Share Market Highlights 21 Aug 2023: Sensex gains 267 pts, Nifty ends at 19,393; Jio Financial Services loses 5%

The rupee depreciated by 2 paise and settled for the day at an all-time low of 83.12 (provisional) against the US dollar on Monday, weighed down by a surge in crude oil prices and selling pressure by foreign investors.

Forex traders said rupee is likely to trade with a negative bias on risk aversion in global markets.

At the interbank foreign exchange market, the local unit opened at 83.10 against the US dollar and moved in a range of 83.05 to 83.13 in the day trade.

Pyramid Technoplast IPO has been subscribed 5.20 times as of 3:45 pm on August 21, 2023. The QIB portion has been subscribed 1.48 times; NII portion 5.35 times; and retail 6.03 times.

IndusInd Bank has allotted 1,46,028 equity shares of ₹10 each under the company’s Employee Stock Option Scheme. The bank’s stock traded at ₹1,397.25, higher by 1.86% on the NSE.

BSE Sensex and NSE Nifty gained over 0.4% each on Monday. While BSE Sensex closed 267 pts or 0.41% higher at 65,216, NSE Nifty gained 83 pts or 0.43% to end at 19,393. Among the Nifty stocks, Bajaj Finace remained the top gainer (2.75%), followed by Power Grid Finance Corporation of India (2.66%) and Adani Ports and Special Economic Zone (2.59%), shares of Jio Financial Services (fell 5%), listed on the bourses on Monday, remained the top loser.

Heranba Industries Limited has announced the appointment of S D Namjoshi as its Head of Production units.

The company’s stock trades at ₹338 on the NSE, down by 1.14%.

Power Mech Projects Ltd has informed exchanges that a meeting of its board is scheduled on August 25, inter alia, to consider and approve the proposal for raising funds and other business matters.

Major gainers on the NSE at 3 pm: Adani Ports (3.13%); Bajaj Finance (2.88%); Adani Enterprises (2.60%); Power Grid (2.47%); Hindalco (2.29%)

Major losers: Jio Financials (-5%); Reliance (-0.81%); M&M (0.69%); BPCL (-0.28%); Britannia (-0.20%)

As against 2,089 stocks that advanced on the BSE at 3 pm, 1,591 stocks had declined. The total stocks traded were 3,869. 201 stocks recorded a 52-week high, and 44 hit a 52-week low.

Pyramid Technoplast IPO has been subscribed 4.23 times as of 2:51 pm. The QIB portion has been subscribed 1.31 times; NII portion 4.14 times; and retail 4.99 times.

NIIT Managed Training Services (NIIT MTS) has launched ‘Xsel,’ it’s real estate learning platform, designed for real estate brokerages and their agents. The stock of NIIT Learning Systems has inched up by 0.18 per cent, and is trading at ₹360.25 on the NSE.

Vipul Organics Limited has ventured into the paper segment in the domestic market. The company worked closely on its product innovation and over a period of 12-18 months created product lines completely focused on the segment. This innovation in product lines with paper-focused dispersions and initial client wins, include leading players such as Tamil Nadu Paper Ltd and Andhra Paper.

The stock of Tanla Platforms has declined by 5.3 per cent on the NSE, to trade at ₹1,040.05. The company had entered into a term sheet with Vodafone Idea for provision of platform and firewall services for international A2P services in November 2021, which was valid for two years. The partnership will not continue beyond the initial term.

The Ramkrishna Forgings stock has jumped 7.45 per cent on the NSE, trading at ₹648.55. The company recently bagged an order worth ₹145 crore from the European original equipment manufacturing sector.

Responsive Industries Ltd has entered the waterproofing membrane division of the Vaitarna Tunnel Project. The company has received a contract under the Mumbai-Delhi Freight Corridor initiative of the Indian Railways. The company has been entrusted supply and installation of waterproofing membranes to safeguard the tunnel’s infrastructure. The stock has inched up by 0.37 per cent on the NSE, trading at ₹228.95.

Tamil Nadu Chief Minister M. K. Stalin has laid the foundation stone for the 400 MLD Perur SWRO Desalination Plant, which is to be executed in joint venture by Va Tech Wabag and Metito. The stock of Va Tech Wabag has inched up by 0.38 per cent on the NSE, to trade at ₹500.15.

Vipul Organics Ltd has ventured into the paper segment in the domestic market. The company informed the exchange that it worked closely on its product innovation and over a period of 12-18 months created product lines completely focused on the segment, before launching them. The stock surged by 5.10 per cent on the BSE, trading at ₹130.95.

The BSE Sensex exhibited a 329-point rise, reaching 65,278, while the NSE’s Nifty surged by 96 points, reaching 19,405.

In terms of sectoral indices, Nifty IT and Nifty Metal indices showed notable gains, each rising by over 1 percent. Most indices are experiencing gains, except for Nifty PSU Bank and Nifty Media, which are trading with slight losses.

