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04 Jul 2024

Market closes higher, Mazagon Dock secures 'Navratna' status

Nifty 50 closed at 24302.15 (15.7, 0.1%) , BSE Sensex closed at 80049.67 (62.9, 0.1%) while the broader Nifty 500 closed at 22914.20 (63, 0.3%). Market breadth is in the green. Of the 2177 stocks traded today, 1138 showed gains, and 1014 showed losses.

Indian indices closed in the green, after seeing volatility throughout today's trading. The Indian volatility index, Nifty VIX, fell 2.7% and closed at 12.8 points. Mazagon Dock surged to it's all-time high of Rs 5,550 per share after it secured the 'Navratna' status. With this the company has joined the Rs 1 lakh crore market capitalization club.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green taking cues from the benchmark index. Nifty High Beta 50 and S&P BSE SME IPO were among the top index gainers today. According to Trendlyne’s Sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a jump of over 2.8%.

Asian indices closed in the green while European indices are trading higher. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures are trading down by 0.4% as the soft U.S. economic data raised some concerns over long-term demand.

JK Cement sees a long buildup in its July 25 future series as its open interest rises 13.4% with a put-call ratio of 0.4.
UltraTech is reportedly in advanced talks to acquire Orient Cement (OCL). This move aims to strengthen UltraTech's market position in southern and western India amid the ongoing sector consolidation efforts.
Tata Motors' arm, Jaguar Land Rover's total wholesales in the UK rises 5.3% YoY to 6,421 units in June. Land Rover wholesales grow by 13.2% YoY to 5,246 units.
Power stocks have delivered strong performance due to power shortages amid weak monsoons, rising agricultural demand, and air-conditioning usage. The BSE Power index has surged 100% in a year, with 10 of 13 stocks yielding substantial returns. HSBC Securities expects valuations to stabilise post-summer amid capacity expansions, efficient management, La Nina (cooling of sea-surface temperatures), and a high base effect.
Power stocks have demonstrated remarkable performance on #DalalStreet in recent sessions, with many achieving new milestones and contributing to a significant expansion in their market capitalisations.#StockMarket https://t.co/uoekppH4qF
— Mint (@livemint) July 4, 2024
Mazagon Dock surges to its all-time high of Rs 5,550 per share after it secures the 'Navratna' status, granting it greater flexibility and autonomy in operations. This milestone also helps the company to join the Rs 1 lakh crore market capitalisation club.
Emcure Pharmaceuticals' Rs 1,952 crore IPO gets bids for 3.3X the available 1.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.8X the available 68.8 lakh shares on offer.
Bansal Wire Industries' Rs 745 crore IPO gets bids for 3.8X the available 2.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 4.7X the available 1.1 crore shares on offer.
Reliance Industries’ retail arm, Reliance Retail Ventures, reportedly plans to launch Chinese fast fashion brand Shein in India in the coming weeks. The products will be sold on Reliance Retail’s app and physical stores.
Mukesh Ambani's Reliance Retail Ventures will launch Chinese fast fashion label Shein in the coming weeks, selling the latter's products on its app and brick-and-mortar stores, The Economic Times reported on Thursday. #Reliance #shein https://t.co/9pKon1sTa1
— businessline (@businessline) July 4, 2024
Sun Pharma rises sharply after the European Medicines Agency (EMA) validates the marketing authorization application (MAA) for Nidlegy, submitted with Philogen S.p.A. on June 3. Nidlegy is partnered with Sun Pharma to treat skin cancers in Europe, New Zealand, and Australia.
Gujarat Pipavav's containers carried falls 17.1% YoY to 165 20-foot equivalent units (TEU) in Q1FY25. Its container trains also decline by 8.2% YoY to 480 during the quarter.
ITD Cementation falls after its promoter, Italian Thai Development Public Co, which owns a 46.6% stake, considers divesting its investments in the company.
Max Estates is rising as it receives approval from the New Okhla Industrial Development Authority (NOIDA) to purchase an additional 20,000 square metres of floor area ratio (FAR) for its residential project in Noida.
Key vegetable prices are expected to remain high till September amid heatwaves and lower market arrivals and cool down as fresh supplies arrive. IMD forecasts July rainfall to exceed the long-term average by over 106%. Kaushik Das, Chief Economist at Deutsche Bank, expects food and beverage prices to increase by 2.4% MoM and 8% YoY in June, up from 0.7% and 7.9% in May, respectively. He predicts June CPI inflation at around 5% due to these higher prices.
Retail prices of #potatoes in #Mumbai are currently up by two times as compared to a year ago.

Read @PallaviNahata's report: https://t.co/CFhfUc306i pic.twitter.com/3aGL18JNzy
— NDTV Profit (@NDTVProfitIndia) July 4, 2024
Bandhan Bank's loans and advances rise 21.8% YoY to Rs 1.3 lakh crore in Q1FY25, while deposits increase by 22.8% YoY. Its CASA ratio stands at 33.4%, down 2.6 percentage points.
Marico partners with Kaya, a dermatological solutions provider, to manage sales and marketing of Kaya's 75+ personal care products. This collaboration has led to Kaya's stock hitting a 10% upper circuit.
Edelweiss retains its 'Buy' call on Suraj Estates Developers with a target price of Rs 757 per share. This indicates a potential upside of 22.3%. The brokerage believes the company will see new product additions once it launches most of its existing projects considering its land reserves, strong brand value and improved balance sheet. It expects the company's pre-sales to grow at a CAGR of 35% over FY25-27.
Anand Roy, CEO of Star Health and Allied Insurance Co, projects a gross written premium of Rs 18,000 crore in FY25. He highlights the company’s target to achieve growth of 18%, compared to the general insurance industry’s growth of 15-17%. Roy adds that the retail book will continue to drive growth for the company.
#OnCNBCTV18 | Will have to grow at 18% #CAGR over the next 4 yrs to reach gross written prem guidance, retail book will continue to be the key growth driver

Expect to improve combined ratio by 100 bps in FY25, to have the largest #healthinsurance book over the next 4 years… pic.twitter.com/NzvJbwQtRt
— CNBC-TV18 (@CNBCTV18Live) July 4, 2024
Inox Wind (IWL) surges as its promoter, Inox Wind Energy, infuses Rs 900 crore via the sale of equity shares of IWL through block deals. The funds will be utilised to reduce its external term debt to achieve a net debt-free status.
Bajaj Finance's AUM grows by 31% YoY to Rs 3.5 lakh crore in Q1FY25. New loans booked also improve by 10% YoY to 11 million in the quarter. It appears in a screener of stocks with zero promoter pledges.
Vedanta's Q1FY25 aluminium production rises 3% YoY to 5.9 lakh tonnes, while saleable steel production grows by 10% YoY to 3.5 lakh tonnes. Its oil and gas output falls 17% YoY to 1.1 lakh average daily gross operated production.
Kotak Institutional Equities upgrades its rating on Lupin to 'Add' with a higher target price of Rs 1,805. The brokerage believes the firm's strong US trajectory will continue in FY25-26, along with robust earnings in upcoming quarters. It raises FY25-27 EPS estimates by 3-16% on higher US sales and EBITDA margins.
Brokerage Radar | Kotak Securities on Lupin: Upgrade to Add from Sell; Hike target price to Rs 1805 from Rs 1400@kotaksecurities @LupinGlobal pic.twitter.com/jADVv1lZ2X
— ET NOW (@ETNOWlive) July 4, 2024
Brigade Enterprises rises as it announces the development of an eight-acre residential project in Bengaluru, with a gross development value of Rs 1,100 crore.
GE T&D India surges to its all-time high of Rs 1,721 per share as it bags an order worth 64 million Euros (approx. Rs 576.6 crore) from Grid Solutions SAS for supplying and supervising high-voltage products.
Cello World surges to its all-time high of Rs 970 per share as its board of directors approves the issuance of shares worth Rs 775 crore through a qualified institutional placement (QIP). The board sets a floor price of Rs 896.1 per share for the QIP.
Nifty 50 was trading at 24,347.40 (60.9, 0.3%), BSE Sensex was trading at 80,321.79 (335.0, 0.4%) while the broader Nifty 500 was trading at 22,925.65 (74.5, 0.3%).
Market breadth is surging up. Of the 1,970 stocks traded today, 1,573 were gainers and 373 were losers.

