largest order from Ministry of Defence, boosting future defense contribution and supporting Make in India.
- Management is cautiously optimistic for FY26 due to temporary factors like BS5 price impact, but confident in medium to long-term growth prospects.
Dollar Industries: Navigating Market Headwinds with Strategic Investments and Focus
- Dollar Industries (DOLLAR IN) reported modest revenue growth in FY25 amidst a challenging market, with strong emphasis on retail expansion and brand-building initiatives.
- Despite a de-growth in sales volume, strategic investments in exclusive brand outlets (EBOs) and a renewed focus on premiumization are crucial for long-term growth.
- The company’s resilience in maintaining margins despite volume pressures, coupled with its aggressive retail strategy, signals a potential turnaround as market conditions improve.
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