Mentha oil prices have surged 18 per cent in just 18 days, hitting a 4-month high on the back of an expected fall in output.

Anticipated robust winter demand from FMCG industries and consistent export inquiries will further bolster its prices.

Pyramid Technoplast IPO has been subscribed 3.83 times as of 1:30 pm on August 21, 2023. The QIB portion has been subscribed 1.31 times; NII portion 3.75 times; and retail 4.47 times.

CAMSfinserv has announced onboarding of all seventeen AMCs (Asset Management Companies) serviced by CAMS as Financial Information Providers (FIPs) on the AA platform.

​Valiant Communications Limited​’s shares touched an ​intraday high of Rs. 257.50 per share​ against previous close of Rs. 251.40 after the company secured a pilot order from the Grid Controller of India (formerly known as POSOCO).

- Bullish on bonds, on account of attractive valuations

- No major driver for yields; as rise in US yields could lead to yield rise in India

- Indian bonds will gain more if US yields fall and lose less if US yields rise

- Services sector being the major contributor to employment and inflation

- Domestic growth seems to be resilient so far despite global slowdown fears

- FX Reserves have increased significantly, and there is enough ammunition to protect rupee

L&T has been awarded a contract from Saipem & Clough JV (SCJV), Australia, for fabrication and supply of process and piperack modules for a 2.3 MMTPA urea plant for Perdaman Chemicals and Fertilisers Pty Ltd. L&T stock slips by 0.28% on the NSE, trading at ₹2,634.60.

InCred Equities on Jio Financial Services Limited

Not Rated | TP: NA

The euphoric valuations are here to stay

1. Jio Financial Services (JFS), which was demerged from Reliance Industries Ltd (RIL), will be listed on Indian stock exchanges on August 21, Monday. RIL shareholders as of the record date of July 20 has received share of Jio Financial Services in the ratio of 1:1. The value of Jio Financial Services share price was derived at ₹261.85 after the special pre-open call auction session held on July 20, valuing the company at Rs1.67tn.

2. The net worth of JFS as on March’22 is Rs280bn, including Rs170bn paid for the treasury share of RIL. Thus, core net worth is Rs110bn. At discovered price, excluding the current value of investments (~6.1% stake in RIL) worth Rs1tn, the core business valued at ~6x trailing BV. We expect such euphoric valuations to hold for a while amid expectation of robust organic growth as well as probable opportunities of inorganic growth available in the financial domain.

3. JFS can opt for wide variety of financial service business including the lending business, digital broking, insurance, mutual funds, payments, etc. However, we do not remain alarmed towards threat for existing players as we believe loan origination through existing set of customers is important however other factors such as cost of funds, appropriate risk assessment as well as prudent recovery mechanism also plays an important role for the success of a lender.

Demerger remains a complex business – Treasury share of RIL is the key

Various financial services businesses across RIL and its group companies are being demerged and transferred to Reliance Strategic Investments Ltd (RSIL), a non-banking financial company (NBFC). RSIL, now a subsidiary of RIL, runs a relatively small -trading business. After the demerger exercise, RSIL will no longer be a subsidiary of RIL and instead issue its own shares to RIL’s shareholders. Also, RSIL will be renamed to Jio Financial Services (JFS). Through the demerger, Jio Financial Services will receive ~413mn treasury shares of Reliance Industries Limited (~6.1% of the total share capital). At the current market price, the value of these shares is Rs 1tn. JFS can sell these shares in a staggered manner, or also simply hold on to them. Either way, its capital base will get a boost; and like other NBFCs, JFS could use it to leverage (borrow) significantly for the lending business

The valuation dilemma – To hold or not to hold is the question?

The net worth of JFS as on March’22 is Rs280bn, including Rs170bn paid for the treasury share of RIL. Thus, core net worth is Rs110bn. The value of Jio Financial Services share price was derived at ₹261.85 after the special pre-open call auction session held on July 20, valuing the company at Rs1.67tn. At discovered price, excluding the current value of investments (~6.1% stake in RIL) worth Rs1tn, the core business valued at ~6x trailing BV. We expect such euphoric valuations to hold for a while amid expectation of robust organic growth as well as probable opportunities of inorganic growth available in the financial domain.

Ample scope for growth – Threat to existing lenders is a myth

Jio Financial Services (JFS) can opt for wide variety of financial service business including the lending business, digital broking, insurance, mutual funds, payments, etc. RIL’s captive base of millions of customers in telecom, retail, and other businesses will be the basic channel for growth. However, we do not remain alarmed towards threat for existing players including smaller NBFCs or banks as we believe loan origination through existing set of customers is important however other factors such as cost of funds, appropriate risk assessment as well as prudent recovery mechanism also plays an important role here. Besides, JFS will be up against formidable players including large banks, NBFCs, Insurance companies and mutual funds which are well equipped with modern technology, efficient manpower and well spread presence. Lastly, India Financial Services business is efficiently regulated by the Reserve Bank of India which will ensure avoiding any severe under cutting else creating monopolistic market environments in any of the lending segments.

