Informist, Wednesday, Jul. 23, 2025 Tel +91 (22) 6985-4000

Equity Alert: Brokerages see Colgate Palmolive earnings rebound in Oct-Mar

MUMBAI--0920 IST--Brokerages were disappointed with the June quarter earnings of Colgate Palmolive and they see a slowdown in growth for the near term as urban demand remains sombre. They also expect competitive pressure for the company to persist and a recovery in earnings growth is expected in Oct-Mar. They also believe that faster growth in premium portfolio will support long-term prospects for the compnay. Most brokerages have retained their respective ratings on the stock but reduced target prices.

"Near term outlook remains cautious as impact of high base, tepid urban demand, heightened competition and promotions/discounting will continue to impact in at least 2Q (Jul-Sept) also," Nuvama Institutional Equities said. It cut the target price by 3.5% to INR 3,135 while retaining 'buy' rating on the stock.

Nirmal Bang Equities said sales growth of the company was "moribund" for a decade, with only 4% compounded annual growth rate over last 10 years. "...there seemed to be some signs that category growth is picking up, and some of the efforts under the new management were also gaining traction," the brokerage said. "However, there seems to be significant deceleration in momentum in the recent quarters," it said. Nirmal Bang kept its 'hold' rating but reduced target price by 5.3% to INR 2,415.

Emkay Global Financial Services is extremely bearish on the company. "For growth, we see the need for new categories; however, this will put pressure on the margin profile," it said. "The management awaits an apt entry point for new initiatives," it said, and added that its current earnings expectations were 4-6?low consensus. The broking firm maintained 'sell' rating on the stock with a target price of INR 2,000. Interestingly, it noted three factors as key risks to its estimates--ease in competitive intensity which will lead to gain in market share, fast premiumisation, and easing in raw material prices.

Prabhudas Lilladher sees Colgative Palmolive's long-term driving factors intact. The company's focus on its core toothpaste brands and premiumisation through science-backed innovations driving growth in urban premium segments, will likely support company's growth in the days to come. "However, any major acceleration in growth looks unlikely," the brokerage said. It retained 'hold' rating on the stock and cut target price by 3% to INR 2,453. (Gopika Balasubramanium)

Informist, Wednesday, Jul. 23, 2025 Tel +91 (22) 6985-4000

Equity Alert: Japan's Nikkei, Topix surge 3% post trade deal with US

MUMBAI--0830 IST--Most Indices in the Asia-Pacific region were higher in early trade Wednesday with Japan's Nikkei 225 and Topix being the top gainers. Equity indices in Japan rose as US President Donald Trump agreed to a trade deal with the country and lowered reciprocal tariffs significantly. Indices in South Korea and Singapore were a tad lower.

At 0812 IST, Japan's Nikkei was at 40947.77 points, up 3% and Topix was at 2923.66 points, up 3.1%. The sentiment was upbeat after the US President lowered tariffs reciprocal tariffs on Japanese imports to 15% from 25?rlier. "I just signed the largest TRADE DEAL in history with Japan," Trump said on his Truth Social platform. Automobile stocks surged with Honda Motor Co. jumping 8%, Toyota Motor Corp. rose nearly 10%, and Mazda Motors climbed over 16%, CNBC reported. It is unclear if the reduced rate will be applicable to other Asian auto-makers, the report said.

China's CSI 300 and Hong Kong's Hang Seng were slightly higher. US and Chinese officials will meet in Stockholm next week to discuss an extension to deadline for negotiating a trade deal, Reuters reported quoting US Treasury Secretary Scott Bessent as saying.

FTSE Singapore Straits Times was marginally lower while Australia's S&P ASX 200 was 0.6% up. Australian indices were up due to gains in mining and energy stocks. Minutes from the Reserve Bank of Australia's July meeting on Tuesday showed a cautious stance, with members deciding to hold interest rate against market expectations, opting to wait for more indications of a sustained slowdown in inflation, Reuters reported. South Korea's Kospi was down 0.3%.

