Share Market Highlights 20 July 2023: Sensex jumps 470 pts, ends above 67,500; Nifty nears 20,000; ITC among top gainers

Equity benchmark indices Sensex and Nifty scaled fresh record high levels on Thursday, driven by unabated foreign capital inflows and intense buying in banking and FMCG stocks.

The 30-share BSE Sensex jumped 474.46 points or 0.71 per cent to settle at its fresh all-time closing high of 67,571.90.

The benchmark recovered all its early lost ground during the afternoon trade. During the day, it rallied 521.73 points or 0.77 per cent to hit its lifetime intra-day peak of 67,619.17.

The NSE Nifty climbed 146 points or 0.74 per cent to end at its record closing high of 19,979.15. During the session, it soared 158.7 points or 0.80 per cent to reach its fresh a record high of 19,991.85.

ITC was the biggest gainer in the Sensex pack, rising nearly 3 per cent, followed by Kotak Mahindra Bank, ICICI Bank, Maruti, Bharti Airtel, State Bank of India, Sun Pharmaceutical Industries, Axis Bank, Reliance Industries, Hindustan Unilever and JSW Steel.

On the other hand, Infosys, UltraTech Cement, HCL Technologies, Bajaj Finserv, Larsen & Toubro, Titan, Tata Consultancy Services and Wipro were the laggards. - PTI

Infosys reported a revenue of ₹37,933 crore, demonstrating a substantial year-on-year (YoY) growth of 10 per cent.

In the June quarter, Infosys witnessed a robust year-on-year (YoY) growth in its consolidated net profit, reaching ₹5,945 crore

Revenue guidance for FY24 slashed from 4-7% to 1-3.5%

Jindal Stainless Ltd has completed the acquisition of Jindal United Steel Ltd(JUSL). Earlier, JSL held a 26% stake in JUSL; it has now acquired the remaining 74% equity stake in JUSL for a cash consideration of ₹958 crore. The transaction makes JUSL a 100% owned subsidiary of JSL. The (JSL) stock traded at ₹367.40 on the NSE, up by 0.03%.

Rupee rises 8 paise to close at 82.00 (provisional) against US dollar.

Shares of Bank of Maharashtra decline by 2.10% on the BSE, trading at ₹32.58 per share.

KFin Technologies has allotted 34,648 equity shares of face value ₹10 each pursuant to exercise of options by the eligible grantees under the KFin Employee Stock Option Plan 2020. The company’s stock trades at ₹381.65, down by 0.95%.

The stock of Reliance Industries rises by 1.55%, trading at ₹2,620.

Royal Orchid Hotels Ltd has announced the opening of Regenta Place Rayson at Kolhapur. The stock has risen by 1.16% on the NSE, trading at ₹330

RVNL has sustained its momentum on receipt of a Rs 808-crore order. The stock is up over 7 per cent at Rs 128.75

Major gainers on the Nifty 50 at 3 pm: ITC (2.67%); Dr Reddy’s Laboratories (2.49%); Kotak (2.20%); Cipla (2.03%); ICICI Bank (1.95%)

Major losers: Ultratech (-1.43%); Infosys (-1.39%); Bajaj Finserv (-0.56%); Britannia (-0.40%); HCL Tech (-0.31%)

1,671 stocks advanced on the BSE at 3 pm on Thursday, against 1,664 stocks that declined. The total stocks traded were 3,492. The number of stocks that recorded a 52-week high was 220, and those that hit a 52-week low was 32.

Kellton Tech Solutions jumped over 5 per cent at Rs 86.50 on securing a project from the Karnataka government. Earlier, it touched a high of Rs 89.40

Lupin Ltd has said in a stock exchange filing that the National Company Law Tribunal has approved the scheme of amalgamation for merger of Pharmasofttech AWACS into Pharmarack Technologies. Both these companies are subsidiaries of Aarogya Bharat Digital LLP (earlier known as DigiHealth Technologies LLP), which in turn is a wholly-owned subsidiary of ABCD Technologies LLP. The stock of Lupin has risen by 1.16% on the NSE to trade at ₹943.55.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:

The market discovered price of Rs 261.85 per share of Jio Financial Services has come much higher than most brokerages’ estimates. This high price is a reflection of the market’s assessment of Jio Financials’ potential. The wide reach of JFSL through RIL’s other business segments like Reliance Retail has the potential to grow the company at a fast pace for many years to come. The market is discounting this potential.

NELCO Ltd’s consolidated net profit for the quarter ended June 30, 2023, stood at ₹5.73 crore, against ₹4.72 crore in the previous year. The stock declined by 2.99 per cent on the NSE to trade at ₹827.

The Bajaj Hindustan Sugar Ltd stock rises by 5.28% on the NSE, trading at ₹17.95

RDB Rasayans has received in-principal approval for expansion project of FIBC at Balasore Orissa. Its stock trades ₹118.05 on the BSE, up by 1.72%.

Major gainers on the BSE at 2:05 pm

Newgen (10.01%); Alembic (7.28%); Hatsun (7.17%); RVNL (6.88%); Polycab (6.07%)

Major losers: ABB (-6.70%); Amaraja Batteries (-4.66%); Sharda Cropchem(-4.52%); Zensar Tech (-4.39%); Saregama (-4.11%)

The stock of PNB Gilts rose by 7.99% on the NSE, trading at ₹70.40. The company’s board will meet on July 21 to consider interim dividend.

