Share Market Highlights 22 August 2023: Sensex, Nifty end flat; Adani Enterprises shines, Jio Financials drag

Equity benchmark indices Sensex and Nifty ended almost flat on Tuesday as investors booked profits amid concerns over potential rate hikes in the US and persistent foreign fund outflows.

The BSE gauge eked out a marginal gain of 3.94 points or 0.01 per cent to settle at 65,220.03. During the day, it climbed 146.82 points or 0.22 per cent to 65,362.91.

The NSE Nifty inched up 2.85 points or 0.01 per cent to settle at 19,396.45.

A Finance Ministry report has projected that inflation will remain elevated in coming months. It has also called for macroeconomic stability to mitigate geo political challenges.

“While domestic consumption and investment demand are expected to continue driving growth, global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months, warranting greater vigilance by government and the RBI,” Monthly Economic Review (MER), prepared by Economic Affairs Department said. The report was released on Tuesday.

Read more.

The rupee recovered from its all-time low levels and settled for the day higher by 19 paise at 82.94 (provisional) against the US dollar on Tuesday, as the American currency retreated from its elevated levels.

Forex traders said the rupee appreciated tracking a weak tone in the US dollar. However, selling pressure by foreign investors amid risk aversion in global markets dented sentiments.

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Greaves Retail’s shares were up 1.06 per cent after the company joined forces with Usha Financial Services for financing electric three-wheeler purchases.

This partnership aims to expand the reach of financing options and streamline the process for end customers nationwide.

Government has approved further increase in price of ethanol made from rice and maize by additional Rs 3.71/litre with immediate effect, which is the second hike this month after the ethanol rates were increased from August 7.

Pyramid Technoplast IPO has been subscribed 17.88 times as of 3:48 pm on August 22, 2023. The QIB portion has been subscribed 9.94 times; NII portion 32.08 times; and retail 14.11 times.

The issue closes today.

Aeroflex Industries IPO has been subscribed 5.23 times as of 3:45 pm on the opening day. The QIB portion has been subscribed 1.10 times; NII portion 9.91 times; retail 5.60 times; and reserved portion shareholder at 2.24 times.

A delegation of Solvent Extractors’ Association (SEA) of India will be visiting Thailand tomorrow to explore the potential for collaboration with palm oil industry in Thailand. At present, oil palm plantations in Thailand yield 3.2-3.5 million tonnes (mt) annually.

Of this, 1.2 mt caters to the domestic needs of Thailand, and an additional 1.2-1.5 mt fuels Thailand’s 7 per cent bio-diesel blend. Around 1 mt of palm oil is exported to India. This constitutes a substantial 15 per cent of India’s total palm oil imports.

Madhav Infra Projects Ltd has received letter of acceptance for construction of railway over bridge in lieu of level crossing No. 47 /SPL on Gun a Ashoknagar Road in district Ashoknagar from Office Of The Executive Engineer Public Work Department Bridge Construction Division 52-Chanayakapuri, Sachin Tendulkar Marg, Gwalior (M.P), valued approx ₹21 crore.

Navneet Education Ltd has said in a regulatory filing about redemption of commercial paper amounting of ₹50 crore. The stock inches up by 0.91% on the NSE, and trades at ₹155.75.

Investors can track their mutual fund holdings and demat securities in the consolidated account statement (CAS) provided by NSDL and CDSL. Now, National Pension System (NPS) subscribers also have the option to stay informed on their NPS investments through CAS. This newly-launched facility will help investors track their financial assets, as envisioned by the Government.

Let us find out how you can track the NPS corpus and charges involved with this facility.

Concord Biotech informed the exchanges that the USFDA had conducted an inspection at Company’s manufacturing unit III, at Kheda district, Gujarat. The company has received the Establishment Inspection Report (EIR) indicating closure of inspection and classifying the facility as no action indicated (NAI).

The stock trades at ₹995.10, up by 4.47% on the NSE.

Major gainers: Adani Enterprises (2.25%); HDFC Life Insurance (1.61%); NTPC (1.28%); ITC (1.27%); SBI Life Insurance (0.95%)

Major losers: Jio Financial (-5%); BPCL (-1.43%); Cipla (-0.88%); TCS (-0.71%); Bajaj Finance (0.60%)

Stocks advanced on BSE at 3 pm on August 22 were 2,169 against 1,455 stocks that declined.

Total stocks traded were 3,757. The number of stocks that recorded a 52-week high was 244, and those that hit a 52-week low was 36.

Panacea Biotec Ltd informed the exchanges that the US delegation led by Ambassador to India, Eric Garcetti; Assistant Secretary for Global Affairs, HHS, Loyce Pace and HHS Health Attache Genessa Giorgi visited Panacea Biotec R&D Centre, Developing Novel Tetravalent Dengue Vaccine “DengiAIl” at New Delhi.

The stock rises by 5.04% on the NSE, trading at ₹139.55

Aluminium futures on the Multi Commodity Exchange (MCX), which has been on a decline since February, started to consolidate towards the end of June. Since then, it has been oscillating between ₹196 and ₹204.

Quick Pointers:

• Refining margins anticipated to improve on the back of rising Singapore GRMs and discounted Russian crude benefit; however windfall taxes to limit the gains.
• Already weak marketing margins likely to remain a concern amidst upcoming elections and uncertainty in crude prices.

Oil Marketing Companies (OMCs) reported a super normal profit of Rs 305 bn in 1QFY24, but failed to cheer up investors as the fate of OMCs remains tied to uncertain oil prices and inability to pass on prices to end consumers amidst upcoming elections. Due to rise in benchmark petrol and diesel prices, gross marketing margins of petrol and diesel stand at Rs5.5/-0.7/lit in Aug’23 till date compared with Rs10/12.7/lit in 1QFY24 and Rs10.1/7.4/lit in Jul’23. A rise of USD1/bbl affects gross marketing margins by ~50p/lit. Crack spreads of petrol and diesel, nonetheless have been rising from USD12.3/14/bbl in 1QFY24 to USD12.5/20.3/bbl in Jul’23 and USD13.4/30.2/bbl in Aug’23 till date, which would benefit their refining segment.

