Share Market Highlights 1 July 2024: Banking and IT shares drive Sensex to all-time high, Nifty sets fresh lifetime record

Tata Motors Limited sales in the domestic & international market for Q1 FY 2024-25 stood at 229,891 vehicles, compared to 226,245 units during Q1 FY 2023-24.

The Indian rupee closed weaker on Monday as broad based interbank dollar demand pressured the currency even as the greenback weakened.

The rupee ended at 83.4375 against the U.S. dollar, lower than the close of 83.3825 in the previous session.

The dollar index was down 0.1% at 105.6 and most Asian currencies ticked up, with the Indonesian rupiah up 0.3% and leading gains.

Interbank dollar bids had pushed the rupee to an intra-day low of 83.4650 earlier in the session but a decline in the dollar index helped it trim losses, traders said. - Reuters

Top gainers:

Tech Mahindra (2.98%), Wipro (2.40%), Bajaj Finance (2.06%), Grasim (2.04%), UltratecH Cement (1.99%)

Top losers:

NTPC (-2.06%), Eicher Motors (-0.92%), Apollo Hospitals (-0.82%), SBI (-0.72%), Dr Reddy’s Laboratories (-0.66%)

BSE Sensex closed at 79,476.19, higher by 443.46 pts or 0.56%, and Nifty 50 at 24,141.95, up by 131.35 pts or 0.55%.

CAMS collaborates with Google Cloud to build Cloud-Native platform to transform its asset management business services.

Computer Age Management Services stock rose 1.45% on the NSE, trading at ₹3,665.

Thangamayil Jewellery is opening its new branch at Mayiladuthurai, Tamil Nadu, on July 7, 2024. Stock trades at ₹1,719.80 on the NSE, down by 0.06%.

Mahamaya Steel Industries’ stock rose 1.42% on the NSE, trading at ₹106.90.

Natural gas futures on the Multi Commodity Exchange (MCX) has been on a decline for nearly three weeks. The July contract faced resistance at ₹265 and began to fall.

Last week, the contract closed below the support at ₹220, increasing the chance for the downswing to extend further. The nearest support is at ₹200, on the back of this, natural gas futures will most likely recover.

Sumuka Agro Industries, a consumer food brand, has received ‘no objection’ from the BSE for the proposed merger with Gujjubhai Foods. The merger is slated for completion by October subject to SEBI and NCLT approval. Shaili Patel Bhatt, Director & CFO, Sumuka Agro Industries, said, “We are delighted to receive the stock exchanges’ approval for our merger with Gujjubhai Foods. This decision highlights the robust rationale behind our strategic alignment and the anticipated value creation for all stakeholders.”

Top gainers on the NSE at 3 pm:

Tech Mahindra (2.81%), Wipro (2.49%), Grasim (2.30%), Bajaj Finance (2.12%), TCS (2.12%) 

Top losers:

NTPC (-2.56%), Eicher Motors (-0.88%), Apollo Hospitals (-0.81%), Dr Reddy’s (-0.80%), SBI (-0.71%)

Ashok Leyland’s stock declines 1.13% on the NSE, trading at ₹239.16.

State Bank of India (SBI) has launched “MSME -Sahaj”, a web-based digital business loans solution for MSMEs’ (micro, small and medium enterprises) invoice financing.

With the new web-based solution, the Bank’s customers can avail finance against their Goods and Service Tax (GST) registered sales invoices of up to ₹1 lakh in less than 15 minutes, according to a statement by India’s largest bank.

Welspun Living board has approved an equity investment not exceeding ₹4 crore for acquiring/maintaining up to 26.33% equity share capital of Bhargavi Renewable Private Limited (BRPL), a Special Purpose Vehicle, for setting up of 18 MWp Ground Mounted Solar Power Plant for supply of power to Vapi facilities which would make the Company’s Vapi facilities up to 60% RE by the FY 2025 with a reduction in the cost of power. 

The Company proposes to enter power purchase agreement with BRPL for supply of renewable power for a period of 25 years with an interest free security deposit up to ₹2.15 crore. 

BSE-listed Ratnaveer Precision Engineering, provider of high-precision engineering solutions such as washers and tubes for critical sectors, has announced that the Board has approved a proposal to raise funds up to Rs. 95 crore by issuing equity shares and warrants on a preferential allotment basis. Ratnaveer Precision has been on a good growth trajectory, with FY24 reporting a 23.94% increase in net profit, reaching Rs 31.04 crore. 

The company is actively strengthening its presence in key international markets, contributing to revenue growth. It is also focusing on developing new revenue streams for the pipes division from the defence sector, a move that promises exciting future prospects.

