Share Market Highlights September 25, 2024: Sensex gains 256 pts; Nifty settles above 26,000

The rupee appreciated 3 paise to close at 83.60 (provisional) against the US dollar on Wednesday, tracking a positive trend in domestic equities and a weak greenback against major currencies overseas.

However, net foreign fund outflows capped sharp gains in the local unit, forex traders said.

At the interbank foreign exchange, the local unit opened slightly strong at 83.59 against the American currency. During the session, it surged 12 paise to touch 83.51.

Cipla (EU) Limited, wholly owned subsidiary of Cipla in UK, has entered into a definitive agreement for purchase of entire 6.9124% equity interest of Jiangsu Xidi Pharmaceuticals Co., Ltd. (formerly known as Jiangsu Acebright Pharmaceuticals Co., Ltd.) held in Cipla (Jiangsu) Pharmaceuticals Co., Ltd., China (‘Cipla Jiangsu’), subsidiary. 

Stock closed at ₹1,648 on the NSE, up 0.64%.

Nifty has closed above its all-time high and the psychological level of 26000. With this move, Nifty has continued its walk on the band, technically a sign of bullishness. However, the Options writer’s data for tomorrow’s expiry shows increased calls and put writing at 26000 levels, indicating a sideways move tomorrow. For tomorrow’s expiry, the intraday support is at 25930 levels while the 26000 levels can act as an immediate resistance.

The daily candle in Banknifty closed below the Bollinger band, although a green candle, indicated a weakness in the index at the present levels. On the daily chart, the stochastics is forming a possible negative divergence, indicating no further steam on the upside in the index. Immediate support for the index is at the 53700 levels, a break of which can trigger 53000 or even 52200 levels soon. Options writer’s data for the next month’s expiry shows increased calls and put writing at 54000 levels, indicating a possible halt or reversal from the current levels.

Minda Onkyo India Private Limited, subsidiary of Uno Minda, has entered into a Technical License Agreement with Hyundai Mobis Co. Ltd., Korea, for manufacturing of Licensed products i.e. Speakers. 

Uno Minda shares closed flat at ₹1,146.20 on the NSE.

Top gainers:

Power Grid (4.04%), Axis Bank (2.39%), NTPC (2.02%), Bajaj Finserv (1.59%), Grasim Grasim (1.55%) 

Top losers: 

LTIMindtree (-3.69%), Tech Mahindra (-2.27%), Tata Consumer Products (-1.87%), Tata Motors (-1.36%), Titan (-1.13%)

Top gainers on the NSE

Power Grid (3.70%), Axis Bank (2.25%), Grasim (1.71%), NTPC (1.48%), Bajaj Finance (0.88%) 

Top losers: 

LTIMindtree (-3.82%), Tech Mahindra (-2.13%), Tata Consumer Products (-1.77%), Titan (-1.47%), Tata Motors (-1.46%)

Stock exchange has sought clarification from Hinduja Global Solutions Limited with respect to recent news item captioned Hinduja Group arm HGS charged with ₹2,500 crore tax evasion. 

HGS stock declined 2.72% to ₹817.50.

Stock exchange has sought clarification from Hinduja Global Solutions Limited with respect to recent news item captioned Hinduja Group arm HGS charged with ₹2,500 crore tax evasion. 

HGS stock declined 2.72% to ₹817.50.

Zee Media stock rallied 12.46% to trade at ₹15.71 on the NSE. Board to consider Fund raising at its meeting on Sep 27.

Adani Green Energy and Adani Energy Solutions have joined the Utilities for Net Zero Alliance

Adani Green Energy dropped 1.12% on the NSE to ₹2,047.45, and Adani Energy Solutions stock traded at ₹1,040.50 on the NSE, lower by 1.01%.

MCX shares declined 1.23% on the NSE, trading at ₹5,807.15.

MCX has revised futures & options transaction charges, effective from October 1

The shares of Bharat Electronics Limited (BEL) were trading at ₹289.70 down by ₹2.10 or 0.72 per cent on the NSE today at 1 pm.

Tata Steel Ltd has received an order from the Office of the Assistant Commissioner of Central Tax, Haldia -II CGST & CE Division, Haldia CGST Commissionerate, Haldia, West Bengal, imposing a penalty of ₹49,139 for irregular availing of CENVAT credit on capital goods.

Shares trade flat on the NSE at ₹161.20.

Shriram Properties Ltd (SPL) has launched a new project under the ‘Codename - Pudhiya Chennai’, apartment project situated in Thirumazhisai, Chennai. Strategically located in the rapidly growing West Chennai corridor, this RERA-approved development offers a total saleable area of 1.1 sq. ft and has a revenue potential of Rs 550-600 crore. The stock rose 2.05% to ₹132.90 on the NSE.

How should mutual funds investors position themselves in such an expensive market

Long-duration funds are advisable, during this period, as they respond strongly to interest rate changes, benefiting from declining yields. Investors should also consider thematic mutual funds, which often have significant allocations to multi-cap and flexi-cap funds. Proper asset allocation is crucial right now. The market isn’t overly expensive, yet many stocks have corrected by about 30% to 40% from their lifetime highs. Large-cap stocks have underperformed, with only a few showing gains, which may deter retail investors from engaging.