June quarter performance – Profitable quarter however long way to go to achieve sizable business

Reliance Strategic Investments Limited (to be renamed as Jio Financial Services or JFS) has reported June quarter results. The demerged entity of Reliance Industries said its consolidated net profit after tax for the first quarter stood at Rs3.3bn against a total income of Rs4.1bn. On a standalone basis, net profit for the quarter came in at Rs 1.5bn and total income at Rs 2.1bn. Thus, the company is in the initial phase of operations and has long way to go to achieve sizable profitability from its financial services business.

Knowledge Dredging Co. W.L.L., Bahrain (subsidiary company of Knowledge Marine & Engineering Works Limited, India) has received four different Letter of Intents (LOI) from sand buyers such as Haji Hasan Group, TCT Marine Contracting WLL, K7 Contracting WLL, and Alsalem Contracting for supply and sale of dredged marine sand” (for approx. ₹342.06 crore.

The stock of Knowledge Marine surges by 7.40% on the BSE, trading at ₹1,502.

HDFC Asset Management Co. Ltd (HDFC AMC), investment manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses has announced the launch of HDFC NIFTY 1D Rate Liquid ETF (“the Scheme”). The investment objective of the scheme is to invest in Tri-Party Repos in Government Securities or Treasury Bills (TREPS). The Scheme aims to provide investment returns that, before expenses, correspond to the returns of the NIFTY 1D Rate Index. The NFO that openee on August 18, will close on August 23.

Top Nifty IT indices

Persistent Systems (2.46%)

Mphasis (2.14%)

L&T Technology Services (2.07%)

Coforge (1.40%)

Wipro (1.03%)

ABB India bags breakthrough order for automating Reliance Life Sciences’‘ biopharmaceutical facilities.

RLS’ 160-acre facility at Nashik will house manufacturing plants for plasma proteins, biopharmaceuticals, oncology pharmaceuticals, and vaccines. The stock of ABB India inches up by 0.50% on the NSE, trading at ₹4,300.85.

Murugappa Group stocks gain on the NSE

Carborundum Universal trades at ₹1,124.25, higher by 3.19%

Wendt trades at ₹13,598.50, higher by 2.86%

Cholamandalam Investment and Finance trades at ₹1,035.85, higher by 1.86%

Cholamandalam Financial Holdings trades at ₹907, higher by 0.52%

EID Parry trades at ₹457.40, up by 0.30%

Shanthi Gears trades at ₹451.50, up by 0.18%

Gujarat State Fertilizers & Chemicals announced a Dividend of Rs.10.00 per equity shares of the Company on or after 28th September, 2023

Major gainers on the NSE at 12 noon: Adani Ports (2.70%); Bajaj Finance (2.45%); Power Grid (2.05%); Hindalco (2.04%); Adani Enterprises (2%)

Major losers: Jio Financials (-5%); Reliance (-0.76%); M&M (0.55%); Britannia (-0.44%); LT (-0.17%)

Stocks advanced on BSE at 12 noon on August 21 were 2,068 against 1,479 stocks that declined. Total stocks traded were 3,735. The number of stocks that recorded a 52-week high was 172, and those that hit a 52-week low was 38.

Shivalik Rasayan has submitted another CEP in eCTD format for PEMETREXED DISODIUM HEPTAHYDRATE to European Directorate for the Quality of Medicines & HealthCare (EDQM). The stock rises by 2.13% on the NSE, trading at ₹765.35.

The stock of GMR Airports Infrastructure rises by 1.97% on the NSE, trading at ₹54.35. The company had informed the exchanges that passenger traffic in July increased by 30% y-o-y to 98.6 lakh.

Syschem (India) Ltd has received sales order from Pharmacare International for supply of Cefadroxil Monohydrate IP/BP Power Make of 1350 KGS, 25 Packings. The stock jumps 8.10% on the BSE, trading at ₹51.24.

Premiums on physical gold in China jumped to the highest since December 2016 last week, while lower domestic prices brought back some buyers in India.

The newly constituted​ Jio Financial Services​ starts its journey on an optimistic note with market players upbeat about the ​listing of its shares effective August 21​. However, the NBFC has a lot of ground to cover operationally, starting almost from scratch.

Kalyani Strategic Systems Limited, a wholly-owned Defence subsidiary of Bharat Forge, has bagged two export orders worth ₹850 Crore for supply of components and Armoured vehicle chassis. The BFL stock trades at ₹982.25, higher by 1.18% on the NSE.

Bank Nifty index opened today’s session with a gap-up at 43,952 versus last week’s close of 43,851. It is currently hovering around 43,950, up 0.2 per cent.

