News & Impact
Trend positive – Gift Nifty is up 92 points or 0.4%. US Index Future gained 0.2% ahead of US Fed chair commentary on Friday )
U.S. stocks close over 0.5% higher after Fed minutes signal possible rate cuts. US Dollar Index 1-year low at 101 and 10-Year Yield 1-month low at 3.80%. Japan Market is 1-month high.
Brent Crude near January Lows at below $76/bbl as weak global Demand and reduce geo-political tension. Nifty formed a bullish candle on daily frame and has been making higher highs, closed nearly 24800 level which indicate bullish trend. Expects beaten down small cap and mid-cap – Positive on oil marketing, Aviation, NBFC, Banks, Gold Finance stocks. ADR/GDR – Infosys, Dr Reddy, AB Capital, Wipro, Cipla gained up to 2%.
Today’s Market Outlook– Dovish comments from US Federal Reserve officials about the possibility of cutting interest rates have boosted global markets, with oil prices dropping to a seven-month low. This combination is likely to lead to a strong opening for domestic markets. The Fed’s recent meeting minutes revealed that several officials see a viable case for lowering rates. As a result, the Nasdaq Composite rose by 0.5% and the S&P 500 increased by 0.4%. Attention is now on Fed Chair Jerome Powell, who is expected to provide more insight at the Jackson Hole economic symposium on Friday. Market speculation is that Powell might signal a potential 50 basis point rate cut in September. Consequently, the yield on the 10-year Treasury, which reacts to rate cut expectations, has dropped to 3.79%, and the Dollar Index has fallen to a one-year low of 101. The Nifty is up nearly 100 points, or 0.4%, and Nasdaq futures have gained 0.2%.
Domestic market Stock/sector Action – Positive sentiment is anticipated due to the global market rally, expectations of a more substantial US rate cut, strong quarterly results, and the significant decline in oil prices below $76 per barrel. Oil-related and aviation stocks are expected to benefit from lower oil prices. Additionally, mid-cap and small-cap sectors, including rail, banks, defense, metals, and shipbuilding stocks, are becoming more attractive after falling 10-20% from recent highs.
US market Update – U.S. stocks ended higher on Wednesday, after the Federal Reserve revealed its latest monetary policy meeting minutes, which hinted the U.S. central bank could cut interest rates in September. All eyes will be on US Fed Chair Jerome Powell statement on Friday, who is widely expected to hint at a potential rate cut in September. Nasdaq Composite advance 0.5%.
Asian Market Today – Stocks in Asia edged higher Thursday ahead of key events from the Federal Reserve and the Bank of Japan that will help define the global rates trajectory. The MSCI Asia Pacific Index climbed 0.2% as benchmarks in Japan, Australia and South Korea rose up to 0.7%. That came after the S&P 500 and Nasdaq 100 indexes advanced on further signs the Fed will cut interest rates.
European Market Update –European stock markets rebounded on Wednesday before a keenly-awaited speech by US Federal Reserve chief Jerome Powell at the end of the week. UK, Germany and France Index gained over 0.5% each.
Gold – Gold held near a record high at $2515/ounceas traders looked ahead to Federal Reserve Chair Jerome Powell’s speech on Friday, after a downward revision of US payrolls bolstered
expectations the central bank will cut interest rates in September.
Brent Crude –Brent Crude lowest close since January as concerns about rising US inventory, China economy slowdown and reduce geo-political tension in the gulf region.
Nifty Technical Levels –Nifty formed a bullish candle on daily frame and has been making higher highs – higher lows from the last four sessions. Now it has to continue to hold above 24700 zones for an up move towards 24900 then 25000 levels while support is seen at 24650 then 24450 zones.
Bank Nifty Technical Levels –Bank Nifty formed a small bodied candle with long lower shadow on daily scale. Index is relatively underperforming the broader market as momentum is missing at higher zones but multiple supports are intact at lower levels. Now it has to continue to hold above 50500 zones for a bounce towards 51000 then 51250 levels while support is seen at 50500 then 50250 zones.
