Stock Market Live Updates July 3, 2024: Sensex, Nifty trade firm in early session; banking stocks shine, HDFC Bank up over 2%

JSW Tuticorin Multipurpose Terminal Private Limited (‘subsidiary of JSW Infrastructure) has entered into a concession agreement with V.O. Chidambaranar Port Authority, Tamil Nadu, for Mechanization of North Cargo Berth-III (NCB-III) for handling dry bulk cargo at the port on a design, build, finance, operate and transfer (DBFOT) basis. The company will develop and mechanise a new 7 MPTA Cargo Berth III at the V.O. Chidambaranar Port. It will leverage its operational capabilities for handling bulk products and increase its cargo share on the East Coast. 

JSW Infrastructure stock trades at ₹352.90 on the NSE, up 0.94%.

Top gainers: HDFC Bank (2.37%), Britannia (1.60%), HDFC Life (1.28%), Tata Consumers (1.14%), ICICI Bank (1.09%)

Top losers: TCS (-1.01%), Infosys (-0.91%), Tech Mahindra (-0.53%), Sun Pharma (-0.50%), HCL Technologies (-0.47%)

One 97 Communications Ltd (OCL) that owns Paytm has announced the launch of ‘Paytm Health Saathi’, a health and income protection plan for its merchant partners, available on the ‘Paytm for Business’ app.

Stock trades at ₹420.20 on the NSE, down by 0.20%.

Crude oil futures traded higher on Wednesday morning as the industry data showed a huge decline in inventories in the US for the week ending June 28. At 9.13 am on Wednesday, September Brent oil futures were at $86.74, up by 0.58 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $83.25, up by 0.53 per cent. July crude oil futures were trading at ₹6,954 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday morning, against the previous close of ₹6,949, up by 0.07 per cent, and August futures were trading at ₹6,899 against the previous close of ₹6,884, up by 0.22 per cent.

The initial public offering (IPO) of Bain Capital-backed Emcure Pharmaceuticals Ltd is set to open for subscription today and will close on Friday. The price band of the issue is ₹960-1008. The IPO size is ₹1,952.03 crore - a fresh issue of 79 lakh shares worth ₹800 crore and an offer-for-sale (OFS) of 1.14 crore shares totalling ₹1,152.03 crore. The minimum lot size for an application is 14 shares. Read more

Domestic shares are likely to open higher on Wednesday, tracking Asian peers, while top private lender HDFC Bank will be in focus on hopes of a likely increase in its weightage in a key global index. Read more

Ex-Dividend 4 July 2024 (Tomorrow)

Last date for Cum-Dividend Today

Balaji Amines Ltd.

Dividend Per Share Rs.11

Previous day Closing Price – Rs. 2424.5

SKF India Ltd

Dividend Per Share Rs.130

Previous day Closing Price – Rs. 6498.95

Solar Industries India Ltd.

Dividend Per Share Rs.8.5

Previous day Closing Price – Rs. 11007.65

Tata Power Co. Ltd.

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 432.65

Tide Water Oil (India) Ltd.

Dividend Per Share Rs.20

Previous day Closing Price – Rs. 2393.3

Yesterday, Nifty dropped sharply after hitting an all-time high of 24,236.35 due to profit booking. FIIs were net sellers by ₹2000 crores, while DIIs bought ₹648 crores. Nifty is likely to trade between 23,500-24,500, with 24,500 as a major resistance level. Federal Reserve Chairman Powell’s remarks on inflation suggest a cautious market outlook. Key events include FOMC meeting minutes on Wednesday and the Nonfarm Payrolls report on Friday. We recommend buying Nifty at 24,124 with targets of 24,251/24,501 and Bank Nifty between 51,900-52,000 with targets of 52,501/53,181. Top stock pick: HDFC AMC (CMP 4096) with targets of 4,187/4,301

Listing Date : Wed, July 03, 2024

BSE Script : 544204

NSE Code : VRAJ

IPO Price : ₹207

Shares of Vraj Iron and Steel will be listed at the bourses today. The company has fixed the IPO price at ₹207, at the upper end of the price band ₹195-207. The IPO saw a strong response from all category of investors, as the issue was subscribed 119.04 times.