Damodar Industries will hold its 35th AGM on August 11, 2023. The stock of the company has risen by 2.71% on the NSE, trading at ₹47.30.

Kirloskar Pneumatic Company reported a net profit of ₹17.93 crore for the quarter ended June 30, 2023, against ₹16.27 crore in the previous year. The company’s stock fell by 1.86% on the NSE, trading at ₹646.90.

The demerger ratio is 1:1, with each Reliance Industries shareholder receiving one JFSL share if held on or before July 19. Read more here.

MIC Electronics Ltd appointed Kalidindi Satyanarayana Raju as the Chief Executive Officer of the company.

The stock of Reliance Industries has risen by 1.51 per cent on the NSE, trading at ₹2,619

The board of Cipla Ltd has allotted 24,027 fully paid-up equity shares of Rs 2 each, pursuant to the exercise of employee stock options / stock appreciation rights. The company’s stock gained by 1.19 per cent on the NSE, trading at ₹1,048.10.

Veranda has deepened its presence in banking exam training through its association with Phire

SecureKloud Technologies’ step-down subsidiary -- Healthcare Triangle Inc has secured a multi-year program expansion contract with HVtomer, a Fortune 500 biopharmaceutical company. The agreement extends the customer’s suite of cloud DevOps, data engineering, and data platform management solutions.

Healthcare Triangle advances industry-transforming solutions in the areas of cloud services, data science, cyber security and professional and managed services for the healthcare and life sciences industries.

The Company is strategically partnered with leading public cloud providers including Amazon Web Services, Google Cloud, Microsoft Azure Cloud, and EHR vendors.

The stock hit upper Circuit 5 per cent at ₹46.20.

Priti International has bagged order for airport furniture segment from Airport Authority of India, Begumpet Airport, Hyderabad. The stock of Priti International rises by 213.25, up by 4.64% on the NSE.

The Board of Directors of Suzlon Energy is scheduled on July 25, inter alia, to consider and approve The Unaudited Financial Results of the Company on Standalone and Consolidated basis for the quarter ended on June 2023.

Sensex is at 67,250.87; Nifty nears 19,990

HCL Technologies joins forces with Meta and MeitY Startup Hub to accelerate the development of extended reality tech ecosystem in India.

We expect Ashok Leyland to post a tepid sequential growth this quarter on the back of the implementation of BS- VI phase 2 norms and the high base effect of last quarter. In the quarter gone by, the bus segment continued to outpace the M&HCV segment as seen in the preceding quarter as well. On the margin front, we expect higher realization benefits on account of lower discounts and price hikes along with softening raw material prices leading to an annual EBITDA growth in low double-digits in Q1FY24.

The stock of Federal Bank rises by 0.33% on the NSE, trading at ₹136.20. The bank’s board had authorised the opening of the issue on Wednesday and fixed the floor price at ₹132.59 per share.

The stock of Olectra Greentech trades at ₹1,296.05, down by 0.87%. The company awarded ₹395.12 crore contract to Megha Engineering & Infrastructures for construction of Greenfield EV manufacturing facility in Hyderabad.

Major gainers:

• Dr Reddy’s (2.37%)
• Grasim (1.73%)
• ITC (1.63%)
• Kotak (1.42%)
• Reliance (1.36%)

Major losers:

• Infosys (-1.83%)
• Ultratech (-1.26%)
• Eicher Motors (-0.51%)
• HCL Tech (-0.51%)
• Axis Bank (-0.48%)

Life Insurance Corporation of India’s shareholding in Hindustan Copper Ltd has diluted from 11,91,64,785 to 9,91,10,743 equity shares, decreasing its shareholding from 12.323% to 10.249% of the paid-up capital of the said company.

The stock of LIC rises by 1.12% on the NSE, trading at ₹627.30, while the stock of Hindustan Copper declines by 0.38%, trading at ₹119.35.

SJVN has signed Power Purchase Agreements (PPA) for 300 MW Renewable Energy Projects. The PPAs have been signed by SJVN Green Energy Limited (SGEL), a wholly-owned subsidiary of the company. PPA has been signed for 200 MW Solar Power Project Capacity (worth ₹1,200 crore) with Maharashtra State Electricity Distribution Company Ltd(MSEDCL) in Mumbai, and with Solar Energy Corporation of India Limited (SECI) for 100 MW Wind Power Capacity (worth ₹750 crore) in Delhi.

The stock of SJVN trades at ₹49.45, up by 1.54% on the NSE.

In Q1FY24 production update, JSW Steel has posted a 2% decline in consolidated crude steel production. We expect the company to report a low double-digit sequential decline in revenue on the back of lower volumes and price cuts during the quarter. The operating performance is also expected to be impacted significantly due to lower realizations and the absorption of high-cost coking coal inventory. We would closely watch management commentary for any signs of moderation in its full-year guidance, demand outlook, the progress on the capital expenditure front, and some colour on plans to reduce debt going forward.

The stock of TCS trades at ₹3,444.15 on the NSE, down by 0.49%.

ITC’s market cap breaks above ₹6 lakh crore for the first time ever, stock up 1.6% at ₹486.70.

Stocks advanced on BSE at 12:20 pm on July 20 were 1,868 against 1,374 stocks that declined. Total stocks traded were 3,387. The number of stocks that recorded a 52-week high was 186, and those that hit a 52-week low was 23.