HPCL, BPCL and IOCL are trading at 0.9/1.2/0.8x FY24 PBV vs 10-year average of 0.9/1.5/0.7x. We do not see any respite in the companies due to above mentioned concerns over the near term. Accordingly, we recommend ‘Hold’ rating on all the stocks. Given highest marketing leverage, we value HPCL at 0.8x FY25 PBV with target price of Rs263. BPCL has witnessed de-rating due to continued delays in its upstream portfolio, so we value it at 1.1x FY25 PBV with a target price of Rs353. We value IOCL at 0.8x FY25 PBV and target price of Rs 97.

Info Edge (India) reported its net profit for the quarter ended June 2023 at ₹199.9 crore as against ₹148.4 crore in the previous year.

The stock trades at ₹4,171.75, down by 0.36% on the NSE.

Pyramid Technoplast IPO has been subscribed 13.71 times as of 2:27 pm on August 22, 2023. The QIB portion has been subscribed 2.61 times; NII portion 24.36 times; and retail 12.11 times.

The issue closes today.

​AU Small Finance Bank​ (2.26%)

​IDFC First Bank​ (2.17%)

​Federal Bank​ (1.27%)

Jindal Worldwide said it has appointed a 50-dealer network for electric vehicle sales and market reach. The company says the aim is to start commercial production by the year-end

Mumbai-based hospital chain Jupiter Life Line Hospitals is among the key multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area (MMR) and western region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of December 31, 2022

has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO). The company had filed preliminary IPO papers with Sebi on May 10, 2023.

The issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares worth up to Rs 615 crore and an offer-for-sale (OFS) of up to 4.45 million equity shares by Promoter Group and other selling shareholders.

Newgen Software Technologies Ltd has received an international purchase order worth $9,90,000 (approx ₹8 crore) for the License Product, implementation and support services. The stock jumps 7.15% on the NSE, trading at ₹980.50.

There is no plan to increase the maximum quantity of wheat each bidder can buy from FCI auction from current 100 tonnes per auction, said FCI’s CMD Ashok K Meena

There is no plan to import wheat under government to government plan from any country, Chopra said.

Aeroflex Industries IPO has been subscribed 3.73 times as of 1:33 pm on the opening day. The QIB portion has been subscribed 1.04 times; NII portion 6.75 times; retail 3.99 times; and reserved portion shareholder at 1.59 times. .

Govt sets rice procurement target higher at 52.1 mln tonnes for 2023-24 (Oct-Sept), against target of 51.9 mln tn current season, said Food secretary Sanjeev Chopra. Actual procurement is 49.6 mln ton rice till now this season.

Aluminium futures on the Multi Commodity Exchange (MCX), which has been on a decline since February, started to consolidate towards the end of June. Since then, it has been oscillating between ₹196 and ₹204.

India’s banking system liquidity has slipped into deficit for the first time this financial year after the Reserve Bank of India’s temporary liquidity withdrawal move and tax outflows.

There has been a 34.6 per cent increase in the number of stock market investors in Jammu and Kashmir over the past year, while the increase was 88.02 per cent in the newly formed Union Territory of Ladakh, according to a recent report from BSE.

Shares of One 97 Communications (Paytm) trade at ₹858.40, higher by 2.44% on the NSE. The founder and CEO Vijay Shekar Sharma in a letter to shareholders said that the company is “investing in AI with an eye on building Artificial General Intelligence software stack.”

Pyramid Technoplast IPO has been subscribed 10.95 times as of 12:50 pm on August 22, 2023. The QIB portion has been subscribed 1.60 times; NII portion 17.93 times; and retail 10.39 times. The issue closes today.

The 1QFY24 analysis results of 3,323 listed companies highlights a continued yoy fall in revenue growth, a declining trend in coverage indicators and steady operating margins across most sectors. The pressure on revenues largely stems from the sharp fall in inflation, global influences affecting exports and normalisation of post-pandemic demand. While the fall in general price levels affected the top line growth, the correction in principal raw materials prices appears to have aided margins for the companies facing a demand disruption. Despite an overall robust corporate risk profile, sectors such as textiles, construction materials, infrastructure, chemicals, and non-ferrous metals are undergoing deterioration in credit profiles due to global economic pressures, large debt-funded capex among large entities, and rapidly increasing interest rates.

- India Ratings and Research (Ind-Ra) analysis

ICRA has projected the year-on-year (YoY) growth of the GDP to improve to 8.5% in Q1 FY2024 from 6.1% in Q4 FY 2023, boosted by the supportive base of Q1 FY2023, which saw the Indian economy normalising after the Covid-19 pandemic. The GVA growth is seen at 8.1% in Q1 FY 2024 (+6.5% in Q4 FY2023), driven by the recovery in the services sector (+9.7% vs. +6.9%), even as improved margins are likely to have shielded the industry (+7.3% vs. +6.3%) from weak external demand, with a relatively lower growth foreseen in agriculture (+4.0% vs. +5.5%).

In a relatively subdued trading session, the Sensex and Nifty have maintained a narrow range during the mid-day hours. As of 12:45 pm, the Sensex has advanced by 95 points, reaching 65,311, while the Nifty has gained 31 points, reaching 19,425.

Among the sectoral indices, barring Nifty IT, Pharma, and PSU Bank, all others are recording minor gains.

Among individual stocks, HDFC Life, Adani Enterprises, SBI Life, NTPC, and ITC are showing positive momentum with gains of up to 3 percent.

On the flip side, Jio Financial Services, Cipla, TCS, BPCL, and TechMahindra have registered the most notable losses.

Mahindra Lifespace Developers’ shares were up 6.85 per cent as the company is aiming for a five-time increase in business over the next five years. Under new CEO Amit Sinha, the company is targeting sales of Rs 10,000 crore by FY28, up from the current Rs 2,268 crore.

Battery maker Exide Energy intends to double its production capacity and is seeking additional 40 acres of land.

The company has already undertaken the work of setting up a lithium battery cell plant at Devanahalli, near Bengaluru.

Bank Nifty index opened at 44,125 today versus yesterday’s close of 44,002. It has moderated a bit after opening and is hovering around 44,080, up by one-fifth of a per cent after the first hour of trade.

