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Monday, July 3, 2023

News and Impact

News and Impact 
 
 
      In a path-breaking move in the field of global trading in India, the popular SGX Nifty will be re-branded as GIFT NIFTY from today - July 3 and all the derivative contracts worth $7.5 billion, earlier traded in Singapore, will shift to India. SGX Nifty, the Singapore Exchange-traded futures on India’s key equity NSE Nifty 50 Index, will be known as GIFT Nifty as of Today and began trading at 6:30 a.m. local time today. All outstanding orders will be transferred to the GIFT City, a new financial hub in the western Indian state of Gujarat. Gift Nifty is up 86 points or half percent to above 19300 mark.
 
·      Expects market to open on a positive note on account of rally in the across the global market after the data showed that the US inflation cooled in May, its lowest reading in two years, potentially reducing pressure on the US Fed to deliver aggressive hike in interest rate. In the domestic front, strong buying interest both FIIs (Rs6400cr) and DIIs ( Rs1200cr) on Friday to tune nearly $1bn will be positive for the market sentiment. Moreover, GST collections grew by 12% in June to above Rs1.6 lakh cr as the fourth time, fall in May domestic fiscal deficit, better than expected manufacturing data, encouraging progress of monsoons across India, healthy corporates healthy balance and robust banks credit growth cycle will be positive for the market sentiment. US stocks climbed up over 1% on Friday as data showed measures of US inflation cooled in May, potentially reducing pressure on the Fed to deliver more than one more rate hike by the end of 2023. US personal-consumption expenditures price index, rises 3.8% from a year earlier in May, its lowest reading in two years and fall in France inflation. Asian markets climbed up over 1%. This week US, Europe, China and India’s manufacturing & services PMI data along with FOMC Minutes of meeting will be in focus.  Tech stocks will be in focus on hope of good quarterly results while Q1 results will commence from next month. Auto stocks will be in focus after announced impressive May sales dat. Expects momentum to continue on Banks, FMCG and mid-cap stocks.
 
·      US Market   –  U.S. stocks were headed toward their highest levels in more than 14 months as the latest inflation report showed price pressures ebbing to the weakest level in two years, fueling hopes that the Federal Reserve might be able to back off its inflation battle more quickly than Chair Jerome Powell has suggested. Both Dow Jones and Nasdaq Composite soared 1% each after the personal-consumption expenditures price index, rises 3.8% from a year earlier in May, its lowest reading in two years.
 
·      Global market summary – US market ended at 14-month high, US inflation fell to 2-year low. France Inflation decline to 1-year low. Nasdaq Composite gained 32% in the first six months, largest gained since 39 years.
 
·      Asian Market –Asian shares rose on Monday as positive momentum from gains on Wall Street and signs of moderating US inflation extended this year’s rally in global stocks. Japan, South Korea, Australia and Taiwan Index surged 1% each. 
 
·      European Market – European stocks rose Friday and finished the first half of the year on a high note. UK, Germany and France Index gained 1% each after inflation in France slowed to the lowest level in more than a year in June and fall in US Inflation.
 
·      Oil –  Brent Crude gained 2% to above $75/bbl on account of fall in US inventory and hope of improve global demand.
 
·      Gold – Gold declined marginally at $1919/ounce after US data showed inflation cooling in line with expectations and fall in Dollar Index.
 
·      Previous Day market Update –  Equities market Index continued  their rally for the third session straight and touched record highs again on Friday, led by gains in Infosys, TCS, L&T,  HDFC twins, Reliance amid robust US jobs data and strong domestic micro. Benchmark indices the Sensex and the Nifty rising over 1% each on across-the-board buying. The Nifty Midcap index also hit its record high of 357882 and Bank Nifty spiked to new all-time high of44787 in today's session. Fall in fiscal deficit, Moderating inflation, and expected interest rate cuts cycle are factors that support the growth outlook. Corporates have a healthy balance sheet due to deleveraging, banks are reporting robust credit growth, commentaries by management are reflecting strong domestic demand, and hope of healthy earning in the next quarter are driving the domestic equities to new heights.. Auto, IT, PSU Banks and capital goods stocks were major gainers today. Sensex closed 803 points, or 1.30 per cent, higher at 64,719 while the Nifty closed the day at 19,189., up 217 points, or 1.10 per cent. Both FIIs and DIIs were Rs6397cr and Rs1198cr respectively
 
