· Hawkish signal by US Fed minutes of meeting and weak PMI data announced by China, may open domestic market on a flat to negative note. Overnight , US and Europe markets declined between 0.5% to 1% after US Fed meeting minutes signaled more rate hikes are coming and disappointing economic data reignited concerns about a slowdown in growth worldwide. Asian markets traded lower by 1% and Dow Future fell by 0.2% following overnight losses in the US stocks after hawkish signals from the Federal Reserve’s latest meeting minutes. As a result, US dollar Index surged to 1-week high to above 103. Both US 2-Year and 10-Year Yield spiked to 2-week high on expectation of aggressive rate hike by US Fed to control inflation. Gift Nifty declined by 0.2% or 32 points. Yesterday, Nifty ended flat but action shifted to Nifty mid-cap and small cap counters. broader market remained strong Yesterday and Nifty 500 stocks advance decline ratio was favorable at 1.5:1. Traders buy on decline strategy in the market and technical correction may not be ruled out ahead of weekly Nifty and Bank Nifty F&O expiry today. Strong quarterly earning update by corporates and back of FIIs buying may support domestic bourses. Any decline will be good opportunity to buy on Indian equity. Expects momentum continue on Auto stocks after yesterday close on a record high. Focus on sugar stock today on account of rising global suagr price due to adverse weather conditions in Brazil and Thailand.
· US Market - U.S. stocks ended lower on Wednesday after the minutes of the Federal Reserve's June meeting showed almost all policymakers expected additional rate hikes later this year. Both Dow Jones and Nasdaq Composite slipped 0.4% and 0.2% respectively after the minutes showed that policymakers decided against a rate increase amid concerns over economic growth.
· Global market summary –China June Service PMI and Composite fell to 3-month low. Brent Crude surged to 2-week high of $77/bbl, US Vix gained 3%, US Dollar Index surged to above 103 to close at 1-week high. Both US 10-Year and 2-year bond Yield spiked to 2-week high
· Asian Market –Asian shares followed Wall Street lower on Thursday after hawkish signals from the Federal Reserve’s latest meeting minutes damped investor sentiment. Japan, South Korea, Australia, Hong Kong Index declined 0.5% to 1%.
· European Market – European equities dropped as weak economic data from China weighed on sentiment while investors awaited minutes from the latest Federal Reserve policy meeting. UK, Germany and France Index declined 1% each.
· Oil – Brent Crude gained 2% to 2-week high at $77/bbl as traders assessed the impact of the latest round of supply cuts from OPEC+ and a US industry report that pointed to another drawdown in nationwide commercial inventories.
· Gold – Gold held declined 0.5% to $1917/ounce as traders weighed hawkish signals from the Federal Reserve’s latest meeting minutes, expectation of fall in global demand.
· Previous Day market Update –Equity benchmark ended flat with buying interest seen in the auto, pharma, FMCG and oil marketing comings. Sentiment remain caution after data from China announced June PMI data 3-month low while investors awaited minutes of the latest Federal Reserve meeting, to be announce today. However, domestic market remain strong due to strong quarterly results update and continued FIIs buying interest despite a weakness in the global markets. There was stock specific action in the market and broader market was remain strong. Nifty 500 stocks advance decline ratio was 1.5:1. Sensex declined 33 points or 0.1% to settle at 65,446, while the Nifty rose 9 points or 0.1% to end at 19,398. With investors booking profit at near-record high levels amid concerns of a trade conflict between the US and China and lower the expected announced by China PMI data. FMCG and automobile stocks helped limit the weakness in the market as widening coverage of monsoons rains, which accounts for two-thirds of the country’s rains, improved outlook for the agriculture economy. The Nifty FMCG and Nifty Auto index climbed 1.8% and 1.6%, respectively. FIIs were Rs1603cr while DIIs were net sellers Rs439cr previous day.
· Nifty Technical Levels – Nifty formed an Inside Bar on daily frame and has been making higher lows from the last six sessions. Now it has to continue to hold above 19300 zones to extend the move towards 19450 and 19500 zones while on the downside support is intact at 19250 and 19100 zones.
· Bank Nifty Technical Levels – Bank Nifty formed an Inside Bar and a Doji on daily scale but higher lows formation is intact from the last six sessions. Some profit booking was seen in selective private banks but it managed to hold its support of 45000 zones. Now it has to continue to hold above 45000 zones for an up move towards 45500 then its recent life high of 45650 zones while on the downside support shift higher at 45000 then 44750 levels.
