Share Market Highlights September 10, 2024: Sensex gains 361 pts, Nifty settles above 25,000

The 30-share BSE Sensex climbed 361.75 points or 0.44 per cent to settle at 81,921.29 driven by gains in IT, telecom and select banking shares. During the day, it jumped 637.01 points or 0.78 per cent to 82,196.55.

The NSE Nifty surged 104.70 points or 0.42 per cent to 25,041.10. 

Foreign Institutional Investors (FIIs) bought equities worth ₹1,176.55 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth ₹1,757.02 crore.

Global oil benchmark Brent crude declined 1.39 per cent to $70.84 a barrel.

The BSE benchmark Sensex rebounded 375.61 points or 0.46 per cent to settle at 81,559.54 on Monday. The NSE Nifty went up by 84.25 points or 0.34 per cent to finish at 24,936.40 after three days of fall. (PTI)

HDFC Life (-4.40%), SBI Life (-2.46%), Shriram Finance (-1.80%), Bajaj Finserv (-1.75%), Bajaj Finance (-1.41%)

Divi’s Lab (5.23%), LTIMindtree (3.02%), NTPC (2.39%), Bharti Airtel (2.23%), Wipro (2.02%) 

Kaya Ltd has received the Demand Order under Section 129 of the CGST Act, 2017 on account of difference in invoice number mentioned in e-way bill amounting to penalty of ₹3,91,561. 

Shares were up 3.18% on the NSE, trading at ₹475.

Top gainers:

Divi’s Lab (4.46%), LTIMindtree (3.01%), Bharti Airtel (2.27%), Wipro (2.04%), PowerGrid (1.77%)

Top losers:

HDFC Life (-4.37%), SBI Life (-2.49%), Bajaj Finserv (-2.05%), Shriram Finance (-1.88%), Bajaj Finance (-1.47%)

Stocks advanced on BSE at 3 pm on September 10, 2024, were 2,551 against 1,350 stocks that declined, and 121 remained unchanged. Total stocks traded were 4,022. The number of stocks that recorded a 52-week high was 268, and those that hit a 52-week low was 29. 

A total of 344 stocks traded in the upper circuit, and 226 in the lower circuit.

Zydus Lifesciences announces completion of Phase II(a) clinical trial of Usnoflast, a novel oral NLRP3 inflammasome inhibitor in patients with Amyotrophic Lateral Sclerosis (ALS).

Shares inched up 0.85% on the NSE, trading at ₹1,113.55.

Century Textiles & Industries has acquired the ownership rights in its leasehold land parcel situated at Worli, Mumbai. 

Shares surge 4.10% on the NSE, trading at $2,451.55.

Inflows into equity mutual funds have increased three per cent last month to ₹38,239 crore against ₹37,113 crore logged in July. Investment in thematic funds jumped to ₹18,117 crore (₹18,386 crore) on back of new fund offer.

The industry collected ₹10,202 crore (₹13,735 crore) through 5 thematic funds. In all, 18 NFOs have collected ₹13,815 crore (₹16,565 crore) last month.

Flexi and small cap funds attracted the highest inflow of ₹3,513 crore (₹3,053 crore) and ₹3,209 crore (₹2,109 crore).

Indian stock markets rallied on Tuesday afternoon, with the benchmark Sensex surging over 500 points, driven by gains in IT stocks and positive global cues. The Sensex was trading at 82,095.97, up 536.43 points or 0.66 per cent from its previous close, while the Nifty50 index climbed 162.25 points or 0.65 per cent to 25,098.65.

Associated Alcohols & Breweries Ltd (“AABL”) said NICOBAR gin has been awarded the “BRONZE MEDAL” in the best contemporary gin at the awards organised by San Francisco World Spirits Competition (“SFWSC”).

Gulshan Polyols has informed the receipt of allocation for supply of Ethanol to OMCs under Ethanol Blended Petrol Programme (EBPP) for Quarter 4 of ESY 23-24’

Gulshan Polyols shares rose 2.21% to ₹235.71 on the NSE

The host of measures suggested by the market regulator SEBI to strengthen index derivatives has put traders in a bind. SEBI is expected to announce the new norms soon, as the last date for public comments on the consultation paper was August 20.

SEBI’s consultation paper proposes measures including increasing contract sizes by up to four times, collecting options premium upfront, and reducing the number of weekly contracts.

If you’re planning to buy a house in a preferred location, there’s no need to worry about additional GST. The GST Council has clarified that the Preferred Location Charge (PLC) is considered part of the composite supply with construction services.

Close on the heels of Centre notifying ‘deal value threshold’ provisions under Competition law, the Competition Commission of India (CCI) has come out with comprehensive ‘Combination’ regulations to guide their implementation. 

GHCL has received a notice from GST department, Noida, relating to the period from April 2023 to March 2024, alleging that it has made excess claim of ITC (Input Tax Credit) of Rs. 46.01 lakh and advised to file reply by September 25, 2024.

Shares were up 2.44% on the NSE at ₹676.15.

HG Infra Engineering shares rise 4.21% on the NSE, trading at ₹1,522.35. Company had received a letter of award from Ministry of Road Transport and Highways for upgradation of existing six lane road including elevated corridor.

The Awfis Space Solutions board had executed a business transfer agreement with SMS Integrated Facility Services Pvt. Ltd. for the divestiture of its Facility Management Division, Awfis Care for ₹27.5 crore. 

Awfis Space stock surges 4.16% on the BSE to ₹788.10.

Bajaj Housing Finance a subsidiary of Bajaj Finance, is largest non-deposit taking HFC in India. It is targeting a valuation of Rs 582.9 billion and plans to raise $782 million. Bajaj Housing Finance plans to expand its operations to reach more customers across India. It plans to improve customers experience and reduce operation cost by leveraging on technology. Indian home mortgage likely to show remarkable growth, hence, improving technologies will lead to an increase in income. Consequently, the next few years are anticipated to yield favourable financial outcomes for housing finance companies (HFCs) and non-banking financial companies (NBFCs). 