Riding High:

Largecap and midcap gainers today include Lupin Ltd. (1,759.30, 7.9%), Solar Industries India Ltd. (12,170.25, 6.1%) and Bajaj Holdings & Investment Ltd. (9,841, 5.9%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (1,420.25, -2.9%), HDFC Bank Ltd. (1,727.15, -2.4%) and FSN E-Commerce Ventures Ltd. (171.39, -2.1%).

Crowd Puller Stocks

25 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Galaxy Surfactants Ltd. (3,114.70, 12.4%), Honasa Consumer Ltd. (486.70, 11.9%) and AstraZeneca Pharma India Ltd. (7,128.85, 11.4%).

Top high volume loser on BSE was Ingersoll-Rand (India) Ltd. (4,547.25, 0.0%).

Inox Wind Ltd. (157.01, 10.2%) was trading at 19.3 times of weekly average. Rites Ltd. (747.70, 7.1%) and Lloyds Metals & Energy Ltd. (775, 4.9%) were trading with volumes 15.4 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (9,841, 5.9%), Indus Towers Ltd. (404.05, 1.9%) and Biocon Ltd. (361.30, 0.0%).

12 stocks climbed above their 200 day SMA including Ipca Laboratories Ltd. (1,177.80, 2.1%) and Gujarat Mineral Development Corporation Ltd. (397.40, 1.5%). 5 stocks slipped below their 200 SMA including Bajaj Finance Ltd. (7,107.05, -2.1%) and Hatsun Agro Products Ltd. (1079, -2.0%).

04 Jul 2024

A triple play: rural, renewables, and Andhra stocks | Screener: Triple-play stocks with high forecasts

By Swapnil Karkare

Later this month, Finance Minister Nirmala Sitharaman will present the Budget.

The optics may be the same -- the pink briefcase, the handloom sari -- but this time the FM is presenting a Budget on behalf of a coalition government, with somewhat different priorities.

As a result, we have three new themes that are in focus this year for the government and investors. They are 1) the rural sector 2) renewables and 3) major companies from a particular state - Andhra Pradesh.

India's changed political economy is influencing two themes in particular: rural players, and Andhra Pradesh stocks. Coalition politics and upcoming state elections are pushing the government to address rural distress. Second, Andhra Pradesh has entered the spotlight with the Telugu Desam Party's (TDP) rising power at the centre and state, and its involvement in a few businesses.

And renewables is one space where reform momentum from the previous government is likely to continue, despite coalition politics.

In this week's Analyticks:

Three themes: Rural, renewables and AP stocks are in focus for investors
Screener: Stocks in this list likely to outperform, according to analysts

Let's look closer.

Are we set for a rural rebound in FY25?

The rural economy has been taking some punches: a below-normal monsoon last year, falling agricultural growth, lower wages. The government took steps before the budget to boost this sector, by increasing MSP for crops and removing fertilisers from the GST ambit.

The forecast this year is for a normal to above normal monsoon. So its worth keeping an eye on rural-linked sectors such as fertilisers, agrochemicals, two-wheelers, tractors, and FMCG.

But government action and a good monsoon are the only hopes at the moment for rural stocks. If things don’t work out here, all the gains will be wiped out. For example, although a normal monsoon was predicted, June had a deficient rainfall of around 20%.

The hoped-for rural revival: Is a turnaround ahead for agrochem?

In the case of fertilizer stocks, Anand Rathi Institutional believes that the recent rally has already priced in everything – normal monsoon, GST, and subdued raw material prices. But Chambal Fertilisers, whose net profits grew double digits when its peers saw a decline, has managed the market better than others.

Analysts like ICICI Securities are also expecting a turnaround in agrochemicals stocks. FY24 saw an industry-wide drop in agrochemical prices and destocking in international markets. Destocking is expected to continue till the first half of FY25 in the US & Europe, and so the outlook on the domestic business is more promising than exports.

Therefore, domestic-oriented businesses with strong fundamentals and valuations, such as Insecticides India are on the radar for analysts.

Tractor sales are closely tracked when talking about the rural economy. But the year to date sales growth in FY25 up to May are flat. So although many analysts are optimistic, it may be too early to ride on this segment. Rajesh Jejurikar,ED & CEO, Auto & Farm Sectors, M&M, in its Q4 earnings call, said, “Cash will not come back so quickly right now, given they are coming off negative from last 4-5 months of rabi output. But there is a lot of optimism about how the second half can bounce back very strongly.”

However, Bajaj Auto, one of the leading two-and-three-wheelers companies, is getting a boost on the valuation front amid rising two-wheeler sales.

In the rural theme, the FMCG sector has always been one investors track when monsoons are good. In terms of strong fundamentals, Colgate-Palmolive, Emami,Nestle and Britannia top the list. And when most FMCG companies were complaining about the rural slowdown, Colgate and Emami still saw strong rural demand. Their performances could improve even further with a rural turnaround.

Can we light up the market with renewable energy?

Investors cannot ignore renewable energy generation, whose demand is rising sharply with a rise in electricity consumption and the goal of becoming net zero by 2070.

India’s renewable energy capacity is estimated to reach 180 GW by 2026 from 130 GW in FY24, requiring an outlay of Rs. 3 lakh crores, according to Crisil.

The sector is also attractive because of the PLI scheme for solar PV module manufacturing. These facilities with a combined capacity of 39,600 MW will be operational by April 2026 in three stages. Private-sector participation through government support will keep rising in the next few years.

However, the sector has seen some policy flip-flops. Slow progress on the rooftop solar scheme, rising import duties on raw materials and policy changes in ALMM (Approved List of Models and Manufacturers) have created challenges for manufacturers. The export market is also a tough nut to crack: here India-made products have to compete with cheaper Chinese options, limiting market share internationally.

Renewable players that analysts are bullish on

Utility stocks have had a handsome run over the past few years. However, only one stock looks well-positioned to take advantage - Tata Power.

Analysts are bullish on both solar and wind energy. However wind power by itself is unlikely to be an attractive proposition anytime soon, overshadowed as it is by solar and its broader applicability. Tata Power’s diverse portfolio of renewables is therefore, hard to beat. Currently, 40% of its capacity constitutes clean and green energy (solar 24% and wind 7%) and it aims to increase it to 70% by 2030. It has a Rs. 13000 crores+ order book in the solar utility EPC business. It’s also ramping up solar cell and module production capacity by another 4GW. It is a leader in the rooftop solar market with a 13% share.

One thing to watch for is the debt levels of renewable energy players. Of Rs. 3 lakh crores of capex required for increasing India’s renewables capacity, ~70% is estimated to be met by debt funding. Tata Power’s balance sheet and credit rating would support additional borrowing, if needed.

The kingmakers: Andhra Pradesh is in the spotlight

When the Andhra Pradesh party TDP became a coalition partner in the new government, Economic Times mentioned a few key stocks with AP connections. The list included Heritage Foods, Amara Raja Energy, Aurobindo Pharma, Avanti Feeds, Sagar Cement, Godrej Agrovet, KNR Construction, Likhita Infra and KCP.

TDP chief Chandrababu Naidu’s son is a promoter of Heritage Foods. Former TDP MP Jay Dev Galla leads Amara Raja. The other stocks are based out of, or have significant operations in the state. We took a closer look at these players. It's worth keeping in mind that policy and political missteps could turn these companies sour for investors.

AP-linked stocks on the radar

Amara Raja became a stock market darling over the last month, gaining ~40% driven by election results and a deal signing with GIB. Compared to its peers, it is an outlier -- although it has long-term growth drivers, its valuation is high.

Within Andhra’s cement sector, KCP has emerged as strong performer, followed by NCL Industries. Both have lower valuations and higher EBITDA margins compared to Sagar Cements, the other Andhra-based cement company.

In heavy-engineering companies KNR Constructions has been a performer. These three companies also have lower debt, as their debt-to-equity ratios are below 1 (0.3x, 0.3x, and 0.4x, respectively).

Food companies like Heritage Foods and Avanti Feeds, and pharma company Natco Pharma have the edge over others in their sectors so far, based on analyst estimates, scores and FY24 ROE.

Stock markets don't come with guarantees. But these three themes have emerged as interesting ones as India's political and economic winds shift. The focus of the Budget will also determine how much these are worth following in the coming months.