USD-INR has failed to cross its previous high of 83.70 levels which will eventually make this pair either move in a range of 83.30-83.70 levels or it will start moving lower. As of now the range of 83.30-83.70 is intact, so we believe that the pair will continue to move in this range and can test 83.30 and after that it will again move back up. Break of 83.30 will drag prices towards 82.80 levels.

USD-INR will continue trade in the range of 83.30-83.70 levels.

REC Limited has reported strong operational performance for the quarter ended June 30, 2024, with loan sanctions of ₹1,12,747 crore and loan disbursements of ₹43,652 crore, marking a growth of 24.17% and 27.89% respectively over the corresponding quarter of the previous financial year.

Oriental Carbon & Chemicals Limited has spun off OCCL (resulting company) as its new entity under the proposed arrangement. The company has fixed Monday, July 1, 2024 as the Record Date for the purpose of determining the shareholders of the Company who would be allotted the equity shares of the Resulting Company.Oriental Carbon & Chemicals Limited has spun off OCCL (resulting company) as its new entity under the proposed arrangement. The company has fixed Monday, July 01, 2024 as the Record Date for the purpose of determining the shareholders of the Company who would be allotted the equity shares of the Resulting Company.

LT Foods Ltd’s flagship brand DAAWAT has partnered with select restaurants in Australia to celebrate the 3rd edition of DAAWAT World Biryani Day.

Maruti Suzuki India Limited sold a total of 179,228 units in June 2024. Total sales in the month include domestic sales of 139,918 units, sales to other OEM of 8,277 units and exports of 31,033 units. 

NTPC on Monday said that it has achieved a growth of 17.15 per cent in coal despatch from its captive mines during Q1 FY25, as compared to the corresponding period of the previous year.

Niva Bupa Health Insurance Ltd (erstwhile Max Bupa) has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering (IPO). 

The IPO with a face value of ₹10 each is a mix of fresh issuance of Rs 800 crore and an offer for sale of up to Rs 2,200 crore by Promoter and Investor Selling Shareholders. The offer for sale consists of up to Rs 320 crore by Bupa Singapore Holdings Pte. Ltd., and up to Rs 1880 crore by Fettle Tone LLP. 

The company, in consultation with the book-running lead manager, may consider an issue of specified securities up to Rs 160 crore as a “pre-IPO placement”. If such placement is completed, the fresh issue size will be reduced.

Larsen & Toubro (L&T) on Monday said that it has secured an order worth up to ₹2,500 crore from State-run Oil and Natural Gas Corporation (ONGC).Read more

Cochin Shipyard stock rises 1.90% on NSE, trading at ₹2,257.15. Its wholly-owned subsidiary - Udupi Cochin Shipyard (UCSL) - secured an international order from Wilson ASA, Norway, for Design and Construction of 4 numbers of 6300 TDW Dry Cargo Vessels.

Titan stock trades at ₹3,411.30 on the NSE, up 0.21%. Company had executed a Joint Venture Agreement (JVA) with Rhythm Jewelry, a Rhythm Group Company in Bangladesh, for incorporation of a joint venture company in Bangladesh with the objective of manufacturing, marketing and retailing of jewellery products in Bangladesh.

Tata Steel stock trades at ₹173.95 on the NSE, down by 0.02%. The company said it will convert debt instruments worth $564.75 million in T Steel Holdings into equity shares in the financial year 2025. Post this conversion, T Steel Holdings will continue to be a wholly-owned subsidiary of the company.

Drugmaker Wockhardt said its investigational antibiotic Zaynich (Zidebactam/ Cefepime WCK 5222) was successfully used to treat a cancer patient in the United States, who had chronic bilateral thigh infection caused by an extreme-drug resistant pseudomonas. Read more

Credit, deposits accelerated in May, NIMs to continue to be under pressure. Credit and deposit growth re-accelerate. Credit growth increased to 20.7% (16% excl.the HDFC merger), from 19% in the previous month. Deposit growth also accelerated to 14%, driven by a good increase in demand deposits and an uptick in timed deposits. However, investment growth continued to moderate, for five consecutive months holding below the average.

Broad-based acceleration across sectors. Industry credit growth was driven by textiles, basic metals, construction and transport, while infrastructure credit grew due to power, roads and railways. Services saw strong growth in transport operations, wholesale and retail trade, and commercial real estate. Personal loans saw broad-based acceleration, with durables, credit cards and gold loans experiencing the sharpest upswings.

NIMs stable; liquidity in deficit. Net interest margins on outstanding loans contracted slightly in May’24 as the weighted average lending rate (WALR) was a steady 2.89%. NIMs on fresh rupee loans declined due to lower lending rates. Inter-bank liquidity moved into deficit in May’24, following a surplus in April, due to weak government spending despite a surplus for the Centre.