We advise to go for Bajaj Housing Finance IPO for long term perspective.

Tata Power Delhi Distribution (Tata Power-DDL) and Nissin Electric Co will all start a demonstration project to supply electricity from India’s first micro substation, ensuring stable power for remote areas without a power grid.

Maharashtra’s soybean farmers are grappling with falling prices, as market rates in several Agricultural Produce Market Committees (APMCs) have dropped below the Minimum Support Price (MSP) of ₹4,892 per quintal fixed by the Centre for the 2024-25 crop year. The State government has now urged the Centre to impose import duties on edible oil, soya milk and cake.

Aluminium prices are attempting to recover after falling sharply last week. The aluminium futures contract on the Multi Commodity Exchange (MCX) has risen back well from the low of ₹217.15 per kg. It is currently trading at ₹221 per kg. Read more

Welspun Living has approved equity investment not exceeding Rs. 1.15 crore for acquiring/ maintaining up to 49% equity share capital of Welspun Bhargavi Private Limited (“WBPL”), a Special Purpose Vehicle, for setting-up of 2 MWp Solar Power Plant for the company’s flooring (SPC) facilities and 2.60 MWp Solar Energy Plant to its wholly-owned subsidiary Welspun Advanced Materials (India) Limited’s manufacturing facilities at Telangana, by the financial year 2025. The Company proposes to enter into the Power Purchase Agreements (with Take or Pay arrangement) with WBPL for the supply of Renewable Energy for a period of 25 years with an interest-free security deposit not exceeding Rs. 0.65 Crore.

Welspun Living stock rises 1.36% on the NSE, trading at ₹186.25.

CG Power and Industrial Solutions gets demand order from Joint Commissioner (Appeals Bhopal), Madhya Pradesh under CGST Act, 2017, imposing penalty of ₹1,66,715/- on account of Trans-1 credit disallowed for the FY 2017-18. 

Shares trade flat on the NSE at ₹670.

The FICCI-IBA survey of Banks shows that customers’ search for higher-yielding investments and the ability to lock those interest rates for a longer time has led to a shift from low-cost to high-cost deposits, thereby increasing deposit costs for lenders. 

More than two-third of respondent banks (67%) reported a decrease in the share of CASA deposits in total deposits in the current round of survey.

Credit growth is outpacing deposit growth, which could lead to liquidity challenges for the banking system, according to the FICCI-IBA Survey of Banks. Raising deposits to keep pace with loan growth and keeping the credit cost low remains on the top of banks’ agenda.

Shares of GMR Airports Infrastructure Ltd rise 1.14% on the NSE, trading at ₹91.93. Company had entered into a share purchase agreement with Fraport AG Frankfurt Airport Services Worldwide for acquiring the latter’s 10 per cent holding in Delhi International Airport Ltd (DIAL) for $126 million

MIC Electronics Ltd has received a Letter of Acceptance from the Salem Division of the Southern Railway Zone for the provision of telecom-based passenger amenities at SGE, SA and provision of FIOSNET at ELS, Erode, for ₹1,33,08,976.53. 

Shares rises 1.55% on the NSE, trading at ₹81.90.

Servotech Power Systems Ltd. has secured a substantial contract to build 11 DC Fast EV charging stations from Bangalore Electricity Supply Company Ltd (BESCOM). This contract involves Servotech installing public electric vehicle (EV) charging stations at 11 Regional Transport Office (RTO) premises across Karnataka

Servotech Power Systems stock rose 2.53% on the NSE, trading at ₹143.66.

Jash Engineering Limited announced in August that it has secured ₹49 crore worth of new orders. The company revealed today that ₹32 crore of these orders are for international markets, while ₹17 crore are for the Indian market.

Infosys and Proximus Group announced a strategic collaboration today to enhance digital services and unlock new business opportunities. The partnership will leverage Proximus Group’s Digital Identity (DI) and Communications Platform as a Service (CPaaS) solutions, combined with Infosys’ digital services. 

Top gainers: Divi’s Lab (3.42%), LTIMindtree (2.90%), Infosys (1.67%), Bharti Airtel (1.54%), Power Grid (1.51%)

Top losers: HDFC Life (-3.75%), Bajaj Finserv (-2.15%), Shriram Finance (-2%), SBI Life (-1.97%), Bajaj Finance (-1.63%)

Of a total of 3,898 stocks traded on the BSE at 12 noon on September 10, 2024, 2,588 advanced against 1,191 stocks that declined, and 119 remained unchanged. While 235 stocks recorded a 52-week high, 26 hit a 52-week low. 

A total of 272 stocks traded in the upper circuit, and 204 in the lower circuit.

Crude oil futures traded marginally lower on Tuesday morning as bearish sentiments prevailed over demand for the commodity among the participants of the Asia Pacific Petroleum Conference (APPEC) in Singapore. 

Bank Nifty index is managing to hold above 51,000. However, the index seems to lack strong follow-through buying. The index is currently trading at 51,158, up 0.08 per cent. The advances/declines ratio is at 7:5. This leaves the bias positive. Read more

“With India’s PE amongst the highest in emerging markets, it is time to look at fundamentally priced credit as a choice of assets, for a balanced approach by Investors. Within the credit, the private credit is today more suitably placed to serve the superior risk adjusted returns to Investors. It is so because of growing product innovation and scale in Private credit (accredited to more participants), increasing acceptability (by having more and more mid cap and emerging companies accessing the private credit) and more conducive regulations. Add to above, is the growing demand for capital by Indian corporate sector, we may witness interim dip in earnings but in long run, credit is poised for growth as our equity has achieved, since to deliver RoE companies need to grow. In emerging scenarios, private credit will find more traction due its relatively better ability to withstand the risks by virtue of its structuring capability and focused portfolio management

Infosys and Proximus Group, Belgium’s leading digital services and communication solutions provider, have announced a strategic collaboration and will focus on a joint go-to-market approach that will use best-in-class products of Proximus’ International affiliates, including Route Mobile’s Communications Platform as a Service (CPaaS) and Telesign’s Digital Identity (DI) solutions.