Investors should begin to shift their focus to large-cap stocks instead of small and mid-cap ones, especially if they currently have SIPs in small and mid-caps. Maintaining those SIPs is wise, given the long investment horizon of over 20 years, which should yield good returns in those segments.

For large-cap exposure, consider parking funds in liquid funds and initiating a systematic transfer plan (STP) over the next 4 to 6 months. This strategy allows investors to average out their purchases at varying NAVs, as it’s impossible to time the market perfectly. 

The large-cap segment encompasses a wide range of industries, including manufacturing, exporting, defense, AI, and technology. In mutual funds, all sectors will ultimately converge. This approach will help investors effectively position themselves in the current market landscape, optimizing their allocation strategy.

The bull run continues for the yellow metal, which attains fresh highs. Gold prices have risen over 28% in the international market, and over 19% in the domestic market whereas the gains for the Indian equity benchmark - Nifty have been nearly 19%. Gold has outperformed most asset classes in CY24.

Gold has scaled fresh highs with $2700/oz in sight in the international market, whereas the Rs 76,000 level has been attained in the domestic market. The rally in gold is due to a combination of factors, primarily it is on expectations of further rate cuts by the US Fed, this also implies the beginning of a rate-easing cycle after 4 years. Rates are expected to stay lower for longer from here on.

The expectation of lower rates has weakened the US dollar, which makes it more affordable. On the global front, geopolitical tensions in various pockets of the world have increased the appeal of the safe haven. Escalating tensions between Lebanon and Israel and higher buying by ETFs will keep the demand for gold higher in the short to medium term.

The initial public offer of KRN Heat Exchanger and Refrigeration Ltd got fully subscribed within minutes of opening for share sale on Wednesday.

The initial share sale received bids for 3,40,48,105 shares against 1,09,93,000 shares on offer, translating into 3.10 times subscription, as per data available with the NSE till 10:39 hours.

Non-Institutional Investors subscribed 6.29 times the offer, while the Retail Individual Investors (RIIs) portion received 3.46 times subscription.

KRN Heat Exchanger and Refrigeration Ltd on Tuesday said it has raised Rs 100 crore from anchor investors.

The Rs 342-crore IPO is available for public subscription during September 25-27 in the price range of Rs 209-220 per share.

KRN Heat Exchanger’s IPO involves a fresh issue of 1,55,43,000 equity shares valued at Rs 342 crore at the upper-end of the price band. - PTI

Jindal Saw has fixed October 9, 2024, as the ‘Record Date’ for the purpose of determining the eligibility of Shareholders for the purpose of sub-division /split of face value of equity shares of the Company from Rs. 2/- each fully paid-up to Re. 1/- each fully paidup. 

Shares trade at ₹723.10 on the NSE, lower by 3.30%.

Goldiam International Ltd has signed a Leave & License Agreement on the first location for its domestic retail operations under the brand “ORIGEM” at LT Road, Borivali West, Mumbai. The new location is scheduled to commence operations in Q3FY25. 

Stock trades at ₹368.75 on the NSE.

Bharat Electronics has confirmed that a teaming agreement has been signed between BEL and Reliasat Inc. Canada to “collaborate in the area of space products”. The Teaming Agreement aims at leveraging BEL and Reliasat’s capabilities in the domain of space.

Shares trade flat on the NSE at ₹289.40.

India’s natural diamond polishing industry will see revenues plummet 25-27% on-year to a decadal-low of ~$12 billion this fiscal, says CRISIL. This is mainly on account of three reasons: one, muted demand in key export markets of the US and China; two, a 10-15% fall in diamond prices amid oversupply; and three, shift in consumer preference towards lab-grown diamonds (LGDs).

Top gainers: Power Grid (2.94%), NTPC (1.30%), Axis Bank (1.11%), HDFC Bank (0.72%), Divi’s Lab (0.67%)

Top losers: LTIMindtree (-2.82%), Tech Mahindra (-2.43%), Tata Consumer Products (-1.87%), Tata Motors (-1.82%), Shriram Finance (-1.42%)

Of 3,937 stocks traded on the BSE at 12 noon on September 25, 2024, 1,557 advanced against 2,262 stocks that declined, and 118 remained unchanged. While 229 stocks recorded a 52-week high, 29 hit a 52-week low. A total of 264 stocks traded in the upper circuit, and 206 in the lower circuit.. 

While 229 stocks recorded a 52-week high, 29 hit a 52-week low. 

Zinc futures on the Multi Commodity Exchange (MCX) has been stuck in a range for nearly two weeks. The October contract has been moving between ₹264 and ₹272.

On Wednesday, the contract broke out of ₹272 and closed at ₹275, turning the outlook positive. Going ahead, we expect the contract to rise further. Read more

Birlasoft Ltd has achieved the Amazon Web Services (AWS) Manufacturing and Industrial Consulting Competency status. Birlasoft is part of the $3-billion CK Birla Group, which has over 35,000 employees and 52 manufacturing facilities globally.