NIMs to be under pressure, liquidity situation to improve. We continue to expect NIMs being under pressure. While slow-downs in credit growth were seen in Mar and Apr’24, the trend reversed in May’24; with credit off take continuing to outpace deposit accretion, the situation will continue. In liquidity, we see things improving with government spending likely to return now that the elections are behind. This would be aided by higher capital flows, both of which can remove the stress from inter-bank liquidity.

Bartronics India has received in-principle approval from the stock exchanges for a proposed rights issue aggregating up to ₹49.90 crore. The stock rose 1.95% on the NSE, trading at ₹20.35.

Niva Bupa Health Insurance Ltd (erstwhile Max Bupa) has filed a draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering. The IPO with a face value of ₹10 each is a mix of fresh issuance of ₹800 crore and an offer-for-sale of up to ₹2,200 crore by the promoter and Investor Selling Shareholders. The offer-for-sale consists of up to ₹320 crore by Bupa Singapore Holdings Pte. Ltd., and up to ₹1,880 crore by Fettle Tone LLP. The company, in consultation with the book-running lead manager, may consider an issue of specified securities up to ₹160 crore as a “pre-IPO placement”.

The pace of promoters selling stakes in their companies picked up in the first half of 2024, with deals worth $10.5 billion by the promoters of 37 companies on the NSE500, according to data by Kotak Institutional Equities. Read more

The Rane Holdings board has approved the execution of a share purchase agreement towards acquisition of the balance 51% equity stake in the joint venture company, Rane NSK Steering Systems Pvt Ltd (RNSS), from the joint venture partner NSK Ltd., Japan (NSK). The Rane Holdings stock jumps 11.14% on NSE, trading at ₹1,486.55

Top gainers: Wipro (3.76%), Tech Mahindra (2.61%), TCS (2.20%), LTIMindtree (2.01%), Hindustan Unilever (1.66%)

Top losers: NTPC (-1.85%), Apollo Hospitals (-1.05%), L&T (-0.82%), Tata Consumers (-0.76%), Divi’s Lab (-0.73%)

Of a total of 2,779 stocks that were traded on BSE at 12 pm on July 1, 2024, 1,062 advanced against 1,566 stocks that declined; 151 stocks remained unchanged. While 164 stocks recorded a 52-week high, 124 hit a 52-week low. In addition, 17 stocks traded in the lower circuit, while 9 hit the upper circuit.

Nazara further invests ₹271.5 crore (Euro 30.4mn) in Freaks, an Esports company based out of Germany

Nazara’s subsidiary Nodwin has decided to further invest ₹271.5 crores (Euro 30.4mn) to increase its existing stake from 13.51% to 100%, in tranches (i.e. balance 86.49%), in Freaks 4U Gaming (Freaks), an Esports company based out of Germany.

Revenue of Freaks : Dec’23: EUR 26.9mn, Dec’22: EUR 38.3mn.

Nature of consideration: By way of share swap.

Our view:- Nazara has acquired Freaks at EV/sales multiple of 1.4x on CY23 sales. As per the last funding round, Nodwin was valued at US$349mn implying an EV/sales multiple of 6.8x on FY24 sales. Difference in valuation perhaps indicates a good bargain for Nazara. Freaks is expected to breakeven in CY24. Consolidation is expected to happen from July, and will boost revenues of Nodwin materially from here on. Nodwin/Freaks reported revenues of ₹427crs/ ₹223crs in FY24/CY23 respectively. Our latest rating on the stock is BUY with a TP of ₹806. We shall review our rating and TP once we consolidate Freaks in due course of time.

BEL’s ₹3,170-cr order from Armoured Vehicles Nigam Pvt. Ltd

▪️The project entails supply and installation of an advanced, indigenously designed and developed Sighting and Fire Control System (FCS) which will be used to upgrade of BMP 2/2K Tanks of the Indian Army

▪️The order also includes a comprehensive Engineering Support package

▪️BEL also secured miscellaneous small orders valued at Rs4.8bn to supply Doppler Weather Radar, Classroom jammers, spares and services etc.

YTD company has bagged orders worth ₹ 4,800 crore.

PL View:

With the robust order intake pace, company is well on its way to achieve ~₹250bn order intake expectation set for FY25. Furthermore, we remain positive on BEL’s long-term growth given their diversification into non-defence verticals and their focus on exports.

The stock is currently trading at a PE of 50.4x/42.1x on the earnings of FY25/26E. We currently have a ‘Hold’ rating with tp of ₹290.

Greaves Engineering, the engineering division of Greaves Cotton Ltd (GCL), has introduced its range of new CPCB IV+ Compliant Gensets, adhering to the latest standard set by the Central Pollution Control Board (CPCB). 

Greaves Cotton stock surges 4.13% on the NSE, trading at ₹136.84.