Major gainers:

• Dr. Reddy’s Laboratories (+2.14%)
• ITC (+1.98%)
• Grasim Industries (+1.33%)
• Reliance Industries (+1.26%)
• Sun Pharmaceuticals (+1.15%)

Major losers:

• Eicher Motors (-0.47%)
• TCS (-0.50%)
• HCL (-0.56%)
• Ultra Cement (-1.32%)
• Infosys (-1.96%)

The shares of Reliance Strategic Investment, the demerged entity from Reliance Industries, was valued at ₹262 at the end of a special trading session on stock exchanges.

The stock was valued much higher than analyst estimates of ₹160-190 a share.

RSIL is set to be demerged from Reliance Industries on July 20 and renamed Jio Financial Services before being listed on exchanges at a date to be announced by the company.

Equity benchmark indices Sensex and Nifty continued their upward movement on July 19, ending at fresh record high levels, driven by foreign fund inflows and optimism in the global markets.

Buying in index majors Reliance Industries and ITC also helped the markets maintain their winning momentum.

Find all the highlights here.

The stock of Reliance Industries rises by 1.16% on the NSE, trading at ₹2,609.90.

Tata Tele Business Services (TTBS) has announced the launch of Smartflo Unified Communication as a Service (UCaaS), a voice solution integrated with Microsoft Teams. The stock of Tata Teleservices (Maharashtra) rises by 3.77% on the NSE, trading at ₹84.

Shares of Transformers and Rectifiers (India) Ltd. fall by 15.78% on the NSE, trading at ₹90.20 per share.

The company received a “Stop Deal” notice dated July 13, 2023, which has been physically received by RPAD on July 19, 2023, from Gujarat Energy Transmission Corporation Limited (GETCO) intimating that the latter has decided to stop dealing with the company for 3 years on the ground that the company had allegedly submitted forged Material Dispatch Clearance Certificate(MDCC) relating to certain transformers it supplied under the contract awarded for supply of total 29 transformers and 1 reactor to GETCO.

The stock of TTK Prestige climbs 1.12% on the NSE, trading at ₹793.85. The company had resumed production from July 18 at its Roorkee plant after the floods. The estimated loss of movables is a little over ₹40 lakh, the company said, and added that insurance claims have been lodged for the loss.

The stock of Indowind Energy declines by 7.74% on the NSE, trading at ₹13.70. The company had fully cleared the outstanding dues to EXIM Bank of India. The cases filed by both parties against each other are in the process of being withdrawn. The Bank will return 40 lakh equity shares of Indo Wind Energy to “Loyal Credit & Investments Limited (Promoter and Guarantor). This will increase the promoter and promoter group holding from 47.07% to 50.77%.

Major gainers

• Newgen (11.77%)
• Hatsun (8.15%)
• Bajaj Hindusthan (7.98%)
• Voltamp Transformers (6.15%)
• Ceat (5.39%)

Major losers

• ABB (-7.41%)
• Alok Industries(-4.06%)
• Amaraja Batteries (-3.80%)
• Zensar Tech (-3.60%)
• Cholamandalam Finance (-3.04%)

• ABB down -7%

• Siemens down -3%

KCP Sugar Industries Corporation Ltd, a sugar-producing industry and its allied businesses, witnessed a surge in their share prices. The company’s stock soared by 17.58 per cent.

The company reported a total income of ₹123.2399 crores during the period ended June 30, 2023, as compared to ₹52.7831 crores during the period ended March 31, 2023.

Hatsun Agro Product Ltd. witnessed an increase in its share price by 7.99 per cent following some announcements made by the company.

The company’s Board of Directors approved the Unaudited Financial Results for the quarter ended June 30, 2023. Additionally, the Board declared an interim dividend of ₹6 per equity share (600 per cent) on fully paid-up equity shares with a face value of ₹1 per share.

The company’s stock rose by 6.80% on the NSE, trading at ₹87.95.

Elin Electronics Ltd and its wholly-owned subsidiary- Elin Appliances Pvt Ltd, have resumed manufacturing operations at its Solan plant, Himachal Pradesh, which was partially shut down due to heavy rains. The company’s stock trades at ₹152, up by 0.03% on the NSE.

The stock of E2E Networks Ltd rises by 20% on the NSE, trading at ₹252.90.

The stock of LIC rises by 1.18% on the NSE, trading at ₹627.70. Satpal Bhanoo, Additional Zonal Manager (In-Charge) Zonal Office, LIC of India, Bhopal, has been appointed as Managing Director with effect from the date of assumption of charge of Office and up to the date of his superannuation in December 2025.

Bank Nifty index began the day slightly higher at 45,689 versus Wednesday’s close of 45,669. It is currently trading around 45,730. The gain is largely due to the rally in public sector banks, which apparently is the best performing sectoral index so far today.

The advance/decline ratio of Bank Nifty stands at 7/5, showing a bullish bias. IndusInd bank, up by 0.9 per cent, is the top gainer whereas Bandhan Bank, down by 0.9 per cent, is the top loser.

As mentioned earlier, among the banking stocks, the public sector banks are the leaders. Consequently, Nifty PSU Bank, up by 1.3 per cent, has outperformed Nifty Private Bank, which is flat so far today.

The stock of Krsnaa Diagnostics declines by 11.25% on the NSE, trading at ₹473.95. The National Health Mission, Rajasthan, had cancelled the Letter of Acceptance, awarded to a consortium of company with Telecommunications Consultants India Ltd (TCIL) in May. The company, in collaboration with TCIL, had taken legal recourse, it said, and added the cancellation does not in any way impact existing business operations.

