Share Market Highlights 06 December 2023: Indices continue to hit fresh highs; Nifty closes above 20,900

The rupee appreciated 5 paise to close at 83.32 (provisional) against the US dollar on Wednesday, helped by a bullish trend in domestic equities and sustained foreign fund inflows.

Forex traders said elevated American currency in the overseas markets and dollar buying by the Reserve Bank of India (RBI) capped sharp gains for the local unit.

Equity benchmarks surged to new highs for the third straight session on Wednesday. This rise was primarily propelled by energy stocks amid stabilising oil prices and IT shares gaining traction due to mounting expectations of a U.S. rate cut in March. While BSE Sensex gained 357.59 pts or 0.52% to 69,653.73, NSE Nifty gained over 82.60 points or 0.4% to 20,937.70. Both the indices advanced over 5% in the last six sessions, entering overbought territory. Shares of Life Insurance Corporation of India (LIC) have been on the rise, gaining nearly 25 per cent in the last 15 days. 

Integra Essentia Limited announces a new order of approximately Rs 18 crore for Premium Rice from its Agro Product Division, elevating the consolidated order book to Rs 30 crore. Shares were down by 6.27% to Rs 6.13, on the BSE.

Indoco Remedies Limited received approval from the USFDA for its Abbreviated New Drug Application for Canagliflozin Tablets, a generic equivalent of Invokana Tablets by Janssen Pharmaceuticals. The product, aimed at improving glycemic control in adults with type 2 diabetes mellitus, will be manufactured at Indoco’s Goa facility in India. The shares were up by 3.38% to Rs 399.85, on the BSE.

As many as 366 stocks hit a 52 week high and 30 stocks hit a 52 week low at 3 pm on Wednesday.

Can Fin Homes Ltd. (-5.91%), GTL Infrastructure Ltd. (-4.46%), Bajaj Hindusthan sugar Ltd. (-6.33%), Triveni engineering and industries Ltd. (-5.07%)

Adani total gas Ltd. (19.21%), Adani green energy Ltd. (14.39%), Rashtriya chemical and fertilizers ltd. (11.74%), New Delhi television ltd. (8.82%), Balaji Amines Ltd. (14.68%)

Indsil Hydro Power and Manganese Limited disclosed defaults on payment of interest and principal amount on loans from banks, including IDBI Bank, RBL Bank, Karnataka Bank, Federal Bank, and JC Flowers Asset Reconstruction. The total default amount is Rs 6.59 crore. The shares were up by 0.98% to Rs 40.39, on the BSE.

Izmo Limited approved the incorporation of a Wholly Owned Subsidiary named Izmo Microsystems Private Limited to cater the technology needs in the Electric Vehicles and automotive market. The company’s board has approved the sale of land and structures at 84, Deep Towers, Bengaluru. The stock trades at Rs 266, down by 0.04%, on the BSE.

Hero MotoCorp has entered into a partnership with Ather Energy for an interoperable fast-charging network, thereby accelerating EV adoption.

The collaboration will enable EV users to use both VIDA and Ather Grids. Hero Motocorp said in its statement that customers will be able to locate and navigate to the charging stations through the “My VIDA” and Ather App. The combined network is expected cover 100 cities with over 1900 fast-charging points.

Hero Motocorp stock declined by 1.73 per cent on the NSE.

Shares of Life Insurance Corporation of India (LIC) have been on the rise, gaining nearly 25 per cent in the last 15 days. On Wednesday the stock was trading at ₹747.90 on the NSE, up 4.74 per cent (after hitting high of ₹750.80) on a slew of positive news, apart from its financial performance. The stock hit a 52-week high of ₹754.25 on December 20, 2022.

Industrial Investment Trust Limited completes the sale of its equity and preference shares in World Resorts Limited to Nimbus India Limited. The sale is valued at Rs 15.52 crore. Shares were up by 1.93% to Rs 185, on the BSE.

TTK Healthcare Limited discloses that its Ortho Implants manufacturing facility in Chennai, Tamil Nadu, has faced disruption in production due to flooding from torrential rains and the impact of the Michaung cyclone since December 5, 2023. The shares were down by 0.02% to Rs 1361, on the BSE.

Zydus Lifesciences secured an approval from the USFDA to produce and market Methylene Blue Injection (10mg/2ml and 50mg/5ml), a generic version of ProvayBlue Injection. The product offers an alternative to the ampoule form, reducing the risk of glass particulate contamination. The shares were up by 0.51% to Rs 636.70, on the BSE.

Sanghi Industries Limited’s shares were up by 4.97% to Rs 136.35, on the BSE, the company earlier disclosed the execution of ICD Agreement with Ambuja Cements Limited (ACL). The amendment allows Sanghi Industries to borrow additional funds, of Rs 1810 Crore

Uttam Sugar Mills Ltd.’s shares dip 4.46% to Rs 479. Promoter group Shubham Sugars bought 32,000 shares on Dec. 5.

The NSE Nifty was up by 0.12% or 25.45 points at 20,880.55 while the BSE Sensex was up 0.27% or 187.15 points at 69,483.29 at 1.15 pm

Lloyds Enterprises Limited (formerly Shree Global Tradefin Limited) acquired a 60.38% equity stake in Lloyds Realty Developers Limited for Rs 110 crore, making it a subsidiary. The completion is anticipated by March 2024. Shares were up by 3.33% to Rs 44.70, on the BSE.

Hero MotoCorp partners with Ather Energy to establish an interoperable fast-charging network for electric vehicles (EVs), covering 100 cities with over 1900 fast-charging points. Shares were down by 1.58% to Rs 3745.60, on the BSE.

PNB Housing Finance lent Rs 1,000 crore under its housing program, Roshni. The company plans to expand its network with 160 Roshni branches by FY24 and support the government’s goal of “Housing for All.” Stocks trade at Rs 782.30, down by 1.59% on the BSE.

Lancer Container Lines Limited approved the allotment of 22,26,000 Equity Shares upon the conversion of 35 Foreign Currency Convertible Bonds (FCCBs) and an additional allotment of 44,52,000 Equity Shares through a 2:1 bonus issue. The paid-up equity capital has increased to Rs 111.41 crore. Shares were up by 0.11% to Rs 90.30, on the BSE.