REC has recorded loan sanctions of ₹1,12,747 crore and loan disbursements of ₹43,652 crore in the first quarter ended June 30, 2024 of FY 2024-25, which translates into growth of 24.17% and 27.89%, respectively, over the corresponding quarter of financial year 2023-24. 

REC stock rises 2.93% on the NSE, trading at ₹540.80.

RITES informed that Karnataka Mining Environment Restoration Corporation has given the Letter of Award for total Project Management Consultancy services for construction of railway PFT’s at Dharmapura and Susheel Nagar in Bellary District.

RITES stock trades at ₹692.90 on the NSE, up 0.20%.

L&T’s energy hydrocarbon (LTEH) vertical has secured an order (worth ₹1,000-2,500 crore) from the Oil & Natural Gas Corporation (ONGC) for the eighth phase of Pipeline Replacement Project (PRPVIII Group B) off India’s west coast. 

​Larsen & Toubro​ stock trades at ₹3,524 on the NSE, down by 0.69%. 

​ONGC​ stock trades at ₹273.90 on the NSE, down by 0.11%.

Mahindra & Mahindra Ltd announced that its overall auto sales for the month of June 2024 stood at 69,397 vehicles, a growth of 11%, including exports.

Stock trades at ₹2,846.30 on the NSE, down by 0.71%.

The rupee depreciated 9 paise to 83.43 against the US dollar in early trade on Monday amid rising crude oil prices and outflow of foreign capital.

With a rise in a number of new orders and resultant increase in output, manufacturing sector recovered some ground in June as compared to May, a private survey result on Monday showed. This also helped in creating fresh job opportunities,

HSBC Purchasing Managers’ Index (PMI) rose to 58.3 in June as compared to 57.5 in May. 

Bank Nifty began today’s session at 52,351 versus Friday’s close of 52,342. The index has inched up after opening and is currently trading around 52,430, up 0.2 per cent so far today.

The advance/decline ratio gives the index a bullish bias as it stands at 7/5. HDFC Bank is the top gainer by advancing 0.7 per cent. On the other hand, State Bank of India, down 0.6 per cent, is the top loser. Read more

JSW Steel will use a cloud-based tech called Blast Furnace Cyber-Physical System to visualize and predict the blast furnace operations as well as aid in abnormality predictiveness through a hot metal temperature control model & channelling prediction. Read more

The outlook is bullish. Strong support is in the 24,000-23,950 region. Nifty can rise to 24,150-24,200 during the day. A strong break above 24,200 will boost the momentum. Such a break can take the index up to 24,400 and higher this week. Read more

Steel Strips Wheels Ltd (SSWL) has recorded a net turnover of ₹358.11 crore in June 2024 against ₹355.83 crore in June 2023, recording a growth of 0.64% y-o-y, and gross turnover of ₹434.21 crore in June 2024 against ₹429.26 Crore in June 2023, a growth of 1.15% y-o-y.

SSWL stock surges 4.56% on the NSE, trading at ₹226.55.

Equity benchmark indices climbed in early trade on Monday amid buying in blue-chip stocks like Reliance Industries and Bharti Airtel along with a rally in Asian markets. Read more

Crude oil futures traded higher on Monday morning as the market hoped for an early interest rate cut in the US following the release of key data in that country. Read more

ICICI Lombard has launched Surety Insurance to provide risk mitigation solutions for India’s burgeoning infrastructure sector. Surety insurance acts as a guarantee to a beneficiary (typically an authority or client) that a principal debtor (usually a contractor) will fulfil their contractual obligations. Read more

Manorama Industries Ltd has commenced commercial production from its fractionation plant which has a capacity of 25,000-tonnes per annum (TPA) and takes the company’s total fractionation input capacity 40,000 TPA. 

Manorama Industries stock surges 4.99% on the NSE, trading at ₹665.40.

Asian Paints said the installed capacity of its Mysuru plant has been increased to 6,00,000 KL per annum in order to meet its medium-term capacity requirements. The company has invested ₹1,305 crore towards the above increase in installed capacity and the same has been funded through internal accruals.

Asian Paints stock trades at ₹2,922.30 on the NSE, up 0.18%.

JSW Steel Ltd and JFE Steel Corporation have commenced pilot demonstration of cloud-based Cyber-Physical System (CPS) technologies for blast furnace operations at JSW Steel Vijayanagar Works.

JSW Steel stock rises 1.05% on the NSE, trading at ₹941.25.

EaseMyTrip.com inks pact with Uttar Pradesh EcoTourism Development Board (UPETDB) under the Uttar Pradesh Government, in charge of executing promotional and tourism activities.