On NCDEX, the spices complex prices moved up and down with turmeric showing a lot of volatility. Dhaniya (coriander) September contracts were up ₹42 to ₹7,540 a quintal. Jeera (cumin) futures were up ₹10 at ₹59,700 a quintal. Turmeric December contracts, which topped ₹18,000 at the start, gave up their gains and turned negative. At 11.10 IST, there had dropped by ₹92 to ₹17,300 a quintal.

The stock of VA Tech Wabag rises by 1.01% on the NSE, trading at ₹503.30. The company’s board had approved the allotment of 1,00,000 non-convertible debentures, worth ₹100 crore to Asian Development Bank (ADB) at par, in dematerialised form on a private placement basis.

Delhivery Ltd. has announced expanding software-enabled VAS offering with the launch of Delhivery One — a digital shipping platform experience to meet the diverse needs of micro and small enterprises, in addition to large D2C e-commerce brands across the country. It allows smaller businesses to ship without a minimum order value and with a minimum wallet recharge of ₹500. It also offers discounted shipping rates on heavier parcels above 5 kg.

“Delhivery One enables small businesses to seamlessly ship to more than 220 countries, leveraging Delhivery’s partnership with FedEx,” the company said in its regulatory statement.

Despite the announcement, the stock declines by 1.14% on the NSE, trading at ₹415.10.

In Asian trade, gold continued to rule below $1,900 an ounce. At 11 am IST, it was quoted at $1,891.44 an ounce. Silver ruled at $22.83 an ounce.

IIFL Home Finance, a subsidiary of IIFL Finance, has secured $ 100 million debt funding facility from IFC, a member of World Bank Group. The monies will be parked in NCDs to be issued by IIFL Home Finance. While 50% of funding is earmarked to promote housing finance for women borrowers, the remaining 50% is dedicated to financing green housing for buyers in the affordable housing segment.

EV manufacturer Wardwizard Innovations and Mobility Ltd., under the brand ‘Joy e-bike’, has announced establishing its EV Ancillary Cluster by signing a long-term Original Equipment Manufacturer (OEM) agreement with A&S Power, a renowned technology provider. This strategic partnership aims to drive research, innovation, and development of next-generation Li-ion cell technology. The stock rises by 1.37% on the BSE, trading at ₹40.75.

Adani Ports stock rises by 1.77% on the NSE, trading at ₹850.70. GOQ Partners had acquired 2,256,854 shares in additional purchase and has increased its stake in Adani Ports to 5.03%.

Equity benchmark indicators showed a recovery during Monday’s morning trade, reversing a two-day downtrend in light of globally varied market patterns.

As of 11 am, the 30-stock BSE Sensex surged by 196 points, reaching 65,145. Simultaneously, the NSE Nifty experienced a gain of 49 points, reaching 19,360.

Among the constituents of the Nifty index, Bajaj Finance, Adani Ports, UPL, Adani Enterprises, and PowerGrid demonstrated gains.

However, Jio Financials, RIL, Mahindra & Mahindra, BPCL, and Eicher Motors experienced declines, marking them among the underperformers.

The stock of ​​KEC International ​​surges by 5.05% on the NSE, trading at ₹655.95. The RPG Group company had secured multiple business orders worth ₹1,007 crore.

Natco Pharma is expecting to clock over Rs. 1000 crore annual profit in the current financial year, 2023-24, according to its Chief Executive Officer, Rajeev Nannapaneni.

Nifty 50 (19,315) and Sensex (64,970) are trading flat after the initial hour of trade, following mixed cues from the Asian market. Among the major equity indices, the Nikkei 225 (31,640) and KOSPI (2,515) are up 0.5 per cent each, whereas the ASX 200 (7,140) and the Hang Seng (17,700) have lost 0.2 and 1.2 per cent, respectively.

HDFC Bank Ltd. wants to use home lending as a gateway for the world’s sixth largest lender to capture more consumer finance customers with loans on everything from air conditioners to cars and TVs.

The Mumbai-based bank is converting about 530 offices that previously specialized in mortgages into ones with fully-fledged banking services in the coming months, said Kaizad Bharucha. The HDFC Bank deputy managing director said his firm can now offer home loans at more than three times the locations following its merger with HDFC Ltd. and that’s just the start. The stock inches up by 0.25% on the NSE, trading at ₹1,594.80. -- Bloomberg report

Titan company trades marginally higher at Rs 3055.90; earlier it hit a high of Rs 3079. Earlier, Titan has agreed to acquire the remaining 27.18 per cent stake in its subsidiary CaratLane for ₹4,621 crore in cash. The latest transaction will ascribe a valuation of ₹17,000 crore to CaratLane

India has introduced a 40 per cent export duty on onions with immediate effect in an effort to alleviate the surging price.

The export duty will be applicable till December 31. This move is aimed at enhancing the availability of onions within the country. The Ministry of Finance conveyed this decision through an official notification.

As the world’s largest onion exporter, India’s newly imposed duty seeks to stabilize local prices before significant state elections later this year. However, this action will lead to increased costs for buyers in Asia, given that other exporting nations in the region have limited onion supplies.