Nifty 50 (19,775) and Sensex (66,890), after opening flat, have moderated in the first hour of trade and are now down by one-third of a per cent each.

Interestingly though, the mid- and small-cap indices appear better than the benchmark indices. For instance, Midcap 50 and Smallcap 50 are up by 0.15 per cent each.

Looking at the market breadth, we can see a bearish bias. For example, the advance/decline ratio of Nifty 50 stands at 9/41.

Among the sectors, Nifty PSU Bank is the top gainer, up by 1 per cent whereas Nifty IT is the biggest loser, down by 1.2 per cent.

Read more here.

Tata Communications has received an approval for raising of funds through issuance of Non-Convertible Debentures (NCDs) on private placement basis, for an amount up to Rs 1,800 crore. The Board of Directors at their meeting held on July 19, 2023, has approved same. The Board also authorized an internal committee, to take all actions in respect of finalization of terms of issuance and allotment of NCDs.

The Mastek stock has risen by 2.09% on the NSE, and is trading at ₹2,216.25. The company has signed a definitive agreement to acquire US-based BizAnalytica, a premier data cloud and modernisation solutions provider.

Pune-based LoanTap Credit Products Pvt Ltd (LCPPL) said its members unanimously approved a plan to raise up to Rs 75 crore via non-convertible debentures (NCDs) at the extraordinary general meeting held on July 19.

The board of CSB Bank has approved grant of 5,65,168 stock options to eligible employees under the CSB Employee Stock Option Scheme 2019, exercisable into not more than 5,65,168 equity shares of face value of ₹10 each fully paid-up, at an exercise price of ₹289.30 per equity share. Shares of CSB Bank trade at ₹291.35, up by 0.71%.

Deven Choksey shares RIL SoTP valuations post-demerger of Jio Financial Services (@ Rs 261.45)

Retail 1250

Jio Platforms 600

Renewables 300

O2C 550

Total. 2700

Equity benchmark indices declined in early trade on Thursday, halting their five-day rally, as investors went for profit-taking after a record-breaking run in domestic markets.

The 30-share BSE Sensex fell 171.62 points to 66,925.82 after a tepid beginning. The NSE Nifty declined 48.6 points to 19,784.55.

From the Sensex pack, Infosys, HCL Technologies, UltraTech Cement, Tata Consultancy Services, Bajaj Finance and Nestle were the major laggards.

What was the price discovered for Reliance Industries and Jio Financial Services in the special pre-open session held today?

The price discovered for Jio Financial Services in the pre-open session is ₹261.85. This was arrived by deducting the price of RIL in the pre-open session of ₹2,580 from its previous closing value.

Read more here.

On NCDEX, the spices complex continues to gain. Dhaniya (coriander) contracts due for delivery in September were up ₹86 at ₹7,158 a quintal. The trade fears the crop might lose acreage to jeera.

Jeera futures maturing in September gained ₹830 at ₹60,800 a quintal. Turmeric October futures topped ₹14,000 a quintal, gaining over three per cent on Thursday, as the area under the spice crop is expected to drop sharply this year.

On MCX, gold August contracts were up ₹153 at ₹59,943 per 10 gm. Silver September futures were up ₹131 at ₹76,540 a kg.

The stock of Shree Cement declines by 2.24% on the NSE, trading at ₹23,490.65. The company had received a letter from the office of Regional Director (NWR), Ministry of Corporate Affairs (MCA) informing order of inspection under Section 206(5) of the Companies Act, 2013.

In Asian trade, silver ruled at $25.02 an ounce, a two-month high on weakness in the dollar, concerns of low supply, and stronger industrial demand.

The share price of Jio Financial Services, the demerged financial services unit of Reliance Industries, has been determined at a higher-than-expected Rs 261.85 during a special trading session for the parent company’s stock on Thursday.

Reliance’s stock was trading at Rs 2,580 apiece on the day, compared to its close of Rs 2,841.85 on Wednesday.

Analysts had estimated the share price of Reliance Strategic Investments, which will be renamed Jio Financial Services, would be valued at between Rs 160 and Rs 190 per share.

The rupee gained 6 paise to 82.02 against the US dollar in early trade on Thursday supported by steady foreign fund inflows.

However, a surge in crude oil prices capped sharp gains for the local unit, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 82.05, then touched a high of 82.02 against the American currency, registering a rise of 6 paise over its last close.

• Jio Financial, the price discovered value of Jio Financial share is ₹261.85.
• Reliance Industries determined prices excluding Jio Financial at ₹2,580.
• Earlier co-announced Implied value: Ex-demerged entity: RIL: ₹2,707, RSIL: ₹133.

Premarket: The stock of Reliance Industries was down by 9.21% on the NSE, trading at ₹2,580.

Karur Vysya Bank is opening branches in Velliyanai (Karur); Punganur (Chitoor); Sathuvachari (Vellore); and Ibrahimpatnam (Rangareddy).

The bank’s stock is down by 0.04%, trading at ₹127.85 on the NSE.

Reliance Industries has informed shareholders that the post-demerger cost of acquisition of equity shares of the company of RIL share is 95.32% and Reliance Strategic Investments Limited (RSIL) share is 4.68%.

Dr Reddy’s shares gain 1 per cent in early trade on BSE on Thursday and are trading at 5280.70. The company disclosed clearance of its Srikakulum API plant with zero observations by USFDA after trading hours yesterday.