Nafed, NCCF starts onion procurement in Maharashtra, MP from today.

The purchase price has been fixed at Rs 24.10 a kg for today and selling rate will be Rs 25/kg. The subsidy will be paid by Centre as agencies will further incur expenses on logistics, transport over and above procurement price.

The onion farmers need not worry about export duty as the current purchase price is historic, said Food and Commerce Minister Piyush Goyal.

Geaves Retail, the retail unit of Greaves Cotton Ltd., has partnered with Usha Financial Services Ltd. to revolutionise customer financing within the electric three-wheeler segment. Greaves Cotton stock inches up by 0.64% on the NSE, trading at ₹133.60.

Alembic Pharmaceuticals and Aurobindo Pharma has recalled different products in the US market due to manufacturing lapses, according to USFDA. US-based subsidiary of Alembic Pharmaceuticals recalled 82,400 bottles of Tobramycin Ophthalmic Solution in the American market.

New Jersey-based Alembic Pharmaceuticals Inc recalled the affected lot (0.3 per cent, 5ml bottle) due to “Failed Impurities/Degradation Specifications.” The stock trades at ₹765 on the NSE, down by 1.32%.

US-based arm of Aurobindo Pharma is recalling 48 bottles of Rufinamide Tablets, (200 mg, packaged in 120-count bottle), due to cGMP (current good manufacturing practice) deviations, according to USFDA. The stock declines by 2.50% on the NSE, trading at ₹832.05.

Major gainers on the NSE at 12 noon:

HDFC Life Insurance (3.61%); Adani Enterprises (1.84%); SBI Life Insurance (1.59%); NTPC (1.42%); Bajaj Finance (1.20%)

Major losers: Jio Financial (-5%); Cipla (-0.95%); TCS (-0.63%); BPCL (-0.58%); Tech Mahindra (-0.44%)

Soybean carry forward stocks into the upcoming oil year 2023-24, starting October, are expected to touch an all-time high of 32.01 lakh tonnes on back high imports of the oilseed.

The Soyabean Oilseeds Processors Association of India (SOPA), a trade organisation, foresees a heightened import volume of soybean, reaching about 5.5 lakh tonnes during the ongoing oil year 2022-23. This figure is notably higher than the initial projection of 2 lakh tonnes.

Currently, about 5 lakh tonnes of soybean have already been imported. It is anticipated that an additional 50,000 tonnes might be imported. Consequently, the carryforward stocks by end of the oil year 2022-23 are expected to be notably higher at 31.01 lakh tonnes, in contrast to the 25.15 lakh tonnes recorded during the same period the previous year.

Stocks advanced on BSE at 12 noon on August 22 were 2,279 against 1,212 stocks that declined. Total stocks traded were 3,629. The number of stocks that recorded a 52-week high was 220, and those that hit a 52-week low was 27.

Dilip Buildcon Ltd has informed the exchange that the company through joint venture, Patel Engineering Ltd, has declared as L-1 bidder for the tender floated by the Madhya Pradesh Jal Nigam, Ujjain, Madhya Pradesh. The project cost is ₹1275.30 crore. The stock rises by 1.77% on the NSE, trading at ₹310.35.

Welspun Enterprises stock trades at ₹315, higher by 1.71% on the BSE. The infrastructure development arm had acquired 50.10% stake in Michigan Engineers Private Limited (MEPL), a technology-based EPC company in the urban water infrastructure segment, from the existing shareholders for an equity investment of ₹137.07 crore.

Kotak Institutional Equities

Sales momentum sustains, seasonal weakness visible

Residential real estate demand remained robust in 1QFY24, with pre-sales of 234 mn sq. ft (up 19% yoy, down 7% qoq)—the sequential moderation was on expected lines as 4Q is generally the strongest quarter. Pricing was robust, with an average realization of Rs7,200/sq. ft (up 11% yoy, down 2% qoq). Bengaluru led sales growth in 1QFY24, with 21% yoy and 1% qoq growth, followed by NCR (up 25% yoy, down 33% qoq) and MMR (up 9% yoy, down 7% qoq). Among our coverage players, Lodha, Prestige and Sobha delivered strong growth, while Oberoi and Godrej were weak. We remain constructive on the sector, though the recent stock rally limits upside, making us more selective.

In the meantime, the Nifty Realty index advanced by 0.73 percent on Tuesday, driven by a notable surge of over 5 percent in Mahindra Lifespace.

Vadodara-based Shiva Pharmachem , the largest manufacturer of acid and alkyl chlorides, by volume, in CY 2022 in India and a key player globally, with over 2 decades of experience in the Indian specialty chemicals business has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds through for its initial public offering (IPO).

The IPO with a face value of Rs 2 each is entirely an offer for sale (OFS) of up to Rs 900 crore by Promoter and Promoter Group Selling Shareholders.

The offer for sale comprises of up to Rs 383 crore by Vishal Rakesh Agrawal, up to Rs 383 crore by Rahul Rakesh Agrawal, and up to Rs 134 crore by Geetganga Investment Private Limited.

Aegis Logistics: Rs 14.03 Crore NSE Block Trade for Approximately 400,257 Shares at Rs 350.5

Tata Power stock trades at ₹240.45, up by 0.46% on the NSE. The company’s subsidiary Tata Power Renewable Energy Limited (TPREL) had signed a PPA (power purchase agreement) to supply 9 megawatt of green energy to Tata Motors’ plant in Pantnagar, Uttarakhand.

Shares of Coffee Day Enterprises rises by 3.39% on the NSE, trading at ₹42.75. The National Financial Reporting Authority (NFRA) has imposed fines totalling ₹1.10 crore on three entities, including two individual auditors, in connection with lapses in auditing of Tanglin Developments Ltd (TDL), a subsidiary of Coffee Day Enterprises Ltd (CDEL), pertaining to diversion of funds worth ₹3,535 crore from seven subidiaries of CDEL to Mysore Amalgamated Coffee Estate Ltd (MACEL).

Besides, the auditing firm -- Sundaresha & Associates -- and the two auditors -- C Ramesh and Chaitanya G Deshpande -- have been barred from taking up auditing work for varying periods. - PTI

​Ramkrishna Forgings ​stock trades at ₹658.85, higher by 1.48% on the NSE. The company had announced that its plan to acquire JMT Auto had been approved ‘verbally’ by the principal bench of the National Company Law Tribunal.