Previous Day Market Summary –The equity benchmark Nifty ended with a slight gain in a rangebound market as investors awaited new signals from the minutes of the Federal Reserve’s latest policy meeting. Sectors such as pharma, defense, oil marketing, and FMCG were among the top performers. Renewed buying interest in ITC, Hindustan Unilever, and Bharti Airtel helped lift the Nifty by 71 points, or 0.3%, closing at 24,770. FIIs were net sellers Rs800cr while DIIs were net buyers Rs3097cr.
Actionable BUY – ABB, KFIN Tech, Shriram Properties, IOC, IIFL, Suzlon, Shriram Finance, Bikaji, Suzlon. Amber Enterprises, Lemon Tree, NBCC
Major Event today – KEC International AGM Meeting. Power Mech board meeting for bonus
IPO Update – Interarch Building Products: The public issue was subscribed to 93.53 times on day 3 and Orient Technologies: The public issue was subscribed to 6.65 times on day 1
Corporate Action –– Bigbloc Construction AGM, Benares hotels Rs25, Globus spirits Rs3.5, Hester Biosciences Rs6, Kakatiya Cement Rs3, L.G. Balakrishnan & bros Rs18, Mazda Rs16, Panama petrochem Rs4, Relaxo footwears Rs3
Brokers Radar – IndiGo TGT by Jefferies at Rs5225 . Shyam Metalic TGT by UBS at 1200, Indigo TGT by HSBC at 5165. Bharti Airetl TGT by CSLA at 1655 from 1540. Crompton Greaves TGT by Jefferies at 485.
Global Data Today – Chicago Fed Nat activity index, Initial Jobless Claims, Manufacturing PMI, Services PMI, Composite PMI, Existing Home Sales. Manufacturing PMI (UK, Germany, France), Services PMI (UK, Germany, France), Composite PMI (UK, Germany, France), Retail Sales (France).
Market Summary – ABB surpasses 10GW milestone in delivering automation solutions for renewable energy. Zomato expands movie and event ticketing business with $244m Paytm deal. P&G reported impressive Q1 results. Embassy REIT leases 8lakh sq ft office space in Bengaluru to Commonwealth Bank of Australia. Maruti Suzuki scales back production as India’s auto industry faces slowdown. Kalyan Jewllers founder to buy 2.36% stake Warburg Pincus at Rs535 a share (CMP 544). Indian Navy signs MoU with BEML. Shriram Properties aims to triple revenue over next 3-year. RateGain Travel inks multi-year partnership with Thai Airways. NCLT Approves ICICI Securities Delisting Despite Shareholders’ Opposition. NTPC to launch 100% subsidiary for nuclear power generation
ABB India – Company said it has surpassed 10GW in delivering solutions for renewable energy plants in India. This is a result of over 300 renewable energy projects across India utilizing ABB’s IoT-based PLC solution, a company statement said.- positive
Paytm and Zomato – Zomato said on Wednesday it will acquire the movie and events ticketing businesses of digital payments firm Paytm for $244.2 million as the food delivery platform looks to beef up its fast-growing ticketing business – Positive for Paytm and Zomato.
NTPC – Company announced plans to establish a new wholly-owned subsidiary dedicated to nuclear power generation during its Q1 FY25 earnings call. The subsidiary, named NTPC Nuclear Power Company, will focus on identifying suitable sites across various states to replicate the success NTPC has achieved in thermal power generation – positive.