The average wholesale price of onions in major markets has surged by almost 20 per cent between July and August. It now stands at Rs 2,400 per 100 kg. This price hike is attributed to concerns about reduced yields due to unpredictable rainfall patterns.

India is currently experiencing its driest August in over a century. Widespread areas are facing minimal rainfall, partially due to the El Nino weather phenomenon. According to officials from the weather department, this dry spell is likely to persist.

During the first half of 2023, India witnessed a notable 63 per cent surge in onion exports compared to the previous year. The total exported quantity reached 1.46 million metric tonnes.

Several countries including Bangladesh, Nepal, Malaysia, the United Arab Emirates and Sri Lanka depend on onion shipments from India.

​PNB Housing Finance​ stock surges by 5.26% on the NSE, trading at ₹668.20. The company had resolved and fully recovered its large corporate Non-Performing account of ₹784 crore (about 1.3% of Loan Asset as on 30th June 2023).

The most recent surge in US yields from ~3.75% to ~4.3% was triggered by the rating downgrade by Fitch and is putting pressure on FPI flows towards India, according to a ICICI Securities report. However, the US 10-year bond yield is likely near its upper range given the outlook for inflation. This should alleviate concerns around FPI outflows even as structural domestic equity flows in India continue to be positive as evidenced by record-high SIP flows,said I-Sec’s Vinod Karki and Nirak Karnani. Growth outlook for India relative to China continues to be robust driven by a strong investment and real estate cycle supported by low NPAs in the system.

Barclay’s has forecast India’s Q2 23 GDP (Q1 FY24) to expand by 7.8 per cent y/y, rising to a four-quarter high and completing the recovery in high-contact services. This is much faster than the 6.1 per cent print in Q1 23. Domestic demand remains the key economic driver of activity, while external demand is faltering.

​Valiant Communications Limited’s​ shares were up by 0.4 per cent after the company secured a pilot order from the Grid Controller of India (formerly known as POSOCO). The selected products, developed in adherence to the Central Electricity Authority’s “Cyber Security in Power Sector Guidelines, 2021,” are tailored to detect previously undetected intrusions stemming from firewall breaches, the presence of trojans, and unauthorised network activities that may already be underway.

​Bharat Heavy Electricals Ltd (BHEL)​ has received an order worth approximately ₹4,000 crore from Mahan Energen Ltd (formerly known as Essar Power MP Ltd), a wholly-owned subsidiary of Adani Power Ltd. The contract is for supply of equipment (Boiler, Turbine, Generator) and supervision of erection and commissioning for a 2x800 MW power project based on supercritical technology at Bandhaura, Madhya Pradesh. The Boiler and Turbine Generator are to be manufactured at BHEL’s Trichy and Haridwar plants respectively.

The BHEL stock inched up by 0.46 per cent on the NSE, trading at ₹98.45.

Jiofin will remain under T Group for the first 10 trading sessions. No intra-day trading allowed. Only delivery based buying and selling will be allowed under T2T Group stock

The People’s Bank of China has cut the one-year loan prime rate by 10 basis points to 3.45 per cent, but kept the five-year loan prime rate unchanged. Economists were expecting a 15bps cut each on both, following a 15bps reduction in a one-year, medium-term lending facility rate last week.

JioFin hits high of 278.20 before coming down to 265/- at 10 am on The BSE.

Jio Financial Services will be added to MSCI Global Standard Index on August 23

Bank of Baroda (BoB) has withdrawn its e-auction notice served on Bollywood actor Sunny Deol for the sale of his immovable and movable assets to recover total dues aggregating ₹55.99 crore plus interest and cost from December 26, 2022, less recovery up to date.

ICRA has upgraded the ratings and revised the outlook for various instruments Spandana Sphoorty

Ashok Leyland to issue Rs 870 crore corporate guarantee to cover lender facilities of two subsidiaries Optare Plc & Switch Mobility UK

Won’t renew Voda Idea agreement beyond expiry of initial term in November 2023, says Tanla Platforms

Lupin acquires Ondero & Ondero - Met brands from Boehringer Ingelheim for ₹235 crore

Ace investor Ashish Kacholia has sold 1.8 lakh shares or 0.58 percent stake in SJS Enterprises

CreditAccess Grameen said its executive borrowing & investment committee has approved the fund raising up to Rs 1,000 crore

Pfaudler sold 61 lakh shares (13.5%) of GMM Pfaudler at Rs 1,352.1 apiece.

The Indian rupee is within a whisker of a record low, but it’s still a favoured emerging-market currency with some investors.

A reserves stockpile of $600 billion, more than $16 billion worth of foreign inflows for stocks this year and economic growth forecast at 6.5% are among the reasons behind the optimism for Neuberger Berman Singapore and Columbia Threadneedle Investments.

Khurshed Yazdi Daruvala sold 10 lakh shares of Sterling and Wilson at Rs 345.04 a piece.