Omega TC Sabre Holdings and Tata Capital Financial Services have disposed-off equity shares of Shriram Properties Ltd (SPL) by way of multiple on-market transactions resulting in aggregate change of shareholding in excess of 2% of total shareholding or voting rights in SPL.

Zomato stock surges by 4.01% on the NSE, trading at ₹93.35. The food ordering and delivery platform had partnered with Battery Smart to provide battery-swapping access to its delivery partners on the latter’s network.

Under the partnership, Zomato’s delivery partners can get access to Battery Smart’s existing network of over 800 swap stations across more than 30 cities, the company said in a statement.

Nifty 50 and Sensex are trading flat. They opened with a gap-up and rose initially but did not sustain. Nifty made a high of 19,443 and has since fallen. It is currently trading at 19,413, up 0.11 per cent.

Major gainers and losers on the BSE at 11 am:

Gainers: Everyday Industries (9.11%); India Glycols (7.45%); Paradeep Phosphates (7.11%); NBCC (6.62%); General Insurance Corporation (6.59%)

Losers: Llyods Metals (-3.67%); Hemisphere Properties (-3.40%); Jindal Saw (-2.18%); JCHAC (-1.97%); TCNS Clothing (-1.94%)

“Acuité Macroeconomic Performance Index (AMEP index) provides some signals of a slowdown in the Indian economy from the month of July. While a sequential drop in the index can be largely attributed to the seasonality factor in Q2 of the fiscal, the uptick YoY has turned moderate. The slowdown in China and the overall global uncertainty have started to impact the growth momentum despite the overall domestic demand resilience. GDP growth in the first quarter (Q1FY24) is set to be strong at around 7.5% YoY, partly driven by the favourable base but the growth print is likely to be 150-200 bps lower in the subsequent quarters. We hold to our forecast of 6.0% for FY24 for now.”

- Suman Chowdhury, Chief Economist & Head - Research, Acuité Ratings & Research Ltd

Chavda Infra Limited, a civil construction company offering a diversified range of construction and allied services across residential, commercial and institutional projects in Gujarat, announced new order wins totalling Rs. 165 crore. The company with its core focus on TRI-City (Ahmedabad, Gandhinagar and GIFT City) region, won three orders – comprising two commercial (Trogon & Centroid) projects in Ahmedabad and one residential (Avani Aayam) project in Gandhinagar. The Trogon project, valuing Rs. 127 crore, emerged among the largest individual orders received by the company.

The company filed its Draft Red Herring Prospectus (DRHP) with NSE Emerge for its proposed initial public offering (IPO). The IPO comprises the issue of 66.56 lakh Equity Shares (Face Value Rs 10/-) through the book-building route. The company has appointed Beeline Capital Advisors Private Limited as Book Running Lead Manager to the Issue.

GRM Overseas Ltd has launched its packaged products – Besan, Daliya, Maida, Poha and Sooji under the “10X Shakti” Brand under its subsidiary company GRM Foodkraft Private Limited. The stock trades at ₹172.85, down by 0.49% on the NSE.

Faze Three stock surges by 10.85% on the NSE, trading at ₹405.15. The company’s wholly-owned subsidiary Mats and More Pvt Ltd. recently acquired an existing factory premises from Basell Polyolefins India Pvt Ltd., situated at Aurangabad.

Paper companies have increased prices by ₹1,000-3,000 a tonne since August 10. This is the first hike after prices were cut in June this year. Paper companies are set to gain with festive demand seen pushing up demand. The industry views the trend as bottoming out of its products prices.

The spices complex on NCDEX was mixed with near-month and far-month contracts behaving differently. Dhaniya (coriander) October contracts gained ₹22 at ₹7,560 a quintal. Jeera (cumi) is facing profit-booking with September and October contracts plunging by ₹670 and ₹455 a quintal, respectively. September jeera contracts ruled at ₹58,550 and October at ₹59,935. Turmeric October futures gained ₹112 a quintal, but December contracts dropped by ₹54. Turmeric October contracts were quoted at ₹16,110 a quintal. December contracts ruled at ₹17,000.

Mahindra Lifespace Developers (7.55%)

Sobha (1.19%)

Prestige Estates (1.17%)

Oberoi Realty (1.10%)

JM Financial Sector Update: NBFCs

In 1QFY24, our NBFC coverage universe reported 45 per cent YoY growth in PAT led by 19 per cent YoY AUM growth, 25 per cent YoY PPOP growth. NII was up 24 per cent YoY for the coverage universe. NIMs though exhibited mixed trends – NBFC-MFIs saw an expansion in NIMs (with 47bps QoQ improvement, led by the benefit of lending rate hikes), while vehicle financiers (VFs) witnessed 37bps QoQ compression. Diversified financiers (including BAF) and AHFCs saw largely stable NIMs on a sequential basis. Large HFCs benefited with better asset yields in the quarter driving NIM uptick. Cost of funds on average was up 10bps QoQ on a sequential basis, with the highest increase seen in the diversified segment, while yields were up 25bps QoQ. Asset quality continued to improve with credit costs moderating sequentially across most players. We had previously highlighted that the NBFC stock performance was driven by the narrative of an uptrend in interest rates, even as the fundamental performance was on an upward trend over the last year. With a potential peak of interest rates in sight, NBFCs have delivered strong performance over the last 3M/6M period, which has led to a meaningful re-rating of NBFCs as a sector. In our view, easy gains from the sector are behind and we expect growth leaders to sustain the outperformance. We forecast 29 per cent earnings CAGR for our NBFC coverage universe over FY23-FY25E. Our preferred segments are diversified NBFCs, NBFC-MFIs and AHFCs. Our top picks – Bajaj Finance, Poonawalla Fincorp, Creditaccess Grameen, Fusion Microfinance, Home First Finance Co and Mahindra & Mahindra Financial Services.

