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

 

 

IPO's likely to hit

IPO's likely to hit in July

1.Deltatech Gaming - 450 cr

2.Ebixcash - around 5200cr

3.Yatra Online ( Less chances but can hit)

4.Tata Technologies

5.Allied Blenders

6.Sai silks Kalamandir

STOCKS IN ACTION

STOCKS IN ACTION 3 July

Escorts Kubota: June Total Sales 9,850 Units Vs 9167 Units (MoM)

Atul Auto: June Total Sales 1267 Units Vs 1101 Units (MoM)

Tata Motors: June Total Sales 80,383 Units Vs Est 78,070; 74,973 Units (MoM)

PVR Inox: The company opened a 10-screen multiplex in Delhi and a 5-screen multiplex in Ahmedabad. With this launch, the company now operates the largest multiplex network with 1697 screens at 360 properties in 114 cities, including India and Sri Lanka.

TVSMotor expects growth momentum to continue in the current fiscal, with the overall economy anticipated to grow at a robust pace and a continuous improvement in the road infrastructure.

HDFC: HDFC Bank Merger Record Date Set As July 13 

Appointed Date 2, Under The Scheme, For The Amalgamation Of HDFC Limited With And Into HDFC Bank, Will Thus Be Saturday July 1, 2023

Vedanta: Announces Strategic Review Of Steel And Steel Raw Materials Businesses 

Continues To Review Its Strategic Priorities In Normal Course Of Its Capital Allocation Discussions

Mazagon Dock Shipbuilders Ltd: Ministry of Defence signs a contract of Rs 2,725 cr with Mazagon Dock Shipbuilders Ltd for Medium Refit with Life Certification of Submarine INS Shankush

Kansai Nerolac Paints: Approved Sale Of Co's Kavesar Land Including Sale Of Additional Area For 6.71b Rupees

SBI: Charanjit Surinder Singh Attra resigns as Chief Financial Officer of SBI, w.e.f. today, June 30

Aditya Birla Capital announces closure of QIB; raises Rs 1,750 crore

CSB Bank revises base rate to 11.05% p.a. from 10.20% p.a., effective July 1

Keeps lending rates unchanged

Hero MotoCorp hike prices of its motorcycles & scooters by around 1.5%, w.e.f. July 3

Shiva Cement: Says Commissioned 1.36 Mtpa Clinker Unit And 9 Mw Waste Heat Recovery In Odisha 

Already Received CTO From State Pollution Control Board For 0.66 Mtpa Clinker

Reliance Industries: Reliance And BP Commence Production From Third Deepwater Field In India’s Kg D6 Block 

At Its Peak, Production From The Kg D6 Block To Account For One Third Of India’s Domestic Gas Production

Separately, RIL also sold 1.23 crore compulsory convertible preference shares, or 2.89% of the fully diluted share capital, of Viacom 18 to Bodhi Tree Systems.

Granules: US FDA completes pre-approval inspection (PAI) & GMP Audit of Unit IV facility in Visakhapatnam with zero observations

Alert, US FDA had inspected the facility from June 26-30, 2023

Dynamatic Technologies: Unit Applies For "Protective Shield Process" Under German Laws

WALCHANDNAGAR INDUSTRIES: LARGE TRADE

Alert, ASSETS CARE AND RECONSTRUCTION ENTERPRISE

Sold 241,123 Shares @ Rs 80.47/ Share

GHCL TEXTILES: LARGE TRADE

VANGUARD MODERATE GROWTH FUND

Sold 488,126 Shares @ Rs 73.22/ Share

EASY TRIP PLANNERS: LARGE TRADE

Promoter RIKANT PITTIE

Sold 10,00,00,000 (10 Crore) Shares @ Rs 40.05/ Share

Mobilised = Rs 400.5 Crores

Reported BUYER

SOCIETE GENERALE 

BUY 1,50,00,000 (1.5 Crore) Shares

ADANI TRANSMISSION: LARGE TRADE

Promoter Entity

FORTITUDE TRADE AND INVESTMENT LTD

Sold 3,39,17,200 @ Rs 786.17/ Share

Mobilised = Rs 2666 Crores

Buyer GQG PARTNER

Market Indication

Market Indication:

Global: FLAT to POSITIVE

NIFTY: FLAT to POSITIVE

BANKNIFTY:  FLAT to POSITIVE

BULK Deals: TD Power Systems, Easy Trip Planners, Syrma SGS Technology etc.

Stocks In F&O Ban Period: Indiabulls Housing Finance

Results Today: Nil

GIFT NIFTY:  (Positive)

19360     +15.00    +0.08%

Tata Motors EV Sales

Tata Motors EV ⚡️sales (Units):

June 2023: 7,025

                   ↑ 95%

June 2022: 3,608

(Company)

#TataMotors

NPAs of Indian banks

Net Non-Performing Assets (NPAs) of Indian banks (%): 🏦🇮🇳 

2023: 1.0%

2018: 6.1%

2014: 2.2%

2010: 1.1%

2006: 1.3%

2002: 5.8%

(RBI Financial Stability Report, June 2023)

Money Times Talk - July 2, 2023

Money Times Talk - July 2, 2023

HAL to split its share from FV of Rs.10 to Rs.5 and has declared a final dividend of Rs.15. This Defence major is a multi-bagger in the long run. Accumulate.