Power Finance Corporation Ltd. (PFC) has created a new company called Gola B - Ramgarh Transmission Limited. The purpose is to build a transmission system in Jharkhand for the Damodar Valley Corporation (DVC). PFC, in charge of the bidding process, will eventually transfer this new company to the bidder who wins the project. Shares were up by 0.20% to Rs 377.95, on the BSE.

Crompton Greaves Consumer Electricals Ltd allots 22,688 equity shares under its Employee Stock Option Plan 2016. Shares were down by 0.02% to Rs 296.55, on the BSE.

Cian Healthcare Limited announces an agreement with HLL Lifecare Limited, a Government of India Enterprise, for the manufacturing and supply of 13 pharmaceutical products. The collaboration aims to strengthen government supply channels. Shares were up by 5.46% to Rs 19.31, on the BSE.

Share India Securities Limited allots 48,064 fully paid-up Equity Shares valued at Rs 10 each, following the conversion of Detachable Warrants. The Rights Issue Committee, in its meeting today, approved the allotment at a conversion rate of Rs 525 per Detachable Warrant. Stocks trade at Rs1774.85, down by 0.47%, on the BSE.

Indergiri Finance Ltd introduced specialised financial solutions for the healthcare sector, focusing on Medical Equipment Financing, Patient Financing, and Hospital Receivables Financing in Tier 2, 3 & 4 cities. Shares were down by 1.99% to Rs 101.20, on the BSE.

Iceberg seeks to leverage monthly macroeconomic compass, scanning key motifs and boots on the ground to curate ‘chops and changes’.

Real Sector continues to be steady

Our Real Sector indices still indicate a steady economy, with a sequential MoM rise in urban consumption, underpinned by the festive season. The Rural consumption Index moderated sequentially in October, indicating that sustained uptrend remains elusive. Industry and Trade, Infrastructure and Capex indices moved up, continuing to grow at a rapid pace on the back of cement production, air & railway freight and registration of MHCV & LCV. Overall, the domestic economy remains steady with challenges from the external side as imports spiked. But, given moderation in the USD and festival demand, we believe this is temporary, and we expect external ratios to inch up in late Q3FY24.

-- Elara Securities

Suzuki Motor Gujarat Private Limited (SMG), a wholly-owned subsidiary of Maruti Suzuki India (MSIL) on Wednesday said it has surpassed the milestone of three-million cumulative production.

A total of 3,748 stocks were traded on the BSE, of which, 1,971 advanced, while 1,635 declined and 142 stocks remained unchanged. As many as 321 stocks hit a 52 week high and 29 stocks hit a 52 week low at 12 pm on Wednesday.

Top gainers on the BSE at 12 pm- Adani total gas Ltd. (19.47%), Adani green energy Ltd. (15.39%), New Delhi television Ltd. (13.51%), Adani energy solutions Ltd. (11.81%), Balaji Amines Ltd. (10.60%)

Top losers on the BSE at 12 pm- Can Fin Homes Ltd. (-4.83%), GTL Infrastructure Ltd. (-4.46%), Safari industries (India) Ltd. (-3.85%), Computer age management services Ltd. (-3.50%), Prestige estates projects Ltd. (-3.39%)

Vikas Ecotech Limited announces the conversion of 3 crore warrants into equity shares at a conversion rate of Rs 2.55 per warrant, amounting to Rs 7.65 crore. This move increases the company’s issued and paid-up capital to Rs 131.83 crore. Shares were up by 0.58% to Rs 3.44, on the BSE

Onward Technologies Limited issued and allotted 73,500 equity shares. The allotment includes 3,800 equity shares under ESOP 2009 and 69,700 equity shares under ESOP 2019. Stocks trade at Rs 577.60, up by 0.17%, on the BSE.

Indian Metals & Ferro Alloys Limited received a Final Compensation Order from the Ministry of Coal, valuing compensation for Utkal ‘C’ Coal Mines at Rs 352.89 crore. Jindal Steel and Power Limited, the allottee, is directed to deposit additional fixed costs of Rs 221.37 crore within seven days. Shares up by 4.79% to Rs 553.95, on the BSE

HCL technologies Ltd and Husqvarna Group extend their IT and digital transformation partnership. Stock trade at Rs 1327, up by 0.74%, on the BSE.

Stocks hitting 52 week high on the NSE- 21st Century Management Services Limited, 360 one wam limited, 63 moons technologies limited, Adani Power Limited, Advanced Enzyme Technologies Limited.

Stocks hitting 52 week low on NSE- SEL Manufacturing Company Limited, Raj Rayon Industries Limited, Gensol Engineering Limited Flair Writing Industries Limited, Latteys Industries Limited

Mid-market comment by Mr Shrey Jain, Founder and CEO SAS Online - India’s Deep Discount Broker

Equity market benchmarks, Sensex and Nifty, have extended their upward trend for the seventh consecutive session, driven by consistent buying from foreign institutional investors and a decline in crude oil prices. On Tuesday, FIIs made substantial purchases of shares amounting to Rs 5,223.51 crore.

Regarding the Nifty, its immediate support is identified at the 20,675 and 20,725 levels, with a potential for profit booking around the 21,000 mark. As for the Bank Nifty, a robust support zone lies within the 46,450-46,650 range. Anticipating profit booking within the 47,200 - 47,300 pivot resistance range, there’s an expectation of increased volatility, especially in light of the relative strength index (RSI) reaching 81 levels, particularly concerning the weekly expiry.

With equity markets ruling at all-time highs, it is a bittersweet time for new investors looking to invest in smallcaps. While they are excited about the tearaway returns clocked by smallcaps so far, there is a very valid worry that the ugly side of smallcaps may show up any time: in a downturn, small caps are generally first to fall and they fall fast.