Easy Trip Planners stock rises 1.43% on the NSE, trading at ₹41.79

Gold remained at $2,325 per ounce as investors assessed the latest US inflation figures. Last Friday, the Federal Reserve’s favoured measure of underlying inflation fell to its lowest annual rate since 2021, bolstering chances that price growth will match the target pace and backing estimates for two central bank rate cuts this year. Expectations of lower interest rates elsewhere also boosted bullion, with the Bank of England likely to decrease rates following the UK election and the People’s Bank of China expected to slash rates further to support economic stimulus measures. Investors will now turn their attention to the US payrolls report and FOMC minutes, which are coming this week, to get a better sense of when the Fed may drop interest rates. Meanwhile, India, the world’s second-largest gold consumer, witnessed low physical demand despite rising prices.

Garden Reach Shipbuilders & Engineers Ltd has signed contract for construction of an advanced ocean-going tug for Bangladesh. The consideration of the contract is approx. $21 million. Stock surges 7.01% on the NSE, trading at ₹2,246.30.

JSW Renew Energy (Raj) Ltd, a wholly-owned step-down subsidiary of JSW Energy, has now signed a Power Purchase Agreement with SJVN Ltd for 25 years with a tariff of ₹2.52/KWh for ISTS connected solar capacity of 700 MW.

JSW Energy stock trades at ₹740.95 on the NSE, up by 0.88%.

Transformers and Rectifiers (India) Ltd has been awarded total orders of ₹148.55 crore from NCC, Power Grid Corporation and Adani Energy Solutions. TRIL stock trades at ₹754 on the NSE, higher by 4.31%.

Top gainers: Bharti Airtel (1.38%), Hero Motocorp (1.24%), Bajaj Auto (1.18%), Maruti (1.13%), JSW Steel (1.12%)

Top losers: NTPC (-2.06%), Power Grid (-1.24%), Apollo Hospitals (-1.14%), HDFC Life (-0.81%), Britannia (-0.71%)

Benchmark indices Sensex and Nifty opened in the green on Monday. At 9:35 am, Nifty50 was at 24,049.35, up 38.75 points or 0.16% higher on its Friday close. Sensex was at 79,146.11, up 113.38 points or 0.14 per cent firmer.

Jefferies on Grasim: Maintain Buy on Company, raise target price at Rs 3000/Sh (Positive) 

GS on Neuland Labs: Maintain Buy on Company, raise target price at Rs 9100/Sh (Positive) 

HSBC on Dixon Tech: Maintain Buy on Company, raise target price at Rs 12800/Sh (Positive) 

Emkay on L&T: Initiate Buy on Company, target price at Rs 3600/Sh (Positive) 

Emkay on Kalpataru: Initiate Buy on Company, target price at Rs 1400/Sh (Positive) 

Emkay on KEC Ind: Initiate Add on Company, target price at Rs 950/Sh (Positive) 

Kotak on JB Pharma: Maintain Buy on Company, target price at Rs 2025/Sh (Positive) 

JP Morgan on ICICI Pru: Maintain Overweight on Company, target price at Rs 800/Sh (Positive) 

JP Morgan on SBI Life: Maintain Overweight on Company, target price at Rs 1810/Sh (Positive) 

JP Morgan on NIACL: Maintain Overweight on Company, target price at Rs 294/Sh (Positive) 

Nuvama on Amara Raja: Maintain Buy on Company, target price at Rs 2000/Sh (Positive) 

UBS on L&T FH: Initiate Buy on Company, target price at Rs 210/Sh (Positive) 

Jefferies on Bharti Airtel: Maintain Buy on Company, raise target price at Rs 1740/Sh (Positive) 

Citi on Bharti Airtel: Maintain Buy on Company, raise target price at Rs 1750/Sh (Positive) 

BofA on Banks: Big private banks to sustain outperformance on better earnings momentum, positioning. ICICI/Axis/Kotak increasing confidence, EPS upgrades likely for PSU Banks (Positive) 

Kotak on Indigo: Maintain Buy on Company, target price at Rs 5700/Sh (Positive) 

HSBC on Vodafone Idea: Maintain Underperform on Company, raise target price at Rs 7/Sh (Neutral) 

Jefferies on Bharti Hexa: Maintain Hold on Company, cut target price at Rs 1230/Sh (Neutral) 

Macquarie on United Spirits: Maintain Underperform on Company, target price at Rs 1000/Sh (Neutral) 

MS on Amara Raja: Maintain Underweight on Company, target price at Rs 967/Sh (Neutral) 

MS on Steel Stocks: Sector continued to do well, with expectations of policy reforms continuity, believe outperformance is overdone (Neutral) 

MS on SAIL: Maintain Underweight on Company, target price at Rs 113/Sh (Neutral) 

MS on JSPL: Maintain Underweight on Company, target price at Rs 655/Sh (Neutral) 

MS on JSW Steel: Maintain Underweight on Company, target price at Rs 650/Sh (Neutral) 

MS on Tata Steel: Maintain Underweight on Company, target price at Rs 145/Sh (Neutral) 