Manappuram Finance plans to raise funds via. debt offerings for the augmentation of its business. Add in small lots.

PNC Infratech has an agreement with the Ministry of Road Transportation & Highways for three projects worth Rs.819 cr. to be completed in 24 months and operated for next 15 years. A big positive. Add.

Sterlite Tech has introduced a communication system for the Kochi water metro. The project will open up new opportunities for trade, commerce and social interactions. Add.

Pearl Global has announced its strategic expansion into Guatemala by acquiring 55% stake in Pearl GT Holdco Ltd. for $550000 which will be funded internally. A big positive. Add.

Hariom Pipes has commenced production at its Mahabubnagar plant and the total capacity of MS Pipes is now 132000 TPA from 84000 TPA. A big positive. Add.

Kamdhenu Ventures has approved a bonus issue in the ratio of 1:1. It is set to see newer heights. Add.

M&M has received a PLI eligibility certificate. Further, it plans to demerge some of its business verticals to unlock value for its shareholders. A big positive. Add for the long term.

In an attempt to unlock value, Lupin has chalked out plans to demerge its API business. Add for the long term.

Shakti Pumps has reportedly bagged new orders from Uganda and is gearing up to increase its capacity. Add.

The Central Govt. has offered loans of Rs.1.4 trillion to the States to push reforms in the power sector. PFC and REC can be big beneficiaries. Add on dips.

P&G plans to invest Rs.2000 cr. on a factory at Sanand, Gujarat, to make healthcare products and also make it an export hub. Add.

After losses for last three years, Tata Motors has posted profit of Rs.2689 cr. It has plans to generate 50% of its revenue from the EV segment. Add in small lots.

Sheela Foam is set to acquire Kurlon for Rs.3250 cr. which will help enhance its market share and improve its hold in the market. A big positive. Add.

The Govt. is planning a subsidy scheme for making electricity grid batteries worth Rs.21600 cr. This scheme could benefit Eveready. Add.

Canara Bank will raise Rs.7500 cr. via. Tier-I and Tier-2 bonds for onward lending and improving its capital adequacy norms. Buy.

Karnataka Bank stated that the current working is excellent and it will scale new heights in the future. Add on dips.

BEL has won orders worth Rs.2191 cr. from the Defence Ministry for supply of long-range guidance kit with a warhead, airborne V/UHF jammers and other products. A big positive. Add.

Paytm has partnered with Shriram Finance to offer financial services to its users and it may recover the lost ground. Risk bearing investors may add in small lots.

Kalpataru Projects has bagged orders worth Rs.1008 cr. in the transmission and distribution business. Add for the long term.

Hindware Home Innovations is a fast growing company in its segment and is planning to launch a wide range of latest products in the market. Add.

Indian Bank notched FY23 EPS of Rs.44.8, which may lead to FY24 EPS of Rs.55+. A reasonable P/E of 8x could take its share price to Rs.440+. Add.

Canara Bank notched 77% higher FY23 EPS of Rs.62, which may lead to FY24 EPS of Rs.72+. A reasonable P/E of 8x could take its share price to Rs.576. Buy.

Repco Home Finance notched 62% higher FY23 EPS of Rs.50.6, which may lead to EPS of Rs 62 in FY24.

Cigniti Technologies has announced its recognition as Product Challengers and Contenders in the ISG Provider Lens Digital Engineering Services 2023 Study. It notched FY23 EPS of Rs.60 which may lead to FY24 EPS of Rs.72. Buy.

Karnataka Bank shares are being grabbed by investors as it posted FY23 EPS of Rs 37.8 and set to garner Rs 48 in FY24. EPS of Rs.62. MFs and FPIs together hold 32% stake in the in company. Buy.

Chamanlal Setia notched 82% higher FY23 EPS of Rs.22.8, which may lead to FY24 EPS of Rs.30+. Buy.

Chennai Petroleum shares are being bought by interested parties as this Indian Oil subsidiary has notched FY23 EPS of Rs.231. Add for good returns.

Geekay Wires notched 204% higher FY23 EPS of Rs.26, which may lead to FY24 EPS of Rs.45. Buy.

KKR's Highways Infrastructure Trust may acquire 12 road projects from PNC Infratech for Rs.9000 cr. in addition to its order book of Rs.15676 cr. as at FY23. Add.

PFC recorded FY23 PAT of Rs.15889.33 cr. while it is available at market cap of Rs.51984 cr. The book value of its share is Rs.319. Accumulate.

Hindustan Oil Exploration posted FY23 NP of Rs.194 cr. from Rs.20 cr. YoY. It is plans to drill 18 wells in Arunachal to increase its production. Keep it on your radar.

ITD Cementation’s FY23 PAT rose 80% and FY24 looks more promising. It has huge orders on hand worth Rs.20044 cr. Add for good returns.

Anantraj’s FY23 NP zoomed 176% and it has aggressively ventured into the Data Centres business, which is a highly profitable rental business. Add.

Texmaco Rail’s Q4FY23 PAT zoomed 222%. It has bagged an order for 20067 wagons worth Rs.6450 cr. and more big orders are in pipeline. In FY24, a growth of 30-35% is expected due to huge order book. Add,

TAJ GVK Hotels posted 706% higher PAT in FY23. Its share trades at a P/E of 18.6x which is the cheapest compared to EIH, Chalet Hotels, Lemon Tree Hotels etc. Add for hefty gains.