​Kotak Mahindra Bank​ Chairman Prakash Apte said the attrition challenge for the bank is concentrated at the junior management level.

Major gainers on the NSE at 9:30 am: Adani Ports (1.99%); Adani Enterprises (1.77%); Power Grid (1.37%); NTPC (1.14%); HCL Tech (0.92%)

Major losers: M&M (0.98%);SBI Life Insurance (0.47%); HDFC Life Insurance (-0.29%); Bajaj Auto (-0.20%); Hindustan Unilever (-0.17%)

Canara Bank launched the UPI Interoperable Digital Rupee mobile application as a part of the Reserve Bank of India’s Central Bank Digital Currency (CBDC) pilot project.

Sensex, Nifty opened marginally higher on Monday, aided by broad sectoral gains, in contrast to weakness in Asian equities on China’s smaller-than-expected rate cut, ahead of Jio Financial Services’ listing on stock exchanges.

The Nifty 50 index was up 0.18% at 19,346.50 while the S&P BSE Sensex rose 0.18% to 65,066.25 at 9:19 a.m. - Reuters

NDTV has launched its regional channel ‘NDTV Madhya Pradesh-Chhattisgarh

Crude oil futures traded higher on Monday morning as China’s Central bank reduced the one-year loan prime rate by 10 basis points to 3.45 per cent. At 9.19 am on Monday, October Brent oil futures were at $85.41, up by 0.72 per cent; and October crude oil futures on WTI (West Texas Intermediate) were at $81.28, up by 0.77 per cent. August crude oil futures were trading at ₹6806 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹6772, up by 0.50 per cent; and September futures were trading at ₹6758 as against the previous close of ₹6726, up by 0.48 per cent.

Here is an analysis of derivatives data on both Sensex and Nifty.

Here is what the charts say about the shares of Godrej Properties, Indian Hotels Company and Whirlpool of India

In the past week, the benchmark indices, Sensex and Nifty 50, declined 0.6 per cent each, respectively. Most of the sectoral indices ended in red. BSE Metal declined the most by 3.9 per cent followed by BSE Oil and Gas 1.3 per cent and BSE Bankex 0.8 per cent. BSE Power and BSE Consumer Durables gained 0.5 and 0.2 per cent.

After three months of sustained buying with cumulative investment of Rs 137603 crores, FPIs turned sellers in August. The consolidated NSDL data shows the August FPI investment through 18th at Rs 8993 crores. But this figure includes bulk deals and investment through the primary market. In the cash market FPIs sold stocks for Rs 10921 crores and they were sellers in ten days and buyers in only three days in August, so far. Strength in the dollar index at well above 103 and the US 10- year bond yield remaining around 4.25 % are short-term negatives for FPI flows to emerging markets like India.

FPIs continue to be consistent buyers in capital goods and power. And, of late, they have started selling in financials. FPI selling is countered by DII buying, but this is turning out to be inadequate to arrest the decline in the market.

In view of the strong dollar and rising US bond yields, FPIs are likely to continue selling, in the near-term.

Godrej Properties Ltd. (GPL), (BSE scrip id: GODREJPROP), one of India’s leading real estate developers, announced receiving fresh ratings for proposed Non-Convertible Debenture (NCD) borrowing programmes from ICRA and India Ratings and Research Private Limited for INR 2,000 crore and INR 2,500 crore, respectively. Additionally, the long-term rating for existing bank facilities of INR 4,500 crore was reaffirmed at [ICRA]AA+/[ICRA]A1+ along with the existing NCD of INR 3,000 crore reaffirmed at [ICRA]AA+. The Commercial Paper (CP) limits of INR 2,000 crore was also reaffirmed at [ICRA]A1+.

Credit rating for fresh proposed NCD programme of INR 2,000 crore by ICRA has been assigned at [ICRA]AA+. Outlook on the long-term rating is “Stable”. Instruments with this rating are considered to have a high degree of safety regarding the timely servicing of financial obligations. Such instruments carry very low credit risk.

Credit Rating for fresh proposed NCD programmes of INR 2,500 crore by India Ratings and Research (Ind-Ra) was assigned at IND AA+/Stable.

New fund offer of Mahindra Manulife Business Cycle Fund opens today.

The Scheme shall seek to generate long term capital appreciation by investing predominantly in equity and equity related securities with a focus on identifying and investing in business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy. However, there is no assurance that the objective of the Scheme will be realized.

New fund offer of NAVI S&P BSE SENSEX INDEX FUND opens today.

The investment objective of the Scheme is to generate returns that are commensurate with the performance of the S&P BSE SENSEX Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be achieved.

Inox Green Energy Services said that its subsidiary I-Fox Windtechnik India has won an order from NLC India for the operation and maintenance of 51MW WTGs located in the state of Tamil Nadu. The scope of the contract comprises comprehensive O&M, including power evacuation system, for a period of 5 years with a revenue realisation of Rs 40 crores during the contract period.