Stock trades flat on the NSE at ₹627.30. Read more

Bharti Airtel unveiled the country’s first network-based, AI-powered spam detection solution on September 25, 2024. The system, designed to combat unwanted calls and messages, processes 1 trillion records in real-time, flagging 100 million potential spam calls and 3 million spam SMSes daily. 

Supreme Infrastructure India Ltd has informed the exchange regarding ‘withdrawal of the proposed preferential issue of equity shares and issue of convertible share warrants, and increase in authorised share capital.”

Supreme Infrastructure stock rose 1.99% on the NSE, trading at ₹96.69.

Bank Nifty opened today’s session with a gap-down at 53,794 versus yesterday’s close of 53,969. The index is now hovering around at 54,040, up 0.15 per cent.

The chart shows that Bank Nifty futures retains the uptrend and is likely to go up from here. 

Organised gold loan market, comprising banks and non-banking financial companies (NBFCs), is set to cross Rs. 10 lakh crore in the current fiscal and reach Rs 15 lakh crore by March 2027, per an assessment by ICRA

Biocon Biologics Ltd (BBL), a subsidiary of Biocon Ltd, announced new dermatology data presented at the European Academy of Dermatology and Venereology (EADV) 2024 Congress in Amsterdam.

Biocon stock declines 1.10% on the NSE, trading at ₹371.70.

Man Infraconstruction Limited (MICL Group) has secured the Occupancy Certificate for the final wing of its “Atmosphere O2” project in Mulund West, Mumbai, completing the development ahead of schedule. The project, spanning 7.2 lakh square feet of RERA carpet area, was finished within approximately 3.5 years of its launch.

Nifty 50 is inching down slowly. The index tested the psychological 26,000 mark on Tuesday but did not get a strong follow-through rise above it. Nifty is currently trading at 25,913, down 0.10 per cent. Read more

Maruti Suzuki India has received a Compounding Order (₹50,000) from Assistant Controller, Legal Metrology Division, Jalandhar.

Shares trade at ₹12,673.25 on the NSE, down by 0.51%.

Indian equity markets opened flat to slightly lower on Wednesday, despite positive cues from global peers, as investors remained cautious ahead of the monthly derivatives expiry and key US economic data later this week.

· JPMorgan Chase & Co. has estimated a 50-basis-point rate cut by the Reserve Bank of India in the current cycle, said Saurabh Kumar, Head, India Banking and Financials Research.

· Indian banks’ margins, which have been a matter of concern, are expected to face pressure from the rate reduction, and slow current account and savings deposit growth before rebounding, he said. However, Kumar expects the lenders to pass the pressure on within 12–24 months as they generally do.

· You’ll get a NIM comeback. Eventually, what dictates a NIM is a mix. I think, if unsecured loans continue to slow down, you’ll get degradation in terms of margin,” Kumar said while speaking to NDTV Profit during India Investors Summit. T

· The New York-based investment bank expects 10 basis-point effect on margin.

Mindspace Business Parks REIT has entered into a strategic partnership with Princeton Digital Group (‘PDG’), a global leader in data centre operations, to develop PDG’s flagship and largest data centre campus in India, at Mindspace Airoli West. Under this new agreement, Mindspace REIT will develop 3 additional built-to-suit data centres, adding a further 1 million sq. ft. to its portfolio. Read more

Man Infraconstruction Ltd (MICL Group) has secured the Occupancy Certificate (OC) for the F-wing of its “Atmosphere O2” project in Mulund West, Mumbai within ~3.5 years of its launch. 

Stock surges 3.07% on the NSE to trade at ₹195.65.

Gold prices hit record highs on both Comex as well as on domestic front, extending a recent run of gains amid persistent optimism over U.S. interest rate cuts, with focus turning to more upcoming cues this week and heightened geo-political tensions. Along with bumper rate cut of 50bps by the Federal Reserve last week, concerns regarding further ease off in the labour market and revised dot plot increased the prospect of further cuts presenting more upside for the yellow metal. on data front, preliminary manufacturing PMI numbers were reported lower tha estimates in major economies. US consumer confidence data was also reported lower at 97 v/s expectations of 103.9 supporting the rally in bullion. Several Fed officials said that they supported the bank’s 50 bps cut last week, but expected its pace of cuts to slow in the coming months. This week along with Governor Powell we have more than 9 other Fed officials are scheduled to speak any change in tone from the recent Fed meeting could trigger volatility in prices. Distress in the middle East between Hezbollah and Israel has also increased. Hizbollah evening confirmed Israel had killed one of its top commanders, Ibrahim Qobeissi, in an air strike that rocked the southern suburbs of Beirut. Attacks from Israel killed more than 500 people, further escalation and updates regarding could boost safe haven appeal for Gold and Silver prices. Focus this week shifts to US GDP and PCE price index.