The NSE Nifty was up by 0.36% or 75.95 points at 20,931.75 while the BSE Sensex was up 0.39% or 721.62 points at 69,567.76 at 11.10 am

EKI Energy Services Limited announced a partnership with Indian Oil Corporation Limited to promote the Sustainable Indoor Solar Cooking System “Surya Nutan.” Under the MOU, IOCL will share the technology of “Surya Nutan” with EKI. Shares rose 2.22% to Rs 419, on the BSE.

Honasa Consumer Ltd‘s Mamaearth commemorates its 7th anniversary. Shares were up by 3.88% to Rs 377.95, on the BSE.

​Ion Exchange (India) Ltd​’s shares rose 1.59% to ₹588.40. The International Chamber of Commerce rejected Ethingen Arbitration’s claim of ₹149.56 crore for damages against the company.

UCO Bank’s shares dipped 1.35% to ₹39.36. The Central Bureau of Investigation carried out searches in 13 locations in connection with the company’s IMPS glitch case.

Polycab India Limited announces the allotment of 7,000 equity shares with a face value of Rs 10 each to employees who exercised their options under Polycab Employee Stock Option Performance Scheme 2018. Shares dip 0.01% to Rs 5360.35, on the BSE.

Axiscades Technologies Ltd. acquires Epcogen Private Limited for Rs 26.25 crore, with an additional Rs 7 crore earnout based on performance. The alliance aims to strengthen Axiscades’ presence in the Middle East and North America. Shares were up by 2.38% to Rs 548.50, on the BSE. Read more here.

Fitch Ratings 

Supply chain diversification away from China presents several emerging markets with an unprecedented opportunity to deepen global supply chain participation and expand and diversify manufacturing capacity, Fitch Ratings says.

Mexico’s proximity to and economic integration with the U.S., and Vietnam’s cost competitiveness, have made them the clearest beneficiaries of changing U.S. trade relations, exporting more to the U.S., and greater demand for their manufacturing. Mexico became the main trading partner of the U.S. in 2023, surpassing Canada and China. Rising exports and higher FDI inflows have supported the improvement of Vietnam’s sovereign credit profile over several years.

Central America is also poised to benefit from nearshoring, although the small size of the region’s economies restricts their capacity to absorb extensive investment projects, which may be limited to niche sectors. Costa Rica appears well placed, given high value-added manufacturing capacity and relatively better infrastructure.

Among other Asian economies, India’s expanding consumer market and vast labor force could make it an alternative destination to China. Indonesia’s mineral resources could encourage FDI in electric vehicles and batteries, while Malaysia is attracting FDI in the tech sector.

Jindal Drilling and Industries Limited receives a contract from Oil and Natural Gas Corporation Limited for the deployment of its rig. Shares were up by 3.27% to Rs 907.60, on the BSE.

In the early trade on Wednesday, Sensex jumped 303.25 points to fresh peak of 69,599.39 and Nifty rose by 100.05 points to hit record high of 20,955.15.

Nifty is currently at 20,933.15, up by 78.05 points or 0.37 per cent at 9:43 am; while BSE Sensex is at 69,586.27, up by 290.13 points or 0.40 per cent at 9:46 am.

Greaves Electric Mobility Pvt Ltd (GEMPL), the electric mobility division of BSE-listed Greaves Cotton Ltd, has applied for re-certification under the FAME scheme. The company has refunded the entire incentive amount with interest to the Government and seeks to move on.

Cupid Limited has acquired a land parcel in an industrial area near Mumbai to expand its production capacity by 1.5 times the existing output. The capacity expansion will be funded entirely through internal accruals, with no reliance on borrowings.

Lupin Limited receives approval from the U.S. FDA for its Varenicline Tablets, 0.5 mg and 1 mg, as a generic equivalent of Chantix Tablets. Shares were up by 0.23% to Rs 1261.65, on the BSE.

November auto retail sales created history by selling 28.54 lakh vehicles across categories, surpassing March 2020, which sold 25.69 lakh vehicles during the auto industry’s transition from BS-4 to BS-6 emission norms, Federation of Automobile Dealers Associations (FADA) said on Wednesday.

Easy Trip Planners Ltd.’s, EaseMyTrip.com and Vi (Vodafone Idea) partner, enabling Vi customers to book flights, hotels, and holidays through the Vi App. This collaboration introduces deals, including zero convenience fees on flight bookings, offers on hotels, holidays, buses, activities, and cabs. Shares were down by 0.33% to Rs 38.94, on the BSE.

Himadri Speciality Chemical plans to venture into the production of Lithium-ion Battery (LiB) components, with a manufacturing facility, an annual capacity of 200,000 MT. It is estimated to cost Rs 4,800 crores over 5 to 6 years, and aims to contribute to EV and ESS sectors.

The NSE Nifty was up by 0.21% or 43.95 points at 20,899.05 while the BSE Sensex was up 0.17% or 119.04 points at 69,415.18 at 9.40 am

Zydus Lifesciences Ltd.’s subsidiary, Sentynl Therapeutics, concluded the asset transfer of CUTX-101 from Cyprium Therapeutics. It is a copper histidinate product for treating Menkes disease. Shares were up by 1.37% to Rs 642.15, on the BSE.

Major gainers on the NSE at 9:30 am:

Adani Enterprises (3.17%); Adani Ports (3%); UPL (1.70%); LTIMindtree (1.41%); Asian Paints (1.26%)

Major losers: 

Bajaj Auto (-1.83%); ICICI Bank (-1.08%); Eicher Motors (-0.55%); Hindalco (-0.52%); Ultratech Cement (-0.42%)

Sun Pharma’s subsidiary, Sun Pharmaceutical Industries, Inc., secured exclusive licensing rights from Aclaris Therapeutics, for the use of deuruxolitinib, its JAK inhibitor, in treating alopecia areata or androgenetic alopecia. The agreement involves a payment of $15 million along with royalties. Shares were up by 1.03% to Rs 1252.90, on the BSE.

Himadri Speciality Chemical Ltd announces the acquisition of 100% equity shares of Himadri Future Material Technology Limited, making it a wholly-owned step-down subsidiary. Cost of acquisition is Rs 1 lakh. Shares were up by 3.77% to Rs 301.65, on the BSE.