NTPC made 52-week high on 30th June with big volumes and is likely to hit double century very soon. Keep it on your radar.

Himatsingka Seide’s Q4PAT rose 178% to Rs.22.35 cr. from Rs.8 cr. in Q4FY22. Its Q1FY24 profit is likely to improve further due to sharp decline in cotton prices. Add.

Shilp Gravures recorded PAT of Rs.7.81 cr. HNI Ashok Lodha holds 2.42%, S. D. Patel holds 1.44% and M. Lodha holds 1.43%. The share is at very attractive valuation cum 21% dividend. Add.

Friday market rumours had it that Poonawala Fincorp or Blackstone group may take a stake in Indiabulls Hsg. Finance. If this happens, it can cross its 52-week high of Rs.159. Add.

Sigachi Ind. will issue 1,10,00,000 convertible warrants at Rs.261 to the promoters and certain non-promoter entities. Add for good returns.

Gulshan Polyoils CMP is below its QIP price of Rs.326. In FY23, a huge capex revalued its fixed assets from Rs.200 cr. to Rs.800 cr. Its new grain based Ethanol plant of 500 KLPD capacity is operational. Add for hefty gains.

NRB Bearing’s Q4 PAT rose 93% from Rs.17.46 cr. in Q4FY22. The promoters bought 132716 shares on 23rd June from the open market. HDFC Small cap Fund holds 9.25% stake in it. Add for good returns.

BDH Industries exports therapeutic formulations to over 60 countries and posted excellent results in FY23. It is available at very attractive valuation cum 40% dividend. Keep it on your radar.

Hariyana Ship Breakers notched Q4 EPS of Rs.6. Its P/BV is just 0.36x. It is a big beneficiary of the scrapping policy. The promoters hold 75% of the equity capital. Add for hefty gains.

Sinclair Hotels notched Q4 EPS of Rs.7.33 and a dividend of 75% has been declared. It recently did a buy-back at Rs.143. Buy for hefty gains.

FIIs are continuously raising their stake in NCC and Prakash Industries. Keep them on your radar.

Kuantum Papers has approved the capex projects for modernization worth Rs.285 cr. India’s Paper industry is expected to grow at a CAGR of 6.63% by 2028. Buy.

ThinkInk Picturez FY23 revenue rose 170% YoY. It has an inventory of 50+ stories which includes films, web series and TV shows that are to be rolled out in partnership with renowned M&E players. Add for good returns.

Mishtann Foods promoters recently increased their stake. It also reported stellar earnings for Q4FY23. Earlier, Nomura Singapore Ltd. ODI, increased its stake to 1.28%. Buy.

Rajesh Exports had signed a pact with the Karnataka Govt. for a 5 GWh lithium-ion cell factory for Rs.181 billion PLI programme to produce advanced chemistry lithium-ion cells. Add.

Suzlon Energy has 20 GW wind energy installations across 12647 wind turbines across 17 countries. Its order book stood at 652 MW as at FY23 and orders secured subsequently stand at 890 MW. Add for hefty gains.

Univastu India’s FY23sales rose 36.67% to Rs.80.13 cr. from Rs.58.63 cr. in FY22. Its EBITDA improved from Rs.12.84 cr. to 14.69 cr. and PAT grew from Rs.5.22 cr. to Rs.6.58 cr. which may rise t in coming years as it consistently bags new orders. Add.

Synoptics Technologies maiden in IPO on NSE SME opened on 30th June and will close on 5th July. Co. had a robust order book of Rs 28 cr. as of 31st May. Financially,it posted 57% growth in revenue and 137% in PAT in FY 22.

 Cressanda Solutions’ Rs. 49.30 cr. Rights Issue opened for subscription. Company has entered the A Group – a big positive for the stock with a long-term perspective.

Permanent Magnets share has quadrupled on use of magnets in electric cars. A hidden gem in the same space is Delta Magnets. At the CMP of Rs.77 with 52-wekk high/low of Rs.108/61, it could provide good returns. Add.

VFX players are enjoying a booming business. Prime Focus, an old and established VFX player, is a fundamentally strong company. Its stock trades at a P/E of just 10x. Keep it on your radar.

Keep Automotive Stampings on radar as it not only supplies to parent Tata Motors but also to other OEMs. Its 52-week high price is Rs.900+ whereas the stock trades at around Rs.400. Accumulate.

Welspun Enterprises which is into waste management, plans to double its revenues and profits in the coming two years. Add for the long term.

In a growing economy, financial services play a key role. Must look at Shriram Finance, which is diversifying after restructuring. A proven management track record and low valuation makes it attractive.

L&T Finance is restructuring its businesses. Again an attractive valuation

Also look at *Cholamandalam*. A trustworthy corporate house with consistent growth

Dhunseri Ventures is into PET resin, Fast Food chain & Infrastructure. It posted FY23 NP of Rs 542 cr. in FY23 with an EPS of Rs 155. Stock is trading below PE of 2x. With a strong balance sheet and all businesses doing well buy it for 50% returns in the short term.

Summit Securities, holding co. of the RPG group, is valued around Rs 7700 cr. but the stockis trading at 90% discount to its NAV of Rs 7000/ share whereas holding cos. of other groups trade between 50% to 75% discount only. It may cross 4 digit mark soon. Buy.