Infosys shares rise 1.60% on the NSE, trading at ₹1,924.95.

Bajaj Housing Finance IPO has been subscribed 2.89 times as of 10.54 am on September 10, 2024. The QIB portion has been subscribed 1.08 times, NII portion 6.41 times, retail 2.29 times, those reserved for employees 0.56 times, and the reservation portion shareholder 4.32 times. The issue closes on Sept 11.

TCS signs deal to digitally transform Mansfield Building Society Services in the UK

TCS shares were up 1.04% on the NSE, trading at ₹4,495.85.

Infosys and Proximus Group, Belgium’s leading digital services and communication solutions provider, have announced a strategic collaboration and will focus on a joint go-to-market approach that will use best-in-class products of Proximus’ International affiliates, including Route Mobile’s Communications Platform as a Service (CPaaS) and Telesign’s Digital Identity (DI) solutions.

Infosys shares rise 1.60% on the NSE, trading at ₹1,924.95.

Bajaj Housing Finance IPO has been subscribed 2.89 times as of 10.54 am on September 10, 2024. The QIB portion has been subscribed 1.08 times, NII portion 6.41 times, retail 2.29 times, those reserved for employees 0.56 times, and the reservation portion shareholder 4.32 times. The issue closes on Sept 11.

Insecticides India Limited-Buyback_Record Date Tomorrow 

Route – Tender 

Buyback Price: 1,000/- 

Current Market Price: 957/-

Market Cap: Rs 2,834 Crore 

Buyback Size: Rs 50 Crores (Being less than 10% of the total paid up equity share capital and free reserves) 

Buyback Size: 5,00,000 shares (Representing 1.69% of O/s. shares) 

Retail Quota: 75,000 Shares

Last Cum Trading Date: 10 Sep 2024 (Today)

Ex-Date: 11 Sep 2024

Buyback Record Date: 11 Sep 2024

Buyback Schedule: Not Yet Announced

Route – Tender 

Buyback Price: 1,200/- 

Current Market Price: 1,093/-

Market Cap: Rs 8,512 Crore 

Buyback Size: Rs 160 Crores (Representing 9.11% and 8.24% of the total paid up equity share capital and free reserves) 

Buyback Size: 13,33,333 shares (Representing 1.72% of O/s. shares)

Retail Quota: 2,00,000 Shares

Entitlement:

General Category - 12 Equity Share for every 763 Equity Shares held on the Record Date

Retail Category - 9 Equity Shares for every 71 Equity Shares held on the Record Date

Buyback Record Date: 04 Sep 2024

Tender Period:

Start Date - 10 Sep 2024 (Today)

Close Date - 17 Sep 2024

Obligation Date - 23 Sep 2024 

Settlement Date - 24 Sep 2024

ICRA expects the Indian IT services industry to see a second consecutive year of mild revenue growth, estimated at 4-6% in FY2025. Despite persisting challenges, ICRA projects the industry’s operating profit margin (OPM) to remain healthy at ~22% in FY2025, with attrition levels having declined considerably and expected to stabilise over the near term. Despite expectations of continued subdued growth, ICRA maintains its Stable outlook on the Indian IT services industry, led by a well-established business position, expectation of healthy earnings and cash flow generation, and strong balance sheets of the industry players.

Jash Engineering, in August 2024, received consolidated orders worth ₹49 crore, of which orders worth ₹17 crore are for the Indian market and orders worth ₹32 crore are for markets outside India. 

Shares slip 0.66% on the NSE, trading at ₹2,016.80

AGS Transact Technologies has implemented and commenced managing the Prepaid Card Platform for ‘XtraPower’, the fuel and fleet management programme of Indian Oil Corporation Ltd (IOCL). AGS Transact will receive a fixed fee for these services, generating an estimated revenue of approximately ₹58 crore over five years. 

AGS Transact Technologies stock rises 3.36% on the NSE, trading at ₹109.63.

US and Indian markets rallied Tuesday morning, driven by bargain hunting and optimism ahead of key economic data releases. The Nifty opened at 24,999.40, up from Monday’s close of 24,936.40, while the Sensex started the day at 81,768.72, rebounding from its previous close of 81,559.54. 

Track live updates here

The median level of general government (GG) debt/GDP among sovereigns in the Asia-Pacific (APAC) will rise in 2024-2026, with an upward trajectory among both developed and emerging markets, says Fitch Ratings. Limited progress on fiscal consolidation will flatter the region’s economic growth performance relative to other regions with more fiscal consolidation.

Many APAC governments have prioritised growth and cushioning the public from the effects of the global inflation spike over reducing budget deficits since the Covid-19 pandemic. The median level of GG debt/GDP among rated sovereigns in the region was 51.2% in 2024, well above the 38.3% level in 2019.