· Actionable BUY –RCF, DLF, PNB, Balrampur Chini, BSE ltd, Bajaj Auto
· Brokers Radar –Morgan Stanley TGT on Marico at 611, Macquarie TGT on Marico at 620, HSBC TGT on Zomato at 93. Nomura TGT on Maricao at 560. Bajaj Auto TGT by Jefferies at 5500, Macquarie TGT on Bajaj Auto at 4542. Nomura TGT on Bajaj Auto at 5223, JP Morgan TGT on BPCL at 400. Jp Morgan TGT on HPCL at 330, JP Morgan TGT on IOC at 110 from 100
· Events – BSE Board meeting for share buy-back, Finance Minister to Meet PSU Bank Chief today, Weekly Nifty and Bank Nifty expiry, Senco Gold IPO subscribed by 2.7 times and today final day
· Corporate Action - Kalpataru Projects dividend Rs7 and Aptech Bonus 2:5.
· Global Data –Mortgage Application, Jobless Claims, Service PMI, Composite PMI (US). CPI (UK). Factory Order and Construction PMI (Germany)
· Market Summary – Maruti Suzuki India Launches New Utility Vehicle, Indian Energy Exchange Books 8% Increase in June Electricity, Services sector PMI growth eases to three-month low in June, SAIL Posts 8% Rise in Fiscal Q1 Crude Steel and its highest-ever sales performance in fiscal, Godrej Consumer Expects Double-Digit Sales Growth in 1Q, Bajaj-Made English Triumph 400 motorcycle Launched In India, JSW Steel to replace HDFC on Sensex from July 13, Marico Sees Double-Digit 1Q Profit Growth Despite Lower Revenue, Bombay Dyeing may sell Worli land parcel at Rs 5,000 cr valuation, PEL Block deal.
· Reliance – Reliance Jio Infocomm is set to sign an about $1.7 billion contract with Nokia to purchase 5G network equipment as early as Thursday, Economic Times report - Positive
· JSW Steel – JSW will replace HDFC on the Sensex from July 13. HDFC Ltd. is merging with HDFC Bank on the same day. JBM Auto will replace HDFC in the BSE 500 index, while Zomato Ltd. will replace it in the BSE 100. – Expects positive for JSW Steel and JBM Auto.
· Tata Power: The company received a Rs 1,744 crore order to install and maintain 18.60 lakh metres in the Raipur area from Chhattisgarh State Power Distribution Company Ltd. – positive
· Wadia group firm Bombay Dyeing is in talks to sell a part of its land parcel in central Mumbai’s Worli at a valuation of Rs. 5,000 crore. A Japanese conglomerate is leading the race to acquire the land, which has a development potential of 2 million square feet for commercial purposes – Positive
· DCB Bank: The Reserve Bank of India has approved Tata Asset Management to acquire an aggregate holding of up to 7.5% of the paid-up equity capital of the bank through the schemes of Tata Mutual Fund. – positive
· Ujjivan Small Finance Bank: Total deposits grew 44% year-on-year and 4% sequentially to Rs 26,655 crore in April-June. CASA rose 27% year-on-year to Rs 6,550 crore, and the CASA ratio stood at 24.6%. Advances are up 31% year-on-year and 5% quarter-on-quarter to Rs 25,346 crore in the first quarter. Disbursement momentum continues to show strength, with 22% year-on-year growth to Rs 5,280 crore. – positive
· Prestige Estate Projects: The company and its unit, Prestige Exora Business Parks, have entered into a joint venture agreement with W.S. Industries (India) to develop IT or IT-enabled services or parks on a 6.53-acre property in Chennai. W.S. Industries proposed to implement the project through its unit, WS Insulators - positive
· Bajaj Electricals: CRISIL Ratings has upgraded the long-term rating of the company’s bank loan facilities of Rs 2,100 crore to CRISIL AA-/stable from CRISIL A+. – positive
· Asian Paints: The company’s unit, Asian White Cement Holding, has been incorporated in the name of Asian White Inc. FZE in Fujairah Free Zone, UAE, on June 26, 2023, for the purpose of carrying out the business of manufacturing, trading, and exporting white cement.