Screener: Rural, Andhra-linked and renewables stocks that are rising, with high Forecaster growth estimates in FY25

FMCG stocks have risen the most in the past quarter

We look at stocks from the three themes – rural, Telugu Desam Party (TDP)-linked, and renewables stocks – which have risen over the past quarter with analyst forecasts for strong growth in FY25. This screener shows these stocks that have risen over the past quarter with high Forecaster YoY growth estimates for revenue and EPS in FY25.

Major stocks that appear in the screener are Heritage Foods, Emami, Chambal Fertilisers & Chemicals, Insecticides (India), Natco Pharma, Avanti Feeds, Tata Power, and Colgate Palmolive (India).

Emami has risen by 64.5% over the past quarter. Forecaster estimates the stock’s revenue and earnings per share (EPS) will grow by 9.5% YoY and 6.1% YoY, respectively in FY25. Brokers like Sharekhan believe this packaged goods company has a strong brand portfolio, and its focus on product launches, distribution expansion, a strong pipeline of direct-to-consumer (D2C) brands, and international business will help drive growth.

Tata Power also features in the screener with its stock price rising 6.3% over the past quarter. Trendlyne’s Forecaster estimates this electric utilities company’s revenue and EPS to grow 10.9% and 28.9%, respectively in FY25. Geojit BNP Paribas expects the company’s performance to improve due to rising demand, capacity expansion, and promising opportunities in the rooftop solar business, renewables, and generation segments.

You can find more screeners here.

03 Jul 2024

Chart of the Week: Nifty 50 hits new all-time highs as investors return to markets post-election

By Satyam Kumar

After a volatile start to June, India’s benchmark index, Nifty 50, rebounded onto its growth trajectory, surpassing the 24,000 mark by the end of the month as Narendra Modi was re-elected for his third term as Prime Minister. The benchmark index's rise has accelerated in the past month, climbing 7.8% to reach new all-time highs.

In this Chart of the Week, we take a look at the performance of India’s benchmark Nifty 50 over the past year (July ‘23- July ‘24) and the factors influencing the momentum. As of July 3, the Nifty 50 has risen 26.6% over the past year despite challenges such as high interest rates aimed at tackling inflation and international conflicts like the Russia-Ukraine war and the Israel-Hamas conflict.

For FY24, India’s GDP growth was reported at 8.2%. During a press conference, RBI Governor Shaktikanta Das said, "We are confident about 7.2% growth in FY25, and assuming a normal monsoon, we expect food inflation to go down and project CPI inflation for FY25 at 4.5%" He highlighted that despite inflation gradually approaching target levels worldwide, the final steps in beating back inflation were proving to be difficult.

The election shock that made the elephant index dance

Modi’s Bharatiya Janata Party (BJP) won three out of four state elections in December last year. Many predicted that this "hat-trick" in state elections would lead to “a hat-trick in 2024," and that Prime Minister Narendra Modi's third term was inevitable. People seemed to buy into the narrative of a "double engine" government with the same party in the states and centre. As a result, on December 4, the Nifty 50 rallied by 419 points, posting a gain of 2.1%.

On April 19, the seven-phase voting for the Lok Sabha elections began in India and concluded on June 1. Despite analysts' optimism about Modi’s third term, India's volatility index jumped by more than 50% during this period, reflecting the uncertainty surrounding the election results as conflicting ground reports started to trickle in.

As polling ended, media houses started releasing exit poll data indicating a clear majority for the BJP. In anticipation, the Nifty 50 soared 733 points, gaining 3.3% on June 3.

However, as the vote counting began on June 4, the exit poll forecasts turned out to be wildly off, and the market shed all its gains from the previous day and more. The ruling BJP was leading in fewer seats than expected and was not securing a single-party majority. Consequently, the Nifty 50 experienced its worst day since the pandemic, falling 5.9% on June 4.

Ultimately, the BJP won 240 out of a total of 543 seats and formed a government with the support of its NDA alliance. The markets rallied after the BJP-led NDA alliance formed a government with Narendra Modi re-elected as Prime Minister for a third term. There were no changes in significant ministries such as Finance, Highways, Defence, and Home. Following this, the India VIX returned to normal levels, and the Nifty 50 posted a new all-time high, crossing the 24,200 mark.

India’s growth story leads the index higher and higher

The G20 summit, held in India last year, featured the 20 largest economies. During the summit, PM Modi announced the launch of the India-Middle East-Europe mega economic corridor. This announcement helped the Nifty 50 index breach the 20,000 mark on September 11. Following this news, Adani Ports & SEZ, a marine ports and services company, soared by 7%.

India’s GDP growth has also bolstered investor confidence, driving the index up at an accelerated pace. Fueled by double-digit growth in the manufacturing sector, strong performance in the construction sector, and high domestic demand, the GDP growth rate for Q3 came in at 8.4%. Following the announcement of these GDP growth numbers, the index rallied 356 points, posting a gain of 1.6% on March 1.

Weak performance by IT firms and Banks led to an index correction

Indian Information Technology (IT) firms posted weak performance in Q1FY24 as institutions worldwide cut down on tech spending in this high interest-rate environment. Additionally, weakening demand and recession fears in the United States exerted pressure on their earnings.

During the Q1FY24 results announcement, Infosys CEO Salil Parekh said, “In the short term, we see some clients stopping or slowing down transformation programs and discretionary work, especially in financial services, mortgages, asset management,etc.” The weak outlook for FY24 led to industry-wide selling which led the index down post Q1FY24 results.

On January 17, HDFC Bank plunged over 8% leading the index down by 460 points as it posted mixed performance in its Q3FY24 results that failed to impress investors. Although credit growth gained momentum, the bank struggled to attract deposits at the same pace, which could lead to higher costs of funds and lower margins.

Geopolitical tensions triggered an industry-wide sell-off in October last year

The ongoing wars between Israel-Hamas and Russia-Ukraine spooked investors worldwide. In October last year, markets experienced significant selling pressure amid growing concerns about the escalation of the Israel-Hamas conflict. However, this effect faded as strong Q2 earnings led the index back to its growth trajectory.

Meanwhile, the Russia-Ukraine war has extended into its third year. Ukraine continues to receive support from NATO, an alliance of countries in Europe and North America. After months of delay, the US Congress passed a Ukraine Aid package worth $95 billion in April this year.

03 Jul 2024

Market closes higher, RVNL bags an order worth Rs 132.6 crore

Nifty 50 closed at 24286.50 (162.7, 0.7%) , BSE Sensex closed at 79986.80 (545.4, 0.7%) while the broader Nifty 500 closed at 22851.20 (173.4, 0.8%). Market breadth is in the green. Of the 2176 stocks traded today, 1348 were on the uptrend, and 807 went down.

Indian indices closed in the green, after seeing volatility throughout today's trading. The Indian volatility index, Nifty VIX, fell 3.1%and closed at 13.21 points. Rail Vikas Nigam closed higher after winning a modification work order worth Rs 132.6 crore from Central Railway to upgrade the existing electric traction system in Nagpur.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Private Bank and Nifty Financial Services were among the top index gainers today. According to Trendlyne’s Sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 5.9%.

Asian indices closed in the green. European indices are trading higher. US index futures are trading mixed, indicating a cautious start to the trading session. Brent crude oil futures are trading flat.