Embassy REIT –– Company has signed an agreement to provide on lease 8 lakh square feet prime office space in Bengaluru to global banking major Commonwealth Bank of Australia, with an option to expand leasable area further by 6 lakh square feet – positive
Tata Motor – Company is collaborating with Delta Electronics India and Thunderplus Solutions Pvt to expand charging infrastructure for its electric commercial vehicles by setting up 250 new fast charging stations across the country. Strategically located in and around over 50 cities, including Delhi, Mumbai, Chennai, Bengaluru, Pune, and Kochi among others – positive
Indian Navy signs MoU with BEML – Company signed strategic MoU with the Directorate of Marine Engineering, Indian Navy. The agreement was signed at the Naval Headquarters in Delhi, with Ajit Kumar Srivastav, Director of Defence at BEML, and Rear Admiral K Srinivas, ACOM (D&R) of the Indian Navy. – Positive
Shriram Properties – Company expects to double its sales volume, triple revenue and boost profit by four times over the next 3 years. Company is targeting cumulative sales of over 20m square feet, primarily in Bengaluru, Chennai and Pune. Shriram Properties has a pipeline of 42 projects with 42m sq ft development potential . The developer aims to double future project inventory in 18-24 months. The company also announced a new brand identity – Positive
Tata Power – S&P Global Ratings has elevated the credit rating of Tata Power from BB+ to BBB-, accompanied by a positive outlook – positive
Larsen & Toubro – Company won a “large” order for building roads and bridges under the Navi Mumbai airport between Rs2500cr – Rs5000cr
Maruti Suzuki– Company is scaling back its production in response to lower-than-expected passenger vehicle demand in the first quarter of the 2024-25 fiscal year. Suzuki Motor Corp (SMC), the company’s majority shareholder, confirmed this move, as per the Business Standard report.- We are long term positive
BPCL – Company clarified that the proposal for procurement of LPG from Equinor India Pvt Ltd is under discussion and same is in the normal course of business. At present, no contract or agreement has been finalised for the same. – falling oil price will be positive
Honasa Consumer – Company informed that Delhi HC has directed RSM General Trading LLC to withdraw the execution proceedings of ₹57.17 crore. – long term positive
Refex Renewables & Infrastructure – Company has entered into and executed an investment agreement for acquisition of controlling stake up to 51.02% of the total voting powers, from the existing promoters and investment by way of fresh equity infusion in Vyzag Bio-Energy Fuel PVT – Positive
Indoco Remedies– Company announced the receipt of final approval from the USFDA for Abbreviated New Drug Application (ANDA) for Lofexidine Tablets 0.18 mg to market a generic equivalent of Lucemyra Tablets, 0.18 mg of USWM, LLC. This drug is indicated for mitigation of symptoms associated with acute withdrawal from opioids and for facilitation of the completion of opioid discontinuation treatment. – positive
Kalyan Jewllers – Promoter of Kalyan Jewllers will acquire a 2.36% stake or 2.43cr share at Rs535 per share (CMP 544) from global private equity major Warburg Pincus worth Rs1300cr. Following the transaction, the ‘promoter’ and ‘promoter group’ shareholding in the company will increase from 60.59% to 62.95%. – Positive
Samvardhana Motherson – Company has incorporated a wholly owned subsidiary, namely, Motherson Strategic Systems Mideast Limited, Jebel Ali Free Zone, Dubai. – positive
CDSL – Company informed that Nilesh Lodaya, Executive Vice President – Chief of Business Development & New Projects of the Company has been appointed with effect from August 21, 2024, and he will be considered as a Senior Management Personnel as per SEBI Listing Regulations. – positive
ICICI Securities – The National Company Law Tribunal bench of Mumbai, on Wednesday, approved the delisting of ICICI Securities Ltd., dismissing objections raised by Quantum Mutual Fund and minority shareholder Manu Rishi Gupta. Under the approved scheme, ICICI Securities shareholders will receive 67 ICICI Bank Ltd. shares for every 100 shares they hold. The scheme had earlier secured approval from 93.8% of ICICI Securities equity share holders
JNK India – Company secured a significant order from Mundra Petrochem, an Adani Group company. The contract is in the range of ₹0 -₹50 crores.- positive
India Grid Trust: Sponsor Esoteric II to sell up to a 17.32% stake in the company via OFS, which includes a base offer of up to 9.66% with an oversubscription option of an additional 7.66%. The floor size for OFS is set at Rs 132 per share. OFS is to take place on August 22 and 23.