Crude oil futures traded below $78 a barrel on Wednesday morning. While the US, one of the major consumers of crude oil, showed an increase in crude oil inventories; Moody’s downgraded China’s rating from stable to negative. China is another major consumer of crude oil in the world market. At 9.12 am on Wednesday, February Brent oil futures were at $77.30, up by 0.13 per cent; and January crude oil futures on WTI (West Texas Intermediate) were at $72.38, up by 0.08 per cent. December crude oil futures were trading at ₹6057 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹6080, down by 0.38 per cent; and January futures were trading at ₹6104 as against the previous close of ₹6129, down by 0.41 per cent.

India’s benchmark indices, the Sensex and Nifty, maintained their upward trajectory, marking consecutive record highs on Wednesday, while global markets showed restraint before critical U.S. data.

The BSE Sensex rose by 268.36 points to 69,564.50 in early trading, while the NSE Nifty climbed 73.15 points to 20,928.25.

Both indices have surged more than 5% each in the last six sessions, pushing them into overbought territories.

This market surge is fuelled by improved U.S. interest rate expectations, a decline in crude prices, robust domestic economic indicators, increased foreign investments, and optimism post-state election outcomes.

Contrarily, Wall Street closed with losses as it paused ahead of pivotal labour market statistics, which might influence the U.S. Federal Reserve’s decisions. However, Asian markets rebounded after a recent dip.

Brent crude futures hit a five-month low of $77 per barrel, hovering near $77.3 in Asian trading, due to uncertainties about OPEC+ supply cuts and Chinese demand concerns.

The decline in crude prices benefits import-dependent countries like India and its oil firms. Foreign portfolio investors poured Rs 5,224 crore into equities, while domestic institutions sold shares worth Rs 1,399 crore.

Bharat Electronics 

Sets FY24 revenue target at ₹19,500-20,000 crore.

Rapido 

To become a unicorn in a few months: Co-founder.

Ramkrishna Forgings 

Targets ₹6,000 crore revenue by FY26.

Cummins India

Supply chain challenges may defer #revenues in some segments

06th December: HINDZINC to consider Dividend

07th December: Dolphin Offshore Enterprises (India) to consider Stock Split; GACM Technologies to consider Fund Raising

08th December: Keynote Financial Services to consider Reduction of Capital; Mufin Green Finance, DCB Bank, Paisalo Digital to consider Fund Raising

09th December: Kanani Industries to consider Bonus issue

12th December: SMLT to consider Dividend; Kaushalya Infrastructure Development Corporation to consider Consolidation of shares

13th December: Growington Ventures India to consider Stock Split

15th December: Akshar Spintex to consider Dividend, Bonus issue & Buyback

21st December: Shreeji Translogistics to consider Bonus Issue

Borosil: Ex-Date: 05-Dec-23

Who’s Meeting Whom :

Safari Industries: To meet investors and analysts on Dec. 8. 

Punjab National Bank: To meet investors and analysts on Dec. 7. 

Polycab: To meet investors and analysts on Dec. 8. 

Mrs. Bectors Food Specialties: To meet investors and analysts on Dec. 8 and 13. 

Subros: To meet investors and analysts on Dec. 11. 

Alkem Laboratories: To meet investors and analysts on Dec. 8. 

Allcargo Gati: To meet investors and analysts on Dec. 6–7. 

Crompton Greaves Consumer Electricals: To meet investors and analysts on Dec. 11. 

Sapphire Foods India: To meet investors and analysts on Dec. 8. 

Can Fin Homes: To meet investors and analysts on Dec. 11. 

Fineotex Chemical: To meet investors and analysts on Dec. 8. 

Thomas Cook: To meet investors and analysts on Dec. 7.

Asit C. Mehta Financial Services: Ex-Date: 07-Dec-23

SEPC: Open: 06-Dec-23; Close: 18-Dec-23

Sudev Industries: Stock Split From Rs. 10/- to Rs. 5/-; Ex-Date: 11-Dec-23

Teamo Productions: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 14-Dec-23

Dhyaani Tile: Bonus Issue 9:5; Ex-Date: 07-Dec-23

Pooja Entertainment: Bonus Issue 6:1; Ex-Date: 08-Dec-23

Sonata Software: Bonus Issue 1:1; Ex-Date: 12-Dec-23

Safari Industries: Bonus Issue 1:1; Ex-Date: 12-Dec-23

Newgen Software Tech: Bonus Issue 1:1; Ex-Date: 12-Jan-24

SIS Ltd: Ex-Date: 12-Dec-23

Tata Consultancy Services: Open: 01-Dec-23; Close: 07-Dec-23

Gujarat Narmada Valley Fertilisers & Chemicals: Open: 01-Dec-23; Close: 07-Dec-23

04-Dec-23

PANCHSHEEL: Interim Dividend - Rs. - 0.80

12-Dec-23

BPCL: Interim Dividend - Rs. - 21.00

13-Dec-23

RCF: Final Dividend - Rs. - 3.70

On the global front, Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the US Federal Reserve will cut interest rates as soon as March. The rising interest rate environment led to US job openings falling to the lowest since March 2021. On the commodity front, Oil prices fell to a five-month low on Tuesday on a stronger US dollar and demand concerns, putting the market down for a fourth day on doubts over OPEC+ announced voluntary supply cuts last week. Asian indices were trading higher in the early trade today. The past few trading sessions across the globe indicate that signs of inflation are cooling off. Ahead of the MPC outcome scheduled on Friday, the market participants expect the rates to remain unchanged; the markets will react to the weekly expiry. The Indian markets are poised to open in flat taking cues from Gift Nifty which indicates a flat start.

The 50 index extended its bull run with the 6th consecutive gap-up opening to mark a new life high of 20864 indicating the strength of the Indian capital markets. The price action traded in a volatile manner in the previous trading session, however, it managed to close in the upper quartile of the trading range. While the index trades 4.5% away from its mean and remains overheated, the formation of a hammer candle on the daily outlook further warrants a caution to prudently initiate longs going forward.