Money flow index (MFI) indicates that stocks like Samvardhana Motherson International, Craftsman Automation, Mahanagar Gas, and Oracle Financial Services Software are in the overbought zone.
Gujarat Gas falls sharply as it announces a Rs 2 per standard cubic metre (scm) increase in industrial gas price for the Morbi region, raising the price to Rs 44.7 per scm, effective July 4.
Containers & packaging, electronic components, IT training services, and shipping industries surge more than 9% over the past week.
Indian Renewable Energy Development Agency rises sharply to its all-time high of Rs 218.8, as 50 lakh shares, amounting to Rs 100 crore, reportedly change hands in a block deal.
Pawan Goyal, ED and Chief Business Officer at Info Edge (Naukri.com), notes a slowdown in hiring across IT and non-IT sectors in June, with the Naukri Jobspeak Index declining 7.6% YoY. The index indicates the hiring trends in the market. He highlights the weakness in IT hiring in June, down 4.8% YoY, and a moderation in FMCG hiring to 13% YoY.
#OnETNOW | "Saw a secular slowdown in hiring in June across the board" says Pawan Goyal of https://t.co/iBFVLTNSHg @Naukri pic.twitter.com/WHM6iEM8JL
— ET NOW (@ETNOWlive) July 3, 2024
Emcure Pharmaceuticals' Rs 1,952 crore IPO gets bids for 0.8X the available 1.4 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1X the available 68.8 lakh shares on offer.
Bansal Wire Industries' Rs 745 crore IPO gets bids for 1X the available 2.2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.5X the available 1.1 crore shares on offer.
Zomato withdraws its application for a non-banking financial company (NBFC) license from the Reserve Bank of India (RBI) through its wholly-owned subsidiary, Zomato Financial Services, as it no longer intends to pursue the lending or credit business.
Private equity investments in Indian real estate surge to a three-year high in Q2CY24, reaching $2.5 billion. The industrial and warehousing sector dominates with 61% of total investment ($1.5 billion), fueled by substantial transactions. Residential investments rise sharply, increasing by 7.5X from Q2CY23 and comprising 21% of the total inflows. Meanwhile, office assets witness a decline, attracting only $0.3 billion in investments.
Institutional investment in #Indian #RealEstate at $2.5 billion in Q2, marking a 3-year highhttps://t.co/aOC2CtTsW2
— Economic Times (@EconomicTimes) July 3, 2024
Sundaram-Clayton rises as its board of directors approves issuing shares worth Rs 400 crore through a qualified institutional placement (QIP) or other modes.
ICICI Securities maintains its 'Buy' call on Hero MotoCorp with an upgraded target price of Rs 6,620 per share. This indicates a potential upside of 18.8%. The brokerage believes the company's capital-efficient business model, with a cash-rich balance sheet and a focus on premiumisation and electrification, will help outperform its peers. It expects revenue to grow at a CAGR of 15.3% over FY25-26.
Indian Energy Exchange's electricity volume rises 24.7% YoY to 10,185 million units (MU) in June. IEX Green Market achieves a volume growth of 173% YoY to 744 MU.
India’s services PMI rises to 60.5 in June, from a 5-month low of 60.2 in May, due to a rise in new orders and expansion in international sales. The PMI reading stays above the 50 mark for the 35th consecutive month
????India’s services sector activity rose to 60.5 in June, recovering from a five-month low of 60.2 in the previous month.

Details here ????https://t.co/HPXauovNHc #ServiceSector #PMI | @IshaanGera
— Moneycontrol (@moneycontrolcom) July 3, 2024
JSW Infrastructure rises as its subsidiary, JSW Tuticorin, signs an agreement with V.O. Chidambaranar Port Authority to develop and mechanise a new 7 MPTA cargo berth for handling dry bulk cargo on a design, build, finance, operate, and transfer (DBFOT) basis.
Dynacons Systems & Solutions surges as it secures an order worth Rs 119 crore from the Central Bank of India. The order is for the supply, implementation, and maintenance of private cloud infrastructure at the bank’s data centre (DC) and disaster recovery centre (DRC).
MOIL rises sharply as its quarterly production grows by 7.8% YoY to 4.7 lakh tonnes in Q1FY25, helped by a 49% YoY improvement in exploratory drilling to 30,028 meters.
HDFC Bank stock rises over 3% as foreign portfolio investors (FPIs) reduce their holding to 54.8% in Q1FY25, helping the bank to meet the criteria for an increase in weight in the MSCI index. With foreign ownership exceeding 25%, it now meets the index provider's criteria for full inclusion. This development could lead to MSCI inflows of up to $5 billion for HDFC Bank.
#MarketsWithBS | Shares of HDFC Bank hit a record high of Rs 1,794, surging 4% on NSE in Wednesday's intraday trade, after FPI holdings in Pvt sector lender dropped below 55% at the end of the June 2024 quarter.#HDFCBank #nseindia #FPI #markets https://t.co/aPvpRqeDOs
— Business Standard (@bsindia) July 3, 2024
Force Motors' wholesales fall 2.9% YoY to 2,553 units in June, despite a 12.7% YoY rise in domestic wholesales. The company's exports decrease by 80% YoY.
Persistent Systems rises as its wholly-owned subsidiary plans to acquire New Jersey-based Starfish Associates in a deal valued at Rs 172.8 crore ($20.7 million). The acquisition will enhance its contact centre and unified communications capabilities and strengthen its AI-driven business transformation services.
Vraj Iron & Steel’s shares debut on the bourses at a 15.9% premium to the issue price of Rs 207. The Rs 171 crore IPO has received bids for 119 times the total shares on offer.
BSE Sensex crosses the 80,000 mark for the first time, reaching an all-time high of 80,074.3 in early trade today. Nifty 50 also hits a record high of 24,307.3.
#MarketAtRecordHigh | #Sensex has hit record high, crosses 80,000 for the 1st time ever. This Benchmark Index has recorded fastest ever 10,000-point gain ( It has taken 6 months to climb to 80,000 from 70,000) pic.twitter.com/cXQVotzyJP
— CNBC-TV18 (@CNBCTV18Live) July 3, 2024
Healthcare Global Enterprises enters a share purchase agreement (SPA) with Vizag Hospital to acquire a 100% stake for Rs 362.6 crore.
Rail Vikas Nigam rises as it wins a modification work order worth Rs 132.6 crore from Central Railway to upgrade the existing electric traction system in Nagpur.
Federal Bank rises as its total deposits increase by 19.6% YoY to Rs 2.7 lakh crore while gross advances grow by 20.1% YoY to Rs 2.2 crore in Q1FY25. Its CASA ratio stands at 29.3% as compared to 31.9% in Q1FY24
KEC International rises sharply as it bags a Rs 1,017 crore order in the Indian and overseas markets for transmission & distribution (T&D) and renewables businesses.
Nifty 50 was trading at 24,230.20 (106.4, 0.4%), BSE Sensex was trading at 79,803.32 (361.9, 0.5%) while the broader Nifty 500 was trading at 22,783.65 (105.9, 0.5%)
Of the 1,963 stocks traded today, 1,594 were on the uptrend, and 338 went down.

Riding High:

Largecap and midcap gainers today include Power Finance Corporation Ltd. (531.05, 5.7%), Bharat Heavy Electricals Ltd. (311.30, 4.8%) and Bajaj Holdings & Investment Ltd. (9,296.75, 4.5%).

Downers:

Largecap and midcap losers today include Ashok Leyland Ltd. (229.47, -2.2%), Gujarat Gas Ltd. (637.85, -2%) and Patanjali Foods Ltd. (1,632.35, -1.7%).

Movers and Shakers

20 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Castrol India Ltd. (243.17, 13.5%), Housing and Urban Development Corporation Ltd. (301.95, 8.5%) and Gujarat Pipavav Port Ltd. (230.50, 8.3%).

Top high volume loser on BSE was SKF India Ltd. (6449.15, -0.8%).

MMTC Ltd. (85.66, 8.1%) was trading at 27.4 times of weekly average. Sheela Foam Ltd. (968.95, 2.7%) and FDC Ltd. (497.05, 5.6%) were trading with volumes 10.3 and 9.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (9,296.75, 4.5%), Indus Towers Ltd. (396.50, 3.3%) and Biocon Ltd. (361.45, 1.3%).

11 stocks climbed above their 200 day SMA including Piramal Enterprises Ltd. (943.60, 4.2%) and IDFC Ltd. (120.26, 2.8%). 3 stocks slipped below their 200 SMA including Crisil Ltd. (4,285.90, -1.7%) and Au Small Finance Bank Ltd. (666.25, -1.1%).

02 Jul 2024

Five stocks to buy from analysts this week - July 02, 2024

By Ruchir Sankhla

1. NMDC:

ICICI Direct assigns a ‘Buy’ rating on this mining company with a target price of Rs 325, indicating a potential upside of 29.2%. In FY24, the company’s revenue grew 23% YoY to Rs 22,678.7 crore due to higher average selling price, while the net profit marginally declined by 0.47% YoY to Rs 5,575 crore due to higher operational expenses.