Major gainers:

• Dr Reddy’s (0.97%)
• NTPC (0.75%)
• Power Grid (0.68%)
• BPCL (0.62%)
• IndusInd (0.52%)

Major losers:

• Infosys (-1.45%)
• Ultatech Cement (-0.81%)
• Apollo Hospitals (-0.50%)
• Hero Motocorp (-0.49%)
• Nestle (-0.48%)

Expecting China and India to lead its forecast of crude oil consumption growth, US EIA said petroleum and liquid fuels consumption in China is likely to grow by 0.8 million barrels a day in 2023 and by 0.4 million barrels a day in 2024. It said India’s consumption is forecast to grow by 0.3 million barrels a day in both 2023 and 2024.

The National Stock Exchange and the BSE will conduct a special pre-market session on July 20 for Reliance Industries Ltd on account of demerger. Reliance Industries will turn ex-date on July 20 for the proposed demerger of its financial services business into Reliance Strategic Investments Limited, which will be renamed Jio Financial Services Limited.

Shareholders of Reliance will get one share of JFSL for each share held in the company.

Reliance Industries, India’s most valuable company, will demerge its financial services business on Thursday as part of a move to unlock value.

The local stock exchanges will on Thursday hold a special “price discovery” session for the first time ever to determine the value of Jio Financial Services’ shares.

Here is what you need to know.

US EIA (Energy Information Administration) forecasts the Brent crude oil price to increase to the mid-$80 a barrel range by the end of 2024, up from the June 2023 average of $75 a barrel. It expects the WTI crude oil price to follow a similar path and maintain a discount to Brent of $5 a barrel.

The Board of L&T Innovation Campus (Chennai) Limited (LTICCL) at its meeting held on July 19, 2023, has approved a Scheme of Arrangement for merger of LTICCL with L&T Seawoods Limited (LTSL). LTICCL and LTSL are wholly owned subsidiaries of the company.

BSESME Platform market cap crossed another milestone of ₹75,000 crore and touched all time high of ₹75,300 crore.

Crude oil futures traded higher on Thursday morning as US EIA (Energy Information Administration) forecasted an increase in crude oil prices through 2024.

At 9.17 am on Thursday, September Brent oil futures were at $79.56, up by 0.13 per cent; and September crude oil futures on WTI (West Texas Intermediate) were at $75.42, up by 0.17 per cent.

August crude oil futures were trading at ₹6,197 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹6,206, down by 0.15 per cent; and September futures were trading at ₹6,216 as against the previous close of ₹6,224, down by 0.13 per cent.

Even when the market is scaling new highs and the undercurrent is positive, there are strong views that the current high valuations cannot be sustained for long. It is important to understand that the DIIs are not bullish about the market at the current elevated valuations. They were sellers in 12 out of the last 13 trading sessions and have cumulatively sold for ₹16,321 crores and may sell more at higher levels.

In January and February, when the FIIs were selling DIIs were consistent buyers. The 3000 point rally in Nifty from the March lows has given DIIs huge profits and, therefore, profit booking would be a rational response. Selling and profit booking at high levels are easy decisions while buying at high prices can be risky.

PNC Infratech has signed a concession agreement with NHAI for three Hybrid Annuity Mode projects worth ₹3,264 crore.

Fertiliser sales have increased 2.5 per cent in first quarter of current fiscal to 102.12 lakh tonnes (lt) from year-ago level as there was a significant increase in demand in June, despite delayed and deficient monsoon. As a result, the subsidy in the April-June period has covered 26 per cent of the Budget Estimate of ₹1.75 lakh crore for 2023-24 fiscal.

Higher sales may also help fertiliser companies increase their earnings, as it has negated any possible adverse impact on consumption after launch of single ‘Bharat’ brand for all subsidised crop nutrients.

Olectra Greentech awards ₹395 crore contract to Megha Engineering for construction of Greenfield EV manufacturing facility.

Avenue Supermarkets has opened a new store in Akola, Maharashtra, taking the total number of stores to 330.

Alok Industries’ revenue from operations fell 28 per cent to ₹1,410 crore against ₹1,972 crore. Net loss widened to ₹226 crore from ₹142 crore y-o-y.

India’s cotton exports are expected to reach their lowest level in 19 years during the current growing season as farmers turn to more lucrative crops like oilseeds and pulses, according to the United States Department of Agriculture (USDA). Prior to that, the value of cotton exports dropped from $2.65 billion to $678.75 million in FY23, a 75 per cent decrease.

Indian cotton yarn exports decreased to a decade low of 664,000 tonnes in FY23 from the record exports of 1.38 million tonnes in FY22. Following the end of the Covid-19 outbreak, demand for cotton yarn increased significantly, leading to record-breaking profits for cotton yarn producers, said Kedia Commodities.

Gold reached its highest levels in two months, rising above $1,980 per ounce on expectations that the Federal Reserve is nearing the end of its current cycle of tightening monetary policy due to slowing US inflation.

Although traders reduced their bets on more rate hikes this year, it is still largely believed that the US central bank would boost interest rates by 25 basis points this month, said Kedia Commodities.

Investors are now anticipating the US’s initial unemployment claims statistics for hints about the health of the labour market. Despite indications of reducing inflation, the European Central Bank and the Bank of England are both anticipated to raise rates further at their future meetings, it said.

With the decrease in commodity inflation and green shoots in the rural market, Fast-Moving Consumer Goods (FMCG) major Hindustan Unilever Limited (HUL) is likely to register a volume growth of 5 per cent.