“The council has taken various rate rationalisation measures like reduction of GST on cancer drugs from 12% to 5%, namkeens, sharing helicopters for pilgrimage which will lessen the burden on consumers. Council has also decided that foreign airlines will be exempt from GST on services imported from related parties which will help in settling ongoing litigations. For B2C transactions, e-invoicing will be introduced on a voluntary basis which will allow consumers to check invoices and also help foreigners to claim refunds of the GST paid in India. GOM has been established to work out lower rates on insurances including medical, group and health. To curb revenue leakage on metal scrap, GST under RCM is proposed. The new regime for the gaming sector has given a boost to the GST collections and is up around 412% on a 6 months comparative basis

Jefferies has issued a “Buy” call on GMR Airports, setting a target price of ₹106, citing the Delhi International Airport (DIAL) deal as attractively priced. The brokerage notes that over 50% of its valuation for GMR Airports in its sum-of-the-parts (SOTP) valuation comes from DIAL, in which the Airports Authority of India (AAI) will retain a 26% equity stake. However, Jefferies has not yet reviewed the SOTP valuations for GMR, given that the deal is still in the closing phase.

IREDA shares surge 5.16% on NSE, trading at ₹234.69. Company had inked initial pacts with SJVN and GMR Energy for the development and implementation of the 900 MW Upper Karnali hydro-electric project in Nepal.

SJVN shares rose 3.11% on the NSE, trading at ₹130.13.

https://play.google.com/store/apps/details?id=com.intelegain.rb

Recent Interview...

As of 18:34 PM Monday 09 September 2024

Ashiana Housing: Varun Gupta, Director

Expect Remaining Units Of Ashiana Amarah-Phase 4 To Be Sold At Higher Prices

https://www.youtube.com/watch?v=wHWzwwiTjLY

DreamFolks: Liberatha Kallat, MD

Maintain FY25 Guidance For Revenue Growth At 20%, Gross Margin At 11-13%: DreamFolks

https://www.youtube.com/watch?v=PW8onrY8TQI

KPIT: Sachin Tikekar, President

KPIT Tech’s EV Plans Charging Ahead With India’s ‘EV’olution | Sachin Tikekar On World EV Day

https://www.youtube.com/watch?v=fgHd31GZKWw

NHPC: Raj Kumar Chaudhary, CMD

NHPC: More Than 50,000 MW Capacity Projects Underway, What’s The Growth Plan For FY25?Shri Raj Kumar

https://www.youtube.com/watch?v=GvGcZ6bQYsw

RBL Bank: Bikram Yadav, Biz Head-Credit Cards

Have Signed Multiple Co-Branded Partnerships Avoid Concentration Risk In Our Sourcing Of Cards: RBL

https://www.youtube.com/watch?v=oIglfYq7ipk

Suzlon Energy: Girish Tanti, VC

Suzlon Bags India’s Largest Wind Energy Order; To Execute Project Across 3 Sites

https://www.youtube.com/watch?v=IxtXsXm_z9A

SIS: Dhiraj Singh, CEO

SXP Business Will Continue To See Margin Pressure For The Next 2 Quarters: SIS

https://www.youtube.com/watch?v=Nhicd6E0Itk

Senco Gold Limited: Suvankar Sen, CEO

Will Invest ?50-60 Crore In Non-Jewellery Business Initially: Senco Gold & Diamonds

https://www.youtube.com/watch?v=1JxGgHsylG8

S P Apparels: P Sundararajan, CMD

Retailers Are Moving From Bangladesh To India & Other Countries: SP Apparels

https://www.youtube.com/watch?v=imxMwVhg3A8

Tilaknagar: Amit Dahanukar, CMD

Expect Brandy Volume To Still Dictate Growth For Next 3 Years: Tilaknagar Industries

https://www.youtube.com/watch?v=7p3CueQqJnk

Events today…

https://www.researchbytes.com/Default.aspx?cc=event

Results today…

https://www.researchbytes.com/Default.aspx?cc=result

Replays available at www.researchbytes.com

JSW Neo Energy Ltd, a wholly-owned subsidiary of JSW Energy, has received a letter of award for setting up a 600 MW Wind-Solar Hybrid Power Project, including 400 MW allotted under a green shoe option, from the Maharashtra State Electricity Distribution Company Ltd.

JSW Energy shares rose 1.99% on the NSE, trading at ₹745.30

The proposed merger of three Gujarat government energy companies with Gujarat Gas will help synergise and ensure a long-term sustainable future for the new entities born out of the process, said Milind Torwane, managing director of Gujarat Gas. However, once the merger concludes, the four-decade-old Gujarat State Petroleum Corporation (GSPC) will cease to exist.

Top gainers: Divi’s Lab (2.38%), Hero Motocorp (1.82%), Bharti Airtel (1.52%), Power Grid (1.25%), Axis Bank(1.21%)

Top losers: SBI Life (-2.53%), HDFC Life (-2.26%), Bajaj Finserv (-1%), Shriram Finance (-0.65%), M&M (-0.63%)

Crude oil futures traded lower on Tuesday morning as bearish sentiments prevailed over demand for the commodity among the participants of the Asia Pacific Petroleum Conference (APPEC) in Singapore. At 9.24 am on Tuesday, November Brent oil futures were at $71.77, down by 0.10 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $68.56, down by 0.22 per cent. September crude oil futures were trading at ₹5770 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5776, down by 0.10 per cent, and October futures were trading at ₹5735 against the previous close of ₹5739, down by 0.07 per cent.

1. Rates Reduced

1.1 Namkeens and Extruded/Expanded Savoury Food Products: GST rate reduced from 18% to 12% for certain savoury food products.

1.2 Cancer Drugs: GST rate reduced from 12% to 5% on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

2. Rates Increased

2.1 Car and Motorcycle Seats: GST rate increased from 18% to 28% on car seats to bring parity with motorcycle seats.

3. New Section to be Inserted

3.1 Section 128A of CGST Act, 2017: Introduction of procedures for waiver of interest or penalty under section 73 for FYs 2017-18, 2018-19, and 2019-20.

4. New Rule to be Inserted

4.1 Rule 164 in CGST Rules, 2017: Provides procedure and conditions for waiver of interest or penalty under section 128A of CGST Act, 2017.

5. Clarifications

5.1 Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways: Classified under HSN 8415 with 28% GST.