·      Nifty Technical Levels – Nifty formed a strong Bullish candle on daily and weekly scale and gave the highest ever close. It has been forming higher highs on weekly scale from last fourteen weeks and supports are gradually shifting higher. Now it has to continue to hold above 19100 zones to extend the move towards 19300 and 19500 zones while on the downside support exists at 19000 and 18888 zones.
 
·      Bank Nifty Technical Levels – Bank Nifty formed a strong bullish candle on daily scale and higher highs - higher lows formation is intact from past three sessions. It formed a strong bullish candle on weekly scale as well and gave highest weekly close ever. Now it has to hold above 44500 zones for an up move towards 45000 then new high of 45250 zones while on the downside support is seen at 44444 then 44250 levels.
 
·      Actionable BUY – SBI, Coromandel International, Bank of Baroda, JK Tyre,  AB Capital, BEL. HDFC Bank.
 
·      Brokers Radar – Divi’s Lab TGT by HSBC at 2890, Max Healthcare TGT by HSBC at 575. Apollo Tyres TGT by Morgan Stanley at 425.  HDFC Bank TGT by Macquarie at 2110, Max Healthcare TGT on Cipla at 1170, HCL Tech TGT by Citi at 1135, HCBC TGT on HCL Tech at 1330. Morgan Stanley TGT on HDFC Bank at 2110. Goldman Sachs TGT on UltraTech Cement at 8720.
 
·      Events – GIFT Nifty to starts trading today, replacement of SGX Nifty, Manufacturing PMI,
 
·      Corporate Action  - Jyothy Labs – AGM and dividend Rs3, Sundaram Finance – AGM, dividend Rs1.50 and Special dividend Re1, Bajaj Amines  - AGM and dividend Rs10 a share, Geojit Financial dividend Rs1.50.
 
·      Global Data –Monday – Manufacturing PMI, Construction Spending and New Orders (US). Manufacturing PMI (UK). Manufacturing PMI (Germany). Manufacturing PMI (France). Manufacturing PMI (China)
 
·      Market Summary – GIFT Nifty to starts trading today, replacement of SGX Nifty, HDFC Bank fixes July 13, 2023 as record date for merger with HDFC, Reliance and BP kick-start gas production from Indian deep-water gas field, ABB wins order, JK Tyre completion of first phase of capacity expansion, Paytm has announced its partnership with Shriram Finance for loan distribution. Aditya Birla Capital raises Rs 3,000 cr from promoters, investors, Vedanta kicks off steel business review for likely stake sale, Hero Moto Motocorp hike price. GST Collections Rise 12% To Reach Rs 1.61 Lakh Crore In June.
 
·      Gift Nifty - In a path-breaking move in the field of global trading in India, the popular SGX Nifty will be re-branded as GIFT NIFTY from July 3 and all the derivative contracts worth $7.5 billion, earlier traded in Singapore, will shift to India
 
·      Auto sales – Maruti June sales at 159418 unit (up 5.8% YoY) – Positive, Escorts Kubota- Company sold 9,850 tractors as against 10,051 tractors sold in June 2022 – down 2% (YoY). Hero Motocorp sold 436,993 units in June 2023. – Tata Motors June sales at 47235 (up 5% YoY)
 
·      GST collections grew by 12% in June, coming in at Rs 1,61,497 crore. This is also the fourth time the gross GST collection has crossed the Rs 1.60 lakh crore-mark. – Positive for economy, to reduce fiscal deficit.
 
·      Eight Infrastructure Growth - The pace of growth of eight key infrastructure sectors slackened to 4.3% in May on account of a decline in the production of crude oil, natural gas and electricity – Positive for economy.
 