Money Times Talk is part of 'Money Times' publication.

Result Callendar

Result Callendar

SGX Nifty

 *SGX Nifty will start trading on NSE IFSC on July 3rd as GIFT NIFTY*

*Timings - 2 sessions*

1 - Morning - 6.30 am to 3.40 pm

2 - Evening - 4.35 pm to 2.45 am

last 𝟰𝟯 𝘆𝗲𝗮𝗿𝘀 𝗼𝗳 𝗱𝗮𝘁𝗮 𝗼𝗳 𝗦𝗘𝗡𝗦𝗘𝗫

Analysis of the last 𝟰𝟯 𝘆𝗲𝗮𝗿𝘀 𝗼𝗳 𝗱𝗮𝘁𝗮 𝗼𝗳 𝗦𝗘𝗡𝗦𝗘𝗫

🔰 There were around 𝟭𝟭,𝟬𝟬𝟬 𝘁𝗿𝗮𝗱𝗶𝗻𝗴 𝗱𝗮𝘆𝘀 in the last 43 years.

🔰 Observations on positive and negative return occurrences.

𝗗𝗮𝗶𝗹𝘆 - 53% time Positive and 47% time Negative.

𝗪𝗲𝗲𝗸𝗹𝘆 - 56% time Positive and 44% time Negative

𝗠𝗼𝗻𝘁𝗵𝗹𝘆 - 61% time Positive and 39% time Negative

 

𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆- 64% time Positive and 36% time Negative

𝗬𝗲𝗮𝗿𝗹𝘆 - 72% time Positive and 28% time Negative

𝟯 𝘆𝗲𝗮𝗿𝘀 - 89% time Positive and 11% time Negative

𝟱 𝘆𝗲𝗮𝗿𝘀- 96% time Positive and 4% time Negative 

𝟭𝟬 𝘆𝗲𝗮𝗿𝘀- 100% time Positive and 0% time Negative 

🔰 SENSEX delivered 𝟭𝟱.𝟱% 𝗖𝗔𝗚𝗥 returns over the last 43 years. 

🔰 𝗗𝗲𝗰𝗮𝗱𝗮𝗹 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 dispersion (CAGR)

𝟭𝟵𝟴𝟬-𝟭𝟵𝟵𝟬 - 21.6%

𝟭𝟵𝟵𝟬-𝟮𝟬𝟬𝟬 - 14.3%

𝟮𝟬𝟬𝟬-𝟮𝟬𝟭𝟬 -17.8%

𝟮𝟬𝟭𝟬-𝟮𝟬𝟮𝟬 - 8.8%.*              

2020~ 2022 - 24.8%

🔰 BSE Sensex returns 15.5%, if we add an average dividend yield of 1.4% for the last 43 years. 

At 16.9% compounding the value of BSE is actually around 𝘁𝗵𝗲 𝟴𝟬,𝟬𝟬𝟬 𝗹𝗲𝘃𝗲𝗹.🚀

🔰 Longest 𝗽𝗲𝗿𝗶𝗼𝗱 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 was from 1994 to 2003. 9 years in total.

🔰 Since 2002, in the last 18 years 𝗡𝗢 𝘀𝗶𝗻𝗴𝗹𝗲 𝟳 𝘆𝗲𝗮𝗿𝘀 𝗿𝗼𝗹𝗹𝗶𝗻𝗴 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 𝘄𝗲𝗿𝗲 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗿𝗲𝘁𝘂𝗿𝗻𝘀. 

This means since 2002 if you ever invested and kept money for a minimum period of 7 years then you would have 𝗻𝗲𝘃𝗲𝗿 𝗹𝗼𝘀𝘁 𝗺𝗼𝗻𝗲𝘆.

🔰 But what is most surprising and rewarding has been the performance of actively managed equity funds. Here are the data:

𝗖𝗮𝘁𝗲𝗴𝗼𝗿𝘆𝘄𝗶𝘀𝗲 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 𝗳𝗼𝗿 𝟮𝟬 𝘆𝗲𝗮𝗿𝘀 (𝗖𝗔𝗚𝗥)   

𝗛𝘆𝗯𝗿𝗶𝗱 - 15.96%

𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗲𝗱 -16.25%

𝗘𝗟𝗦𝗦 - 18.20%

**𝗔𝗹𝗹 𝗙𝘂𝗻𝗱𝘀 - 16.41%*

 ** excluding LIC/JM/Taurus/Quant MF schemes.

🔰 𝗦𝗘𝗡𝗦𝗘𝗫 𝘄𝗮𝘀 𝗮𝘁 𝟯𝟴𝟬𝟬 𝗶𝗻 𝗝𝘂𝗻𝗲 𝟭𝟵𝟵𝟲 (𝟮𝟲 𝘆𝗲𝗮𝗿𝘀 𝗯𝗮𝗰𝗸). 

In the last 26 years, average-ex MF delivered 18% CAGR. 

Had Sensex delivered as much as average MF schemes then the value of BSE Sensex should have been:

At 16.4% CAGR, SENSEX should be around 1,70,000 levels

At 18% CAGR, SENSEX should be around 2,38,000 levels.

Isn't this amazing !!!