The entire offer was a fresh issue worth ₹171 crore. Read more

Antique on Patanjali Foods

Buy Call, Target Rs 2,144

Co Has Approved The Proposal To Acquire Patanjali Ayurved’s HPC Biz For Rs 1,100 Cr

Believe The Acquisition Is A Positive Move And Should Add To Co’s Growth Levers

The Acquisition Is Expected To Improve The Profitability Of Overall Business

The Acquisition Is At A Very Attractive Valuation Of 0.4x FY24 Sales/ 2.2x FY24 EBITDA

In Our View, HPC Biz Profitability Is Stable & Sustainable Compared To The Oil & Food Biz

Jefferies on HDFC Bank

Buy Call, Target Rs1880

HDFC Bank’s shareholding for June’24 points that foreign shareholding fell to 54.83% vs 55.54% in Mar’24

MSCI’s threshold to raise foreign inclusion factor (FIF) from 50% to 100%

With that, bank may be eligible for jump in index weight at next review in Aug’24

This could be positive near-term catalyst in stock

In medium term, strong deposit growth and improving NIMs should be key drivers

Citi on M&M Fin Svcs

Neutral Call, Target Rs 310

Co’s June Disbursements/Business Assets Growth Broadly In-line With Estimates

For Q1FY25, Disbursements Of Rs 12,730 Cr Saw Growth Of 4.6% YoY

Business Assets Saw A Growth Of 3.7% QoQ In Q1

Collection Efficiency Of 95% In Jun’24 Was Below 96% Each In May’24 And Jun’23

For Q1, The Collection Efficiency Stood At 94%, Stable YoY

As Expected, With Seasonality Q1, Witnessed An Increase In GS3 To 3.6% From 3.4% As Of FY24

We Bake-In Credit Cost Of Nearly 2.4% For Q1 And Estimate RoA Of 1.5%

NIMs, Are Anticipated To Moderate From A High Base

Citi on Avenue Supermarts

Sell Call, Target Rs 3,400

Q1GY25 Update Shows No Sign Of Growth Acceleration; Watch Out For Margin Trajectory

Co’s Q1FY25 Update Highlighted 18.4% YoY Revenue Growth

Revenue Per Store Saw 3% Five-Yr CAGR (5.3% YoY)

Rev/sqft Saw -1.5% 5-Yr Cagr (5% YoY Assuming Avg Store Size Of New Stores In-line With TTM Store Size)

Believe Revenue/sqft Continues To Be Impacted Due To Adverse Product Mix

Believe Revenue/sqft Continues To Be Impacted Due To New Store Additions In Smaller Towns

Store Additions During The Quarter Were 6, 3/10 In Q1FY24/Q1FY23 And 41/40 In FY24/FY23

Remain Cautious On Co At The Current Valuation Given Risks Around Store Additions

Maintain Sell Rating, Implying 56x Mar’26 P/E (Vs Current Valuation Of 78x Mar’26 P/E)

CLSA on ICICI Lombard

Upgrade To Outperform From Hold, Raise Target To Rs 2,000

Co’s Motor Insurance Premiums Registered 31% YoY Growth In 2MFY25

Co’s Motor Ins Premiums Far Ahead Of Ind’s 15%

Worsening Of Peers’ Motor Third Party Loss Ratio Leading Them To Curtail Growth

Premiumisation Of Cars & Benefits From Motor Vehicle Act Could Also Be Aiding Motor Book

Have Raised Our Overall Premium Growth Estimate By Only 2% In FY25

believe momentum in motor book could persist.

We Lift Our Tgt Price As We Raise Our Gordon-Based Target PE Multiple To 30x

See 11% Potential Upside From Here

Bernstein on REC, PFC

Initiates Buy Call on REC, Target Rs 653

Initiates Buy Call On PFC, Target Rs 620

They Are One Of Our Most Preferred Plays In Power Cycle

Investors Are Under-Estimating The Duration And Intensity Of This Power Cycle

NPA Risk For Both Is Much Lower This Cycle

Both Have Better ROEs (>20%) & Growth (15%) Than Power Peers

They Are Trading Cheaper Than All Of Them, Despite The Rally

[8:41 am, 3/7/2024] +91 98330 43598: Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd

Yesterday, Nifty dropped sharply after hitting an all-time high of 24,236.35 due to profit booking. FIIs were net sellers by ₹2000 crores, while DIIs bought ₹648 crores. Nifty is likely to trade between 23,500-24,500, with 24,500 as a major resistance level. Federal Reserve Chairman Powell’s remarks on inflation suggest a cautious market outlook. Key events include FOMC meeting minutes on Wednesday and the Nonfarm Payrolls report on Friday. We recommend buying Nifty at 24,124 with targets of 24,251/24,501 and Bank Nifty between 51,900-52,000 with targets of 52,501/53,181. Top stock pick: HDFC AMC (CMP 4096) with targets of 4,187/4,301.