Supp: 20710-20685-20500

Res: 20900-20950-21000

-- Pre-market views by Avdhut Bagkar Technical and Derivatives Analyst, StoxBox.

The Central Bureau of Investigation has carried out searches in 13 locations in connection with the company’s IMPS glitch case at UCO Bank

Embarking on a historic milestone, Brazil’s cotton sector anticipates a record-breaking production of 14.7 million bales in Marketing Year 2023/24, outshining the United States. 

Fuelled by optimal weather conditions and a strategic shift in the marketing timeline, Brazil’s cotton prowess is set to reshape global trade dynamics, with exports soaring to 11 million bales and ending stocks reflecting the country’s influential role in the international cotton market.

Brazil’s cotton production is forecasted to be 14.7 million bales (3.2 million metric tonne), with optimal weather conditions contributing to this achievement.

Brazil is anticipated to surpass the United States in cotton production for MY 2023-24, marking a historic shift in the global cotton landscape.

The estimated cotton cultivation area for MY 2023/24 in Brazil remains at 1.7 million hectares. The upward revision in production is attributed to favorable weather conditions that have positively impacted yield across key states.

Post estimates Brazil’s domestic cotton consumption at 3.3 million bales for MY 2023/24. Exports are forecasted at 11 million bales (2.4 million metric tonne) due to increased global demand and consumption, coupled with reduced production in major cotton-producing countries like China, India, and the United States.

As Brazil emerges as a dominant force in global cotton production, the forecasts for MY 2023/24 underscore not only the nation’s agricultural prowess but also its impact on shaping the trajectory of the cotton industry. With a robust production surge, Brazil is poised to lead in exports, showcasing the resilience and potential of its cotton sector. The historic shift in marketing dynamics further cements Brazil’s status as a key player, paving the way for an exciting era in the world of cotton trade.

Kotak Securities 

@Public banks have ~60% share in deposits but have lost ~2 percentage points since 4th quarter FY23 largely to private banks.

@Private banks have a marginally higher concentration of deposits in metropolitan markets compared to public banks.

@Deposit mobilization by banks continued to remain skewed in the 1-3-year bucket and it continues to rise consistently.

@There is ~10% point jump in 7-8% interest rate bucket, suggesting we are moving closer to headline deposit rates.

@We should see deposit rates peaking over the next two quarters as the re-pricing cycle is still not fully complete.

Gold prices steadied as the dollar stabilized amid expectations of a potential interest rate cut by the Federal Reserve in the first half of 2024. Traders are closely monitoring key U.S. jobs data this week to gain more insights into the central bank’s rate path. U.S. job openings have fallen to a more than two-and-a-half-year low in October, indicating that higher rates are impacting demand for workers. According to CME’s FedWatch Tool, traders are currently pricing in about a 60% chance of a rate cut by March next year.

Investors are keeping a close eye on the private-sector ADP survey and crude oil inventories due on Wednesday, ahead of Friday’s U.S. non-farm payrolls report for November.

Most global markets rally in Nov’23; Brazil leads, China remains a laggard in CY23YTD; b) Market volatility for India and US near three-year lows; c) Broad-based rally seen during the month; Real Estate and Healthcare among top gainers; d) The 10-year yield spread between India and the US at a 15-year low; e) FII flows turn positive after three months, DII flows remain buoyant; f) Key commodity costs at a 2-year low, would continue to benefit corporate margins

RBI action to Increase risk weights on banks unsecured lending appears timely given the 2nd quarter GDP growth at 7.6%. Also RBI’s Growth & Inflation estimates has been fairly accurate. GDP for FY 24 is likely to exceed 6.5% and Inflation in FY 24 is likely to average 5.40% in line with RBI estimates. Since the last policy, global yields have trended lower reflecting expectation of pivot/ easing in CY 2024 by global central banks. Given ~ 4.5% inflation estimate for FY 25 , there is a case for RBI to change the monetary policy stance to “neutral”, however, RBI may prefer to be in “wait and watch” mode, keeping rates and monetary policy stance unchanged.

A benign global narrative, tighter system liquidity and easing core inflation despite stronger growth, will be the backdrop of the upcoming MPC meeting. The swift change in global risk appetite and low volatility provide comfort to the RBI on lower risk of financial instability. This also, thus, reduces the need to conduct OMO sales as a way to depict implied bias for higher rates and higher risk premia to the world. The policy focus then reverts to the domestic narrative, wherein resurgence of food inflation and slow policy transmission will be key. We expect the RBI to softly prod banks to nudge up SA rates, while ruling out any explicit policy directive to re-regulate such rates.

Angel One: Company Reports Stable Trading Days at 20, Sees 1.2% MOM Rise in Total Orders || Unique MF SIPs Show Impressive 1383.7% YoY Growth

Angel One: Average Daily Turnover Up by 9.0% MOM || Overall Equity Market Share Expands by 19 BPS MOM, F&O Segment Up by 20 BPS

Angel One: Client Base Grows 3.8% MOM || Gross Client Acquisition Drops by 6.0% in November 2023

Govt’s ambitious installation target, lower bidding intensity, BCD on Chinese imports, implementation of ALMM next fiscal and possible exports to the US at premium prices should aid economics

See little value being imputed to renewables in CMP

Summit takeaways

Broad consensus that peak power shortages are here to stay for 18-24 months 

Power demand strength is driven by both industrial & households

Power generation & T&D investments should rise 2.2x to $280 bn in FY24E-30E 

Buy, TP Raised to Rs 3900 from Rs 3800

Higher working capital & initial losses may limit New Entrants’ potential aggression

Expect impact to be less than market may fear

Expect NE to gain market share mostly at expense of regional brands

Outperform Call

Target Rs 3,800

Management Meet Takeaways Show Focus On Budget-end To Outgrow Market

Co Reiterates Double-digit Volume Growth Expectation For H2FY24

Low Capital Intensity Aids Dealer Economics

Buy Call, Target Rs 540

Announced Completion Of Its Acquisition Of A Majority Stake In Sanghi Industries

Acquisition At An Estimated Value (EV) Of Rs5,185 Cr vs. originally Envisaged EV Of `5,000 Cr