5.2 Life and Health Insurance: A Group of Ministers (GoM) will examine GST on life and health insurance.

5.3 Flying Training Courses: GST exemption clarified for DGCA-approved courses.

5.4 Preferential Location Charges (PLC): Clarified that PLC forms part of composite supply with construction services.

5.5 Affiliation Services: Clarification on the taxability of affiliation services provided by educational boards and universities.

5.6 Ancillary/Intermediate Services by GTA: Clarification that services provided by GTA in the course of transportation constitute a composite supply.

5.7 Import of Services by Branch Office: GST exemption clarified for services imported by foreign airline companies without consideration.

6. Others

6.1 Reverse Charge Mechanism (RCM): Introduced on the supply of metal scrap and renting of commercial property by unregistered persons.

6.2 B2C E-Invoicing: Pilot rollout recommended for selected sectors and states.

6.3 Invoice Management System (IMS): Introduction of new ledgers, including a Reverse Charge Mechanism (RCM) ledger and an Input Tax Credit Reclaim ledger.

6.4 Film Distribution Services: GST liability for past periods regularised where the distributor acts on a principal basis.

6.5 Electricity Supply Services: Exemptions provided for certain ancillary services related to electricity supply.

7. New Recommendations

7.1 Group of Ministers (GoM) on Compensation Cess: Formation recommended to study the future of compensation cess.

Jefferies on Axis Bank

Buy Call, Target Rs 1,500

Credit Cost To Normalise; Prefer NIMs Over Growth

Co Reassured That Surge In Credit Costs In Q1 Can Normalise

Credit Cost To Normalise Even As Conservative Provisioning Policy On Unsecured Loans Upfronts

Deposit Growth Is Slower But Bank Is Managing Funding-Cost Better That Helps To Holdon To NIMs

Steps On Premiumisation & Corporate Salary Clients Will Steadily Improve Deposit Franchise

Valuations Are At Discount To Peers; It Stays Among Top Picks

CLSA on ICICI Bank

Outperform Call, Target Rs 1,500

Bank Well Placed On Deposits And Does Not Expect The Cost Of Deposits To Rise Materially

NIM Is Likely To Be Stable & Rate Cut Would Only Result In A Temporary NIM Compression

Bank Is Not Guiding Any Cost-To-Income Ratio Level But It Is Aiming To Deliver Profitable Growth

Jefferies on GMR Airports

Buy Call, Target Rs 106

See The Delhi International Airport Deal As Attractively Priced

Airports Authority Of India Would Continue To Holds 26% Equity Stake Of DIAL

We Haven’t Reviewed SOTP Valuations For Co As Of Now, Given The Deal Is Amid Closure

Over 50% Of The Valuation For GMR Airports In Our SOTP Comes From DIAL

Kotak Inst Eqt on GMR Airports

Sell, TP raised to Rs 74 to incorporate last 2 big surprises, potentially—GAL winning Delhi Duty-free biz & stake consolidation in DIAL

However, need to look beyond naïve approach of considering GMR Airports as monopolistic play on non-aero growth

MOSL on IT

Top Picks Are 

HCLTech (Target Rs 2,200)

LTIMindtree (Target Rs 7,400)

Persistent (Target Rs 6,300)

Upgrade Coforge To Buy, Target Rs 8,100

IT Services Sector Could Be On Cusp Of Recovery

Estimate HCLTech To Lead Revenue Growth Among Large Caps Over Next Three Years

Positive Outlook On LTIMindtree Is Based On Its Best-in-class Offerings In Data & ERP Modernisation

Persistent Sys, With Its Strong Product Engineering Background, Remains Fastest-Growing IT Svcs Co

Persistent Sys Well-Positioned To Benefit From Long-Term GenAI Investments

Believe Coforge Can Leverage Synergies From Cigniti

Healthy Growth In Coforge’s Executable Orderbook Bodes Well For Its Core Business

MS on Dixon Tech

Equal-Weight Call, Target Rs 8,696

HP India Is The Third Large Customer That Co Has Onboarded In The IT Hardware Segment

HP Enjoys 28-30% Market Share In India’s Desktop And Notebook Segment

Lenovo And Acer Have Around 15% Each Market Share

MS on Suzlon Energy

Overweight Call, Target Rs 73.4

NTPC Project Scope Includes Supply Of Turbines, Erection & Commissioning And O&M

The Large Contract Offers Improved Earnings Visibility For FY26-27

HSBC on Life Insurance

Industry’s Individual APE Growth Moderated To 10% Vs 18-19% YoY Run-rate In Previous 3 Months

Growth Slowdown Was Sharper For Large Insurers Vs Small Insurers

Growth In Number Of Policies Sold Also Moderated

ICICI Pru’s Individual APE Growth (29%) Remained Faster Than Industry’s

HDFCLIFE Continued Its Healthy Growth In NoPs

Nomura on Life Insurance

Growth Was Soft In August

Private Players Continued To Outpace The Overall Industry

Growth Of The Public Insurance Industry Was Muted

Private Players’ Market Share Increased To Nearly 70%

YTD FY25 Growth Came In At 17%/23% YoY For The Overall Industry/Private Players

GS on Marico

Buy, TP Rs 715

NDR takeaways: Growth agenda on track

Management reiterated their expectation of growing India biz in double digits starting FY25

CO has scaled up its foods biz 4x over FY20-24 & targets to grow 2x in next 3 yrs

Int biz is steady

NIFTY 50: SPOT SUPPORT AT 24800 BELOW THIS 24700, RESISTANCE AT 25100 ABOVE THIS 25200

BANKNIFTY: SPOT SUPPORT AT 50800 BELOW THIS 50500, RESISTANCE AT 51300 ABOVE THIS 51500

NIFTY FIN SERVICE: SPOT SUPPORT AT 23700 BELOW THIS 23600, RESISTANCE AT 23800 ABOVE THIS 23900\ 

BSE SENSEX: SPOT SUPPORT AT 81300 BELOW THIS 81000, RESISTANCE AT 81800 ABOVE THIS 82000

Securities in Ban For Trade Date 10-SEP-2024:\

ABFRL

2\BALRAMCHIN

3\BANDHANBNK

4\BIOCON

5\CHAMBLFERT

6\HINDCOPPER

7\RBLBANK

The Jamshedpur-based Auto parts manufacturer Kross Ltd’s IPO, which opened on Monday, was subscribed 0.88 times, mainly due to retail interest. While QIBs did not show interest on Day 1 of the issue opening on Monday, the retail portion was subscribed 1.50 times. The HNIs (non-institution) portion received bids 0.6 times so far.