SGX Nifty

 *SGX Nifty will start trading on NSE IFSC on July 3rd as GIFT NIFTY*

*Timings - 2 sessions*

1 - Morning - 6.30 am to 3.40 pm

2 - Evening - 4.35 pm to 2.45 am

Mutual Fund AUM

Size of India’s Mutual Fund industry in May (Total AUM in Rs. Lakh Crore): 🇮🇳📈

2023: 42.9

2022: 37.3

2021: 32.9

2020: 24.3

2019: 25.4

2018: 22.6

2017: 19.0

2016: 13.8

2015: 12.0

2014: 10.1

(AMFI)

SAVINGS RATES

GOVERNMENT HIKES SMALL SAVINGS RATES ||

GOVT HIKES SMALL SAVINGS RATES MARGINALLY BY 10 TO 30 BPS || RATES FOR PPF, NSC, KISAN VIKAS PATRA, SENIOR CITIZEN SCHEME, SUKANYA SAMRIDHHI SCHEME UNCHANGED

Muthoot Finance in Focus

Muthoot Finance in Focus

MUTHOOT MICROFIN LIMITED FILES DRHP WITH SEB

Muthoot Microfin is the 4th largest NBFC-MFI in India in terms of gross loan portfolio  

Co. plans to raise funds via IPO upto Rs. 1350 crore 

(Fresh + OFS)

FII and DII data

FII and DII data Cash segment 30th June 

FII net buy ₹ 6397 cr

DII net buy ₹1197 cr

Again Massive Buying from FII 

Infact both FII and DII on buying side that took Sensex, nifty , bank nifty and fin nifty to ATH

GST collection for June 2023

GST collection for June 2023 

🔸₹1,61,497 crore gross GST revenue collected for June 2023; records 12% Year-on-Year growth

🔸Gross GST collection crosses ₹1.6 lakh crore mark for 4th time since inception of GST; ₹1.4 lakh crore for 16 months in a row; and ₹1.5 lakh 7th times since inception

🔸Average monthly gross GST collection for Q1 of FY2021-22 is ₹1.10 lakh crore; FY2022-23 is ₹1.51 lakh crore; and FY2023-24 is ₹1.69 lakh crore, respectively

Source: PIB 

#icicidirect

FII and DII data

FII and DII data Cash segment 30th June 

FII net buy ₹ 6397 cr

DII net buy ₹1197 cr

Again Massive Buying from FII 

Infact both FII and DII on buying side that took Sensex, nifty , bank nifty and fin nifty to ATH

June Auto Sales

*June Auto Sales Estimates YoY (To be announced on 01st July 2023):*

*Ashok Leyland:* 17417 units versus 14531 units ( *Up 1.1%* )

*Tata Motors:* 77978 units versus 82570 units ( *Down 5.8%* )

*M&M Auto:* 62100 units versus 54096 units ( *Up 15.0%* )

*M&M Tractor:* 40980 units versus 41848 units ( *Down 2.0%* )

*Maruti:* 1.68 lakh units versus 1.56 lakh units ( *Up 8.0%* )

*Hero Motocorp:* 5.1 lakh units versus 4.85 lakh units ( *Up 3.1%* )

*TVS Motors:* 3.24 lakh units versus 3.08 lakh units ( *Up 5.0%* )

*Bajaj Auto:* 3.50 lakh units versus 2.75 lakh units ( *Up 1.1%* )

*Eicher Motors RE:* 77000 units versus 61407 units ( *Up 24.8%* )

News and Impact

News and Impact 

 

 

      Favourable domestic economy data, impressive July series F&O rollover and persistent FIIs buying interest may open domestic market on a positive note. SGX Nifty is up over half percent or 100 points after previous day closed on a record high. In the US Mraket, better than expected US Q1 GDP data (up 2% while expectation 1.4%) and most of the US Banks cleared stress test (means well capitalized) lifted US market gained nearly 1%. However, US Dollar Index spiked to 1-month high to above 103 and rising US Bond yield after the US Labor Department data showed Thursday that US jobless claims fell last week by the most since 2021. Stronger-than-expected data on the US economy kept Wall Street on alert for further interest-rate hikes by the Federal Reserve. On the other hand, US Fed chairman Powell on Wednesday said policymakers could potentially raise interest rates in July and September. Back home, expects rally to continue due to improving domestic macroeconomic conditions, better corporate earnings and fall in monsoon deficiency will boosted the market sentiment. Traders focus on auto stocks ahead of monthly sales data to be announce next week. Banking stocks may positive after the RBI says thet the bad-debt ratios fall to decade low at Indian Banks.

 

·      US Market   –  U.S. stocks ended mixed on Thursday as fresh economic data indicated that U.S. growth remains resilient and the country's largest lenders passed the Federal Reserve's annual stress test. Dow Jones gained over half percent while Nasdaq Composite ended flat. However, Dow Jones ended flat after adjustment of last couple of days (Indian equity was shut on Thursday).

 

·      Global market summary – US Q1 GDP reported better than expected at 2% vs 1.3% (previous quarter) while expectation was 2%. Gold fell to 3 months low. US 2-Year and 10-Year Bond surged to nearly 1-month high. US Dollar Index surged to 1-month high to above 103.