· Solara Active Pharma: The company has agreed to raise funds through the issue of equity shares of a face value of Rs 10 not exceeding Rs 450 crore by way of rights issue to eligible equity shareholders of the company. - positive
· Tata Motors: ICRA has upgraded its long-term credit rating to ICRA AA/Stable from ICRA AA-/Positive.- positive
· Services sector PMI growth eases to three-month low in June: Services sector growth eased to a three-month low in June but service providers continued to signal positive demand trends, which resulted in a stronger increase in new business volumes and further job creation. S&P Global India Services PMI Business Activity Index fell from 61.2 in May to 58.5 in June.
· ITC on Report of Hotel Business Spinoff - CNBC-TV18 reports that ITC process to spin off its hotel business is underway, and that alternative structures for the unit are also being explored. A separate listing is one of the options being considered, the report says – Positive
· Maruti – Company introduced the Invicto MPV as their latest flagship model. With an introductory ex-showroom price ranging from ₹24.79 lakh to ₹28.42 lakh, the Invicto becomes the most costly vehicle in Maruti's lineup. Essentially, the Invicto is a rebranded version of the Toyota Innova Hycross. – Positive
· Venus Remedies - Company said it has received marketing approval from Oman, Malaysia, Bosnia and Trinidad and Tobago for key chemotherapy drugs. – positive
· L&T – Company secured an EPC order in Mumbai for an Office Space Development using Composite Steel Construction Technology order between Rs1000cr – Rs2500cr – positive
· Indian Energy – Company achieved 8946 MU overall volume in June 2023, including green market trade of 272 MU, 5.33 lac RECs and 2.44 lac ESCerts (equivalent to 244 MU). The overall volume during the month was higher 8% on YoY basis. IEX achieved 25,125 MU volume across all segments during Q1 FY '24, growing 8% over Q1 FY'23. – positive
· Persistent Systems – Company inaugurated a state-of-the-art 5G Lab to provide a testing and development environment for network functions and product development activities for operators and network equipment vendors, as well as for Communications, Media, and IoT independent software vendors (ISVs). – positive
· Bajaj Auto - English motorcycle manufacturer Triumph, in collaboration with Bajaj Auto, has officially launched the highly anticipated Speed 400 and Scrambler 400X motorcycles in India. Triumph Speed 400 price has been set of Rs2.33 lakh lakh(ex-showroom) and the prices for Scrambler 400X will be announced in October. - positive
· KPI Green Energy – Company received Commissioning Certificates from Gujarat Energy Development Agency ('GEDA') for 9.40MW wind-solar hybrid power project and received order 7.70MW solar power project – positive
· Neogen Chemicals – Company having entered the electrolyte market, is eyeing Rs 1000–1200 crore in revenue from the battery chemical segment, according to its Managing Director Harin Kanani. The company has been the biggest user of lithium carbonate in India and is a manufacturer of specialty lithium-based derivatives.- Media Report – Expects positive
· G R Infraprojects In Concession Pact With NHAI For Construction Of Six-Lane Highway The bid project cost for the construction of Varanasi-Ranchi-Kolkata highway stands at Rs 1,248.37 crore. Project allocated on hybrid annuity model has a completion period of nearly two years. – positive
· SAIL Posts 8% Rise in Fiscal Q1 Crude Steel and its highest-ever sales performance in fiscal – Company posted a 8% YoY growth in its crude steel production at 4.7mt in the fiscal first quarter ended June 30. The company attained its highest-ever sales performance in fiscal by achieving a sales volume of 3.9 million tons, a 24% rise over the corresponding quarter a year ago. – positive
· Sonata Software – Company announces that it has achieved the Amazon Web Services (AWS) Service Delivery designations for two key AWS services: Amazon Elastic Kubernetes Service (Amazon EKS) and Amazon DynamoDB. – Positive
· PPAP Automotive – Company has been awarded with Machinist Super Shopfloor Award in the category of Excellence in manufacturing. The Machinist Super Shopfloor Awards are organised by Worldwide Media (WWM), a fully owned subsidiary of The Times of India Group (BCCL). PPAP was honoured out of 400 participants in different categories. – Positive sentiment
· Tinna Rubber - Company has recently entered into an Agreement for Purchase of Land to establish a new manufacturing unit at Palghar, Maharashtra. This state-of-the-art Greenfield plant, will have the capacity to process 60,000 tons of Old Used Tyres, Annually. This expansion is being done in addition to the current capacity of 90,000 tons of old used tyre recycling which is spread across India & it is being operated from four location - positive