MSTC – Rs 5

SYRMA SGS – Rs 1.5

VEDANTA – Rs 20

The rub-off effect of last week’s profit booking caused a mild negative start for our market. During the first hour, the market fell to an intraday low of around 24750 due to ongoing profit booking. However, there was no significant weakness after this drop, and prices gradually recovered throughout the day, ending with a gain of 0.34% at 24937.

This session provided some relief for the bulls, as there was no further major decline following Friday’s sharp drop. Despite this, the technical outlook remains cautious. Prices approached the key 20-day EMA support level and found some stability. However, last week’s Bearish Engulfing pattern and the negative crossover of the RSI Smoothened, coupled with negative divergence, signal ongoing weakness. We advise against aggressive long positions and suggest using any market rebound to exit longs at key resistance levels. Immediate resistance is seen at 25080 - 25120, formed by key retracement levels.

Support is at 24750 - 24700; a break below this could lead to further weakness towards 24500. While smart buying in Private Banks and FMCG has supported the market bounce, thematic moves may continue, but caution is warranted as the market’s undertone remains bearish.

U.S. stocks ended sharply higher on Monday, as equities bounced back from the worst week for the S&P 500 and the Dow Jones Industrial Average since March 2023. A renewed wave of dip buying stimulated a rebound in stocks after a selloff triggered by economic concerns, with traders now looking to this week’s inflation data for clues on the size of Federal Reserve rate cuts.

Asian stocks reversed early losses to rise marginally on Tuesday following Wall Street’s overnight rally, though concerns about a still-struggling Chinese economy kept sentiment in check. Chinese stocks slid to seven-month lows in the previous session while the yuan came under pressure on renewed calls for further stimulus measures from Beijing to prop up its economy.

Nifty snapped a three-day losing streak on Sept 09 and ended in the positive. At close, Nifty was up 0.36% or 88.3 points at 24940.5. Nifty formed a small body positive candle on Sept 09 and gave an indication of a small recovery. Nifty could face resistance from the 25078-25236 band in the near term while 24564 could offer support.

Andhra Paper Ltd.

Stock Split From Rs.10/- to Rs.2/-

Previous day Closing Price – Rs. 564.45

Ex - Stock Split 11 Sept 2024 (Tomorrow)

Last day trade for before split Today

Ex-Dividend 11 Sept 2024 (Tomorrow)

Last date for Cum-Dividend Today

Acknit Industries Ltd.

Dividend Per Share Rs.1.5

Previous day Closing Price – Rs. 305.4

AGI Greenpac Ltd

Dividend Per Share Rs.6

Previous day Closing Price – Rs. 948.6

BCL Industries Ltd

Dividend Per Share Rs.0.25

Previous day Closing Price – Rs. 56.27

Finolex Industries Ltd.

Dividend Per Share Rs.2.5

Previous day Closing Price – Rs. 307

Pondy Oxides & Chemicals Ltd.

Dividend Per Share Rs.5

Previous day Closing Price – Rs. 2188.7

Sandur Manganese & Iron Ores Ltd.

Dividend Per Share Rs.1

Previous day Closing Price – Rs. 478.5

SNL Bearings Ltd.

Dividend Per Share Rs.7

Previous day Closing Price – Rs. 412.35

Subros Ltd.

Dividend Per Share Rs.1.8

Previous day Closing Price – Rs. 785.85

TV Today Network Ltd.

Dividend Per Share Rs.8.5

Previous day Closing Price – Rs. 268.65

Uttam Sugar Mills Ltd.

Dividend Per Share Rs.2.5

Previous day Closing Price – Rs. 344.5

General Insurance Corporation Of India

Dividend Per Share Rs.10

Previous day Closing Price – Rs. 403.65

The GST Council that met on Monday decided to reduce the GST rate on certain cancer drugs from 12 per cent to 5 per cent, aimed at reducing the overall cost of cancer treatment. Those drugs are Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. In another decision, GST rate has been reduced prospectively from 18 per cent to 12 per cent for namkeens and savoury items. Gopal Snacks/Bikaji: Foods and pharma stocks will remain in focus. Read more

The ₹230-crore IPO from Kerala-based Tolins Tyres saw a strong response from investors on Day 1 of issue opening itself. The issue was subscribed 1.80 times so far, as retail investors shown keen interest. The retail portion was subscribed 3.17 times while that of QIBs and NIIs (non-institution) 0.13 times and 0.82 times respectively. 

The initial public offering of Bajaj Housing Finance, was well received by all category of investors on Day 1 itself. The IPO has been subscribed 2.02 times overall so far. It was subscribed within a few hours of opening on Monday.

The ₹6,560-crore IPO comes at a price band of ₹66-70. Interestingly, QIBs, who play a waiting game till the last day, were active on Day 1 itself, and the portion reserved for them was subscribed 1.07 times. NIIs and the retail investors’ portion was subscribed 4.35 times and 1.51 times, respectively.