The Estimated Value Implies EV/t Of $70-75

Post Acquisition, Co’s Capacity Stands At 74.6 mtpa With Immediate De-bottlenecking Opportunity

Immediate De-bottlenecking Opportunity Of 1.5 mtpa Cement Cap

Co Is Slated To Increase Capacity To 100-110 mtpa By FY26/FY27

The Increasing Capacity Gives Strong Visibility Of Ind Leading Volume Growth In Medium-term

Downgrade As Stocks Are Fairly Valued Led By Sharp Rally

Downgrade Bajaj Auto To Underperform From Outperform, Target Rs 6,382

Downgrade Eicher Motors To Underperform From Buy, Target Rs 4,129

Downgrade Hero MotoCorp To Outperform From Buy, Target Rs 4,127

Maintain Sell On TVS Motor, Target Rs 1,378

Margins In Electric Two-wheeler Are Likely To Remain Challenging In Near-term

Margins Challenging As All OEMs Are Planning To Launch More Affordable Electric Scooters

Buy, TP Rs 1060

Market share gains significant in FYTD24, with Co growing 2X/3X of 7% market growth

Increase vol/EBITDA est. by 4%/6% as co continues to outperform in a market gaining momentum

Trades at sub-12X FY2025E EV/EBITDA

Buy Call

Target Raised To Rs 1,213 From 972

Co Continues To Execute Well & Grow Its Dominance In India’s Port & Logistics Space

CY23 Valuations Have Been Suppressed Due To Negative News Flow Around Adani Group

Despite Rally Post Elections Results, Think That There Is Still Ample Scope For Valns To Re-rate

New Projects Are Close To Commissioning, Logistics Business Strong

Jefferies on Ambuja Cement: Maintain Buy on Company, target price at Rs 540/sh (Positive) 

Macquarie on Asian Paints: Maintain Buy on Company, target price at Rs 3800/sh (Positive) 

Citi on Adani Ports: Maintain Buy on Company, raise target price at Rs 1213/sh (Positive) 

Jefferies on Reliance Ind: Maintain Buy on Company, target price at Rs 2990/sh (Positive) 

HDFC on SRF: Maintain Buy on Company, target price at Rs 2590/sh (Positive) 

HDFC on Happiest Minds: Maintain Buy on Company, target price at Rs 935/sh (Positive) 

Macquarie on HCL Tech: Maintain Buy on Company, target price at Rs 1540/sh (Positive) 

MS on L&T FH: Maintain Underweight on Company, target price at Rs 113/sh (Neutral) 

CLSA on TVS Motors: Maintain Sell on Company, raise target price at Rs 1378/sh (Neutral) 

CLSA on Hero Motocorp: Downgrade to Underperform on Company, raise target price at Rs 4127/sh (Neutral) 

CLSA on Bajaj Auto: Downgrade to Underperform on Company, raise target price at Rs 6382/sh (Neutral) 

CLSA on Eicher Motors: Downgrade to Underperform on Company, cut target price at Rs 4129/sh (Negative)

Issue Open - 06-December-23 (Today)

Issue Close 18-December-23

Right issue Size: Rs. 49.9 Crs (3.84 Crs Shares)

Stock Price – 20.32 /-

Right issue Price: Rs. 13/-

Payment Terms: 100% at the time of the application

Rights Entitlement Ratio: 1 Rights Equity Shares for every 36 (Effectively 0.03 for every 1 share held).

Last Trade date (Cum Right): 24 November 2023

Ex-Right Trading date: 28 November 2023

Record Date: 28 November 2023

Right Entitlement (RE) Trading Period:- 06 December 2023 to 12 December 2023

Last day of Renunciation of Rights Entitlements: 12 December 2023

Date of Allotment (on or about): 22 December 2023

Date of listing (on or about): 29 December 2023

1 DELTACORP

2 IBULHSGFIN

3 INDIACEM

4 ZEEL

Move out of short-term ASM framework: Honasa Consumer.

Tide Water Oil: Promoter Standard Grease and Specialities bought 7.63 lakh shares on Dec. 4. 

Uttam Sugar Mills: Promoter group Shubham Sugars bought 32,000 shares on Dec. 5. 

Bajaj Electricals: Promoter group Niraj Holdings bought 4.7 lakh shares on Nov. 23. Rajivnayan Bajaj A/c Rishab Family Trust sold 4.7 lakh shares on Nov. 23. 

Star Cement: Promoter group Rajendra Udyog HUF sold 15,750 shares on Nov. 30. 

Thirumalai Chemical: Promoter group Narayan Santhanam sold 8,000 shares on Dec. 4.

Sapphire Foods India: Arinjaya (Mauritius) sold 27 lakh shares (4.24%), while the Government of Singapore bought 20.19 lakh shares (3.17%) at Rs 1,400 apiece. 

Sanghi Industries: Ambuja Cements bought 13.34 crore shares (51.67%) at Rs 121.9 apiece while Aditya Sanghi sold 88.92 lakh shares (3.44%), Alok Sanghi sold 88.92 lakh shares (3.44%), Anita Sanghi sold 10.20 lakh shares (0.39%), Flarezeal Solutions LLP sold 40 lakh shares (1.54%), Ravi Sanghi sold 4.4 crore shares (17.20%), Samruddhi Investors Services sold 6.15 crore shares (23.82%),

and Sanghi Polymers P sold 47 lakh shares (1.81%) at Rs 121.9 apiece. 

Swan Energy: 2I Capital PCC sold 30 lakh shares (1.13%) at Rs 414 apiece and Ares Diversified sold 55 lakh shares (2.08%) at Rs 414.09 apiece. SBI Life Insurance bought 20 lakh shares (0.75%) at Rs 414 apiece, Societe Generale bought 20 lakh shares (0.68%) at Rs 414 apiece, and Setu Securities bought 10 lakh shares (0.37%) at Rs 414.5 apiece, among others. 

Honasa Consumer: Fireside Ventures sold 60.9 lakh shares (1.89%) at Rs 378 apiece. 