According to analysts, the rural market moved ahead of urban areas during the quarter owing to price cuts and stable pricing across categories.

The company’s profit after tax is expected to grow by 16.8 per cent year-on-year.

Power Finance Corporation has announced plans to raise up to ₹5,000 crore through a public issue of non-convertible debentures. The NCDs will open on July 21 for subscription.

The Reserve Bank of India (RBI) has cancelled the license of Uttar Pradesh-based United India Co-operative Bank.

Consequently, the bank (Nagina, Bijnor, Uttar Pradesh) will cease to carry on banking business with effect from the close of business on July 19, 2023, according to a RBI statement.

Transformers and Rectifiers has informed exchanges that it has received intimation from Gujarat Energy Transmission Corporation Limited (GETCO) intimating that GETCO has decided to stop dealing with the company for 3 years on the ground that the company had allegedly submitted forged Material Dispatch Clearance Certificate(MDCC) relating to certain transformers supplied by the Company under the Contract awarded to the company for supply of total 29 Transformers and 1 Reactor to GETCO. The stock may react negatively to the development.

Mirza International has received resignation letters from Rashid Ahmed Mirza, Shuja Mirza and Narendra Prasad Upadhayay, Directors of the Company tendering their resignations from directorship of the company.

The global shipping industry performed well from mid-CY2021 to CY2022 backed by recovery in charter rates across multiple vessel segments after the initial impact of the pandemic.

The outlook for the industry in CY2023 is mixed and will depend on capacity addition in each segment. With the global merchandise trade volume projected to slow down in CY2023 and given the highest capacity additions in CY2023-CY2024, the container shipping segment is expected to be the worst impacted.

The tanker segment is expected to maintain its CY2022 performance in CY2023 due to the lowest capacity addition and redistribution of crude trade flow by key consuming economies. The performance of the dry bulk carrier segment is expected to improve in the second half of CY2023 driven by supply-side dynamics.

The Indian shipping fleet is primarily dominated by crude and product tankers, accounting for the majority of the overall capacity at 57%. Dry bulk carriers follow at 16%, while container vessels make up approximately 5% of the fleet. Given that globally crude and product tankers are expected to outperform the container vessel segment and given the dominance of these vessel types in the Indian fleet, the Indian Shipping Industry is expected to maintain a steady performance in FY24.

Furthermore, the domestic fleet mainly consists of small to mid-size vessels, which are less susceptible to volatile charter rates. Considering these factors, CARE Ratings maintains a Stable outlook for the domestic shipping industry in FY24.

The financial performance of the two largest domestic shipping companies, namely Shipping Corporation of India Ltd and Great Eastern Shipping Company Ltd, reflects a consistent improvement in revenues and profitability during FY23. CARE Ratings anticipates that these companies, assumed to be representative of the Indian shipping industry contributing around 45-50% of the country’s total tonnage, will demonstrate a stable business and financial risk profile in the coming year.

One of the leading housing finance companies, Can Fin Home Finance, reported a mixed set of numbers in Q1FY24. The growth in profitability and other key parameters were average.

Also, the NPAs were up sequentially which was not expected by market participants. Although net profit exceeded street estimates, there has been some NIM compression on a YoY basis. We believe that going forward, the company will improve on its numbers as compared to Q1FY24 which tends to be a slow quarter. However, the management’s outlook on asset quality and NIMs will be the key monitorable.

UW. TP Rs 540

Honda, one of co’s large clients, a couple of weeks back announced a partnership with SCSK (Japan IT co) on software developmen

Channel checks had indicated KPIT was exclusive partner, but this deal indicates Honda is diversifying vendor base

Neutral Rating

Target Rs 866

Near-term Earnings Risk To Consensus Estimate

Expect Improvement In EBITDA Margin From Low Base Of FY23

Based On US FDA Observations, Don’t Factor In Resolution Of Regulatory Issues In Near Term

Buy Rating

Target Raised To Rs 860

Q1 Beat Estimates With 34% Revenue Growth Being Key Highlight

Mgmt Highlighted Strong Growth Outlook In Traditional Markets, Particularly Among Banks

Raise EPS Estimates By 2-4% & Expect 23% EPS CAGR Over FY23-25

Newgen’s Strong Growth Visibility & Consistent Execution Should Sustain Its 21x PE Valn

Buy Rating

Target Rs 850

Q1 PAT Was 7% Ahead Of Est Due To Better-than-expected NIMs & Lower Opex

Loans Grew 18% YoY Led By 14% YoY Growth In Disbursements

NIMs Rose As Calculated Average Yield Rose More Than Rise In Average CoF

Opex Fell 16% QoQ, Gross NPA Rose 8 bps QoQ

Credit Cost Fell 14 bps QoQ, But Was A Tad Higher Than Est

Equal-weight Rating

Target Rs 640

PAT Beat Estimate By 9% Led By Higher NIM & Lower Operating Costs

Calculated NIM Expanded 17 bps QoQ To 3.6%

Gross NPA Was Stable YoY While Provision Coverage Fell Both YoY & QoQ

Loans Rose 18% YoY & 3% QoQ During The Quarter

Key to re-rating henceforth now hinges on

1)Successful management transition

2)Resilient asset quality

3)Omproving operating performance

4)Any potential release of excessive buffers that co has made on its wholesale portfolio

Equal-weight Rating

Target Rs 105

Higher-than-expected NII & Fees Drove A 2% PAT Beat

Higher Re/Pre-payments & Sell-downs Drove Wholesale Loans Down Faster

Credit Cost Of 2.6% Was Higher Than Estimate Of 2.4%

Stage 3 Assets Decreased QoQ Led By Wholesale

Buy Rating

Target Raised To Rs 4,800

Factoring Strong Demand, Expect Co To Revise Up Long-term Growth Guidance By FY26

The dampener In Results Was FMEG Revenue Growth, Which Is Yet To Pick Up

Exports Did Well & Growth Underlines Large Opportunity, Scale & Execution Capability

Mirza International Receives relaxation from SEBI

Redtape will now file necessary application for the final listing and trading approval of BSE and NSE, in due course.