JM Financial: Electrical Consumer Durable (ECD) companies’ revenue grew by 16% YoY (+13% 4-year CAGR) in 1QFY24, largely on the back of healthy growth in the B2B segment (particularly cables), while demand environment in the B2C segment remained subdued due to a soft summer/unseasonal rains and consumption slowdown in general. Although the gross margin improved on the back of a benign RM environment, that improvement was not reflected in operating margin due to high competitive intensity, and sustained spend on long-term strategic initiatives (A&P, GTM, etc). We continue to be positive on the space from the medium- to long-term perspective given macro tailwinds (low penetration in some categories) and category expansion opportunities. Our top picks - Bajaj Electricals, and Havells

Pyramid Technoplast IPO has been subscribed 6.42 times as of 10:15 am on August 22, 2023. The QIB portion has been subscribed 1.52 times; NII portion 7.27 times; and retail 7.26 times. The issue closes today.

On MCX, gold October contracts increased by ₹5 at ₹58,495 per 10 gm. Silver September futures softened by ₹62 to ₹71,600 a kg.

Quess Corp, India’s leading business services provider, today reported that a 23% increase in staffing requirements in anticipation of the festive period has been noted between April-August 2023 in comparison to the same period last year. As many as 32,000 jobs were posted in this period considering that BFSI, M&I, Retail, and Telecom sectors improved their hiring efforts in line with the surge in demand for the festive season in India.

Gold continued to hover below $1,900 in Asian trade. At 10.15 am IST, it was ruling at $1,895.60 an ounce. Silver was quoted at $23.28 an ounce.

Brigade Enterprises Limited informed in a regulatory filing that the 6.54 acres of land parcel located at Rajiv Gandhi Salai (Old Mahabalipuram Road), Sholinganallur, Chennai, was acquired from Pfizer Healthcare India Private Limited for an overall consideration of approx ₹138 crore. Brigade stock inches up by 0.75% on the NSE, trading at ₹596.50.

Vodafone Idea stock rises by 2.65% on the NSE, trading at ₹7.75. Tanla Platforms recently entered into a term sheet with the company for provision of platform and firewall services, valid for term of two years. Tanla Platforms stock trades at ₹1,042 on the NSE, up by 0.68%.

Shares of ​IEX ​slipped 0.8 per cent to Rs 123.55 after Central Electricity Regulatory Commission has floated a consultation paper on implement market coupling in the power sector, which aids in discovery of uniform prices, optimal use of transmission infrastructure and maximising economic surplus.

Prices of writing and printing (W&P) paper have been raised from August 10, giving a ray of hope to the industry that the rates, which fell 25 per cent during June and July, have bottomed out. “Paper prices which had declined since June this year have begun to stabilise as we see prices of all paper grades besides pulp increasing,” said a trade source, without wishing to identify.

The optimism surrounding ​Jio Financial Services (JFS) failed to translate into a strong listing​, with the stock falling 5 per cent to hit its lower circuit. This is a reflection of the market view that while valuations remain strong, the NBFC has a lot of ground to cover operationally, starting almost from scratch.

Shares of Lemon Tree Hotels rise by 1.33% on the NSE, trading at ₹106.60. The company had signed license agreements for two properties in Bhubaneswar and Kasauli under brand Lemon Tree Hotel and Lemon Tree Mountain Resort, respectively.

​Persistent Systems Ltd ​informed the exchanges that pursuant to the order received from the Commercial Register Courts in Germany, Youperience GmbH, (a step down subsidiary) merged into Persistent Systems Germany, GmbH (wholly-owned subsidiary) with effect from August 21, 2023. The stock of Persistent Systems trades at ₹5,018.75, up by 0.16% on the NSE.

Home decor companies in Q1FY24 saw a diverse set of results. While wood panel saw flattish revenue YoY, tiles/plastic pipes reported 6%/4% growth. All pipe companies were impressive with strong double-digit volume growth. Stable PVC prices and moderating gas prices helped boost EBITDA/PAT by 17%/3% for pipe companies and 11%/6% for tile companies. In contrast, elevated timber prices continued to weigh on wood panel companies, dragging EBITDA/PAT 20%/27% lower.

Major gainers on the NSE at 9:30 am:

Adani Enterprises (2.62%); HDFC Life Insurance (2.05%); SBI Life Insurance (1.13%); Power Grid (0.97%); Adani Ports (0.91%)

Major losers: Jio Financial (-5%); Nestle India (-0.44%); Titan (-0.42%); Tech Mahindra (-0.40%); TCS (-0.37%)

The hotel sector sustained its momentum in Q1FY24 despite the high base with all four major companies viz. IHCL, EIH, Lemon Tree and Chalet, clocking 15%-plus YoY RevPar growth.

Crude oil futures traded lower on Tuesday morning as weak economic growth in China continued to affect the demand for the commodity. Added to this, market is also waiting for the outcome of the meeting between Iraqi and Turkish oil ministers on the resumption of Iraqi oil exports from Ceyhan oil terminal in Turkey.

At 9.27 am on Tuesday, October Brent oil futures were at $84.33, down by 0.15 per cent; and October crude oil futures on WTI (West Texas Intermediate) were at $79.98, down by 0.17 per cent. September crude oil futures were trading at ₹6655 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹6674, down by 0.28 per cent; and October futures were trading at ₹6638 as against the previous close of ₹6658, down by 0.30 per cent.

Adani Group for its airports business and a wholly-owned subsidiary of Adani Enterprises Limited has incorporated a joint venture company namely Tabemono True Aromas Private Limited with Travel Food Services Private Limited (TFS) for strategic partnership to develop, operate and maintain various hospitality services and formats at multiple locations.

Jio Financial slumped on Tuesday as well another 5 per cent to Rs 239.20 on the bSE., as index funds seemed to have stepped up their selling

Madhya Pradesh Jal Nigam, a Government undertaking, has declared a Mumbai-based infrastructure company, Patel Engineering Limited (PEL) as L1 in a Joint Venture for ₹1,275.30 crore contract for the works involving engineering, procurement, construction, testing, commissioning, trial run and operation and maintenance for ten years of Narmada-Gambhir, District Ujjain & Indore Multi-Village Drinking Water Supply Scheme. The project is to be completed in 24 months and is to be executed in a joint venture, of which PEL’s share is 35%, i.e. ₹446.36 crore.