Analysts Shashank Kanodia and Manisha Kesari say, “NMDC is exploring opportunities in other minerals such as bauxite, gold, diamond, lithium, and copper, both in India and overseas.” The analysts highlight the company’s plans to begin operations at the Rohne coal block with a capacity of 8 metric tonne (MT) within 24 months. NMDC has also commissioned an Australian gold mine, and is set to conclude a feasibility study for magnetite and lithium within the next 12-18 months.

Kanodia and Kesari note that the company expects to increase its sales volume from 41 MT in FY24 to 50 MT in FY25 and 54 MT in FY26, and aims to achieve 100 MT of iron ore production by FY31 with a total investment of approx Rs 50,000 crore for slurry pipelines, a pellet plant, and other infrastructure.

2. Bharti Airtel:

Sharekhan maintains a ‘Buy’ rating on this telecom services company, raising its target price to Rs 1,680, indicating a potential upside of 15.6%. The analysts highlight Airtel's industry-leading ARPU, revenue market share (RMS) gains, and its favorable position to benefit from expected tariff hikes over FY25-26.

Bharti Airtel has improved its revenue market share to 37.9% in FY24 from 36.5% in FY23, narrowing the gap with Reliance Jio. Analysts expect that the 15-20% tariff hikes post the telecom spectrum auction, will aid revenue growth. The company anticipates significant free cash flow improvement due to a capex decline in FY25 after high spending in FY24. Vodafone Idea's expected 5G launch may impact subscriber gains, making tariff hikes crucial for sustained growth. However, Airtel’s focus on premiumization and rural expansion supports its positive growth outlook.

Sharekhan expects Airtel's strong growth momentum in various segments to continue. It anticipates the firm to post a revenue CAGR of 14.3% and an adjusted net profit CAGR of 47.4% over FY25-26.

3. Inox Wind:

Axis Direct initiates a ‘Buy’ rating on this electric utilities company with a target price of Rs 185, indicating a potential upside of 29%. Analysts Aditya Welekar and Darsh Solanki note that from 2019 to 2024, the company incurred losses primarily due to lower execution in wind energy projects. This was due to new auction rules in 2018 and the impact of the pandemic in 2021-2022.

The analysts highlight that as of 31st March 2024, the company has a strong order book of 2.7 GW, ensuring sales for the next 2.5 years along with multiple independent power producers and commercial and industrial orders in the pipeline which are at “advanced stages of closure”.

The analysts anticipate the company to return to profitability from FY25. They expect a revenue/EBITDA CAGR of 75% for FY 25-27. PAT is expected to increase to Rs 1,081 crore by FY27, from a loss of Rs 51 crore in FY24 with a forecasted EBITDA margin of 15% in line with the company's guidance of 14-15% for FY 25-27.

4. Hindustan Unilever:

Motilal Oswal maintains a ‘Buy’ rating on this personal products company with a target price of Rs 2,900, indicating a potential upside of 15.6%. Analysts Naveen Trivedi, Pratik Prajapati and Tanu Jindal note that in FY24, the company's revenue increased only by 2% to Rs 619 billion due to the challenging business environment and increasing competition from regional and D2C brands. The company saw a gradual decrease in commodity prices across all its products after a long period of high inflation.

Analysts highlight HUL’s effort to compete more effectively in a changing retail market, and its transition from the traditional step-by-step business model to an approach where consumers, customers, and operations are more closely integrated, with the help of data-driven technology solutions. They note that approximately 30% of its digital demand is now generated through platforms like the Shikhar app, e-commerce channels, and D2C websites.

Analysts Trivedi, Prajapati, and Jindal note that the company has been introducing new product variants and upgrades. Hindustan Unilever is particularly focusing on liquid formulations in fabric care and dishwashing segments to meet increasing consumer demand in these segments.

5. Olectra Greentech:

Geojit upgrades this commercial vehicle manufacturer to a ‘Buy’ with a target price of Rs 2,086, indicating a potential upside of 13.4%. The company saw its revenue drop 23% YoY to Rs 293.6 crore in Q4FY24 due to new battery norms and execution delays, while it increased moderately by 5.9% in FY24. Despite this, Olectra Greentech (OGL) remains optimistic about its future growth prospects in the expanding electric vehicle market.

The company plans to establish a new greenfield EV manufacturing facility in Telangana, starting with an annual capacity of 5,000 vehicles expandable to 10,000. OGL currently holds 10,966 electric bus orders in its order book. Analyst Anil R is optimistic about the firm's strategic JV with BYD China for electric buses and entry into electric truck tippers and hydrogen buses, which it hopes will strengthen its position in the growing EV market. Expansion into new segments aligns with OGL's strategy to diversify its product portfolio and capitalize on the increasing demand for sustainable, and cheaper transportation solutions.

Anil expects Olectra's alignment with the government's carbon-free emission goals and robust State Transport Undertaking (STU) partnerships to drive future growth. He anticipates the firm to post a revenue CAGR of 77.7% and an adjusted net profit CAGR of 101% over FY25-26, helped by its technological advancements in the EV sector.

Note: These recommendations are from various analysts and are not recommendations by Trendlyne.

(You can find all analyst picks here)

02 Jul 2024

Market closes flat, Adani Ports' cargo volumes rise 12% YoY to 37 million metric tonnes in June

Nifty 50 closed at 24,123.85 (-18.1, -0.1%), BSE Sensex closed at 79,441.45 (-34.7, 0.0%) while the broader Nifty 500 closed at 22,677.80 (-49.8, -0.2%). Market breadth is holding steady. Of the 2,184 stocks traded today, 1,096 were in the positive territory and 1073 were negative.

Indian indices pared their gains from the afternoon session and closed flat. The volatility index, Nifty VIX, fell by 1.4% and closed at 13.6 points. Kotak Mahindra Bank fell following allegations by Hindenburg that the Securities and Exchange Board of India's (SEBI) omission of the bank or its board member in their report may be an attempt to protect powerful Indian businessmen from scrutiny.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, following the benchmark index. According to Trendlyne’s sector dashboard, Media emerged as the top-performing sector of the day, with a rise of 1.4%.

Most European indices traded in the red, while the Asian indices closed mixed. US index futures traded lower, indicating a cautious start to the trading session. Euro-zone inflation slowed down in June with consumer prices rising 2.5% YoY, down from 2.6% YoY in May.

Relative strength index (RSI) indicates that stocks like Cholamandalam Financial Holdings, Craftsman Automation, Mahanagar Gas, and Persistent Systems are in the overbought zone.
Sanofi India, Union Bank of India, Adani Total Gas, and Ujjivan Small Finance Bank underperform their respective industries by more than 10% in the past month.
Adani Ports & Special Economic Zone's cargo volumes rise 12% YoY to 37 million metric tonnes in June. The rise is due to a growth in containers (33% YoY) and liquids & gas (8% YoY).
Nomura turns bullish on the Indian IT sector. The brokerage upgrades Wipro, Infosys, and HCL Technologies to 'Buy' and TCS to 'Neutral '. It expects a mixed operating performance from its selected stocks. Nomura expects strong revenue growth of +2.5% QoQ for Infosys and -2% QoQ for HCL Tech in Q1FY25.
Given the bottoming out of revenue growth rate and an expectation of the EPS downgrade cycle to end, Nomura turned bullish on the Indian IT sector with #Infosys and Coforge as its top picks.https://t.co/T0VDiYWxCn
— ETMarkets (@ETMarkets) July 2, 2024
IRB Infrastructure Trust surges to its 52-week high as it reportedly secures an arbitration award of Rs 1,720 crore for a highway project against the National Highways Authority of India (NHAI).
Puravankara rises as it purchases the owner’s share of land in the Botanico and Capella projects in Bangalore for Rs 251 crore. The potential gross development value for these projects is Rs 484 crore.
PSU bank stocks like Bank of Baroda, Bank of India, Indian Bank and State Bank of India are falling in trade. All constituents of the broader Nifty PSU Bank index are also trading in the red, causing it to plunge almost 2%.
Larsen & Toubro rises as it reportedly secures orders worth $4 billion (approx. Rs 35,000 crore) from Saudi Aramco for expansion projects.
L&T has bagged orders worth over $4 billion from Saudi Aramco for the expansion of its gas projects, sending shares higher by over 2.5% in morning trade on July 2