·      Fiscal deficit for the first two months of this fiscal year through May stood at Rs2.10 lakh crore rupees, or 11.8% of annual estimates. The fiscal deficit narrowed from 12.3% reported in the comparable year-earlier period.- expects positive for the market sentiment
 
·      Shriram Finance - Company plans to raise at least $150 million through a social loan for which HSBC is the sole mandated lead arranger. - positive
 
·      IIFL Finance – Company has raised $175 million in three-year external commercial borrowing (ECB) from lenders, including HSBC and overseas branches of Bank of Baroda (Gift City) and Union Bank of India (Sydney branch).- positive
 
·      Granules India – Company has completed the U.S. Food and Drug Administration's (US FDA) Pre-Approval Inspection (PAI) and GMP audit for their Unit IV facility located at Visakhapatnam, Andhra Pradesh, India with zero 483 observations.- positive
 
·      AXISCADES Technologies announced the appointment of Dr. S. Christopher, as Non-Executive Non-Independent Director effective from June 30, 2023. – positive
 
·      Lemon Tree Hotels - Company opens its second hotel in Himachal Pradesh with Lemon Tree Hotel, Manali – positive
 
·      NMDC Records Best Ever June Month and Q1 Performance – Company produced 3.48 MnT and sold 4.1 MnT of iron ore in the third month of FY24, recording the highest ever June month and Q1 production and sales in company history. Registering an upswing of 35% in production over MoM. – positive
 
·      AB Capital – Company has raised Rs 3,000 crore through QIP at Rs175 and others. The Company raised Rs 1,750 crore through a QIP - Blackrock, Capital Group, Norges Bank, Royal Bank of Canada, M&G Investments, Abu Dhabi Investment Authority (ADIA) and others – Positive.
 
·      Vedanta – Company has initiated a strategic review of its steel and steel raw materials businesses and may sell a part or all of these businesses. The natural resources conglomerate is looking to sell Electrosteel Steels a little over five years after it acquired the company through the insolvency process in 2018. – Positive to repay debt from stake sale proceed
 
·      GHCL - Shareholders voted against the reappointment of Sanjay Dalmia as director of the company, causing the resolution to fail. Investor advisory firm Institutional Investor Advisory Services, or IiAS, recommended voting against the reappointment of Dalmia as Non-Executive Non-Independent Director. - Avoid
 
·      Monsoon Update - After deficient rainfall in June, India is likely to see 'normal' rainfall in July, according to the India Meteorological Department. The monthly rainfall over the country during July is most likely to be normal at 94% to 106% of the long-period Average and most probably within the positive side of normal, IMD said – positive for the market.
 
·      Reliance Industries - Reliance Industries and UK supermajor BP have kick-started gas production from the MJ deep-water gas field in the Krishna Godavari basin offshore India’s east coast – Positive
 
·      HDFC and HDFC Bank Merger - Thursday, July 13, 2023, for determining the shareholders of HDFC Limited who shall be issued and allotted the shares of HDFC Bank; Thursday, July 13, 2023, for continuation of warrants of HDFC Limited in the name of HDFC Bank;  Wednesday, July 12, 2023 for transfer of non-convertible debentures of HDFC Limited in the name of HDFC Bank; and Friday, July 7, 2023 for transfer of commercial papers of HDFC Limited in the name of HDFC Bank – we positive on HDFC and HDFC Bank.
 