Major gainers: Power Grid (3.99%), M&M (1.57%), Hindalco (1.08%), Tata Steel (0.60%), Eicher Motors (0.60%)

Top losers: HCL Tech (-0.93%), Tech Mahindra (-0.92%), Britannia (-0.77%), LTIMindtree (-0.76%), Asian Paints (-0.72%)

FIIs: Sell -2,784 (20,111-22,895)

DIIs: Buy +3,868 (15,939-12,071)

QIB ; 4.15 TIMES

NON RETAIL ; 172.12 TIMES

RETAIL ; 70.11 TIMES

The Indian stock market has been on a remarkable run, with the Sensex recently reaching the 85,000 mark. This surge, fueled by factors like the US Federal Reserve’s rate cut and positive domestic economic indicators, has raised expectations of further growth. However, investors should approach this market with caution, as the high valuations present both opportunities and risks.

While the 1 lakh mark seems within reach in Diwali 2025, it’s important to remember that markets are cyclical. A sustained upward trend often leads to periods of consolidation or even correction. It’s crucial to avoid overextending positions and to have a realistic outlook on potential returns.

MS on MCX

UW, TP Rs 2950

Ceteris paribus, rise in transaction fees would result in 5% increase in F26e EPS

Believe that large proprietary traders & high frequency traders will be particularly sensitive to increase in charges & hence, need to see what will be impact on trading vol

HSBC on HDFC BK

Buy. TP Raised to Rs 2010 from Rs 1870

Recent media articles indicate BK likely to sell down up to c3% of its loans in order to rapidly bring down its LDR

This is important for quicker normalisation of operations & return to steady state loan growth in long term

Macquarie on BEL

Key to watch in post 2Q management commentary would be

updates on pipeline orders especially QR-SAM order (aggregate size of Rs250-300bn across tranches) 

management Post 1Q highlighted it expects a tranche of QRSAM in 1QFY26E (Apr-June 2025)

Jefferies on Piramal Pharma

Buy, TP Raised to Rs 260

Management meet takeaways

Co aims to grow rev to $2bn+ with 25% Ebitda margin by FY30

This imples Rev/Ebitda Cagrs of 12.2%/20.3%

Despite ongoing capex, Co expects 1x net debt/Ebitda by FY30 from 3.4x in FY24

UBS on Dabur

Downgrade to Neutral; TP Raised to Rs 700

With rural demand recovery largely priced in & valuations close to +2SD above five-year mean, think downside risk is rising.

But Dabur’s other segments are doing well & think risk is ltd due to strong demand in festive season

Bernstein on Financials

Topic picks - HDFCB & Axis Bank & Muthoot Fin amongst NBFCs

Also like IndusInd as tactical buy but a surprise in MFI credit costs could create better buying opportunities in near-term

Maintain Market Perform on ICICI, SBI & Kotak

U-P on SBI Cards & Bajaj Fin

Macquarie on Financials

Unsecured stress is rising

RBI has also asked many banks to increase their risk-weights on MFI loans from 75% to 125%.

In our coverage, IIB will be impacted most with CET1 impact of 80bps

CLSA on Oil & Gas

A recent drop in crude price & contraction in refining spreads has taken up marketing margin on auto fuels to multi-qtr highs.

Media reports speculate retail price cut before upcoming elections 

Looking at election calendar, predict a cut soon after 5 Oct

Believe govt. may also raise excise duty on these fuels along with any retail fuel price cut

These are likely to bring down breakeven price for diesel & petrol & make IOC/BP/HP vulnerable if crude price rises above $80-85/bbl

HYUNDAI INDIA-Largest IPO in India + First Auto IPO In 2 Decades

SWIGGY-2ND biggest Startup IPO After Paytm

IPO-BIGGEST (RS CR)

Hyundai 25k

LIC 21k

Paytm 18.3k

Coal India 15.2k

Swiggy 11.7k

Key to watch in post 2Q management commentary would be updates on pipeline orders especially Quick Reaction Surface-to-Air Missile orders (total size of 250-300 bn across tranches) 

management Post 1Q highlighted it expects a tranche of QRSAM in 1QFY26E (Apr-June 2025)

#GSPL get 10 shares of #GujaratGas for every 13 held

10 shares of Gujarat Gas valued @ Rs 6126

13 shares of GSPL valued @ Rs 5244

#Trading #Arbitrage of 17%vs 5% when merger announced

Listing of add. shares of Gujarat Gas expected by

August 2025

1-VEDANTA/HINDALCO/NMDC/HIND COPPER ETC.

China booster

2-TATA MOTORS

China booster

3-DEEPAK NITRITE/UPL/DHANUKA/SHARDA CROP

China booster

4-MCX

Revises Transaction fees

5-KEC INTL.