GS on Marico: Maintain Buy on Company, raise target price at Rs 715/Sh (Positive) 

CLSA on ICICI Bank: Maintain Outperform on Bank, target price at Rs 1500/Sh (Positive) 

Jefferies on Axis Bank: Maintain Buy on Bank, target price at Rs 1500/Sh (Positive) 

CLSA on Nippon Life: Maintain Outperform on Company, target price at Rs 700/Sh (Positive) 

Incred on SBI Life: Upgrade to Add on Company, raise target price at Rs 2150/Sh (Positive) 

MOSL on Coforge: Upgrade to Buy on Company, raise target price at Rs 8100/Sh (Positive) 

MOSL on TCS: Maintain Buy on Company, raise target price at Rs 5400/Sh (Positive) 

MOSL on Infosys: Maintain Buy on Company, raise target price at Rs 2200/Sh (Positive) 

MOSL on HCL Tech: Maintain Buy on Company, raise target price at Rs 2200/Sh (Positive) 

MOSL on LTIM: Maintain Buy on Company, raise target price at Rs 7400/Sh (Positive) 

MOSL on LTTS: Maintain Buy on Company, raise target price at Rs 6600/Sh (Positive) 

MOSL on Cyient: Maintain Buy on Company, raise target price at Rs 2300/Sh (Positive) 

MOSL on Persistent: Maintain Buy on Company, target price at Rs 6300/Sh (Positive) 

MOSL on Tech M: Maintain Neutral on Company, raise target price at Rs 1600/Sh (Positive) 

MOSL on MPhasis: Maintain Neutral on Company, raise target price at Rs 3000/Sh (Positive) 

MS on Suzlon: Maintain Overweight on Company, target price at Rs 73/Sh (Positive) 

Jefferies on GMR Airports: Maintain Buy on Company, target price at Rs 106/Sh (Positive) 

Citi on Vodafone Idea: Maintain Buy on Company, target price at Rs 22/Sh (Positive) 

HSBC on Life Insurance: Industry’s individual APE growth moderated to 10% Vs 18-19% YoY run-rate in previous 3 months (Neutral) 

Jefferies on India Strategy: Chief Economic Advisor has raised the debate of whether headline inflation or core inflation should be used for policy making (Neutral) 

Morgan Stanley on Life Insurance: Aug-24 individual APE at 15% YoY was on a strong base (Neutral) 

Citi on Infosys: Maintain Neutral on Company, target price at Rs 1955/Sh (Neutral) 

MOSL on Wipro: Maintain Neutral on Company, target price at Rs 500/Sh (Neutral) 

MOSL on Zensar Tech: Maintain Neutral on Company, target price at Rs 760/Sh (Neutral) 

Citi on HDFC Life: Maintain Buy on Company, target price at Rs 735/Sh (Neutral) 

Citi on LIC: Maintain Buy on Company, target price at Rs 1280/Sh (Neutral) 

Citi on SBI Life: Maintain Buy on Company, target price at Rs 2000/Sh (Neutral) 

Citi on ICICI Pru: Maintain Neutral on Company, target price at Rs 670/Sh (Neutral) 

MS on Dixon Tech: Maintain Equal weight on Company, target price at Rs 8696/Sh (Neutral)

- Adj EPS $1.39 (est $1.33)

- Revenue $13.31B (est $13.26B)

- Oper Income $5.71B (est $5.59B)

- Cloud Infrastructure Rev $2.2B Inline

- To Implement Strategic Partnership, Amazon & Google

(Earnings are better than estimates, stock prices jumped by 9 percent post trading hours)

★ Orders and Agreements

1. V R Infraspace Ltd has received two work orders from Integrity Infrabuild Developers Ltd totaling ₹2.77 crores. The orders pertain to the construction of box culvert structures in Panchmahal and Halol Taluka, with a completion period of 40 days. #VR

2. Megatherm Induction Ltd shared business updates including the unpledging of 30 lakh shares, receipt of orders worth ₹18.68 crores additionally the company also received approx. ₹123 crores in orders between April and September 2024 and is negotiating orders worth ₹90 crores. The company is also nearing completion of a large transformer manufacturing facility. #MEGATHERM

3. SLONE Infosystems Limited has secured an order valued at ₹3.96 Crores plus GST from JBA Infosolutions Private Limited for 600 Lenovo L14 laptops. This order includes a 3-year Premier service package and is scheduled for immediate execution. #SLONE

4. Oriana Power’s subsidiary, Truere Surya, has received an order for a 128 MW solar power plant from Dalmia Cement, with an estimated project cost of ₹520 crore. Dalmia Cement will also invest ₹44.8 crore to acquire a 26% equity stake in the subsidiary, as part of their renewable energy initiatives. #ORIANA

★ News / Events / Announcements

5. RBM Infracon received a major ₹3,498 crore order from ONGC, broken into ₹3,371 crore for crude oil and ₹127 crore for gas at Nandej. This boosts their order book to ₹4,884+ crore, with the contract lasting 15 years. #RBMINFRA

6. Aprameya Engineering Ltd received a show cause notice from the Income Tax Department for a delay in depositing TDS during the financial year 2022-2023. The company will respond within the prescribed timelines, and no monetary impact has been detailed so far. #APRAMEYA

7. Jeena Sikho Lifecare Ltd announced the establishment of two new Shuddhi Ayurveda Panchkarma centers in Bikaner and Panchkula. The Bikaner center has 28 rooms and 30 beds, while the Panchkula center features 32 rooms and 49 beds. #JSLL

8. Agni Green Power Ltd is involved in legal disputes with IOCL over a solar power project and with HPL for unpaid dues. Arbitration is ongoing, and both cases are pending further adjudication. #AGNI

9. Kontor Space Ltd has signed a strategic LOI to lease an independent building in Andheri’s MIDC. The G+5 structure will house approximately 1,000 seats and is set to become operational in Q4 of the current fiscal year. #KONTOR