Citi on Star Health: Maintain Sell on Company, target price at Rs 555/Sh (Neutral) 

JP Morgan on HDFC Life: Maintain Neutral on Company, target price at Rs 640/Sh (Neutral) 

JP Morgan on ICICI Lombard: Maintain Neutral on Company, target price at Rs 1510/Sh (Neutral) 

JP Morgan on GIC RE: Maintain Underweight on Company, target price at Rs 197/Sh (Neutral) 

JP Morgan on LIC: Maintain Underweight on Company, target price at Rs 790/Sh (Neutral)

Crude oil futures traded higher on Monday morning as the market hoped for an early interest rate cut in the US following the release of key data in that country. At 9.11 am on Monday, September Brent oil futures were at $85.42, up by 0.49 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $81.96, up by 0.52 per cent. July crude oil futures were trading at ₹6,840 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Monday morning against the previous close of ₹6,805, up by 0.51 per cent, and August futures were trading at ₹6,780 against the previous close of ₹6,748, up by 0.47 per cent.

BofA Sec on Banks

Buy on HDFC, ICICI, Axis, Kotak

Valuations & Consensus EPS Momentum Remain Near-term Tailwinds

Big 4 Private Banks’ Outperformance Expected To Continue Through Q1FY25 Results

Big 4 Private Banks’ Outperformance Expected Given Stable Outlook For Growth & NIM

Positioning & Flows Remain Supportive

Any Revival In EM Flow Will Benefit Large Cap Banks

Continue To Like PSBs But Do Not Expect Q1FY25 To Be A Major Stock Catalyst

Consensus Earnings Upgrades Are Likely To Resume Only After Q2FY25

GS on Neuland Labs

Buy Call, Target Rs 9,100

Co’s Primary Focus Remains On Small Molecule CDMO Projects In Human Health

Health Sector Is Where The Opportunity Remains Large, With Good Visibility Of Growth

Differentiated Offerings Include Agile Project Management

Differentiated Offerings Include Expertise On Regulatory Affairs For NCE Development

Mgmt Continue To Focus On SMID Biotech Where There Is Scope For Value Addition

Accelerate Filings In The Specialty API Segment

Kotak Inst. on JB Chemicals

Initiate Buy, Target Rs 2,025

Co Offers A Healthy Cocktail Of A Robust Domestic Franchise

Co Offers Niche CMO Presence & Measured Exports Strategy, Aided By Peerless Execution

Having Primarily Grown Organically Until FY22, Co Has Outperformed IPM In The Past Decade

Co Handsomely Outperformed The IPM In The Past Decade By 600 bps

Co Currently Ranks 22 In The IPM

Expect Strong 17%/19% EBITDA/PAT CAGRs Over FY24-27

Strong EBITDA/PAT CAGRs Backed By Improved MR Productivity In India

Nomura on Bharti Airtel

Buy Call, Target Rs 1,650

Co Raises Tariff Plans By 13-21%; Entry Level Unlimited 5G Plans Unchanged For Now

Industry Outlook Remains Robust As Focus Shifts To Value Creation & Monetisation

Co’s Mgmt Indicated Exit ARPUs Of Rs 300 In FY26

Co Would Require Another Tariff Hike Of 20% In FY26

Tariff Repair Now Appears To Be On The Horizon

Tariff Repair Will Drive Robust Earnings For The Industry And Improve Industry Health

Jefferies on Bharti Airtel

Buy, TP raised to Rs 1740

Co’s tariff hikes of 10-21% was c.2% lower than expectations

While its tariff premium vs. Jio for feature phone users has gone up, premium for smartphone users has reduced

This should support Co’s data subscriber additions

UBS on Bharti Airtel

Neutral, TP Rs 1480

Magnitude of price hike smaller than Jio

Macquarie on USL

Underperform Call, Target Rs 1,000

Elections, Heat Wave To Weigh On Q1 Sales

Muted Volume Growth Likely In Q1FY25

Expect 10% Growth In Prestige Sales For Q1FY25

Expect Cost Control Benefits To Result In Standalone EBITDA Growth Similar To Sales Growth At 8%

MS on Amara Raja

Underweight Call, Target Rs 967

Co Now Matches Exide On Capability But Lags On Customer Wins & Ramp-Up Timeline

Fin Returns On Li Battery Biz Are Still Not Clear As EV Battery Deflation Continues

Thus, Remain Selectively Overweight; Prefer Exide Over Amara

MS on Steel

Steel Stocks Continued To Do Well, With Expectations Of Policy Reforms Continuity

Supported By Improved Macro Sentiment In China

Steel Stocks In Our Coverage Are Up 21% In Past Six Months On A Weighted Average Basis