Company is already trading ex-Red Tape business

Listing of Bonus equity shares of Roto Pumps Ltd

15703805 Bonus equity shares of Rs. 2/- each allotted on July 11, 2023.

Listing of Bonus equity shares of Bhansali Engineering Polymers Ltd

82952820 Bonus equity shares of Rs. 1/- each allotted on July 11, 2023.

Listing of new Bonus equity shares of Aptech Ltd

16541152 Bonus equity shares of Rs. 10/- each allotted on July 15, 2023.

Special pre-open session from 9-10 am

Pre-open session to discover price of RIL ex-financial

Pre-open to settle around 9.45 am

Trading of RIL starts at 10 am

Analysts value Jio Financial at Rs 160 to Rs 190

The domestic markets are expected to open on flat note with a downward bias on Thursday. According to analysts, big corporate events - Reliance demerger and listing and Infosys and Hindustan Unilever results will anchor the market direction today.

Gift Nifty at 19837.50 indicates a flat opening, as Nifty futures on Wednesday closed at 19847 on the NSE.

Ex-Date Dividend: John Cockerill India, Fortis Healthcare, Graphite India, HCL Technologies, MRF, Novartis India, Rossell India

Ex-Date Interim Dividend: TCS

Ex-Date Demerger: Reliance Industries

Ex-date AGM: Colgate Palmolive (India), Indo Rama Synthetics (India), MRF, Oracle Financial Services Software

Record-Date Dividend: Fortis Healthcare, Graphite India, and HCL Technologies

Record-Date Interim Dividend: TCS

Record-Date Demerger: Reliance Industries

Move Into Short-Term ASM Framework: Agarwal Industrial Corporation

Move Out Of Short-Term ASM Framework: Permanent Magnets

Pledge Share Details:

Chambal Fertilizers & Chemicals: Promoter Zuari Industries created a pledge of 1.3 lakh shares on July 14.

F&O BAN

1️⃣ DELTACORP

2️⃣ IBULHSGFIN

3️⃣ L&TFH

4️⃣ MANAPPURAM

5️⃣ POLYCAB

6️⃣ RBLBANK

Tata Communications Q1 FY24 (Consolidated, YoY)

Revenue up 11% at Rs 4,771.36 crore vs. Rs 4,310.52 crore (Bloomberg estimate: Rs 4,714.1 crore).

Net profit down 30% to Rs 381.75 crore vs. Rs 544.82 crore (Bloomberg estimate: Rs 374.1 crore).

Ebitda at Rs 1,024.04 crore vs. Rs 1,077.03 crore, down 5% (Bloomberg estimate: Rs 1,057 crore).

Margin at 21.5% vs. 25% (Bloomberg estimate: 22.4%).

Hatsun Agro Product Q1 FY24 (YoY)

Total revenue from operations rose 7% to Rs 2,150.63 crore vs. Rs 2,014.61 crore.

Net profit jumped 54% to Rs 80.15 crore vs. Rs 51.95 crore.

Ebitda gained 34% to Rs 237.88 crore vs. Rs 178.15 crore.

Ebitda margin stood at 11.1% vs. 8.8%.

Finolex Industries Q1 FY24 (Consolidated, YoY)

Total revenue from operations slipped 1% to Rs 1,179.17 crore vs. Rs 1,189.81 crore (Bloomberg estimate: Rs 1,118 crore).

Net profit gained 16% to Rs 115.33 crore vs. Rs 99.22 crore (Bloomberg estimate: Rs 110 crore).

Ebitda up 21% to Rs 152.47 crore vs. Rs 125.91 crore (Bloomberg estimate: Rs 159 crore).

Ebitda margin stood at 12.9% vs. 10.6% (Bloomberg estimate: 14.2%).

Can Fin Homes Q1 FY24 (YoY)

Revenue up 35% to Rs 818.09 crore vs. Rs 606.49 crore (Bloomberg estimate: Rs 272.7 crore).

Net Interest Income gained 14% to Rs 285.08 crore vs. Rs 250.39 crore.

Net profit rose 13% to Rs 183.45 crore vs. Rs 162.21 crore (Bloomberg estimate: Rs 174.4 crore).

GNPA at 0.63% vs. 0.55% QoQ.

NNPA at 0.34% vs. 0.26% QoQ.

L&T Finance Holdings Q1 FY24 (YoY)

Interest Income up 5.76% at Rs 3,116.49 crore vs. Rs 2,946.59 crore (Bloomberg estimate: Rs 1,837.5 crore).

Net profit up 102.56% at Rs 530.93 crore vs. Rs 262.1 crore (Bloomberg estimate: Rs 485.6 crore).

Alok Industries Q1 FY24 (Consolidated, YoY)

Total revenue from operations fell 28% to Rs 1,410.25 crore vs. Rs 1,971.52 crore.