IREDA: The company is to consider raising funds up to Rs 4,500 crore through FPO, QIP, or other means. – positive
Zen Technologies: The company will launch its QIP and has set the floor price at Rs 1,685.18 per share.
Welspun Enterprises: The company arm received an order worth Rs 160 crore from BMC for the rehabilitation of man-entry sewers by trenchless technology in Mumbai.- positive
Punjab National Bank: The government has extended Kalyan Kumar’s term as Executive Director for two years beyond Oct. 20. – Positive
L&T Technology Services: The company has extended collaboration with Paris-based Thales for software monetisation solutions. – positive
RVNL: The company signed a MoU with Dhaya Maju Infrastructure for rail infrastructure projects in the ASEAN market, with a special focus on establishing a manufacturing base in Malaysia for railway coaches. – positive
Kilburn Engineering (BSE Listed)– Company agreed to acquire heating solutions manufacturer Monga Strayfield for Rs123cr. Monga Strayfield Pvt is an engineering company specializing in the manufacture of radio frequency dryers and heating solutions. For the financial year 2023-24, the company reported a total revenue of Rs72.90 crore and a profit after tax (PAT) of INR 15.41 crore. As of March 31, 2024, the company’s cash and bank balance stood at Rs33.28 crore. – positive
JSW Steel Sees 10M Tons Expansion Potential at Two Plants – Company sees potential for brownfield expansion of around 5 million tons annual capacity each at its Vijayanagar and BPSL plants – positive
Ola Electric receives PLI approval for two more vehicle models – Company has received certification for production-linked incentive (PLI) benefits for two more of its vehicles. The 3 KwH (kilowatt hour) and 4 KwH versions of Ola S1X have received the certification for compliance with the eligibility requirement for the PLI scheme after having “successfully met the stringent minimum localisation criteria of 50% as mandated by the Ministry of Heavy Industries,” the firm said in a statement.
Marksans Pharma – Company has received marketing authorization from the UK Medicines and Healthcare products Regulatory Agency (UKMHRA) for its Fluoxetine capsules
Servotech Power – Company won contract for installing 12 electric vehicle charging stations from Kerala government.
Adani Enterprises – Company has increased public bond sale size to as much as Rs 800 crore. Company had earlier filed draft prospectus for up to Rs 600 crore
Rategain Travel – Comoany has been selected by Thai International Public Company Limited (Thai Airways) for a multi-year partnership with the company’s dedicated platform for Airlines, AirGain. – positive
Central Bank of India – Company has declared as a successful bidder for the sale of Category 1 assets of Future Enterprises. Successful bidder is for Future General India stake. – long term positive
ONGC approves buyback of debt securities worth Rs7,778cr –Company’s board approved the additional investment planned in OPaL which will raise the company’s ownership in OPaL to 92%. The board meeting, which took place on Wednesday, August 21, 2024, saw the approval of an investment of ₹86.281 crore for the payment of balance call money and a buy-back of Compulsorily Convertible Debentures (CCDs) worth ₹7,778 crore from financial institutions, banks, mutual funds, and other holders. – positive
Thomas Cook – company introduced a customer self-service (CSS) holiday app for iOS and Android users. Launched today, the app aims to streamline post-booking services for holiday customers. – positive
Avantel – Company secured order worth ₹67.92 crore from NewSpace India Limited for the supply, installation and commissioning of Satcom Terminals (Xponders).- positive
P&G reported impressive Q1 results. Company reported Q1 Net profit Rs16.78cr (down 44% YoY), Ebitda Rs48.3cr (up 6.4% YoY), Ebitda margin at 17% vs 15.1% (YoY), dividend Rs60 a share and Income Rs284cr (down 5.6% YoY).
Sudhipan Sharma