More details on the deal here ????https://t.co/P0laO4JPT2 @larsentoubro | #SaudiAramco pic.twitter.com/rVuEdoOtik
— Moneycontrol (@moneycontrolcom) July 2, 2024
Kotak Mahindra Bank falls following allegations by Hindenburg that the Securities and Exchange Board of India's (SEBI) omission of the bank or its board member in their report may be an attempt to protect powerful Indian businessmen from scrutiny. This development comes after Hindenburg received a show-cause notice from SEBI for alleged violations related to bets placed on the Adani Group.
Zomato surges to its all-time high of Rs 209.8 per share as Morgan Stanley retains its 'Overweight' rating on the stock with a higher target price of Rs 235 per share. This indicates a potential upside of 14%. The brokerage believes the company's market leadership in food delivery, strong execution in the growing quick commerce business, and a healthy balance sheet will help in medium to long-term growth.
ISMT surges as it completes Phase 1 installation of a 35 MW DC capacity solar plant worth Rs 138 crore in Maharashtra.
Large trades in the Indian stock markets reach a new high, driven by promoters selling stakes amid soaring benchmark indices. Data from the Prime Database shows that bulk and block deals in June totaled Rs 1.01 lakh crore, a substantial MoM increase from Rs 35,779 crore. Promoters have offloaded shares worth Rs 91,879 crore in the first half of the year.
In June, combined value of bulk, block trades in #India's stock market have crossed Rs 1-lakh-crore mark and is the highest in at least five years.

Read more ??https://t.co/EJxBQqbcuj
— NDTV Profit (@NDTVProfitIndia) July 2, 2024
Pennar Industries surges to its all-time high of Rs 191.7 per share as it plans to set up a 36,000 MT pre-engineered building (PEB) manufacturing plant in Uttar Pradesh. The company expects the plant to be operational in Q2CY25.
IOL Chemicals and Pharmaceuticals surges as it secures approval from China's drug regulatory authority, NMPA, for its cholesterol drug, Fenofibrate. This enables the company to export Fenofibrate to the Chinese market.
Welspun Specialty Solutions wins a Rs 117.2 crore order from Bharat Heavy Electricals to supply seamless stainless steel boiler tubes for a thermal power project.
NMDC is falling as its total sales decline 9% YoY to 3.7 million tonnes (MT) in June as its production drops 3.2% YoY to 3.4 MT.
Centre raises the windfall tax on locally produced petroleum crude oil to Rs 6,000 per tonne from Rs 3,250 earlier. Meanwhile, the tax on diesel and aviation turbine fuel (ATF) remains ‘Nil’.
The government hiked #WindfallTax on domestically produced #CrudeOil to ?6,000 per tonne, from ?3,250 per tonne, with effect from July 2, reports.

Read here: https://t.co/HtxkhyJb0X pic.twitter.com/VO9RfqyjIj
— Mint (@livemint) July 2, 2024
Gandhar Oil Refinery rises sharply as it bags a three-year contract worth $45 million (approx. Rs 375 crore) from Abu Dhabi National Oil Co for Distribution (ADNOC Distribution). The contract is to supply 30 million litres per annum of refined oil to ADNOC.
Plutus Wealth Management sells a 2.2% stake (71 lakh shares) in Religare Enterprises, worth Rs 169.7 crore, in a bulk deal on Monday. Meanwhile, Societe Generale picks a 1.5% stake in the company.
Allied Blenders & Distillers’ shares debut on the bourses at a 13.9% premium to the issue price of Rs 281. The Rs 1,500 crore IPO has received bids for 23.6 times the total shares on offer.
Rakesh Sharma, Executive Director at Bajaj Auto, says Q1 performance aligns with expectations. He notes healthy sales in April, followed by flat sales in the following months. Sharma projects domestic retail growth of 6-8% in Q2FY25.
#OnCNBCTV18 | ‘Economic recovery finally reaching lower-income consumers; Expect 6-8% growth in domestic biz in Q2,’ Rakesh Sharma ED Bajaj Auto outlines biz trajectory

There is a strong case for reducing #GST on 2-wheelers as the 28% rate is ‘very onerous’ on customers, he adds pic.twitter.com/sBG6N44aQS
— CNBC-TV18 (@CNBCTV18Live) July 2, 2024
Patanjali Foods surges to its all-time high of Rs 1,764.4 per share as it acquires Patanjali Ayurved's non-foods business (hair care, skin care, dental care, and home care) for Rs 1,100 crore.
Eicher Motors' Royal Enfield wholesales fall 7.6% YoY to 86,723 units in June. Its domestic wholesales decrease by 5% YoY, and exports drop 27% YoY.
DCX Systems rises as it wins a purchase order worth Rs 1,250 crore from Larsen & Toubro to manufacture and supply electronic modules.
Godrej Properties sells more than 2,000 homes worth over Rs 3,150 crore on the launch of its project, Godrej Woodscapes, in Bengaluru.
Nifty 50 was trading at 24,203.60 (61.7, 0.3%), BSE Sensex was trading at 79,653.88 (177.7, 0.2%) while the broader Nifty 500 was trading at 22,784.85 (57.3, 0.3%).
Market breadth is highly positive. Of the 1,967 stocks traded today, 1,517 showed gains, and 414 showed losses.

Riding High:

Largecap and midcap gainers today include Solar Industries India Ltd. (11,019.10, 9.1%), Godrej Properties Ltd. (3,301.10, 4.4%) and Samvardhana Motherson International Ltd. (202.96, 3.2%).

Downers:

Largecap and midcap losers today include Max Healthcare Institute Ltd. (913.10, -4.5%), Vodafone Idea Ltd. (17.02, -3.4%) and Shriram Finance Ltd. (2,824.90, -3.4%).

Volume Shockers

27 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included TV18 Broadcast Ltd. (45.55, 9.7%), Solar Industries India Ltd. (11,019.10, 9.1%) and Godrej Agrovet Ltd. (811.50, 8.1%).

Top high volume losers on BSE were Angel One Ltd. (2,353.25, -8.7%), Patanjali Foods Ltd. (1,660.95, -2.3%) and Chalet Hotels Ltd. (849, -1.4%).

Sumitomo Chemical India Ltd. (512.60, 7.1%) was trading at 11.8 times of weekly average. Network18 Media & Investments Ltd. (87.67, 6.7%) and Firstsource Solutions Ltd. (226.40, 5.8%) were trading with volumes 8.7 and 6.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

45 stocks hit their 52 week highs,

Stocks touching their year highs included - 3M India Ltd. (38,908.70, 2.8%), ACC Ltd. (2,772.25, 0.8%) and Ambuja Cements Ltd. (692.35, -0.4%).

17 stocks climbed above their 200 day SMA including Jyothy Labs Ltd. (477.25, 5.8%) and Hatsun Agro Products Ltd. (1,111.35, 5.6%). 7 stocks slipped below their 200 SMA including IDFC Ltd. (116.99, -2.6%) and Kotak Mahindra Bank Ltd. (1,769.60, -2.1%).

01 Jul 2024

Market closes higher, Maruti Suzuki's wholesales rise 12.4% YoY to 1.8 lakh units in June

Nifty 50 closed at 24,141.95 (131.4, 0.6%), BSE Sensex closed at 79,476.19 (443.5, 0.6%) while the broader Nifty 500 closed at 22,727.60 (167.9, 0.7%). Market breadth is overwhelmingly positive. Of the 2,208 stocks traded today, 1,586 were in the positive territory and 605 were negative.

Indian indices extended their gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, rose by 0.2% and closed at 13.8 points. Cochin Shipyard closed higher after it bagged a Rs 1,100 crore order from Wilson ASA, Norway, to develop dry cargo vessels.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher, following the benchmark index. According to Trendlyne’s sector dashboard, Media emerged as the top-performing sector of the day, with a rise of 2.9%.

Most European indices traded in the green, while the Asian indices closed flat or higher. US index futures traded mixed, indicating a cautious start to the trading session. Boeing announced the acquisition of Spirit AeroSystems in an all-stock deal worth $4.7 billion. Brent crude futures traded in the green after falling 0.6% on a volatile day on Friday.