Steel Stocks Have Outperformed The Sensex By 10 ppt

Believe This Outperformance Is Overdone

Kotak Inst. on IndiGo

Buy Call, Target Rs 5,700

Passengers’ Ability To Pay & Losses Will Drive Gradual Increase In Air Fares Over Time

Willingness Of Air Passengers To Pay May Get Tested In The Near Term

Can Impact The Near-term Load Factors And Pricing Strategies Of Airlines

IndiGo Is Only Airline Making Money, A Good Play On An Uptick In Air Fares Over Time

UBS on L&T Fin

Initiate Buy, TP Rs 230

Believe co now on path to expand its b/s after more than 5 yrs, as it nears completion of its loan book shift from wholesale to retail

Has a leading rural portfolio(45% of AUM) & stands to benefit from a likely Govt. increase in rural spend

Market also underestimating its ROA trajectory

Est. unwind of remainder of its wholesale exposure could drive 30bp ROA improvement; hence expect RoA to reach 2.9% by FY26E vs 2.2% in FY24

Believe risk-reward is favourable; trading @1.6X FY26E P/B

hares of automobile companies will be in focus, as they will declare the June sales figures. Maruti Suzuki, Tata Motors, Ashok Leyland, Escorts, Eicher Motors, TVS Motor Company, Bajaj Auto, Hero MotoCorp among the others will remain in focus. Read more

Domestic markets are expected to open on a flat to negative note on Monday. According to analysts, there is a lack of triggers to keep the market on sideways while select counters will see action today. Read more

Davangere Sugar will procure maize from farmers and supply it to sugar factories for ethanol production . The company says the move will benefit their factory and others by ensuring sufficient maize supply for year-round operations

~Citi

Vodafone Idea: The Stars Are Aligning – Upgrade to Buy/H; TP Rs 23

Citi upgrade VI from Neutral to Buy whilst retaining our High Risk rating, with a new TP of Rs23 (vs. Rs15).

Citi TP in a bull case could rise to Rs28, contingent on a favourable outcome in the AGR case that could result in a marked reduction in VI’s dues. Indus & VI offer more triggers in the shorter term within the sector.

PFC has incorporated the wholly-owned subsidiaries of PFC Consulting Ltd (a wholly-owned arm) – (I) Chitradurga Bellary REZ Transmission LTd; (II) Bijapur REZ Transmission Ltd; (III) Kudankulam ISTS Transmission LTd

PFC Consulting Ltd has been appointed as the ‘Bid Process Coordinator’ (BPC) for selecting developers through tariff-based competitive transmission projects (ITPS) by the Power Ministry

Three special purpose vehicles (SPVS) have been set up to oversee transmission projects under the Power Ministry’s tariff-based competitive bidding guidelines

Mercury EV-Tech has received approval for manufacture of the Voltus Green Leo E-CA, a special purpose battery-operated vehicle with a gross vehicle mass (GVM) of 847 kg. It is designed to accommodate one person and has a load carrying capacity of 310 kg

Gravity-defying moves for the markets; some cool-off seems on the cards

It was an exceptional week for the bulls as markets reached new milestones. Last week began on a negative note on Monday, with prices testing the previous week’s lows. However, the bulls saw this as an opportunity and pushed prices higher. Prices continued to climb for four consecutive sessions, surpassing the 24000 level for the first time. On Friday, the market opened positively and hit a new high of 24174, but some profit-taking in the second half led to a close just above 24000, marking a weekly gain of over 2%.

Amidst all the key events, June was a remarkable month for the markets, with gains exceeding 6.5%. This week’s upward move was particularly sharp, driven by strong performances across all major sectors, bringing smiles to traders and investors fraternity. 

While the market appears to be in a strong bull run, the next move in the coming week might be challenging as oscillators across all major time frames are in overbought territory. Often, overbought conditions indicate potential inherent signs; however, in the near term, a cool-down cannot be ruled out. While taking contra-bets and shorting the market is not advised, taking some profits is prudent, as a correction, either in price or time, is anticipated. This correction should be seen as healthy for the ongoing bull run. Given the market’s vertical rise into uncharted territory, pinpointing key trading levels is challenging. However, 24200 to 24250 is expected to act as immediate resistance, while 23850 followed by 23650 may serve as crucial support levels.

Last week’s activity was not mainly driven by the heavyweight banking sector and Reliance, both of which had remarkable performances. During this period, the mid-cap sector was relatively quiet, but we may see action returning to this space in the coming week as key indices consolidate. Traders are advised to focus on stock-specific action for potential outperforming opportunities.

CARE Ratings Ltd has upgraded the credit rating of India Shelter Finance Corporation Ltd (ISFCL)‘s Long Term Bank Facilities, amounting to ₹1,335.00 crore. The rating for ISFCL has been revised from CARE A+; Positive (Single A Plus; Outlook: Positive) to CARE AA-; Stable (Double A Minus; Outlook: Stable). 