State Bank of India: The lender has proposed to acquire a 20% stake from SBI Capital Markets

(SBICAPS) in SBI Pension Funds for Rs 229.52 crore. Post-acquisition, it will have an 80% stake in the SBI Pension Fund.

Ashok Leyland: The automaker increased its stake in Switch Mobility’s holding company to 92.19% from 91.63%. It had deployed around Rs 662.5 crore as the first tranche of a planned Rs

1,200 crore investment.

Canara Bank: The bank looks to raise up to Rs 3,500 crore via tier-I bonds. The bidding starts on Dec. 7.

Bank of India: The lender opened its QIP issue at a floor price of Rs 105.42 per equity share.

Somany Ceramics: Sets Dec. 15 as the record date for the Rs 125 crore buyback, i.e., 15.18% stake at Rs 850 per share.

Power Grid Corporation: The company emerged as a successful bidder to establish the InterState Transmission System Project in Khavda RE Park, Gujarat.

HDFC Bank: The lender has sought shareholders’ approval to appoint Sashidhar Jagdishan as MD and CEO, V Srinivasa Rangan as Executive Director and MD Ranganath and Sandeep Parekh as Independent Directors.

UCO Bank: The Central Bureau of Investigation has carried out searches in 13 locations in connection with the company’s IMPS glitch case.

Dalmia Bharat: The company approved the appointment of Puneet Dalmia as MD and CEO for five years w.e.t. Dec. 8.

Ion Exchange: The International Chamber of Commerce has rejected Ethingen Arbitration’s claim of Rs 149.56 crore for damages against the company.

Axiscades Technologies: The company has acquired a 99.99% stake in EPCOGEN for Rs 26.25 crore.

Sanghi Industries: The company and Incor Realty Projects have mutually agreed to an upward revision of the sale consideration of Rs 125 crore on account of certain improvements in the land condition and certain other factors.

Ganesh Benzoplast: The board has approved to raise Rs 27 crore via QIP.

Force Motors: The company’s November production stood at 2,216 units. It recorded a monthly sales volume of 1,732 units.

Greenpanel Industries: The company’s operation in Chittoor, Andhra, was disrupted due to the cyclone.

Sun Pharmaceutical Industries, Inc., a subsidiary of Sun Pharmaceutical Industries Ltd, on Wednesday said it has entered into a licensing agreement with US-based Aclaris Therapeutics, Inc. 

Under the license agreement, Aclaris will grant Sun Pharma exclusive rights under certain patents for the use of deuruxolitinib, Sun Pharma’s JAK inhibitor, or other isotopic forms of ruxolitinib, to treat alopecia 

areata (AA) or androgenetic alopecia (AGA), per Sun Pharma’s regulatory filing. 

The agreement includes an upfront payment of $15 million, regulatory and commercial milestones, and royalties, it added. 

Aclaris is a clinical-stage biopharmaceutical company focused on developing novel drugs for immuno-inflammatory diseases.

​Himadri Speciality​: Company to Set Up Manufacturing Unit for Lithium-Ion Battery Components for Rs. 4800 Cr

U.S. ISM Services PMI 

Current: 52.7 

Expected: 52.2 

Previous: 51.8 

U.S. JOLTS Job Openings 

Current: 8.73M 

Expected: 9.31M 

Previous: 9.55M 

Issuer: Bank of India Limited| QIP Launch

ISIN: INE084A01016

Type of Issue: QIP in accordance with Chapter VI of the SEBI ICDR Regulations and The Banking Companies Act, The Banking Regulation Act, 1949, As Amended (The “Banking Regulation Act”), Bank Of India (Shares And Meetings) Regulations, 2007, As Amended (The “Bank Of India Regulations”) And The Nationalised Banks (Management And Miscellaneous Provisions) Scheme, 1970 (The “Nationalised Banks Scheme”)

Securities Offered: Equity Shares of face value of INR 10 eachs

Exchange Rate Used: US$ 1 = INR 83.3931 (Source: RBI – exchange rate as of December 5, 2023) 

Indicative Issue Size: Up to INR 45,000 mm / c. US$ 540.0 Mm, comprising of a Base Deal of up to INR 22,500 Mn / c. US$ 270.0 Mn and a Green shoe option to upsize of up to an additional INR 22,500 Mn / c. US$ 270.0 Mn 

Last Closing Price: INR 110.20 per Equity Share on NSE as on December 5, 2023

SEBI Floor Price: INR 105.42 per Equity Share 

Indicative Issue Price: INR 100.20 per Equity Share

Indicative Discount: 9.07% discount to the close price on NSE on December 5, 2023

Dilution: At Base Deal: c. 5.47% of pre-issue outstanding equity share capital; at Upsized Deal: c. 10.94% of pre-issue outstanding equity share capital 

Use of Proceeds: Bank intends to utilize the Net Proceeds towards augmenting our Bank’s Tier I Capital to meet additional requirement on account of capital conservation buffer and to support growth plans and to enhance the business of our Bank 

Share Issue Type (Primary/ Secondary): 100% primary shares 

Bank Lock-up Period: 90 days – The Equity Shares held by the Promoter shall not be subject to any lock-up under the Placement Agreement.

Book Running Lead Managers: SBI Capital Markets Limited , IDBI Capital Markets & Securities Limited, BNP Paribas, DAM Capital Advisors Limited, IIFL Securities Limited, Nuvama Wealth Management Limited & BOI Merchant Bankers Limited

Transaction Timelines:

Launch of Transaction/Receipt of EOI: December 5th, 2023 (after market hours)

Close of Receipt of EOI: By 8:45 am IST on December 6th, 2023 (option to close earlier)

Dispatch of Preliminary Placement Document cum Application Form to investors: On Wednesday, December 6th, 2023

Receipt of Application Forms, along with pay-in of application amounts: On Friday December 8th, 2023 (By 2 PM IST)

Pricing/ Sending numbered CANs to successful bidders (pending allotment): On Friday December 8th, 2023

Listing Approval from Stock Exchange: On or around Monday, December 11th, 2023

Credit of Shares (Stock in Account); “Settlement Date”: On or around Tuesday, December 12th, 2023

Trading Approval from Stock Exchanges: On or around Tuesday, December 12th, 2023

Listing & Trading of Shares Commences: On or around Wednesday, December 13th, 2023

Provisional Cash Rs. In Crs.