Mahanagar Gas sees a long buildup in its July 25 future series as its open interest rises 40.5% with a put-call ratio of 0.7.
Wockhardt's surges more than 19% after its investigational antibiotic, Zaynich, treats a cancer patient in the United States with chronic thigh infection caused by pseudomonas bacteria.
Rane Holdings rises sharply as its board approves the acquisition of the remaining 91.3 lakh shares (51% stake) in joint venture company, Rane NSK Steering Systems (RNSS), from JV partner NSK Japan for Rs 45 crore. This makes RNSS a wholly-owned subsidiary of Rane Holdings.
Maruti Suzuki India's wholesales rise 12.4% YoY to 1.8 lakh units in June. It’s domestic wholesales increase by 6.1% YoY, while exports grow by 57%.
According to Kotak Institutional Equities, the pace of promoters selling stakes in their companies has accelerated in the first half of 2024, totaling $10.5 billion across 37 companies listed on the NSE500.
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.https://t.co/wZHynGtZtp
— businessline (@businessline) July 1, 2024
Motilal Oswal keeps its 'Buy' rating on Kalpataru Projects with a higher target price of Rs 1,385 per share. This indicates a potential upside of 20.3%. The brokerage believes the company's merger with JMC Projects will help to enter large and complex projects. It expects the company's revenue to grow at a CAGR of 16.7% over FY25-26.
Morgan Stanley reportedly retains its 'Overweight' rating on Reliance Industries with a target price of Rs 3,046 per share. The brokerage expects the company's market capitalisation to grow by $60-100 billion, driven by investments in new energy, retail expansion to take market share from the unorganised sector, and repurposing existing energy projects.
Mahindra & Mahindra's wholesales rise 11% YoY to 69,397 units in June. Passenger vehicle wholesales increase 23% YoY, however commercial vehicle sales fall 2% YoY.
Reports suggest that 24 lakh shares (3.14% equity) of Nazara Technologies, amounting to Rs 210 crore, have changed hands in a large trade.
#NazaraTech Large Trade | 24 Lk Shares (3.14% Equity) Worth ?210 Cr Change Hands At An Avg ?873/Sh pic.twitter.com/8bCGuGpBk1
— CNBC-TV18 (@CNBCTV18Live) July 1, 2024
Larsen & Toubro's hydrocarbon business secures an order worth Rs 1,000-2,500 crore from ONGC for the engineering, procurement, construction, installation, and commissioning (EPCIC) of 129 km of subsea pipelines and associated modification works across ONGC’s offshore fields on India’s west coast.
Alembic Pharmaceuticals is rising as it receives approval from the US FDA for its Bosutinib tablets. The tablets, used to treat a certain type of leukemia, have an estimated annual sales of $275 million in the US.
Godrej Properties rises sharply as it announces the development of an 11-acre land parcel in Pune and a 7-acre parcel in Bengaluru. The Pune project will include Group Housing and High Street Retail, while Bengaluru will feature a high-end residential project with a combined revenue potential of nearly Rs 3,000 crore.
Kotak Institutional Equities initiates coverage on J B Chemicals & Pharmaceuticals with a 'Buy' rating and a target price of Rs 2,025. The brokerage believes the stock will trade at a premium compared to its competitors, helped by a strong market share in its core brands and robust contract manufacturing capabilities. It also highlights the company has limited exposure to the US, EU, and other regulated markets.
#KotakInstitutional initiates coverage on #JBChemicals & Pharma with buy rating.

For more, visit our Research Reports section: https://t.co/x9gNkEkYp6 pic.twitter.com/FWPDmEBjzo
— NDTV Profit (@NDTVProfitIndia) July 1, 2024
Cochin Shipyard rises as it wins a Rs 1,100 crore order from Wilson ASA, Norway, to develop TDW dry cargo vessels.
GTI Alpha sells a 4.7% stake (1 crore shares) in Samhi Hotels, worth approx Rs 192.7 crore, in a block deal on Friday. Meanwhile, Morgan Stanley Asia Singapore, ICICI Prudential Mutual Fund, and Abu Dhabi Investment Authority pick 1.4%, 1%, and 0.5% stakes, respectively, in the company.
Escorts Kubota's total wholesales fall 2.6% YoY to 9,593 units in June, due to a 59.7% YoY decrease in exports. The company's domestic wholesales increase marginally.
NMDC lowers iron ore lump and fine prices by 7% and 9% to Rs 5,950 and Rs 5,110 per tonne, respectively. The industry anticipated a larger cut of Rs 700-800 per tonne, compared to Rs 500 per tonne.
Sources Say | NMDC: Cuts iron ore prices by Rs 500/t for July 2024@nmdclimited @soumeet_sarkar pic.twitter.com/ePZkE1TL34
— ET NOW (@ETNOWlive) July 1, 2024
Transformers & Rectifiers (India) rises sharply as it bags three orders worth Rs 148.5 crore from NCC, Power Grid Corp, and Adani Energy Solutions to supply transformers and class reactors.
Asian Paints plans to expand its capacity to 60,000 kilo liter (KL) from 30,000 KL at its Mysuru manufacturing plant with an estimated capex of Rs 1,305 crore.
Garden Reach Shipbuilders & Engineers surges as it wins an order worth $21 million from Bangladesh's Ministry of Defence to construct and deliver an advanced ocean-going tug.
India’s manufacturing PMI rises to 58.3 in June, compared to 57.5 in May, driven by improved business conditions and increased hiring.
#India's #manufacturing #PMI rises to 58.3 in June from 57.5 in May, record upturn in #job creationhttps://t.co/vWvHZsOYSu
— Economic Times (@EconomicTimes) July 1, 2024
Vodafone Idea is falling as it hikes its prepaid and postpaid plan rates by 10-21%, effective July 4.
Nextwave Communications, promoter of HFCL, sells a 1.4% stake in the company for approx Rs 215.2 crore in a bulk deal on Friday.
Rashmi Chowdhary, promoter of Titagarh Rail Systems, sells a 2% stake in the company in a block deal on Friday.
Bharat Electronics rises as it bags a contract worth Rs 3,127 crore from Armoured Vehicles Nigam to supply and install sighting and fire control systems (FCS) to upgrade tanks for the Indian Army. The company has also bagged orders worth Rs 481 crore for meteorological equipment.
Nifty 50 was trading at 24,012.30 (1.7, 0.0%), BSE Sensex was trading at 79,034.05 (1.3, 0%) while the broader Nifty 500 was trading at 22,581.10 (21.4, 0.1%).
Market breadth is surging up. Of the 1,975 stocks traded today, 1,419 showed gains, and 511 showed losses.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (1,517.15, 8.6%), JSW Infrastructure Ltd. (353.20, 7.6%) and Patanjali Foods Ltd. (1,699.35, 6.8%).

Downers:

Largecap and midcap losers today include Torrent Power Ltd. (1,456.45, -2.8%), Schaeffler India Ltd. (4,610.25, -2.8%) and NTPC Ltd. (369.75, -2.3%).

Crowd Puller Stocks

24 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Cholamandalam Financial Holdings Ltd. (1,609.30, 10.7%), Mahanagar Gas Ltd. (1,746.80, 9.4%) and Home First Finance Company India Ltd. (1,126.30, 8.8%).

Emami Ltd. (721.10, 4.6%) was trading at 19.7 times of weekly average. Vaibhav Global Ltd. (331.75, 7.5%) and J B Chemicals & Pharmaceuticals Ltd. (1,792.80, 2.2%) were trading with volumes 10.3 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

43 stocks made 52 week highs,

Stocks touching their year highs included - ACC Ltd. (2,749.60, 5.0%), Ambuja Cements Ltd. (695, 3.7%) and Bayer Cropscience Ltd. (6,693.70, -0.3%).

19 stocks climbed above their 200 day SMA including Alembic Pharmaceuticals Ltd. (923.50, 5.4%) and Jyothy Labs Ltd. (451.20, 4.5%). 4 stocks slipped below their 200 SMA including Bata India Ltd. (1,499, -1.0%) and IndusInd Bank Ltd. (1,456.90, -0.5%).

28 Jun 2024

Five Interesting Stocks Today - June 28, 2024

1. Indian Renewable Energy Development Agency (IREDA):

This financial institution rose by 7.3% over the past week after its Rs 1,500 crore bond issue was oversubscribed 2.7X. In April this year, the company was granted “Navratna” status by the Department of Public Enterprises (DPE).

IREDA delivered a good result in FY24 – the company’s net profit increased by 44.8% YoY to Rs 1,252.2 crore on the back of falling expenses, while its revenue increased by 42.9% YoY. The stock shows up in a screener for stocks with consistent high returns over five years in Nifty500.