· Gensol Engineering – Company has in the first quarter of fiscal 2023-24 ended June 30, 2023 received orders from reputed clients for the supply of trackers and the development of solar power projects worth Rs 277cr - positive
· L&T – Company wins factory and business construction order between Rs1000cr – Rs2500cr – positive
· HDFC bank – Company has acquired 84.44 lakh shares of Hindustan Oil Exploration, thus buying a 6.39% stake in the company. – positive
· Shri Bajrang Alliance – Company has successfully repaid all of its outstanding term loans. The company has successfully paid off all outstanding term loans through diligent efforts and strategic financial management. – positive
· Poonawalla Fincorp - Business Updates for Q1 FY2023-24 - Assets Under Management (AUM): AUM grew by 41% YoY and 10% QoQ to approximately Rs17,770 crore as on 30 June 2023. Asset quality: GNPA and NNPA are expected to improve further. As guided, we would strive to maintain the NNPA below 1% in line with its Management Vision 2025. Liquidity: Disbursements: Total disbursements during Q1FY24 were highest ever at approximately ₹ 7,050 crores, up 143% YoY and 11% QoQ . The Company continues to have ample liquidity of approximately ₹ 4000 crore as on 30 June 2023. – positive
· HDFC Bank Q1 Business Update - Advances aggregated to approximately ₹ 16,155 billion as of June 30, 2023, a growth of around 15.8% over ₹ 13,951 billion as of June 30, 2022 and a growth of around 0.9% over ₹ 16,006 billion as of March 31, 2023. Gross of transfers through inter-bank participation certificates and bills rediscounted, the Bank's advances grew by around 20.2% over June 30, 2022 and around 1.9% over March 31, 2023. As per the Bank's internal business classification, domestic retail loans grew by around 20.0% over June 30, 2022 and around 4.0% over March 31, 2023 – Positive
· Paytm Q1 Business Update - Continued growth in payments and loan distribution business: Leadership in offline payments strengthens with 79 lakh devices deployed; disbursements of ₹5,227 Cr ($637 million) in the month of June 2023 through Paytm platform. - Continued expansion of consumer base with average monthly transacting users (MTU) at 9.2 Cr for quarter (average for three months ended June 2023), up 23% YoY – positive
· Yes Bank Q1 Business Update - Bank's deposits grew 13.5% YoY from Rs. 193,241 crores as of June 30, 2022 to Rs. 219,369 crores as of June 30, 2023. CASA reported YoY growth of 8.4% from Rs. 59,544 crores as of June 30, 2022 to Rs. 64,528 crores as of June 30, 2023. – Avoid due to poor balance sheet.
· Godrej Consumer Expects Double-Digit Sales Growth in 1Q - Godrej Consumer expects high-single digit volume growth and double-digit sales growth organically in Q1 quarter. “Our quality of profits has seen sustained improvement, led by robust gross margin expansion and ongoing category development investments. This should translate to strong EBITDA growth,” the company said. India business had double-digit volume growth, sales growth was slightly higher than mid-single digit. Company expects exceptional stamp duty expense on Park Avenue and KamaSutra brand acquisition.
· Marico Q1 Business Update - Marico Ltd.’s profit in the April-June quarter is expected to grow by double digit led by an expansion in operating margin, even as revenue in the quarter declined in ‘low-single digits’ from a year earlier. Pricing interventions in key domestic portfolios last year and further pricing drops in Saffola edible oils, amounting to pricing decline of ~30% y/y, hurt revenue. Demand trends in the sector remained stable during the quarter, the consumer good maker said. Domestic volumes grew in low-single digits, with a minor volume drop in Parachute coconut oil, low double-digit volume growth in Saffola edible oils and flattish quarter for value – Long term positive.
· IDFC First Bank Q1 Business Update – Q1 CASA deposit increased 26.7% (YoY), advance grew 44.4% (YoY) , loan and advance as of June up 24.5% (YoY)
· Adani Wilmar: The company has estimated volume growth of 25% in the June quarter over the previous year, driven by strong demand in both food and edible oil categories. The sales value has declined, reflecting the sharp drop in edible oil prices. The Food & FMCG segment recorded volume growth of 20% and revenue growth of 30% to cross Rs 1,000 crore for the quarter on a standalone basis. The edible oil prices. The Food & FMCG segment recorded volume growth of 20% and revenue growth of 30% to cross Rs 1,000 crore for the quarter on a standalone basis. The edible oil business grew 25% in volume terms and fell 15% in terms of value growth.
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