The Nifty 50 crossed the 24000 mark last week, and quite a bit of institutional buying also happened, which helped the market to trade higher. Some amount of profit booking was seen in the midcaps and small caps. With economic growth likely to be around the 7.00 % and the full-fledged budget expected by mid-July, the market may remain well bid. But adverse influences from developments overseas may not be ruled out for the time being.

Craftsman Automation has acquired 24% stake in DR Axion India Pvt Ltd, making it a wholly-owned subsidiary. The move aims to boost its presence in the auto components industry and venture into the e-mobility solutions market. The cash consideration for the acquisition is ₹250 crore

PTC Industries Ltd, which has pioneered advanced casting technology for aerospace and industrial gas turbine applications in India, is expanding its aerospace castings capability with a new modern manufacturing facility.

HIL has completed the acquisition of Crestia Polytech Pvt Ltd, including its group entities and Aditya Poly Industries Pvt Ltd, formerly known as Aditya Industries, on June 28, 2024, as per the share subscription and purchase agreement.

* INDIACEM 

* INDUSTOWER

IT services and consulting major Accenture, whose performance is seen as a bellwether, recently declared its quarterly numbers and, if it is any indication, Indian IT services companies may see near term headwinds specially in BFSI and telecom sectors, say analysts. Read more

Hong Kong @ Market Holiday 

07:15 CHINA Manufacturing PMI (Expected: 51.5 versus Previous: 51.7) 

10:30 INDIA HSBC Manufacturing PMI (Expected: 58.5 versus Previous: 57.5)

TENT German Prelim CPI m/m (Expected: 0.2% versus Previous: 0.1%)

13:30 EURO Final Manufacturing PMI (Expected: 45.6 versus Previous: 45.6) 

14:00 U.K. Final Manufacturing PMI (Expected: 51.4 versus Previous: 51.4) 

19:15 U.S. Final Manufacturing PMI (Expected: 51.7 versus Previous: 51.7) 

19:30 U.S. ISM Manufacturing PMI (Expected: 49.2 versus Previous: 48.7)

With India emerging as the champions of the ICC T20 World Cup in a nail-biting final match, celebrations broke out across the nation. Among those who flooded social media platforms with congratulatory messages were CEOs and brands, while Disney+ Hotstar hit the peak concurrency of 5.3 crore viewership in the final match, the highest in the tournament. Read more

Following the Modi-led NDA coming to power for the third time, albeit with lesser strength, the continuity of US India relationship and the pro-business environment seems strong if not stronger, US Ambassador to India Eric Garcetti said. Garcetti, who recently led a 250-strong Indian delegation to an investment summit in Washington, is excited that investments are flowing both ways and is no more a one-way street. Read more

Domestic institutional investors (DIIs) – comprising mutual funds, banks, insurers and financial institutions – bought shares worth ₹2.36-lakh crore in the cash market in the first half of the year. This is 1.7x of the purchases made last year and a record for the first half of any year. Read more

Any Indian company that violates global sanctions against Russia will have to be aware of the “consequences” they face when they are trying to do business with countries in Europe, America and their global allies around the world, US Ambassador to India Eric Garcetti has said. Read more

As we close out the first half of 2024, the dramatic unfolding of the general elections has left a lasting mark on the Indian markets. The benchmark indices experienced a rollercoaster ride during the election season, with the volatility index, Nifty VIX, oscillating from a calm 10 in April to a turbulent 27 on June 4. Read more

A new week, and another new all-time high for the markets. As the market keeps razing past records, a lot of views are still out on the next target for the indices and which stocks to buy next. The wind is so much in favour of the markets, but is it favourable to you, ie — are you clear on your investment objectives and is the recent market performance taking you in that direction? Read more

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The outlook for Bombay Dyeing & Manufacturing Company is bullish. The stock has risen well above the psychological ₹200-mark last week and has been sustaining well above it. The region between ₹200 and ₹195 will now act as a good support zone and limit the downside if an intermediate dip happens. Read more

Gold saw a decline, whereas silver stayed flat last week. The former depreciated 0.5 per cent to end the week at $2,321.5 an ounce, whereas the latter barely changed on a weekly basis and closed at $29.6 per ounce.

Similarly, in the domestic market, gold futures lost 0.5 per cent to close at ₹71,584 (per 10 gram), whereas silver futures was flat as it ended at ₹89,139 (per kg). Read more

Sensex and Nifty 50 were stuck in a sideways range last week. But the Nifty Bank index surged to a new high and outperformed the Sensex and Nifty. On the charts, the near-term outlook for the Nifty and Sensex is slightly mixed. Supports are there for the indices which will still keep alive the chances of witnessing new highs from here. Read more