 

·      Asian Market – Asian stocks open on a mixed bag to the last day of the quarter following a choppy session for US equities as Treasury yields soared on bets on further tightening by the Federal Reserve. Japan, Australia Index declined half percent each while Taiwan and South Korea Index marginally gain. Australian and New Zealand sovereign bond yields jumped about nine basis points in early trading, as the upward pressure on rates flowed through into Asia. Economists expect the Reserve Bank of Australia to hike rates at its meeting next week

 

·      European Market – European stocks ended mixed bag with banks outperforming after Wall Street peers passed the Federal Reserve’s annual stress test.  UK Index slipped 0.4% while France Index advance 0.4%. European equities have been stuck in a range recently, with the rally capped by worries about an economic slowdown as central banks drive home the message that rates will stay higher for longer.

 

·      Oil –  Crude oil futures prices gained on Thursday upon continuous support from bullish U.S. oil inventory data last week. Brent Crude is hovering at $74/bbl.

 

·      Gold – Gold is trading flat to $1908/ounce after intra-day fell to below $1900/ounce following US unemployment data that raised expectations for more tightening by the Federal Reserve

 

·      Previous Day market Update –  Bulls was back in the Dalal Street ring after a long time. Equity market scaled record high levels as across the major Index – Nifty, Bank Nifty, Fin-Nifty and Sensex surged to record high amid strong domestic cues were supported by gains in global markets. The benchmark index Nifty rose nearly a percent to hit its fresh all-time high level of above 19,000, while the Sensex also jumped to a record level, crossing 64,000-mark. Bank Nifty and Fin-Nifty soared to record above 44500 level and 19950 level respectively. Nifty took nearly seven months for the Nifty to cross its earlier record level of 18,887 hit on December 1 last year. Strong buying from foreign institutional investors (FII), improving domestic macroeconomic conditions, better corporate earnings and fall in monsoon deficiency boosted the market sentiment.  Auto, metal, FMCG, Pharma and IT stocks were major gainers today.  Nifty soared 154 points 0r 0.8% to close 18972 while touched intra-day high of 19011. Bank Nifty advance 206 points or 0.5% to close at 44327 while touched intra-day high of 44508. FIIs were net buyers Rs12350cr (Block deal on Adani Group) while DIIs were net sellers Rs1021cr previous day.

 

·      Nifty Technical Levels – Nifty formed a Bullish candle on daily scale and given a consolidation breakout of last ten trading sessions. 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 18888 zones to extend the move towards 19200 and 19250 zones while on the downside support exists at 18888 and 18777 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty overall trend is strong with buy on dips stance. Now it has to hold above 44250 zones for an up move towards 44500 then new life high of 44750 zones while on the downside support is seen at 44250 then 44044 levels Actionable BUY – IndiGo, Indian Hotel, SBI, Bajaj Finance,

 

·      Brokers Radar – CLSA TGT on Tata Motor at 700, 360 One TGT by Citi at 600, Morgan Stanley TGT on MCX at 1125, JEF MAN 1830, MCX TGT . Man Jef 1830, L&T TGT by  JP Morgan at 2900. TATA Motor TGT by Macquarie at  624 and Nomura TGT at 610. Bajaj Auto TGT by Macquarie at 4541 and Nomura TGT at 5223.   

 

·      Events – Wipro Buy-back final day, Fiscal Deficit and Eight Infrastructure Industries data, Aadhar PAN card link final day today.

 

·      Corporate Action  - Aegis Logistic Rs1.20, Alufluoride Rs2, Bajaj Auto Rs140, Bajaj Holding Rs13, Bajaj Finance Rs30, Bank of Baroda Rs5.50, Ddev Plastiks Industries Bonus 1:10, Glaxo Pharma Rs32, Maharashtra Scooter Rs60, Nippon Life Rs7.50 and Sona BLW Rs1.53 

 

·      Global Data – Personal Income and Personal Spending  (US). Quarterly GDP, Private Consumption and Export & Import (UK). Retail Sales, Unemployment Change and Exports & Import (Germany).  CPI, Consumer Spending and PPI (Germany). – Manufacturing PMI and Non-Manufacturing PMI (China).

 

·      Market Summary – Tata Communications to Acquire US-based Kaleyra for About $100, Sheela Foam to acquire rival Kurlon in Rs 3,250 cr deal: Report, Tejas Mk 2 to be ready for first flight by 2025 after HAL-GE Aerospace deal, Bandhan Bank triples its branch presence in less than 8 years, US-India Plan to Make Artillery Guns, Armored Vehicles, Govt approves PM-PRANAM to boost balanced use of fertilisers; Rs 3.68 lakh cr subsidy on urea till Mar 2025, Bad-Debt Ratios Fall to Decade Low at Indian Banks, RBI Says, MCX extends support services contract with 63 Moons for another six months at ₹125 crore per quarter, ICICI Securities to be 100% subsidiary of ICICI Bank upon delisting

 

·      Tata Communications – Company agreed to acquire US-based communications services provider Kaleyra for about $100 million. The acquisition will help Tata Communications expand its communications platform-as-a-service business globally.