Launches QIP, Floor Price At Rs 976.64/Sh

6-BEL

Agreement has been signed between BEL & Reliasat Inc. Canada to collaborate in the area of space products

7-VARUN BEV./DABUR

Indian Beverage Association (IBA) has approached govt. urging a re-examination of high GST rates

8-GILLETTE INDIA

P&G Bangladesh terminates distribution agreement with the company, effective December 31, 2024

9-PIRAMAL PHARMA

Jefferies report, Buy Call, Target Raised To Rs 260

10-MARUTI/ZOMATO

Hyundai and Swiggy preparing to hit the IPO market

Jefferies on Piramal Pharma: Maintain Buy on Company, raise target price at Rs 260/Sh (Positive)

Macquarie on BEL: Maintain Outperform on Company, target price at Rs 350/Sh (Positive)

GS on NTPC: Maintain Buy on Company, target price at Rs 430/Sh (Positive)

GS on Power Grid: Maintain Buy on Company, target price at Rs 370/Sh (Positive)

CLSA on Astral: Upgrade to Hold on Company, target price at Rs 2025/Sh (Positive)

HSBC on HDFC Bank: Maintain Buy on Bank, target price at Rs 2010/Sh (Positive)

Bernstein on Financials: Top picks in financials include HDFC Bank, Axis Bank and Muthoot Finance amongst NBFCs. (Positive)

BofA India Strategy: Policy shift = pivot for sector rotation. Favors Staples, Financials, Healthcare, Telecom and Autos (Positive)

Goldman Sachs India Strategy: India is likely to be among the fastest growing economies in the medium-term (Positive)

Antique on Piramal Pharma: Enhanced productivity and cost optimization initiatives are likely to drive its EBITDA margin expansion to ~25% from the current ~15% (Positive)

Jefferies India strategy: Valuation is a key concern for FPIs but willingness to explore new ideas from industrial and capex segment was visible (Neutral)

UBS on Dabur: Downgrade to Neutral on Company, raise target price at Rs 700/Sh (Neutral)

MS on MCX: Maintain Underweight on Company, target price at Rs 2950/Sh (Neutral)

Max Estates: Company clinches Rs 391cr deal with New York Life Insurance to reshape Delhi-NCR real estate (Positive) 

Mazagon Dock: Company has started production for the first Multipurpose Cargo Vessel for Navi Merchants, Denmark (Positive) 

Delta Corp: Company board approved draft composite scheme of arrangement between co and Delta penland, scheme provides for demerger of Company’s hospitality and real estate business (Positive) 

Muthoot/Manappuram: Gold hits all time high at $2645 an oz and hits all time high. (Positive) 

Sarda Energy: Company gets consent to expand production capacity of Gare Palma IV/7 coal mine, Company to expand production capacity of coal mine from 1.44 MTPA to 1.68 MTPA. (Positive) 

BEL: Teaming agreement signed between Company & Reliasat inc. Canada, agreement to partner in area of space products. (Positive) 

LT Foods/KRBL: India’s basmati rice exports seen surging after floor price removed: Reuters (Positive) 

Craftsman Automation: India cci approves acquisition of 100% share capital of sunbeam light weighting solutions private limited by craftsman automation limited (Positive) 

MHRIL: Club Mahindra expands its footprint in Mysore with full management of golden landmark resort (Positive) 

Thermax: Company received an assessment order from the Pimpri Chinchwad Municipal Corporation for FY 2013-14 to 2015-16, demanding Rs. 39 Cr in taxes (Positive) 

TVS Holdings: India CCI approves acquisition of shares of home credit by TVS holdings, STPL and PIOF and acquisition of shares of STPL by Mr. K. Gopala Desikan, Mr. Anuraag Agarwal, Mr. V. Ganesh, and GWC family fund investments (Positive) 

Tata Elxsi: Company delivers world’s first RDK-B integration on QUALCOMM 5G fixed wireless access platform (Positive) 

PC Jeweller: Company to consider stock split on September 30 (Positive) 

Zomato: SEBI clears Swiggy’s confidential filing for its IPO (Positive) 

Emerald Finance: Company partnered with GE Info Solutions, Partnership to offer early-wage-access program to employees (Positive) 

Auto Stocks: Hyundai application for IPO gets SEBI nod (Positive) 

KEC International: Company launches QIP to raise up to ₹870 cr, indicative issue price at ₹955/sh: CNBC. (Positive) 

Mukta Arts: Company assignment agreement and term sheet has been executed between the Company and ZEEL for assignment of satellite and media rights of 37 films of the co for a limited period of 6 years. (Positive) 

Maithan Alloys: Company Recommended Dividend of 6 Rupees per Share. (Neutral) 

Fedbank Financial: Company announced the appointment of Mrs. Sonal Dave as an Independent Director for a 5-year term, effective September 24, 2024. (Neutral) 

Mindteck: Company has announced the allotment of 63, 69,611 bonus shares in a 1:4 ratio to existing shareholders as of September 20, 2024. (Neutral) 

*Natco Pharma Ltd: Mr. Sourav Chakraborty announced the resignation from AVP Sales & Marketing, Crop Health Sciences Division, and effective September 24, 2024. (Neutral) 

Tata Power: There was a fire incident in the control room of unit no. 5 (500 mw unit) of trombay plant on sept 23, 2024. (Neutral) 

Solar industries India: Company has announced the approval of the scheme of amalgamation by the NCLT, Mumbai bench. (Neutral) 

Grasim: Subsidiary has issued 2, 50,000 Non-Convertible Debentures on a private placement basis for up to Rs 2,500 Cr. (Neutral) 

Gillette India: Company announced termination of distribution agreement with distributor from Bangladesh, in FY24, net sales under said agreement accounted for 2% of net sales (Neutral) 