Kansai Nerolac has informed about a cyber-attack incident that occurred on Sunday, where the company’s IT infrastructure was targeted by a ransom ware attack. This has affected a few systems. “We would like to assure you that the technical team of the company along with a specialized team of cybersecurity experts and the management responded promptly and initiated necessary precautions and protocols to mitigate the impact of this incident,” it said.

“Markets may see a subdued opening in Monday trades amid weakness in other Asian indices, as investors are worried that more rate hikes by the US Fed and other key central banks could worsen the global macroeconomic situation and hamper revival in growth going ahead. Another factor hurting the sentiment has been the offloading of domestic shares by foreign investors this month, and if this trend continues downward spiral may extend. In the month of August, FIIs have sold shares worth Rs 10,926 crores. Today, all eyes will be on the Jio Financial Services (JFS) listing, which has a market capitalisation of over Rs 1.66 lakh crore. While the sentiment on the Chinese economy has taken a negative turn, investors will watch for the Jackson Hole Annual Symposium on Thursday. Technically, if the Nifty slips below 19251, there could be more downside risk.” - Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd

CLSA on Reliance Ind: Maintain Buy om, target price at Rs 3060

HSBC on ITC: Maintain Hold, target price at Rs 450

Citi on Sona BLW: Maintain Buy, target price at Rs 680

Macquarie on Titan: Maintain Outperform, target price at Rs 3400

CLSA on Titan: Maintain Outperform, target price Rs 3270

JP Morgan on Titan: Maintain Overweight, target price at Rs 3360

HSBC on Titan: Maintain Buy, target price at Rs 358

Jefferies on HEG: Maintain Buy, target price at Rs 2170

Jefferies on Graphite: Maintain Buy, target price Rs 515

GS on NTPC: Maintain Buy , target price at Rs 275

Macquarie on Info Edge: Maintain Underperform but, raise target price to Rs 3100

The microfinance company CreditAccess Grameen said its executive borrowing & investment committee has approved the fund raising up to Rs 1,000 crore via public issue of non-convertible debentures of face value of Rs 1000 each. The fund raising of NCDs has a base issue of Rs 400 crore and a green shoe option of up to Rs 600 crore.

GMR Airports Infrastructure said passenger traffic in July increased by 30 percent YoY to 98.6 lakh, but was flat compared to previous month, while aircraft movements rose by 17 percent on-year and 3 percent on month-on-month basis, to 64,809.

Tanla Platforms which provides value-added services in the cloud communications space, had entered into a term sheet with Vodafone Idea for provision of platform and firewall services for international A2P services in November 2021, which was valid for a term of 2 years. This partnership will not continue beyond the initial term, said the company, adding this would have a revenue impact of Rs 17 crore and PAT impact of Rs 9 crore on a full-quarter basis post November 2023.

The RPG Group company KEC International has secured new orders worth Rs 1,007 crore across its various businesses. The civil business has secured its first order for design, engineering, procurement and construction of a multi-speciality hospital in India, while transmission & distribution business has secured a substantial order for a 380 kV overhead transmission line project in the Middle East.

The Government of India has extended the tenure of appointment of Amitava Mukherjee as Director (Finance) on the NMDC board with effect from November 20, 2023, till February 29, 2028. Mukherjee was appointed as Director (Finance) on the board for five years with effect from November 11, 2018 or till the date of his superannuation or until further orders, whichever is earliest.

Shares of Jio Financial, a demerged entity from Reliance Industries, will be listed today at the bourses. The share price was set at ₹261.85 in a price discovery session on July 20, valuing the company at ₹1.66-lakh crore. Further, the stock will continue to remain a part of the FTSE indices, with FTSE Russell withdrawing its proposed deletion on Friday after the announcement of the listing date. Analysts expect the NBFC’s shares to list at a premium, surpassing even the ₹300 mark, given its high net worth and the relatively lower value it commands compared with peers.

Indian shares are set to open lower on Monday, tracking a slide in Asian equities on China’s smaller-than-expected rate cut, while the focus will also be on Jio Financial Services’ listing on stock exchanges.

India’s GIFT Nifty on the NSE International Exchange was down 0.06% at 19,304 at 8:06 a.m. IST.

India’s Nifty 50 and Sensex have fallen for four consecutive weeks since hitting a record high on July 20. This is the longest weekly losing streak for the blue chips in over 15 months.

Asian markets declined on Monday after China delivered a smaller-than-expected rate cut, spurring deflation concerns and worries over the country’s efforts to revive its economy. - Reuters

ATCOM

General

ATL

Quarterly Results

DATAINFRA

General

DEEP

Preferential Issue of shares

GARBIFIN

General

GETALONG

General

INDOCITY

A.G.M.

INDOSTAR

A.G.M.