 

·      Multi Commodity Exchange - Company has extended the support services being rendered by its existing software vendor, 63 Moons Technologies Ltd. for six months beginning from July 1, 2023. In a regulatory filing, MCX informed that the consideration for the same would be ₹125 crore per quarter. – Avoid

 

·      ICICI Securities - Company will delist and become a wholly-owned subsidiary of parent ICICI Bank. The company stated that the board of directors had approved the delisting plans and agreed on a share swap ratio. The public shareholders of ICICI Securities would be allotted 67 shares of ICICI Bank for 100 shares each of the brokerage firm

 

·      Focus on Banking stocks - Soured-debt ratios at Indian banks narrowed to the lowest in 10 years as the nation’s financial system remained resilient despite global headwinds, according to the Reserve Bank of India. The bad-loan ratio was at 3.9% of the total loans at the end of March 2023 compared to 5.9% in the previous year. The central bank expects the ratio to fall further to

·      3.6% by March 2024. – expects positive for SBI, Bank of Baroda, Union Bank, Canara Bank, Indusind Bank, RBL Bank

 

 

·      Focus on Fertilizer stocks – Government approved a new scheme PM-PRANAM to incentivise states to promote alternative fertilisers and reduce the use of chemical fertilisers and also decided to continue the current urea subsidy scheme for three years ending March 2025, with an outlay  of Rs 3.68 lakh crore.- Expects positive for Chambel Fertilizer, Coromandel, GNFC,  GSFC, RCF, FACT.

 

·      IPO Listing Sebi has approved a proposal to reduce the time period for listing shares for initial public offerings (IPOs) from 6 days to 3 days. The new timeline will be implemented in two phases, with voluntary compliance starting from September 2023 and mandatory compliance from December 2023.

 

·      SBI Life – Company re-appoint Sharma as MD and CEO - Positive

 

·      Focus on defence stock - The US and India plan to jointly manufacture artillery guns and armored personnel carriers, said the US Ambassador to India Eric Garcetti in New Delhi on Wednesday.- expects positive for BEL, Bharat Dynamic, Bharat Forge.

 

·      Sheela Foam to acquire rival Kurlon in Rs 3,250 cr deal: Report - Sheela Foam will fully acquire rival Kurlon Enterprise Ltd, buying 100 percent of the company in two tranches for a cash consideration of Rs 3,250 crore. Acquiring Kurlon Enterprise, maker of the Kurl-on brand of mattresses, will help Sheela Foam, known for the Sleepwell brand, nearly double its market share.- positive

 

·      Bharat Petroleum: The company’s board approved raising up to Rs 18,000 crore via rights issue. - positive

 

·      PowerGrid: The company approved an aggregate investment of Rs 388.94 crore. It will invest in establishment of Telecom network for NTAMC at an estimated cost of Rs 164.38 crore, Western Region expansion scheme at an estimated cost of Rs 115.09 crore – positive

 

·      HDFC: The company acquired 612 equity shares of Xanadu Realty, representing 5.46% of its paid-up equity share capital upon conversion of 938 compulsorily convertible debentures held by it in Xanadu – positive

 

·      Canara Bank: The bank approved Rs 7,500 crore by way of debt instruments. – positive

 

·      Tata Chemicals: Life Insurance Corporation increased stake from 5.06% to 7.12%.- positive

 

·      IPO Update - PKH IPO open today with Price band between 140-148. Idea forging IPO subscribed over 50 time

 

·      ITC – Company has completed the acquisition of an additional 857 compulsorily convertible preference shares of Rs10 each of personal care products brand Mother Sparsh Baby Care for Rs11.54cr. With this, the company’s shareholding in Mother Sparsh has increased to 26.50% from 22% - Positive

 

·      TVS Motor Ties Up with Zomato for Last-Mile Deliveries – Company partnered with food ordering platform Zomato for last-mile deliveries using electric vehicles. TVS Motors will deploy 10,000 scooters to fulfill deliveries for Zomato and ensure the delivery partners will have access to charging stations – positive

 

·      Hariom Pipe – Company has completed installation and commenced production from two new MS Pipe Mills at plant located at Mahabubnagar District. With this, the total installed capacity of MS Pipes has gone up to 1,32,000 MTPA from the current 84000 MTPA – positive

 

·      Nykaa -  FSN E-Commerce Ventures has approved the following investment proposals: - To make further investment up to Rs20cr in FSN International Pvt a wholly owned subsidiary of the Company, on rights basis; and to make further investment up to USD 2mn by FSN International in one of its overseas subsidiaries viz., Nessa International – Long term positive

 

·      Bandhan Bank – Company has achieved a milestone of tripling its branch presence in less than 8 years of its operations. The Bank now has a total of more than 1,500 bank branches – positive

 

·      Kamdhenu Ventures – company’s Board recommends Bonus Issue in the ratio of 1:1 – positive

 

·      BEML – Company wins 385cr order for supply of high mobility vehicle – positive

 

·      Promoter entities raise $1 bn by selling shares in Adani Green Energy, AEL -  The promoter entities of Adani group sold part of their stake in Adani Green Energy and flagship Adani Enterprises to raise $1bn The proceeds will be used by the promoters to pre-pay debt, banking sources said. About 4.8cr shares, or 3 per cent of total equity of Adani Green changed hands and 1.6 per cent stake or 18 million shares in AEL was sold via block deals to several investors. Total shares worth Rs 8,542 crore were sold.

 

·      Focus on Sugar stocks – Sugar cane price hike from Rs305 to 415/100kg – expects positive for Balrampor Chini,, Dhampur Sugar

 

·      Tejas Mk 2 to be ready for first flight by 2025 after HAL-GE Aerospace deal - Tejas Mk 2 light combat aircraft (LCA), which has faced delays, is expected to make its first flight in 2025 with an American engine. GE Aerospace has signed a deal with Hindustan Aeronautics Limited (HAL) to produce fighter jet engines.