Patel Engineering stock surges by 3.48% on the NSE, trading at ₹57.95.

Life Insurance Corporation of India has acquired 6.660% shareholding in Jio Financial Services Ltd through demerger action by “Reliance Industries Ltd.

LIC stock inches up by 0.36% on the NSE, trading at ₹654.50.

Kotak Alternate Asset Managers Limited (KAAML) has announced the appointment of Jitendra Gohil as Chief Investment Strategist to support the Investment Advisory practice.

Jitendra will be a core member of KAAML’s Investment Advisory team. He has around two decades of experience in Equity Strategy and Business Development and has an excellent understanding of the Indian and Global macro environment with special focus on geopolitics.

Jitendra joined KAAML from Credit Suisse Private Banking and Wealth Management, where he has worked as a Director and Head of Equity Research for the last 13 years. Prior to that he has also worked with organisations like Bank of America Continuum Solutions, Kotak Securities and BSE.

As trading commenced on Tuesday, the market displayed a neutral stance influenced by mixed international signals. Notably, the Nasdaq’s robust 1.5% overnight leap casts a spotlight on domestic IT stocks. The BSE Sensex started the day with a 59 rise, reaching 65,275 by 9:15 am. Similarly, the NSE Nifty advanced by 27 points, reaching 19,420.

From the Nifty pack, Adani Enterprises, Adani Ports, HDFC Life, PowerGrid and Bajaj Finserv were among the gainers.

Jio Financial, Nestle, Eicher Motors, RIL and Axis Bank were among the laggards.

Despite the local indices’ recent recovery, persistent net selling by FIIs remains an ongoing challenge, contributing to a sense of uncertainty. Moreover, lingering concerns about China’s economic performance may further dampen market sentiment.

Silver settled up by 2.03 per cent at Rs 71,662 a kg on prospects of US interest rates remaining elevated for some time. Investors grew confident that Federal Reserve Chair Jerome Powell’s speech at the annual symposium in Jackson Hole this week could set the stage for an extended period of higher interest rates. Still, demand for commodities is expected to increase. Efforts to curb carbon emissions sped up the development of solar panel technologies that need higher conduction needs, causing sharp upgrades in forecasts for the commodity’s demand. Solar panel companies are expected to make up 14% of global silver consumption, compared to 5 per cent in 2014.

The probability for a quarter-point rate hike in November is however higher at 35.5 per cent.

PL Report - India Strategy - Headwinds ahead

India Strategy - Amnish Aggarwal - Head of Research, Prabhudas Lilladher Pvt Ltd

Headwinds ahead

NIFTY has given more than 14% return in FY24 YTD as India attracted more than USD16.5bn of net FII flows. India seems well poised for growth in longer term, however coming months will be a real test for the economy and markets given 1) EL Nino impact on crops and Inflation as food inflation has spiked to more than 7.4% and rainfall outlook remains subdued and 2) dim possibility of further cut in interest rates with some possibility of an increase in 2H. We expect markets to start factoring in political risks as election related activity picks -up with state elections in November and Lok Sabha elections in April 2024. Economy is getting a big push from Union Govt induced capex even as rural India is showing faint signs of recovery and urban discretionary demand remains tepid. Expected interest rate hike in US and its impact on INR/USD with impending political and inflation risk can impact capital flows. We believe high inflation can be a political hot potato in an election year, forcing govt to slow down capex. We remain positive on Auto, Banks, Capital Goods and Healthcare. We cut NIFTY target to 20,735 given cut in earnings (impact of floods and late Diwali in 2Q) and expect markets to consolidate ahead of 2024 elections. We advise stock specific approach and avoiding sectors / companies with weak fundamentals and lack of business moats.

Prashanth Tapse, Senior VP (Research), Mehta Equities

“Markets could be subdued in early Tuesday trades with a mixed bias, but optimism in most of the Asian indices could fuel extended recovery in local shares. Domestic IT stocks could be in limelight today after the tech-heavy Nasdaq index jumped over 1.5% in overnight trades. However, FIIs remaining net sellers continue to cause problems, as despite a recovery in key local indices yesterday, foreign investors offloaded shares in domestic markets. Sentiments may also remain sluggish amid persistent Chinese economic concerns. Technically, Nifty bulls are likely to hesitate as long as the 19525-19550 zone is a resistance area. On the downside, bears will become active if Nifty slips below 19251 mark.”

Larsen & Toubro (L&T) has secured an order worth ₹2,500 crore for the fabrication and supply of pipe rack modules for a 2.3-MMTPA urea plant for Perdaman Chemicals and Fertilizers Pty in Australia.

Asian equities opened mostly higher Tuesday following a rally in big tech that spurred a rebound on Wall Street, though elevated Treasury yields kept risk sentiment in check.

Nifty ended higher on Aug 21 aided by buying across Metals, Power and IT stocks. At close, Nifty was up 0.43% or 83.5 points at 19393.6. Nifty bounced up as expected post the doji formed in the previous session. 19483 is the resistance for the Nifty in the near term while 19253-19310 band could provide support.

The US 10-year yield ended the New York session at 4.339% or its highest closing level since Nov. 6, 2007.

The street is waiting to hear and interpret Fed Chairman Jerome Powell’s speech at the annual Jackson Hole symposium on Friday. The speeches from Fed chiefs at the Jackson Hole conference have typically buoyed stocks since the turn of the millennium, with the S&P 500 gaining 0.4% on average in the following week, data compiled by Bloomberg Intelligence show. But last year’s appearance is still fresh in traders’ minds: Equities slumped 3.2% in the week following Powell’s remarks, according to BI, after he warned of keeping policy restrictive to battle inflation.

Deepak Jasani, Head of Retail Research, HDFC Securities:

Indian markets could open flat, despite mostly higher Asian markets today and positive US markets on Aug 21

The S&P 500 and Nasdaq Composite finished with their first gains of the past five sessions on Monday, despite another surge in long-dated Treasury yields and lingering concerns about China’s economy. A rally in big tech spurred a rebound in stocks, outweighing concerns over higher Treasury yields just a few days ahead of a speech by Federal Reserve Chair Jerome Powell.