·      Siemens Limited – Company completed the acquisition of Electric Vehicle division of Mass-Tech Controls Pvt in accordance with the definitive agreements entered between the parties for a consideration of Rs38cr – positive
 
·      GTPL Hathway Ltd – Company to acquire 4,37,676 equity shares of Rs. 10/- each of Metro Cast Network India Pvt at the rate of Rs. 571.1982/- per share for cash consideration aggregating to ~Rs25cr – positive
 
·      APL Apollo Tubes - Record Q1FY24 Sales Volume - Leading branded structural steel tube company, its sales volume performance for the quarter ending June 30, 2023. The Company registered a sales volume of 661,501 Ton in Q1FY24 (up 49% YoY). – Positive
 
·      V.S.T Tillers Tractors - Company has announced June sales at 4638 units (up 6.4% YoY) – Positive
 
·      SML ISUZU – Company sold  1279 units vehicle in June 2023, down 3% (YoY)  – Long term positive
 
·      Atul Auto – Company sold 1267 vehicle in June, down 30% (YoY)
 
·      HG Infra Engineering – Company has received completion certificate for project in the state of Maharashtra for Procurement and Construction (EPC) basis contract.- positive
 
·      NCC – Company has received new orders Rs. 2055 Crorein the month of June'2023. Out of these orders two orders valuing Rs. 1335 crores relating to Building Division, one order valuing Rs. 720 crores relating to Electrical Division. – positive
 
·      Mazagon Dock Shipbuilders – Company signed a Contract with Indian Navy for Medium Refit cum Life Certification (MRLC) worth Rs2764.63cr of second Shishumar class submarine INS SHANKUSH on 30 Jun 2023. - positive
 
·      Asian Energy Services – Company announces  Rs85 Cr Preferential Issue of warrants. Fund will be utilized to accelerate overall business in the coming years and will take care of Company equity capital needs for the foreseeable future. – positive
 
·      MOIL Ltd revises prices of Manganese Ore from July 1, 2023 - Ferro grades of manganese ore with Manganese content decreased by 5% and all other Ferro grades of manganese ore with Manganese content below Mn-44% byb 2.5% - Price cut due to fall in global price – Avoid
 
·      AU Small Finance Bank - During the quarter ending June 2023, the Company has raised total funds of ₹2,958.21 Cr. through Term loans, ECBs and Direct assignments.- positive
 
·      Jubilant FoodWorks  - Company said the company is postponing the completion deadline to restructure overseas arms to June 2024 from June 2023 due to certain regulatory requirment – We are positive on the stock.
 
·      Hero MotoCorp - Company will make an upward revision in the ex-showroom prices of its motorcycles and scooters, effective from July 3, 2023. The price increase will be around 1.5% and the exact quantum of increase will vary by specific models and markets.- positive
 
·      Motherson, in collaboration with Marelli, announced the inauguration of Motherson Automotive Lighting Tool Room (MALT), a ground-breaking facility that marks a significant milestone in automotive lighting technology. – Positive
 
·      Shiva Cement – Company  has commissioned 1.36 mtpa Clinker unit and 9 MW Waste Heat Recovery at Village Telighana,. The Company has already received CTO from State Pollution Control Board for 0.66 MTPA Clinker and 9 MW WHRS – positive
 
·      PVR INOX opens 15 new screens across 2 new multiplexes at Delhi and Ahmedabad – positive
 
·      Eiko Life science right issue – issue of  55.44 lakh shares worth Rs24.98cr on right issue – in the ratio of : 2 (Two) Equity Share for every 3 (Three)  Shares held at Rs45 a share (CMP 54.50) – Avoid
 
·      ITI - ISRO has applauded its 'trusted partner' ITI Limited's Palakkad Plant for supporting in realization of its flight packages with respect to launch of its GSLV-F12/NVS-01 Mission recently – positive
 
·      JK Tyre completion of first phase of capacity expansion - Company announced completion of first phase of capacity expansion of its radial tyre (PCR segment) manufacturing facility at Madhya Pradesh. The phase one expansion involved an investment of Rs 312 crore. This expansion, therefore, will increase the annual production capacity of the plant by 31 per cent, from 3.9 million to 5.1 million units per annum – positive
 
·      Paytm Partners With Shriram Finance For Loan Distribution - Paytm has announced its partnership with Shriram Finance for loan distribution. Company will offer its platform to Shriram Finance for digital credit for merchant loans and consumer loans. Shriram Finance’s products will be made available on Paytm’s platform. – positive
 
·      Amrutanjan Healthcare – Company  has approved the buyback of up to Rs 28.8 crore worth of equity shares at a price of Rs 900 apiece. The buyback offer price is for 3.2 lakh equity shares worth 1.1% equity of the company.
 