Following are the levels of key Asian indices at 0812 IST:

(Gopika Balasubramanium)

Equity Alert: Indices seen in thin range; key Nifty 50 cos' earnings in focus

MUMBAI--0804 IST--Benchmark indices are likely to stay in a range Wednesday as the underlying trend in the market remains bearish. Investors will eye corporate earnings, with Nifty 50 companies Infosys, Dr Reddy's Laboratories, and Tata Consumer Products set to detail their June quarter earnings during the day. The Nifty 50 index is likely to move in a range of 25000-25200.

"On the upside, the 25200–25250 range continues to act as an immediate resistance band...a clear breakout on either side of this well-defined range will likely dictate the next leg of the trend," Rajesh Bhosale, equity technical analyst at Angel One, said in a note. "Until then, traders are advised to avoid reacting to intraday noise, stay range-bound in the approach, and shift to a momentum-based strategy only upon a decisive breakout," he said.

The July contract of the GIFT Nifty suggests a muted to slightly higher start for the market. At 0746 IST, the contract was at 25163 points, up 24 points from its previous close. On Tuesday, the Nifty 50 had closed at 25060.90, down 29.80 points or 0.1%. The BSE Sensex had ended largely flat at 82186.81 points, down 13.53 points.

Overnight, indices in the US ended mixed as investors assessed corporate earnings and signs of US President Donald Trump's tariffs impacting corporate margins. "(Investors are) looking for additional catalysts and you're seeing some cautious comments coming out of companies," Reuters reported Robert Pavlik, senior portfolio manager at Dakota Wealth, as saying. "They're hearing mixed guidance when it comes to all this uncertainty revolving around tariffs and the direction things are heading."

Most Asian indices were higher in early trade Wednesday with Japanese indices zooming 2?ter Trump announced a trade agreement with the country. As part of the deal, the US will levy a 15% tariff on Japanese goods, and Japan will invest $550 billion in the US. (Akash Mandal)

Equity Alert: S&P 500 ends at record high once more, Nasdaq ends down Tue

MUMBAI--0745 IST--Among the three key US benchmark indices, Nasdaq Composite ended lower on Tuesday as technology stocks fell while S&P 500 ended at record high yet again. However, results from General Motors kept investors cautious as they saw US' trade polices eating out a significant chunk of the Chevrolet-maker's profit. Investors are also anxious as there are mixed guidance from the US companies when it comes to uncertainty regarding tariffs and its consequent effects.

Nasdaq Composite ended 0.4% lower as big technology stocks such as Meta Platforms and Microsoft were 1% down each. Meanwhile, Alphabet closed slightly lower ahead of June quarter earnings due late Wednesday. S&P 500 closed tad higher, with 21 stocks hitting new highs and one at new low, Reuters reported. Nine of the 11 S&P 500 sector indexes rose, led by gain in healthcare and real estate.

Among stocks, General Motors tumbled 8.1?ter the automaker reported a $1 billion hit from tariffs to its quarterly results, adding more to investor concerns about US President Donald Trump's global trade policy. Ford Motor also fell about 1%. Meanwhile, Tesla was 1.1% higher. Shares of RTX dropped 1.6?ter the aerospace and defense giant took a hit from Trump's trade war despite strong demand for its engines and aftermarket services. Lockheed Martin tumbled almost 11?ter its quarterly profit plunged by about 80%.

"The market is consolidating recent gains and is in a bit of a holding pattern with some huge catalysts over the next week or two, including the August 1 tariff deadline and a lot of important Magnificent Seven earnings," Ross Mayfield, an investment strategy analyst at Baird, was quoted as saying by Reuters. That said, after last week's mixed economic data, most traders are in hopes of an interest-rate cut from the US Federal Reserve at next week's monetary policy meeting. Currently, they see about 60% chance of a reduction in September, according to the CME's FedWatch tool.

Following are the closing levels of US indices Tuesday:

(Gopika Balasubramanium)

End

US$1 = INR 86.40

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

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