AU Small Finance Bank believes that systemic growth may remain strong and that the bank is well positioned to sustain a healthy growth rate of 25-30 per cent over the next few years.

Transitioning from an NBFC to an SFB to receiving an Authorised Dealer category-I license, AU Bank has come a long way and is now aiming for a universal banking license, said Motilal Oswal in a report.

It is one of the banks that has not only emerged as one of the largest SFBs but also delivered steady return ratios with 5-year Avg RoA/RoE at 1.7 per cent/14.9 per cent.

With the focus on building granular retail book and following the best-in-class underwriting practices like in-house origination and collection teams, the asset quality is expected to remain stable despite a minor blip in 1Q due to seasonality, it said.

Gold remained range bound as markets geared up for the Federal Reserve’s Jackson Hole symposium for clues on where interest rates might settle. Fed officials largely remained concerned that inflation would fail to recede and suggested they may continue raising interest rates.

In MCX, gold prices were up marginally by 0.2 per cent at Rs 58,490 per 10 grams on Monday.

Asian ETFs bought $132 million of gold in July, largely propelled by surging Japanese demand with inflows totaling $170 million. Gold price tested the bearish channel’s resistance and may remain subdued today with a target of Rs 58,000 on Tuesday, said Kedia Commodities. Note that breaking the mentioned level will open the way to suffer additional losses that reach 57500 areas, it said.

Titan Company on Saturday announced the acquisition of 27.18 per cent stake in the omnichannel jewellery retailer CaratLane by buying the entire 91,90,327 equity shares held by the founder. Consequently, Titan’s holding in the company will go up to 98 per cent from the previous 71 per cent.

Omega TC Sabre Holdings sold 18 lakh shares of Shriram Properties at Rs 75.43 a piece

Ambuja Cements has made an open offer to acquire a 26 per cent stake in Sanghi Industries for Rs 767.16 crore. The offer opens on Sept. 29 and closes on Oct. 13.

In June 2023, the Employee Provident Fund Organization (EPFO) in India recorded a net increase of 17.89 lakh members, with a significant rise in youth enrollment, in the age group of 18-25 years, and Maharashtra contributing the highest share.: Source: AUM Capital

Chola Securities.

Derivative corner:

Nifty OI Put/Call ratio has gone up from 1.00 to 1.08 levels.

Options data: The maximum Call OI is seen at 19,400 and 19,500 while maximum Put OI is seen at 19,300 and 19,200. This indicates that the market is expecting a trading range of 19,200 to 19,400 zones.

FII Activity in Derivatives: Marginal addition of longs is seen in index futures. On options buying front; there are more put buyers and on option writing front; net call-put writing is indicating put writers back in action.

FII Long/Short ratio in index futures has marginally gone up from 42% to 43% indicating long addition.

CCCL

A.G.M.

LAL

Issue Of Warrants

PRERINFRA

General

TIRUSTA

Increase in Authorised Capital;Preferential Issue of shares

WSIND

General

Aeroflex Industries IPO opens today at ₹102-108 price band

The ₹351-crore initial public offering opens to public today at a price band ₹102-108. Investors can bid for a minimum of 130 equity shares. Aeroflex Industries Limited IPO has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non institutional investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.

The IPO consists of a fresh issue worth ₹162 crore and an offer-for-sale (OFS) of up to 1.75 crore shares by promoter Sat Industries.

Pyramid Technoplast issue closes today. Offer subscribed 5.84 times so far; price band is ₹151-166

Today is the last date to subscribe the initial public offering of Pyramid Technoplast.

The Rs 153-crore IPO of Pyramid Technoplast has so far been subscribed 5.20 times at the end of Day 2 of issue opening on Friday. The initial public offering saw a strong response from all category of investors. While retail investors portion was subscribed 6.52 times, NII portion and QIB quotas were subscribed 6.73 times, and 1.48 times respectively. Overall, it received bids for 4.41 crore shares against 75,60,400 shares on offer.

The IPO consists of fresh issue of ₹91.30 crore and an offer for sale (OFS) portion of ₹61.75 crore. Pyramid Technoplast IPO lot size is 90 equity shares

​Glenmark Pharmaceuticals​ Inc., USA has entered into an agreement with the U.S. Department of Justice, Antitrust Division (DOJ) to resolve all of its court proceedings with the DOJ involving historical pricing practices by former employees relating to the generic drug pravastatin between 2013 and 2015. The Company has entered into a three-year Deferred Prosecution Agreement, and if the Company adheres to the terms of the agreement, including the payment of $30 million, payable in six installments, the DOJ will dismiss the pending Superseding Indictment.

In a surprise move, the board of directors of Hindustan Oil Exploration Company (HOEC) has announced that the company’s Executive Director and CFO, Ramasamy Jeevanandam, would be the Managing Director from October 1; the incumbent MD, Pandarinathan Elango, “shall be retiring” on September 30, upon completion of his current term.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has ordered the Central Government not to take coercive steps against Tata Communications in relation to a licence fee demand of Rs 991.5 crore. A coram of TDSAT Chairperson Justice DN Patel and Member Subodh Kumar Gupta passed the interim order on August 14 on a plea filed by Tata challenging the Telecom department’s license fee demand for the years 2006-2007 and 2007-2008.

The National Financial Reporting Authority has imposed fines totalling Rs 1.10 crore on three entities, including two individual auditors, in connection with lapses in auditing of Tanglin Developments Ltd (TDL), a subsidiary of Coffee Day Enterprises Ltd. Besides, the auditing firm -- Sundaresha & Associates -- and the two auditors -- C Ramesh and Chaitanya G Deshpande -- have been barred from taking up auditing work for varying periods.

Central Electricity Regulatory Commission has floated a consultation paper on implementing market coupling in the power sector, which aids in discovery of uniform prices, optimal use of transmission infrastructure and maximising economic surplus. Shares of IEX will be in focus

Market Sources say SJS Enterprises to see huge block deals worth Rs 542 crore.

According to them, 30% of equity to see change hands via block deal while floor price has been fixed at580/share, over 6 per cent discount to CMP.