INSILCO

Quarterly Results

JAINCO

General

JJFINCOR

General

MAGNUM

Issue Of Warrants

MOHITE

Quarterly Results

NILACHAL

A.G.M.

OBCL

General;A.G.M.

PGIL

Interim Dividend

RANJITSE

Quarterly Results

SEPC

Rights Issue

SHRMFGC

A.G.M

SONALIS

Audited Results

VAARAD

General

WEBELSOLAR

Preferential Issue of shares;General

AAL

Final Dividend - Rs. - 1.5000

CHAMBLFERT\u0009

Final Dividend - Rs. - 3.0000

COMPEAU

Final Dividend - Rs. - 1.0000

FINOLEXIND

Final Dividend - Rs. - 1.5000

ITDCEM

Dividend - Rs. - 0.7500

JAGSNPHARM

Dividend - Rs. - 5.0000

KPEL

Interim Dividend - Rs. - 0.2500

KRITINUT

Final Dividend - Rs. - 0.2500

LINC

Final Dividend - Rs. - 5.0000

RELIANCE

Final Dividend - Rs. - 9.0000

STOVACQ

Special Dividend - Rs. - 157.0000

TAMBOLI

Final Dividend - Rs. - 1.0000

TRANSPEK

Dividend - Rs. - 27.5000

UNIABEXAL

Dividend - Rs. - 20.0000

VASCONEQ

Interim Dividend - Rs. - 0.2500

GQG Partners stake rises to 5.03% in the company

Had acquired 22lk shares of company

Madhu Kela promoter entity acquires 10lk shares at Rs 305/share

PNB Housing Finance Limited through its focused and multi-pronged resolution strategy has successfully resolved and fully recovered its large corporate Non-Performing account of Rs 784 crore (about 1.3% of Loan Asset as on 30th June 2023). The account has been resolved on 19th August 2023 through an ARC sale under Swiss Challenge method as per the Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021.

Morgan Stanley Bought 1.65 lakhshares at Rs 800/share

Maharashtra Cabinet Decision-Present Casino Act has been repealed by Maharastra Government

As per sources Maharastra government may come up with new Casino policy in line with Goa

Asian markets stumbled due to China’s smaller-than-expected lending rate cut. Beijing’s reluctance to increase borrowing tasks led to disappointment, causing Chinese stocks to dip and impacting the Australian dollar. Asia-Pacific shares slid to a new yearly low, with Japan’s Nikkei showing mixed results. Investors’ sentiment and cash levels reflect a cautious outlook, while analysts from Goldman Sachs see potential for equity growth despite challenges. - Reuters

The marketplace is abuzz with talks of M&As and targeted buys, as pharma companies chalk out their growth plans

The box office success of Sunny Deol-starrerGadar 2 seems to have prompted Bank of Baroda (BoB) to quickly initiate moves to collect dues the Bollywood actor apparently owes it, going by the bank’s e-auction notice.

The ₹74,220-crore Murugappa group, one of India’s leading business conglomerates, on Sunday, said it had settled the dispute between Valli Arunachalam, the eldest daughter of MV Murugappan, former Murugappa Group Executive Chairman, and the rest of the family members.

Amid a raging political row, Tamil Nadu State’s power generating and distributing utility, TANGEDCO, has threatened to terminate the contract awarded in a coal-fired power project to Chennai-based BGR Energy Systems Ltd. (BGRESL), citing an inordinate delay in the commencement of the work for the project and breach of contractual obligations.

Pyramid Technoplast IPO, which opened to public today, will close on Tuesday, August 22.

The Rs 153-crore IPO of Pyramid Technoplast has been subscribed 1.61 times at the end of Day 1 of issue opening on Friday. The initial public offering, which is priced at ₹151-166 and closes on Tuesday, saw a strong response from all category of investors.

Murugappa group stocks, Jio Financial, Titan Company, PNB Housing, Bank of Baroda, BGR Energy, System, VA Tech Wabag, KEC international, Tanla Platforms, GMR Airports, CreditAccess Grameen, NMDC

Listing of Jio Financial Services Ltd Ltd on 21st August, 2023

Symbol: JIOFIN

Series: Equity “T Group”

BSE Code: 543940

ISIN: INE758E01017

Face Value: Rs 10/-

Previous Discovered Price: Rs 261.85/- per share

CHAMBLFERT

DELTACORP

GNFC

GRANULES

HINDCOPPER

IBULHSGFIN

INDIACEM

MANAPPURAM

PNB

SAIL

ZEEL

Nifty 50 and Sensex have declined for the fourth consecutive week. The indices were down 0.61 per cent and 0.57 per cent respectively last week. However, the pace of the recent fall seems to be slow. The price action on the chart indicates lack of strong sellers to drag the benchmark indices sharply lower. This strengthens the case that the fall that is happening now is just a correction within the overall uptrend. Strong supports are coming up for the Sensex and Nifty that can halt the current fall. As such we reiterate that the indices can resume their broader uptrend after a little more fall from the current levels.