FII/FPI: NET BUY: +5223.51 

(17,190.73 - 11,967.22) 

DII: NET SELL: -1399.18 

(11,467.11 - 12,866.29)

Bharat Elec: Bhanu Shrivastava, CMD

Have Received Orders Worth ?16,300 Crore So Far: BEL

https://www.youtube.com/watch?v=6IzIbPZu5iU

BLS International Services : Shikhar Aggarwal, Joint Managing Director

BLS International Bags Healthcare Contract In U.P.

https://www.youtube.com/watch?v=8bDbGatqPMs

Ugro Capital: Shachindra Nath, Executive CMD

U Gro Capital: FY24 Business Outlook

https://www.youtube.com/watch?v=MngIe6RdGww

Cummins: Ajay Patil, CFO

Got An Extension On Regulations On Emissions Till June 2024: Cummins India

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

GMR Infra: GRK Babu, CFO

Expect To Touch 70 Million In Passenger Traffic This Year: GMR Airports

https://www.youtube.com/watch?v=k1dURn1zNkQ

Indian Hotels: Puneet Chhatwal, MD

Q3 Will See All-Time High Revenue For The Company: Indian Hotels’ Puneet Chhatwal

https://www.youtube.com/watch?v=cro1Ba222gg

J Kumar Infra: Nalin Gupta, MD

Margin For New Projects Will Be In The Range Of 14-15%: J Kumar Infra

https://www.youtube.com/watch?v=2j7sjNsp6U8

JSW Energy: Prashant Jain, Jt MD & CEO

RoE & Cash Flow Among The Best In Business: JSW Energy’s Outgoing MD & CEO

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

Sachs India: Sunil Koul, APAC Equity Strategist

Expect 10-12% Return For The Market Over The Next Year: Goldman Sachs

https://www.youtube.com/watch?v=KEPGYY5R51Y

Som Distilleries: JK Arora, Chairman

Confident Of Achieving More Than Rs.1,100 Cr Revenue In FY24

https://www.youtube.com/watch?v=Xa538vyFS4s

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

Microfinance loan disbursals rose to ₹76,054 crore in Q2 FY24 from ₹71,916 crore in the year ago period. However, the number of loan disbursements fell to 1.69 crore in Q2 from 1.81 crore loans in the previous year, indicating an increase in the ticket size, MFIN (Microfinance Institutions Network) said in its quarterly report.

Overall microfinance loan portfolio grew 25 per cent y-o-y to ₹3.8-lakh crore as of September 30, covering 7.1 crore unique borrowers with 13.9 crore loan accounts, up 13.9 per cent on-year.

The year 2023-24 is poised to be the best six-month period prior to the general elections for initial public offerings (IPOs) in two decades.

Historically, IPO activity has been abysmal six months prior to the general elections (see table). This time around the mood has been different.

A dozen companies have tapped the market in October and November, mopping up over ₹14,000 crore. The mop-up is higher than the combined collections for four previous six-month periods before the elections. 

India’s job market continues to see a slowdown, with hiring dropping by 2 per cent month-over-month (m-o-m), while on a year-on-year (y-o-y) scale, the overall index reflected a 10 per cent decline, according to thefoundit Insights Tracker (fit) for November 2023.

In November 2022, the index dropped from 277 to 249, reflecting a stagnant hiring scenario.

During the September ending quarter (Q2FY24), Foreign Portfolio Investors (FPIs) bought around $2.4 billion worth of equities from the secondary market. Here are the four charts depicting trends in shareholding by FPIs

Except for promoters, FPIs have the highest shareholding in the BSE 200 companies

Bharti Airtel’s stock has been a steady uptrend. But in the last couple of sessions, the stock was largely flat, especially during the day. However, this is likely to be only a sideways corrective movement and the broader uptrend remains valid. 

The rupee (INR) is now below an important level of 83.30 versus the dollar (USD) as it closed at 83.3850 on Tuesday. The local currency has slightly dropped over the past week. Even as the domestic equity market has hit new highs, INR continues to trade near its lifetime low.

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

The year 2023-24 is poised to be the best six-month period prior to the general elections for initial public offerings (IPOs) in two decades.

Historically, IPO activity has been abysmal six months prior to the general elections (see table). This time around the mood has been different.

A dozen companies have tapped the market in October and November, mopping up over ₹14,000 crore. The mop-up is higher than the combined collections for four previous six-month periods before the elections. The BJP’s recent wins in three State elections may further augment this tally, with market observers expecting another 8-12 companies tap the market in the next three months, given favourable market conditions and domestic liquidity.

Asian stocks opened on Wednesday on a positive note, bolstered by the uptick in US high-tech shares amidst evaluations of US labour market data indicating a slowdown. 

In early trading, the Japanese Nikkei 225 index surged by 1.38%, gaining 451.11 points to hit 33,226.93, while the broader Topix index rose by 1.18%, adding 27.65 points, reaching 2,370.34. Meanwhile, South Korea’s KOSPI climbed by 0.21%, trading at 2,500.27 after most stocks experienced declines on Wall Street the previous day. The S&P 500 slipped by 0.1% to 4,567.18, marking its first consecutive losses since October. The Dow Jones Industrial Average decreased by 0.2% to 36,124.56, while the Nasdaq composite rose by 0.3% to 14,229.91.

Meanwhile, Moody’s Investors Service downgraded its outlook for Chinese sovereign bonds to ‘negative,’ highlighting global worries over the country’s soaring debt. While maintaining an A1 long-term rating, Moody’s expressed concerns about China’s heavy reliance on fiscal stimulus for local entities and state-owned firms, posing economic risks. With China intensifying borrowing to support its economy amid a property downturn, apprehensions grow about the record bond issuance in 2023.