Hariom Pipe: Company raising of funds through issuance of shares up to Rs 7 billion (Neutral) 

Vraj Iron: Company has invested Rs 125.9 million in Vraj Metaliks Pvt Ltd (Neutral) 

Nestle India: Board Meeting on Oct 17 to consider Q2 results. (Neutral) 

ICICI Bank: Board Meeting on Oct 26 to consider Q2 results. (Neutral) 

Ease My Trip: Block deal likely tomorrow for 15 crore shares with Rs 38 per share. (Neutral) 

MCX: Company revises transaction fees for futures & options after SEBI directive. (Neutral) 

Hindustan Foods: Company announced the merger of a promoter-owned entity to enhance its manufacturing capabilities in Nashik, Maharashtra. (Negative)

* ABFRL

* GRANULES

* HINDCOPPER

* IDEA

* IEX

Indian shares are set to open flat on Wednesday after hitting record highs for four sessions, as traders are expected to take a breather, while they look for cues on the strength of the US economy post a weak consumer confidence report.

The GIFT Nifty was at 25,927.5 points, as of 7:55 a.m. IST, indicating that the NSE Nifty 50 will open slightly below its Tuesday’s close of 25,940.4. Read more

Silver rose above $32 as prospects of further monetary easing and rising geopolitical concerns boosted the precious metal’s attractiveness. Data showed a more severe decline in US consumer confidence than expected, strengthening the Federal Reserve’s dovish stance and keeping with policymakers’ previous predictions of another interest rate cut. Markets are now looking for more economic data this week, including the PCE reports, the Fed’s preferred inflation barometer. Meanwhile, the PBoC issued its largest stimulus package since 2020 on Tuesday, including interest rate cuts. Furthermore, the escalating unrest in the Middle East reinforced bullion’s status as a safe haven.

Key economic data slated for release includes New Home Sales, Crude Oil Inventories from US Zone.

Gold prices rallied and trading near to $2662 as the dollar weakened amid optimism about monetary easing by major central banks, including the Federal Reserve. Chicago Fed President Austan Goolsbee said the US is on a “golden path” and the Fed’s half percentage point interest rate reduction last week “made sense.” The balance of risks has shifted from higher inflation to the risk of a further weakening of the labor market, warranting a lower federal funds rate. Traders are betting on nearly three-quarters of a point of policy easing by year end, with upcoming jobs data later this week offering more clues on the economy’s direction. In economic news, consumer confidence in the US has seen a notable deterioration in September.

Key economic data slated for release includes New Home Sales, Crude Oil Inventories from US Zone.

Max Estates: Company clinches Rs 391cr deal with New York Life Insurance to reshape Delhi-NCR real estate 

Mazagon Dock: Company has started production for the first Multipurpose Cargo Vessel for Navi Merchants, Denmark

Delta Corp: Company board approved draft composite scheme of arrangement between co and Delta penland, scheme provides for demerger of Company’s hospitality and real estate business 

Muthoot/Manappuram: Gold hits all time high at $2645 an oz and hits all time high. 

Sarda Energy: Company gets consent to expand production capacity of Gare Palma IV/7 coal mine, Company to expand production capacity of coal mine from 1.44 MTPA to 1.68 MTPA. 

BEL: Teaming agreement signed between Company & Reliasat inc. Canada, agreement to partner in area of space products

LT Foods/KRBL: India’s basmati rice exports seen surging after floor price removed: Reuters

Craftsman Automation: India cci approves acquisition of 100% share capital of sunbeam light weighting solutions private limited by craftsman automation limited

MHRIL: Club Mahindra expands its footprint in Mysore with full management of golden landmark resort 

Thermax: Company received an assessment order from the Pimpri Chinchwad Municipal Corporation for FY 2013-14 to 2015-16, demanding Rs. 39 Cr in taxes 

TVS Holdings: India CCI approves acquisition of shares of home credit by TVS holdings, STPL and PIOF and acquisition of shares of STPL by Mr. K. Gopala Desikan, Mr. Anuraag Agarwal, Mr. V. Ganesh, and GWC family fund investments 

Tata Elxsi: Company delivers world’s first RDK-B integration on QUALCOMM 5G fixed wireless access platform

PC Jeweller: Company to consider stock split on September 30 

Zomato: SEBI clears Swiggy’s confidential filing for its IPO 

Emerald Finance: Company partnered with GE Info Solutions, Partnership to offer early-wage-access program to employees 

Auto Stocks: Hyundai application for IPO gets SEBI nod 

KEC International: Company launches QIP to raise up to ₹870 cr, indicative issue price at ₹955/sh

Mukta Arts: Company assignment agreement and term sheet has been executed between the Company and ZEEL for assignment of satellite and media rights of 37 films of the co for a limited period of 6 years. 

Maithan Alloys: Company Recommended Dividend of 6 Rupees per Share. 

Fedbank Financial: Company announced the appointment of Mrs. Sonal Dave as an Independent Director for a 5-year term, effective September 24, 2024. 