KEC International gets new orders worth Rs 1,017 crore in its T&D and renewables businesses.

Health care Global: Company approves acquisition of 196-bedded Vizag Hospital in Vishakhapatnam for over Rs 362 crore. 

V2 Retail: Company says Q1 standalone Revenue from Operations up 57% (YoY) to 4.14b rupees, Q1 same store sales growth of 37% 

NLC INDIA: Company has achieved 22.12% growth in lignite production during Q1 of FY 2024-25. 

KCP: Company have approved the proposal of railway siding project along with input material handling equipment and system & cement grinding hydraulic roller press at Andhra Pradesh

V-MART Retail: Company says same store sales growth at 11% for Q1, Revenue from ops up 17% (YOY). 

Primo Chemicals: Company secures long-term coal linkages via 10-year fuel supply agreement with Northern Coalfields.

Moschip: Company in pact with C-DAC and Socionext for making high performance computing processor AUM. 

Avenue Supermarts: Standalone revenue from ops at ₹13,712 cr (Agencies). 

IEX: Total electricity volume at 10,185 MU, up 24.7% YoY, up 18 percent. 

Waaree Energies: Company bags order to supply 900 MW of modules for Serentica Renewables in Rajasthan 

RVNL: Company declared lowest bidder for Rs 133 crore Central Railway project 

Puravankara Ltd: Company acquires 7-acre land parcel in Hebbagodi, Bengaluru, with potential GDV of Rs. 900 Crore

Dynacons Systems: Company won Rs 119 crore contract from the Central Bank of India for a private cloud infrastructure project.

HDFC Bank: Bank may see inflows of up to $4 billion as MSCI weightage set to rise.

Persistent: Company acquires Starfish Associates, Strengthening its Position in AI-powered Contact Center and Unified Communications 

Dev Information: Company have secured noteworthy orders cumulatively worth Rs 8 crore. 

Hindustan Zinc: Company’s mined metal production up 2% at 263 kt year-on-year in Q1FY25 

ONGC: Appoints Vivek Chandrakant Tongaonkar as the new Director (Finance) and CFO. 

Zomato: Company unit to withdraw application for getting NBFC registration 

ONGC: Company appoints Chandra Kant Tongaonkar as Director (Finance) and CFO, effective July 2. 

Piramal ENT: Company approves raising Rs 180 cr via bonds

Kfin Technologies: Company says disinvestment of entire stake of 20.95% of fin tech products and solutions, deal for 65m rupees. 

GPT Infra projects: Company board meeting on July 5 to consider raising of funds.

Solara Active: Company says TPG growth iv sf cut stake in company to 4.44% from 8.60%, cut stake via open market sale 

M&M Financial: Company says Q1FY25 disbursement grew 5% (YoY), collection efficiency at 95% for June 2024. 

Britannia Industries: Company appoints Urjit Patel as an independent director for 5 years. 

Bank of Maharashtra: Bank Secures Rs 1793 Cr in Total Bids for Basel Iii Compliant Tier 2 Bonds.

Capri Global: Company appoints Tarun Aggarwal as the Group Chief Technology Officer.

Force Motors: Total sales down 2.9% at 2,553 units vs 2,628 units (YoY) 

MOIL: Company registers quarterly sales growth of 14.5% year-on-year. 

Confidence Petro: Company has acquired 99.99% of Punjab Petroleum Corporation Ltd.’s equity shares. 

Kotak Mahindra Bank: Hindenburg partner said transactions were for itself. 

YesBank: Gross advances rose 14.8% on a yearly basis to Rs 2.29 lakh crore in Q1FY25. 

GPT Infra: Board of directors of GPT Infraprojects to consider fund-raising options on July 5.

Indiabulls Housing: Company changes name to Sammaan Capital on receipt of necessary regulatory processes. 

BRNL: Company says order of inspection issued by ministry of corporate affairs, company will comply with directions and cooperate fully with statutory authority. 

Shalimar Paints: Ashok Kumar Gupta resigns as MD and Key Managerial Personnel of company.

According to the API’s Weekly Statistical Bulletin, US crude oil stocks fell drastically by 9.163 million barrels in the week ending June 28th, 2024, after rising by 0.914 million barrels the previous week. This was the largest weekly reduction in crude oil inventory since August 2023, far above market forecasts of a 0.15 million barrel drop.