IREDA is India’s largest renewable energy financing NBFC. In FY24, the company’s assets under management (AUM) stood at Rs 58,775 crore. During its recent annual general meeting (AGM), the Chairman and Managing Director PK Das noted that the company's net worth was Rs 8,559 crore, with strong growth. The total loans sanctioned rose by 14.6% YoY to Rs 37,354 crore, and disbursements rose by 15.9% to Rs 25,089 crore in FY24. The management is targeting an AUM of Rs 3.5 lakh crore by FY30 to attain “Maharatna” status.

India’s power demand has been increasing steadily, and is expected to grow at a CAGR of 4.8% in FY25-27 with peak demand touching 277 GW in FY27. Renewable sources currently contribute ~40% (172 GW) of India's installed power generation capacity of 428 GW. Analysts note that the government’s FY30 target of 500 GW in renewable energy power generation needs an investment of over Rs 24 trillion, creating a vast opportunity for IREDA.

ICICI Direct has a “Buy” rating on IREDA with a target price of Rs 250. The brokerage remains positive on long term growth prospects, which it expects will drive long term growth in AUM. The brokerage notes that, given the firm’s focus on financing the renewable energy sector, business growth is expected to remain healthy at ~25-30% CAGR, with market share expected at ~29% in FY25-30.

2. Manappuram Finance:

This non-banking finance company surged to a new 52-week high of Rs 214 on Thursday and rose 7.8% in the past week. This rise came after CLSA reiterated its bullish stance on the firm’s gold loan business, which has seen strong traction since March after the central bank barredIIFL Finance from disbursing gold loans. Manappuram as a result, is benefiting from the acquisition of new customers being turned away by its competitors.

MD and CEO, V.P. Nandakumar says, “Demand for gold loans has surged this year, driven by middle-income groups requiring funds post-pandemic.” He highlights that the average ticket size is around Rs 73,000 and the average life of the loan is three months. The customers are mostly from the upper middle class and lower middle class.

Manappuram has been diversifying into non-gold segments to mitigate the cyclicality of gold loans. This strategy has contributed to a consolidated AUM growth of 19% YoY in FY24. However, net NPA worsened, rising by 40 bps to 1.3% during the same period, primarily due to collection issues in its microfinance business in Punjab and Rajasthan, states that have seen rural distress in the past year.

In April this year, Manappuram’s subsidiary Asirvad Micro Finance got SEBI approval to raise funds through an IPO. The company plans to raise Rs 1,500 crore via a fresh issue of equity shares and has no offer-for-sale component. Nandakumar expects the IPO to open in the next few months.

Axis Securities maintains a ‘Buy’ call on Manappuram Finance as it expects no impact of RBI regulations on its gold loan disbursals. The brokerage expects the company to deliver AUM and net interest income growth at a CAGR of 19% and 17% respectively in FY25-26.

3. PI Industries:

This agrochemicals company rose by 1.2% on Thursday after announcing the acquisition of UK-listed Plant Health Care Plc (PHC) for around £32.8 million (approx. Rs 341.7 crore). The acquisition will be funded from previous QIP proceeds. The transaction is set to be finalised by Q2FY25. PI Industries features in a screener of stocks near their 52-week highs.

PHC is an agriculture company with subsidiaries in the US, Brazil, and several other countries. It is known for its experience in protein/peptide technology within the agricultural biological space. Agricultural biologicals are a form of crop protection made from natural materials. With this acquisition, PI Industries can use PHC’s technology to manufacture biological products in India and strengthen the biologicals portfolio.

PI has seen steady growth in biologicals, with an existing portfolio of eight products and more in the development pipeline. In FY24, revenue from biologicals rose around 29% YoY. During the year, the company’s revenue rose 18.1% YoY to Rs 7,665.8 crore, while net profit was up 36.8% YoY to Rs 1,681.5 crore.

PI’s domestic business was muted due to a delayed and erratic monsoon. However, the IMD and Skymet have forecast normal monsoons for this year, and the management is optimistic about a healthy Q1FY25 performance.

Over the past year, the agrochem firm’s share price has declined by 1%, compared to the industry’s 14.5% growth. FY24 has been a tough year for agrochemical companies as they faced challenges from declining input prices, destocking, and higher China supplies. However, ICICI Securities sees green shoots in the industry. Agrochemical inventory has fallen below normal, and the underlying demand remains steady. US agrochemical companies have been focusing on outsourcing, which benefits Indian specialty chemical companies like PI Industries, as it derives 78% of revenue from exports.

Analysts are bullish on the company considering the growth opportunities. Jefferies believes the acquisition of PHC is attractive based on new product traction, providing PI Industries with an annual revenue potential of $75 million. The brokerage has a ‘Buy’ call with a target price of Rs 4,750 per share. The company is in the PE Buy Zone indicating that its currently trading below its historical PE.

4. LIC Housing Finance:

This housing finance company rose by 7.7% in the past week to hit its all-time high of Rs 809.9 on Friday after the government's announcement of three crore additional houses under Pradhan Mantri Awas Yojana. MD and CEO Tribhuwan Adhikari expects this initiative to create new market opportunities for the firm. The company plans to disburse Rs 75,000 crore in housing loans this year.

In FY24, LIC Housing Finance focused on profitability and is now transitioning towards growth. It reported a 15% YoY increase in individual home loan disbursements in Q4FY24, marking a turnaround from previous declines. In FY24, the firm’s net profit increased by 64.6% YoY to Rs 4,759.2 crore, due to better cost management and reduced NPAs, while revenue rose by 20% to Rs 27,277.8 crore.

The company is aiming for double-digit growth in FY25 by focusing on tech enhancements. It anticipates stable asset quality and expects earnings to improve, driven by increased home loan demand and lower credit costs. Recovery from a Rs 4,000 crore written-off pool bolstered by a positive real estate cycle, is pivotal for future growth. Adhikari says, "We expect NIMs to comfortably remain in the 2.7-2.9% range, with delivery closer to the higher end, thanks to a higher interest rate regime and our operational efficiency."

Sharekhan maintains a 'Buy' rating on the stock with a target price of Rs 850. The brokerage believes the firm will benefit from the real estate sector's growth and rising per capita income. It expects NII and PAT to grow at 5.5% and 5% CAGR respectively over FY25-26.

5. Dr. Reddy's Laboratories:

This pharma company rose by 7.2% in the past week after its Switzerland-based arm, Dr. Reddy’s Laboratories SA, inked an agreement with Haleon to acquire Nicotinell and related brands. The firm will pay £458 million (Rs 4,832 crore) upfront and an additional performance-based cash paymentof up to £42 million (Rs 443 crore) in CY25 and CY26. The product portfolio being acquired has an annual sales of approx Rs 2,290 crore.

Dr. Reddy’s Laboratories has been investing in areas like novel molecules, consumer healthcare, and digital therapeutics. This acquisition will enable the company to gain access to a global over-the-counter medicine (OTC) anchor brand, and has the potential to build a global consumer healthcare OTC business.

In FY24, the company’s net profit grew 23.8% YoY to Rs 5,577.9 crore while its revenue grew 12.4% YoY.It also beat Trendlyne Forecaster’s net profit estimate by 2.1%. The growth was primarily driven by increased global generics revenue, especially in North America and emerging markets.

Going forward, the company plans to spend 8.5-9% of FY25 revenues on research and development (R&D), of which 20% will be allocated to biosimilars, 60% to small molecules, and 20% to either API or other initiatives. Speaking about guidance, Chief Executive Officer Erez Israeli says, “We expect EBITDA and ROCE to be around 25% in the long term with double-digit revenue growth.”

Management optimism notwithstanding, KR Choksey downgraded Dr. Reddy's Laboratories to ‘Reduce’ from ‘Hold’ rating as it anticipates an increase in expenses on R&D, marketing, and promotions in FY25 due to key Dr. Reddy products in the US like gRevlimid, going off patent. The brokerage also notes that the stock is trading at higher levels than anticipated. However, the stock is in the PE Buy Zone, which means that its trading below its historical averages The company appears in a screener for stocks with increasing shareholding by mutual funds in the past month.

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.

28 Jun 2024

Market closes flat, Polycab India's promoter reportedly sells shares worth to Rs 2,716.5 crore