10. Maxposure Ltd has filed a patent for an Auto PA Pause system in its Wireless Inflight Entertainment, using electromagnetic fields to detect announcements. This innovation addresses a key aviation requirement, improving the passenger experience without manual involvement. #MAXPOSURE

★ Credit Rating

11. Asarfi Hospital Ltd received an upgraded credit rating from CareEdge Ratings, with its long-term bank facilities rated ‘CARE BB+; Stable’. The previous rating of ‘CARE BB-; Stable; Issuer Not Cooperating’ was revised due to improved operations. #ASARFI

★ Incorporation / Subsidiary / Acquisition

12. Cargosol Logistics Limited is expanding its subsidiary’s operations in Thailand, driven by increased manufacturing shifts from China to Thailand. This strategic move is expected to capitalize on the growing logistics demand and enhance future revenue growth. #CARGOSOL

Indian markets closed flat today with minor declines in the major indices:

- Nifty 50: Closed at 24,936, up by 0.34%

- Sensex: Closed at 81,559, up by 0.46%

Market Volatility

India VIX: Down by 6.44%, now at 14.24

Put Call Ratio: 0.68

Mid Cap & Small Cap Indices

📉 Mid Cap: Down by 0.25%, closed at 21,621

📉 Small Cap: Down by 0.83%, closed near 18,155

Sectoral Performance

🟢 Nifty FMCG: Best performing sector, up by 2.04%

🟢 Nifty Private Bank: Up by 1.12%

🔻 Nifty Oil & Gas: Down by 1.37%

Top Gainers

🚀 Alembic Pharmaceuticals: +8.83%, closed at ₹1,203

🚀 Jubilant Pharmova: +8.36%, closed at ₹1,031

Top Loser

🔻 Jupiter Wagon: Down by more than 7%

In the News

- Greaves Cotton: Shares surged by 6.25% as its subsidiary, Greaves Electric Mobility Private Limited, received government incentives under the Electric Mobility Promotion Scheme (EMPS) for its two-wheeler models Nexus, Primus, Magnus, and Zeal.

- NMDC: Shares dropped 1.57% as global iron ore prices hit a 22-month low due to a slowdown in China’s real estate sector.

- JSW Infrastructure: Shares climbed by 1.53% after the company approved capacity expansion for its JSW Jaigarh and JSW Dharamtar Ports.

- Thomas Cook India: Shares increased by 1.3% after signing an MOU with Malaysia Aviation Group, alongside SOTC Travel.

- Nazara Technologies: Shares surged by 0.46% following its acquisition of a 48.42% stake in Paperboat Apps for ₹300 crore.

- SpiceJet: Shares soared by 4.12% after restructuring a $137.68 million debt with Carlyle Aviation, converting $40 million into equity to reduce its debt burden.

- Granules India: Shares fell by 3.09% following the completion of a USFDA inspection, which resulted in six observations at its Gagillapur facility.

- Ola Electric: Shares dropped by 4.57% on the expiry of its one-month lock-in period, making 18.18 crore shares eligible for trading.

- Deep Industries: Shares surged by 19.99% after securing a ₹1,402 crore order from ONGC for production enhancement operations at its Rajahmundry asset.

09 September 2024

Provisional Cash Rs. In Crs.

FII/FPI: NET BUY: +1176.55 

(14679.24 - 13502.69) 

DII: NET BUY: +1757.02 

(12172.78 - 10415.76)

Domestic markets are expected to open on a flattish to positive note on Tuesday amid mixed signals from global markets Though the US markets closed on a strong note overnight, Asian stocks are mixed. In early deals on Tuesday, stocks in Tokyo and Australia inched up, while Korean stocks are down.

However, analysts expect a risk-on strategy to continue for domestic markets.

The stock of Usha Martin, which was in a downtrend since July, seems to have turned the trend up. It was largely moving in a sideways trend over the last month. However, last week, it surpassed the resistance at ₹345. On Monday, too, the scrip managed to close above this level, indicating good buying interest. Read more

The ₹1,100-crore initial public offering of PN Gadgil Jewellers opens today in the ₹456-480 price band. The Maharashtra-based company’s IPO is a combination of a fresh issue of equity shares worth up to ₹850 crore and an offer for sale (OFS) of equity shares to the tune of ₹250 crore by a promoter SVG Business Trust. The IPO closes on September 12.

Not less than 35 per cent of the net Issue is reserved for retails, while up to 50 per cent is reserved for QIBs, and the balance 15 per cent for NIIs. The issue’s lot size is 31 equity shares and in multiples of 31 equity shares thereafter.

Bank of Baroda on Monday said it has raised ₹5,000 crore via long-term 10-year infrastructure bonds at a coupon rate of 7.26 per cent.

The revamped merger control regime as envisaged under the Competition (Amendment) Act 2023 is now a reality with the Corporate Affairs Ministry (MCA) on Monday notifying several provisions in this regard to be effective from September 10. 

The MCA has now overhauled the merger control regime in India by implementing the much-awaited ‘deal value threshold’ provision that would bring certain M&A deals within the scope of prior CCI approval. 

Also, more accountability is now being statutorily demanded from the Competition Commission of India (CCI), which is now required to complete its merger review within 150 days as against the current timeline of 210 days. 

GMR group is purchasing 10 per cent stake in Delhi International Airport Ltd (DIAL) from German airport operator Fraport AG for around ₹1058 crore ($ 126 million).

SEBI has harmonised the KYC and registration requirements of foreign venture capital investors (FVCI) with that of foreign portfolio investors (FPIs). Read more

The contract that underpins the 1,166 MW order that Suzlon Energy received today from NTPC Green is a “role model contract”, says Jayaram Prasad Chalasani, CEO, Suzlon.