Net loss widened to Rs 226.14 crore from Rs 141.58 crore.

Ebitda fell 74% to Rs 12.31 crore vs. Rs 46.9 crore.

Ebitda margin stood at 0.9% vs. 2.4%.

The company signed a definitive agreement to acquire BizAnalytica for an upfront payment of $16.72 million (Rs 137.24 crore) and earn out up to $24 million (Rs 196.99 crore).

Its unit, Vishnu Barium, has acquired a 100% stake in Ramadas Minerals for Rs 26 crore. Ramadas conducts business in the beneficiation of Baryte ores and had a turnover of Rs 2.12 cr in FY23

The company has incorporated a wholly-owned step-down subsidiary, Genus Chhattisgarh PKG-1 SPV, to execute the Advanced Metering Infrastructure Service Provider contract.

The company has opened a new store in Akola, Maharashtra, taking the total number of stores to 330.

The company signed a concession agreement with the National Highways Authority of India for three Hybrid Annuity Mode projects worth Rs 3,264.43 crore.

Gujarat Energy Transmission Corporation has decided to stop dealing with Transformers and Rectifiers for a period of three years. The ‘Stop Deal’ notice is on the ground that the company had allegedly submitted a forged Material Dispatch Clearance Certificate for certain transformers supplied. The company has conducted inspection tests and is taking steps to defend its position against this allegation.

The company appointed Ram Rakesh Gaur as chief executive officer and Vinod Sureka as joint chief financial officer.

Reliance Strategic Investments has appointed Isha Ambani and Anshuman Thakur as non-executive directors. It also appointed Hitesh Kumar Sethia as managing director and chief executive officer for three years.

Sat Pal Bhanoo, additional zonal manager at the Zonal Office, LIC of India, Bhopal, has been appointed as Managing Director of LIC India.

The company resumed manufacturing operations at the Roorkee plant after flooding on July 18. It estimated a loss of movables of about Rs 40 lakh. The entire area is under red alert for the next two days.

The company received an inspection notice from the Ministry of Corporate Affairs. The company said it would comply with the directions.

The company has awarded a Rs 395.12 crore contract to Megha Engineering & Infrastructure to construct a greenfield electric vehicle manufacturing facility at Seetharampur, Hyderabad.

Krensavage Asset Management opposed Sun Pharmaceutical’s bid to take Taro private on account of its low offer value. Shareholders could receive $45 per share on liquidation, compared with Sun Pharmaceutical’s offer of $38 apiece, it said. Krensavage Asset Management is the largest minority shareholder of Taro Pharmaceutical Industries.

The drug maker received zero observations and no action from the USFDA at its API manufacturing facility in Srikakulam. The inspection was conducted from July 10 to July 19.

Though Q1FY24 will be impacted due to company’s transition to ERP system, we reckon the buoyance in demand will enable Prince Pipes to make-up for the lost sales. We reckon, strong demand from plumbing segment & shift in demand towards branded products should lead to healthy traction for Prince Pipes & Fittings Ltd. We believe EBITDA/Kg to come in at Rs21/Rs22 in FY24E/FY25E respectively.

At CMP, stock trades at P/E(x) of 32x/26x on FY24E/FY25E EPS of Rs20/24 respectively. We have valued the stock at 30x on FY25E EPS & arrived at a target price of Rs733, retaining our ADD rating.

VRL Logistics (Annual Report): Capacity/network expansion to boost growth

VRLL, with its large asset base of 5,671 trucks, has successfully transformed itself into a specialized goods transport (GT) company by focusing on its high-margin LTL (less than truck load) segment. We expect the company to post a revenue/EBITDA/PAT CAGR of 19%/25%/36% over FY23-25. We reiterate our BUY rating with a TP of INR850 (based on 24x FY25E EPS).

TTK Healthcare, which announced voluntary delisting of its shares from the exchanges, has revised the floor price for delisting to ₹1,201.30 per equity share against the earlier price of ₹1,051.31.

In the first week of April, the Chennai-based company announced that its promoters had proposed to acquire all the equity shares held by public shareholders and file for voluntary delisting of its shares from the stock exchanges.

On April 20, the board of TTK Healthcare approved the voluntary delisting of the company at ₹1,051.31 per equity share.

Delisting offer of TTK Healthcare will open today and ends on July 27

DELTACORP

IBULHSGFIN

L&TFH

MANAPPURAM

POLYCAB

RBLBANK

Here are the key intraday supports and resistances to watch out for Nifty Futures, RIL, ONGC, TCS, Infosys, HDFC Bank, SBI, and ITC

The short-term outlook is bullish for Century Plyboards (I). The stock has been consolidating within its overall uptrend between ₹650 and ₹694 for more than two weeks now. The chances are high for the stock to break this consolidation on the upside and resume the uptrend. 8.02.

In New York, the Dow continued its bullish streak for an eighth consecutive day, driven by better-than-expected economic figures. The S&P 500 advanced 0.2 percent, while the Nasdaq Composite Index remained unchanged.

The Dow ended up 0.3 percent at 35,061.21, the broad-based S&P 500 advanced 0.2 percent, while the tech-rich Nasdaq Composite Index was flat at 14,358.02. - Agencies

Tokyo stocks began trading with a decline on Thursday after Wall Street saw modest gains due to optimistic views regarding the US Federal Reserve potentially pausing its interest rate hikes. The Nikkei 225 index lost 0.31 percent, while the broader Topix index was down 0.09 percent in early trade. - Agencies