Mindteck: Company has announced the allotment of 63, 69,611 bonus shares in a 1:4 ratio to existing shareholders as of September 20, 2024. 

*Natco Pharma Ltd: Mr. Sourav Chakraborty announced the resignation from AVP Sales & Marketing, Crop Health Sciences Division, and effective September 24, 2024. 

Tata Power: There was a fire incident in the control room of unit no. 5 (500 mw unit) of trombay plant on sept 23, 2024.

Solar industries India: Company has announced the approval of the scheme of amalgamation by the NCLT, Mumbai bench.

Grasim: Subsidiary has issued 2, 50,000 Non-Convertible Debentures on a private placement basis for up to Rs 2,500 Cr. 

Gillette India: Company announced termination of distribution agreement with distributor from Bangladesh, in FY24, net sales under said agreement accounted for 2% of net sales 

Hariom Pipe: Company raising of funds through issuance of shares up to Rs 7 billion

Vraj Iron: Company has invested Rs 125.9 million in Vraj Metaliks Pvt Ltd 

Nestle India: Board Meeting on Oct 17 to consider Q2 results.

ICICI Bank: Board Meeting on Oct 26 to consider Q2 results. 

Ease My Trip: Block deal likely tomorrow for 15 crore shares with Rs 38 per share. 

MCX: Company revises transaction fees for futures & options after SEBI directive. 

Hindustan Foods: Company announced the merger of a promoter-owned entity to enhance its manufacturing capabilities in Nashik, Maharashtra.

S&P Global on Tuesday retained India’s economic growth, measured in terms of change in GDP (Gross Domestic Products) at 6.8 per cent. It expects RBI’s Monetary Policy Committee (MPC) to cut policy interest rate next month.

A memorandum of understanding was signed between Rubber Research Institute of India (RRII) and Indian Oil Corporation Ltd (IOCL) to enhance the research on using Rubber Process Oils marketed by IOCL in different tyre and non-tyre rubber products.

KBC Global, a construction and real estate company, has, through its subsidiary KBC International, signed a memorandum of understanding with Liberia Special Economic Zone Authority for constructing a residential building complex, low-cost housing, and a commercial space at a cost of $12.5 million (about ₹105 crore).

Domestic carrier SpiceJet on Tuesday said it has successfully resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement. ELFC, which had previously claimed $16.7 million, has agreed to settle for an undisclosed amount, which is lower than the initial claim, the Gurugram-based airline said in a statement.

Engineering major Larsen & Toubro (L&T) said on Tuesday it has secured a mega order from its power transmission and distribution (PT&D) vertical in West Asia. Read more

In yet another setback for Byju’s, the Delaware Supreme Court upheld a ruling that found the edtech company in default on its $1.2-billion Term Loan B thus entitling lenders to ‘exercise remedies’.

Navratna Defence Public Sector Undertaking (DPSU) Mazagon Dock Shipbuilders (MDL) on Tuesday commenced the production of first of the six multipurpose cargo vessels (MPV) for Navi Merchants, a fully-owned subsidiary of the Copenhagen Merchants Group of Denmark. Read more

Private sector lender City Union Bank is targeting to maintain the credit-deposit ratio (CD ratio) at 83-84 per cent and lower net non-performing asset (NNPA) ratio to 1-1.25 per cent in FY25, MD & CEO N Kamakodi told businessline. 

State-owned NMDC, the country’s largest iron ore merchant miner, will invest ₹2,200 crore in FY25 on setting up a slurry pipeline and new processing plants. The investment comes in the backdrop of the company’s 100 million tonne (mt) production target by 2030. Read more

L&T recently won its first international order worth $100 million in a new business – offshore wind. The order has got the engineering major thirsting for more. The company is now smacking its lips for encores. Read more

Shares of logistics company Western Carriers on Tuesday made a flat market debut, listing at a discount over the issue price of ₹172 apiece and later ended the day over 7 per cent lower. Read more

Pellet price hike in Raipur market solidifies our thesis and estimates, Re-iterate BUY

MCap: Rs139bn; CMP: Rs1041; TP: Rs1240; Upside: 19%; Rating: BUY

What happened: Steelmint has reported that Raipur based pellet manufacturers have raised their offers for Fe 63% (+/-0.5%) by Rs300-400/tonne to Rs8900-9000/tonne with deals of around 25,000tonnes concluded at the revised price following OMC’s auction and improved market sentiment in the DRI and finished steel segments. 

Implications:

1. This price hike has come along with supporting hikes of 1-2% in DRI, billet, Rebar and wire rod prices due to positive demand sentiments in Raipur market. As an effect of China’s easing monetary policy, billet prices in China have also risen by US$14/tonne to US$417/tonne.

2. Assuming pellet price at Rs8900-9000/tonne for the rest of the the year, leads to Rs10,200/tonne of avg. pellet price in FY25 for GPIL. This matches our current assumption and leads to ebitda/tonne of Rs5000-5100/tonne for pellet. We expect pellet prices to largely sustain on current level due to support from infrastructure projects post completion of monsoon in India.