The sellers are: Evergraph Holdings - 29.53%; Sanders Consulting - 0.5%

1️⃣ CHAMBLFERT

2️⃣ DELTACORP

3️⃣ GNFC

4️⃣ HINDCOPPER

5️⃣ IBULHSGFIN

6️⃣ INDIACEM

7️⃣ MANAPPURAM

8️⃣ METROPOLIS

9️⃣ PNB

1️⃣0️⃣ SAIL

1️⃣1️⃣ ZEEL

Gland Pharma, Orient Cement, RattanIndia Enterprises, SEPC.

Technocraft Industries (India), Hindustan Oil Exploration.

Sun TV Network, Natco Pharma, KPI Green Energy, Dreamfolks Services.

Karnataka Bank, NHPC.

Subro, Panama Petrochem, Aurobindo Pharma, NHPC

Sun TV Network, Natco Pharma, KPI Green Energy, Dreamfolks Services.

Karnataka Bank, Subro, Panama Petrochem, NHPC, ICICI Securities.

Price Band Revised From 20% To 10%: BF Utilities.

Vimta Labs: Promoter Sujani Vasireddi sold 18,234 shares on Aug. 17.

Shriram Properties: Omega TC Sabre Holdings sold 18 lakh shares (1.1%) at Rs 75.43 apiece.

Aeroflex Industries: The initial public offering will be open between Aug. 22 and 24. The manufacturer of stainless steel hoses will have an IPO issue size of Rs 351 crore. It consists of a fresh issue of Rs 162 crore and an offer for sale of Rs 189 crore by the promoter group, at a price band of Rs 102–108 apiece.

Rail Vikas Nigam: The company incorporated a wholly-owned subsidiary Masakani Paradeep Road Vikas.

RITES: The company signed an MoU with NHPC to collaborate on comprehensive consultancy services for rail infrastructure facilities for NHPC’s hydropower projects in Arunachal Pradesh.

BLS International: The company’s subsidiary BLS International FZE is in process to subscribe 100% share capital of Saudi Arabia-based BLS International Travel & Tourism.

Brigade Enterprises: The south-based real estate developer has entered into a sale deed for acquiring 6.54 acres of land parcel in Chennai in which a residential project will be developed.

Lemon Tree Hotels: The hotel chain has signed license agreements for two properties in Bhubaneswar and Kasauli under the brand Lemon Tree Hotel and Lemon Tree Mountain Resort, respectively. The hotel in Bhubaneswar is expected to be operational by Q4FY25, and the hotel in Kasauli is expected to be operational by Q3FY26.

Welspun Enterprises: The company acquired 50.10% stake in Michigan Engineers from Authum Investment & Infrastructure and Sansaar Housing Finance for Rs 137.07 crore. Post acquisition, Michigan becomes a subsidiary.

Tata Power: The company’s arm Tata Power Renewable Energy signed a power purchase pact with Tata Motors for 9 MWp on campus solar plant at Pantnagar in Uttarakhand. The project will be commissioned within six months.

Sanghi Industries: Ambuja Cements has made an open offer to acquire a 26% stake for Rs 767.16 crore. The offer opens on Sept. 29 and closes on Oct. 13.

Union Bank of India#: The board approved to raise up to Rs 5,000 crore from Qualified Institutions Placement. It set the floor price at Rs 91.10 apiece for the issue opened on Aug. 21.

Adani Power: The company has targeted a total capacity of 21,110 MW by FY29. This includes proposed inorganic capacity at 1,100 MW, brownfield capacity of 3,200 MW, core existing capacity of 15,210 MW and committed brownfield capacity of 1,600 MW. It sees the net senior debt at Rs 26,690 crore in FY24 vs Rs 24,350 crore in FY23.

Adani Enterprises: Founder firm Kempas Trade and Investment bought 2.53 crore shares (2.22%). The purchase was made from open market between Aug. 7 to Aug. 18. The company has also incorporated a wholly-owned subsidiary Sirius Digitech International to provide digital solutions and services.

​Market is likely to open on flat note​ on Tuesday amid mixed global cues. Analysts expect lacklustre trading day for traders with stock-specific action to dominate. Lack of triggers to keep market in a range, said analysts. With result season is over, now the focus is shift to global cues.

JK Cements reported results largely in line with our estimate at EBITDA level. The company has restated its financials to factor in the effect of amalgamation of its subsidiary Jay kay cem central ltd (recently commissioned Panna and Hamirpur plants) with the parent and as a result, Q1-FY24 and Q4-FY23 numbers have been restated.

NMDC’s Q1-FY24 EBITDA of ₹1,990 crore (up 4.9% YoY) was 17.5 per cent and 9.8 per cent ahead of our and consensus’ estimates.

Key points: Best-ever quarterly performance barring Q4-FY23; focus on volume growth; EBITDA margin sustained QoQ at 37 per cent due to better product mix; and cash & equivalents at Q1FY24-end were ₹11,280 crore.

IEX, Adani Enterprises, Coffee Day, Welspun Enterprises, Lemon Tree, Tata Power, Brigade Enterprises, IIFL Finance, Hindustan Oil Exploration, Tata Communications Glenmark Pharma,

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

JBM Auto’s stock began its latest leg of uptrend in December last year after taking support at ₹400. While it had been gaining steadily since the beginning of this year, hit a resistance at ₹1,500 in July this year. A couple of attempts made by the stock since early July to rally past the ₹1,500-mark a failure.

Asian stock markets commenced Tuesday on an upward trajectory, propelled by a rally in major technology stocks that triggered a recovery on Wall Street. Despite this positive momentum, the influence of heightened Treasury yields tempered overall risk sentiment. While Japan’s Topix index marked a 0.6% increase, Australia’s S&P/ASX 200 Index experienced a marginal decline of 0.3%. Meanwhile, futures for Hong Kong’s Hang Seng index indicated modest gains ahead.

The S&P 500 and Nasdaq received a significant boost from the technology sector, leading to gains.

While the Dow Jones Industrial Average saw a marginal decline of 0.11%, the Nasdaq Composite soared by 1.56%, supported by strong performance from tech-related stocks. The S&P 500 also gained 0.69% during the trading session.

Meanwhile, semiconductor stocks advanced by 2.8%, contributing to the positive market momentum. - Reuters