The Caixin China General Services PMI fell to 51.2 in June 2024, down from a 10-month high of 54.0 in May, and below predictions of 53.4. It was the 18th consecutive month of growth in services activity, but the slowest pace since October, as export order growth slowed and employment fell amid price pressures.

Silver held steady around $29.60 as investors assessed the Federal Reserve’s monetary policy stance in light of stronger-than-expected employment growth and the central bank chief’s latest comments. The JOLTS survey revealed that job opportunities climbed by 221,000 to 8.140 million in May, exceeding the prediction of 7.91 million. Meanwhile, Fed Chair Jerome Powell stated that the central bank has made significant headway on inflation but requires more confidence before lowering interest rates. Investors are now looking forward to the next FOMC minutes and more job data on Wednesday, as well as the nonfarm payrolls report on Friday, for more guidance.

Key economic data slated for release includes ADP Non-Farm Employment Change, Unemployment Claims, ISM Services PMI, FOMC Meeting Minutes from US Zone.

Gold prices rose as the US dollar fell, while investors focused on minutes from the Federal Reserve’s most recent policy meeting for new signals on the timing of the central bank’s interest rate cuts. The United States is back on a “disinflationary path,” according to Fed Chair Jerome Powell, but policymakers need more data before decreasing interest rates to ensure that recent lower inflation readings accurately reflect the economy. Data revealed that U.S. job postings increased in May after falling sharply the previous two months, but the trend remained consistent with an easing of labour market conditions. According to the CME FedWatch Tool, traders are currently pricing in a 67% possibility of the Fed cutting interest rates in September.

Key economic data slated for release includes ADP Non-Farm Employment Change, Unemployment Claims, ISM Services PMI, FOMC Meeting Minutes from US Zone.

Entertainment sector entity Prime Focus on Tuesday said its subsidiary DNEG Group is set to raise up to $200 million in funding from Abu Dhabi-based United Al Saqer Group. The fundraising values the London-headquartered DNEG, which is into visual entertainment technology and world services, at $2 billion, an official statement said. The funding will be completed over two years. Read more

Tata Steel has received confirmation from Unite Union that it will suspend its proposed strike in the UK starting Monday. Read more

The ₹41.26-crore initial public offering of Kolkata-based Nephro Care India Ltd. created a record as it became the first SME offer to draw bids worth over ₹20,000 crore. The IPO on the NSE-SME platform received an overwhelming response from all category investors and was subscribed to a whopping 666.56 times. Read more

Shares of Allied Blenders and Distillers made a decent listing on Tuesday by gaining a little over 13 per cent. As against the IPO price of ₹281, the stock listed at ₹318.10 on the BSE and hit a high of ₹324.40 and a low of ₹306.70, before settling at ₹317.85, up 13.11 per cent over the IPO price. On the NSE, the stock closed at ₹317.90. Read more

Unlike the earlier instances, investors gave a cold shoulder to the fresh salvo fired by the US short-seller Hindenburg in response to SEBI’s show-cause notice in the case involving the Adani Group. Read more

The SEBI’s authority to take direct action against Hindenburg Research may fall into a grey area given the jurisdictional limitations, said experts. Read more

Divine Power Energy Ltd (DPEL) on Tuesday made a bumper listing following blockbuster IPO on NSE-Emerge platform. Read more

Ashok Leyland is preparing to launch its first-ever vehicle scrappage facility under a franchise model. Read more

Bengaluru-based Amrut Distilleries plans to ramp its production capacity by 30 per cent by December 2024. The company’s distillation capacity is set to increase from 1.3-.1.5 million litres per annum by the year’s end. It was tripled 1 million in 2018. Read more

The outlook for Jyothy Labs is bullish. The strong 5.75 per cent surge on Tuesday has taken the share price well above the ₹460-470 resistance cluster. The region between ₹465-460 will now act as a good support zone now. Any intermediate dips are likely to be limited to this support zone. Read more

The foreign room for HDFC Bank has risen to 25.9 per cent for the quarter ended June, making it eligible for a significant bump-up in weight at the upcoming MSCI index revision in August. Read more

TAFE Motors and Tractors Ltd, a wholly-owned subsidiary of leading tractor maker TAFE (Tractors & Farm Equipment Ltd) has signed an agreement with Germany-based Deutz AG, a manufacturer of internal combustion engines, to jointly manufacture the latter’s engines for tractor and industrial and generator applications. Read more

With two antibiotic products in the last mile ahead of a possible launch in India, Wockhardt Chairman Dr Habil Khorakiwala said, discussions to out-license them for overseas markets will start only after global approvals come in. Read more