·      L&T Technology – Company has partnered with Palo Alto Networks for 5G and operations technology solutions.- positive
 
·      Aurobindo Pharma – The U.S. FDA issues fresh observations to Aurobindo Pharma following plant Inspection. Cleaning and storage of manufacturing equipment is 'deficient'.- Any decline will be buyinbg opportunity
 
·      Suzlon – Company is in talks to raise about Rs2000cr – Rs2200cr by selling unsecured bonds – Avoid due to poor balance sheet
 
·      SBI – SBI- Company has appointed four directors on the Central Board of the bank. Ketan Shivji Vikamsey and Mrugank Madhukar Paranjape have been re-elected. Rajesh Kumar Dubey and Dharmendra Singh Shekhawat are the new members – positive
 
·      Kalpataru Projects – Company gets Rs1008cr orders for T&D business and civil works – positive
 
·      ABB India – Company awarded electrification and automation contract for ArcelorMittal Nippon Steel (AMNS) India’s new advanced cold rolling mill to provide electrification and automation systems for ArcelorMittal Nippon Steel in India – Positive
 
·      Bharat Electronics – Company has received defence and non-defence orders worth Rs 2,191 crore. Orders include supply of long range guidance kit with warhead, airborne V/UHF jammer, battlefield surveillance radar systems and more. With this, BEL has received orders worth Rs. 8,091 crore till now in the FY 2023-24.- positive
 
·      Coromandel International - Company is acquiring an additional 32.68% equity stake in Dhaksha Unmanned Systems Pvt. Ltd (Dhaksha), a Chennai based differentiated drone start-up at an outlay of Rs 204 crores. Coromandel had earlier acquired 18.34% in Daksha through its investment arm Dare Ventures Limited. With this acquisition, Coromandel will be holding a majority (51%) stake in Dhaksha.- Positive
 
·      Phoenix Mills – Company has approved the proposal to mortgage, lease, pledge, hypothecation, create encumbrances of the whole or substantially the whole of the Property of the company, for upto Rs 70 crore in one or more trenches. – Positive
 
·      AU Small Finance – Company considered and approved the raising of funds by issue of equity shares for an aggregate amount not exceeding Rs. 5,000 Crore (Rupees Five Thousand Crore Only) through private placement or qualified institutions placement (QIP) or preferential allotment or through a combination thereof or any other alternative mode – Positive
 
·      GPT Infraprojects- Company has successfully commissioned its Concrete Sleeper factory in Eshiem, Takoradi, Ghana with a capacity of 240,000 concrete sleepers per annum through its subsidiary, RMS GPT Ghana Ltd worth Rs123cr – positive
 
·      Aarvee Denims and Exports – Company has restarted manufacturing facility at one of its production units at Narol Unit. This decision was primarily made to revamp the business at Narol Unit as the market situation has been improved – positive
 
·      Shilpa Medicate - Company has received approval from CDSCO, New Delhi for manufacturing and sale of Lenvatinib Capsules, 12, 18 and 24 mg in India. Shilpa will commercialize the product under the brand name Lenshil®. – positive
 
·      Technocraft Industries – Company have considered and approved the Acquisition of 100% Equity Shares of BMS Industries Private Limited ("BMS). Subsequent to this acquisition BMS will become a wholly-owned subsidiary company of TIIL. – positive
 
·      Lupin – Company announced the achievement of a key milestone for its novel MALT1 inhibitor program that is partnered with AbbVie Inc. (AbbVie) towards treatment across a range of hematological cancers. – positive
 
·      Shree Cement – Company has commenced trial production at its Clinker Grinding Unit at Village Digha & Parbatpur, in Purulia district of West Bengal with cement capacity of 3.0 MTPA. With this, the total Cement capacity of the Company alongwith its subsidiary now stands increased to 49.90 MTPA in India. – positive
 
 

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