We expect no change to our estimates until prices witness meaningful correction from current levels. Therefore, we reiterate our BUY rating on GPIL as stock trades at very attractive valuations of 4.8x Sept’26 EV/EBITDA at Rs1040 and the company has strong volume growth triggers post commissioning of its new pellet plant securing revenue growth.

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Recent Interview...

As of 18:33 PM Tuesday 24 September 2024

Cosmo First: Pankaj Poddar, CEO

Expect Plastic Biz To Be EBITDA Positive From Q4FY25: Cosmo First

https://www.youtube.com/watch?v=RhiYtF-1MLA

Info Edge: Hitesh Oberoi, MD&CEO

InfoEdge: ‘Seeds Have Been Sown For 2 Lakh Cr Market Cap

https://www.youtube.com/watch?v=H5sgNdXuHYU

J. K. Cement: Anuj Khandelwal, Business Head

Our Paint Business Is Shaping Well, Targeting ?250-300 Cr Sales In FY25: JK Cement

https://www.youtube.com/watch?v=TXZrz1XF0_U

Motherson Sumi: Kunal Malani, CFO

How Will Debt Reduction and CAPEX Plans Impact SAMIL Future Growth?

https://www.youtube.com/watch?v=25ZPXqlg_38

Muthoot Microfin Limited: Sadaf Sayeed, CEO

Muthoot Microfinance: MFI Industry Outlook | FY25 Business & Expansion Plans

https://www.youtube.com/watch?v=sSxBrt_yET8

Northern Arc Ca: Ashish Mehrotra, MD & CEO

Expect To See An Improvement In NIM Going Forward: Northern Arc Capital

https://www.youtube.com/watch?v=gPxyUPOivx8

Shriram Properties: Murali Malyappan, MD

Expect Gross Revenue Potential Of ?1,000 Cr Over 3 Years For The Pune Project: Shriram Properties

https://www.youtube.com/watch?v=M4fyO9EtyfE

Allcargo: Ravi Jakhar, Director

Record Growth in FCL and LCL Volumes: What’s Driving Allcargo’s Global Success?

https://www.youtube.com/watch?v=EiXYBzJ-92I

EMS: Ashish Tomar, Founder & MD

EMS ?400 Cr Fund Raise Via QIP | Majority Of Fund Raising Will Be Used For Working Capital, Says Co

https://www.youtube.com/watch?v=2lf6C6paoc0

Indian Hotels: Puneet Chhatwal, MD

Will Focus On Asset Light Vs Capital Heavy Growth; See Margins at 33%: IHCL MD & CEO Puneet Chhatwal

https://www.youtube.com/watch?v=SBZq6YaIlUg

Events today…

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

Results today…

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

Replays available at www.researchbytes.com

US S&P/CS Composite-20 HPI y/y Actual 5.9%, Forecast 5.9%, Previous 6.5% 

US HPI m/m Actual 0.1%, Forecast 0.2%, Previous -0.1% 

Impact: Neutral for Dollar

24 September 2024 (Rs. In Crs.)

Turnover: (NSE + BSE)

Cash Volume: 125748.06 + 7284.92 Total: 133032.98

F&O Volume: 848971.54 + 250406.35 Total: 1099377.89

Provisional Cash

FII/FPI: NET SELL: -2784.14 

(20111.37 - 22895.51) 

DII: NET BUY: +3868.31 

(15939.51 - 12071.2)

Cintas Corporation (Pre market) (Sector- Textile)

Micron Technology, Inc: (Post market) (Sector- Technology)

Jefferies Financial Group Inc (Post market) (Sector- Financial)

10:30 JAPAN BOJ Core CPI y/y (Expected: 1.8% versus Previous: 1.8%)

19:30 U.S. New Home Sales (Expected: 693K versus Previous: 739K)

The SEBI board may take up a host of proposals for its upcoming meeting on September 30. The board may discuss the introduction of a new asset class with a minimum ticket size of ₹10 lakh. The threshold will deter retail investors from investing in the product, while attracting investors with investible funds of ₹10-50 lakh, who are currently being drawn to unregistered portfolio management service providers. Read more

India’s tech start-ups raised a total $7.6 billion in funding from January to September 2024, marking a 7 per cent drop from $8.2 billion in 2023 and a 66 per cent decline from $22.4 billion in 2022. Read more

The mood about India across the world is phenomenal in terms of investment interest, and the country’s manufacturing share is set to increase to 25 per cent of the GDP over the next two decades as it proceeds towards becoming a developed nation, Commerce and Industry Minister Piyush Goyal has said. Read more

Hundreds of sensors are generating loads of real time data while driving the Formula One car. Cognizant Technology Solutions helps Aston Martin Aramco Formula One (AMF1) analyse the data and correct problems, if any, to make the car run faster, says the team’s Spanish racing driver Fernando Alonso. Read more

The outlook for Welspun Corp is bullish. The stock has begun the week on a strong note by surging over 9 per cent so far. This marks the end of the corrective fall since the last week of August. Its share price well above the key resistance at ₹700. The region between ₹700 and ₹690 will now act as a good support zone and limit the downside. Welspun Corp share price can rise to ₹785 in the coming weeks. Read more