 

·      Kamdhenu Ventures – Company has, considered, approved and recommended a Bonus Issue in the ratio of 1:1 – positive

 

·      IDFC FIRST Bank - Company has announced raising Rs. 1,500 crore of Tier-2 bonds in domestic Indian Bond markets.

 

·      Star Housing – Company announced the appointment of Kalpesh Dave as the Chief Executive Officer and Anoop Saxena as the Chief Operating Officer

 

·      Inflame Appliances – Company has bagged an order for 3650 Chimneys from LIVPURE PRIVATE LIMITED, Haryana amounting to Rs. 1.95 crores, and thereby expanding its customer base and adding one more milestone to its expansion. – positive

 

·      Gland Pharma - The US FDA has conducted Pre-Approval Inspection (PAI) for Seven (7) Products and Good Manufacturing Practice (GMP) Inspection at the Company's Pashamylaram Facility at Hyderabad between 15th June 2023 and 27th June 2023. The inspection was concluded with ONE (1) 483 Observation. – Avoid

 

·      Swan Energy – Company to raise Rs. 690 crore through preferential issue at Rs300 a share (CMP 256) – Positive

 

·      Ramco Cements – Company have commissioned Line III at its Ramasamy Raja Nagar of 3,000 TPD capacity of clinkerisation. This is the first integrated cement line, commissioned in the last 15 years in the South of Tamil Nadu. – positive

 

·      Pearl Global – One of the largest garment exporters has announced its strategic expansion into Guatemala, company has acquired a 55% stake in Pearl GT Holdco Ltd for a consideration of USD 550,000. – positive

 

·      Shalby Ltd – Company has signed an agreement with Divine Super Specialty Hospital Pvt. Ltd., a leading hospital in Ranchi having capacity of 60 beds, to establish a Franchise‐Owned Shalby‐Managed (FOSM) hospital in the region. – positive

 

·      PNC Infratech – Company signing of a concession road agreement projects  between Ministry of Road Transport & Highways Govt of India for implementation of the Hybrid Annuity Mode (HAM) road Project in  Uttar Pradesh – positive

 

·      ICICI Lombard and ICICI Prudential Life – Both companies have jointly launched an insurance solution, 'iShield', which will provide customers with both health and life insurance.- positive

 

·      South Indian Bank – Company signed an MOU with Mahindra and Mahindra Ltd (Automobile division) for providing the latter's dealers with financing solutions.- Positive

 

·      ZIM Laboratories – Company has announced strategic investments in Australia and the MENA region to expand its presence in Developed and Pharmerging markets. – positive

 

·      Zydus Lifesciences – Company has received tentative approval from the USFDA for Palbociclib Tablets - positive

 

·      Focus on Real Estate stocks - Home prices up 14.7% in June quarter in top cities: ET Report - Expects positive for real estate stocks after the media report that the robust demand has helped residential property prices across India's top 13 cities witness 14.7% growth from a year ago and 2.2% rise sequentially during the quarter ended June 30, showed a Magicbricks PropIndex report. Expects positive DLF, Oberoi Realty, Godrej Properties, Prestige Estate and Lodha

 

 

 

Derivatives update

*Derivatives update*

Good morning !!

Derivatives update for Friday, 30th June 2023.

India VIX was up by 1% from 10.78 to 10.88 levels. Volatility is holding below 11 zones which is supporting the bulls.  

Nifty *Put/Call Ratio* (OI) increased from 1.21 to 1.41 level. 

Since it’s the beginning of the new series, Option data is scattered at various far strikes in monthly series. On weekly front, Maximum Call OI is at 19200 then 19300 strike while Maximum Put OI is at 18900 then 18800 strike. Minor Call writing is seen at 19300 then 19200 strike while Put writing is seen at 18900 then 18800 strike.

*Option data suggests a broader trading range in between 18600 to 19300 zones while an immediate trading range in between 18750 to 19200 zones.*

For weekly Bank Nifty, Maximum Put OI is at 44000 then 43000 strike and maximum Call OI is placed at 44500 then 45000 strike. We have seen minor Call writing at 44500 and Put writing is witnessed at 44500 strike as well.

Bank Nifty Put Call Ratio decreased from 1.46 to 1.19. Implied volatility rose from 12.04 to 12.40 levels.

Bank Nifty (CMP 44,327.8)

Data setup for Bank Nifty suggests a trading range in between *44044/44250 to 44500/44750 zones.*

Looking ahead at the FII’s derivatives activity, there was position unwinding in index futures, index options and stock futures.

In the cash market, FIIs were net buyers to the tune of 12350 crores while DII’s were net sellers worth 1021 crores. FIIs Index Long Short Ratio increased to 66.42%.

Derivatives data and price set up suggests, Nifty has to continue to hold above 18888 zones to extend the move towards 19200 and 19250 zones while on the downside support exists at 18888 and 18777 zones.

Bank Nifty has to hold above 44250 zones for an up move towards 44500 then new life high of 44750 zones while on the downside support is seen at 44250 then 44044 levels.

Thank you. Have a great trading day and weekend ahead..!!