Market Highlights

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Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

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September 20, 2024

• Defence Sector Down 30% From Top
• Cochin Ship -44%
• Bharat Dynamics -40%
• Garden Reach -40%
• MTAR Tech: -40%
• Apollo Micro -36%
• BEML: -35%
• Paras Defence -33%
• Mazagon Dock: -32%
• Mishra Dhaka -31%
• Ideaforge: -31%
• HAL: -26%
• DCX Systems: 25%
• BEL: -20%
• Astra Micro: -17%
• Defence Mutual Funds
• HDFC Defence (Size 4000 Cr): -12%
• MOSL Defence (Size 2250 Cr): -20%
• AB Defence Fund (Size 330 Cr): -5%
• I think it will bounce back sooner than later.
• Govt very well know that psu stocks are cash cow for them.
• And recovery would be pretty quick.
• That’s my view
• Market Share of UPI Apps (August 2024)
• * PhonePe - 48.36%
• * Google Pay - 37.3%
• * Paytm - 7.21%
• * Others - 7.13%
• SEBI: Regulator restrains Axis capital from taking new assignments for Merchant banker, Arranger or Underwriter.
• DII ** 19-Sep-2024
• 16,234.69 14,221.83
• 2,012.86 Crs (net buyers)
• FII/FPI * 19-Sep-2024
• 17,852.32. 20,399.85
• -2,547.53 Crs (net sellers)
• India Daybook – Stocks in News
• Phoenix Mills: Company has emerged as the highest bidder for two strategically located plots in Mohali, Punjab. (Positive)
• Suzlon Energy: Company excluded from Stage 1 Additional Surveillance Measure framework (Positive)
• HUDCO: Company has potential for extending Rs 75,000 crore to Rs 1 lakh crore loan assistance under PM Awas Yojana. (Positive)
• IIFL Finance: RBI lifts restrictions imposed on gold loan business of the company. (Positive)
• Infosys: Company and POSTI extend strategic collaboration. (Positive)
• AU Small Finance: Partners with Niva Bupa Health Insurance to priorities customer health (Positive)
• IDFC FIRST Bank: The bank has secured approval from the RBI for the reappointment of V. Vaidyanathan as Managing Director and Chief Executive Officer. (Positive)
• EMS: Company gets order worth Rs 6.81 billion (Positive)
• Cosmic CRF: Company unit gets order worth Rs 1.27 billion (Positive)
• MSTC: Company unit ferro scrap nigam to be sold to listed Japanese cos konoike transport co. Ltd for Rs 320 crore (Positive)
• CESC: Company announces the incorporation of three wholly-owned subsidiary to focus on the renewable power sector. (Positive)
• Whirlpool: Board approves acquisition of further 9.56% in arm Elica PB for Rs 167 crore post acquisition. (Positive)
• Sandur Manganese: Company received consent from the Karnataka State Pollution Control Board to increase Manganese Ore production from 0.43 MTPA to 0.55 MTPA. (Positive)
• Thomas Cook: Company opened a new franchise outlet in Chromepet, Chennai, expanding its network to 9 locations in the city and 15 across Tamil Nadu (Positive)
• Indian Overseas Bank: Public sector bank said it has received an order from the Income Tax Department under Section 250 of the Income Tax Act, 1961, confirming a refund of ₹123.87 crore (Positive)
• Axis Bank: SEBI bars Axis Capital from merchant banking in debt segment (Neutral)
• Jyothy Labs: Company signed purchase agreement with smartwash solutions for acquiring its brand QUICLO, entity being acquired is in laundry service sector (Neutral)
• Pix Transmissions: Company announced the completion of Independent Director Mr. Nigel Savio Lobo's second and final term of 5 years, effective September 19, 2024 (Neutral)
• Tata Communications: Company has issued and allotted Commercial Paper aggregating to an amount of Rs 250 crores (Neutral)
• D&H India: Company announced the resignation of Independent Director, Balraj Kishor Namdeo, and effective September 19, 2024. (Neutral)
• Shriram Finance: Company in its meeting held on 19th Sep 2024, approved and allotted subordinated, unsecured, rated, listed, redeemable, taxable ncd’s, issue size of Rs 150 cr (Neutral)
• Shraddha Prime: Company announces the launch of its new redevelopment project, SHRADDHA PRATHAM, in Borivali East, Mumbai. (Neutral)
• Kirloskar Brothers: Company along with Kolhapur steel entered into shareholders agreement for acquisition of 26% of share capital of sunsure solarpark nineteen, deal for Rs 50 Million. (Neutral)
• Balkrishna Industries: Company has completed the CAPEX for 30,000 MTPA of high value of advanced carbon material and commissioned the plant (Neutral)
• GE T&D India: Company to exercise the oversubscription option in offer for sale, offer size will be up to 40 million shares of equity shares (Neutral)
• NTPC: Board has granted investment approval for two major thermal power projects with a combined investment of ₹20,921.85 crore (Neutral)
• Tata Power: Company discloses litigation with Adaro International in arbitration over coal supply agreement (Neutral)
• Unitech Limited: Company acquires additional equity in wholly-owned subsidiary Unitech Holdings for Rs 15 Crore (Neutral)
• Suven Pharmaceuticals: Company announced the resignation of Vaidheesh Annaswamy as Executive Chairman and Director, effective September 19, 2024. (Negative)
• GS on Telecom
• Sell Call On Vodafone Idea, Target Rs 2.5
• Sell Call On Indus Towers, Target Rs 350
• Buy Call On Reliance Ind, Target Rs 3,430
• Buy Call On Bharti Airtel, Target Rs 1,700
• SC Rejects Curative Petition On AGR
• In Base Case Were Not Building Any Reduction In AGR Liability.
• SC’s Move On AGR Raises Probability Of Larger & More Frequent Tariff Hikes For Vodafone Idea
• Vodafone Idea May See Tariff Hikes To Be Able To Bridge The FCF Gap
• SC’s Move May Also Result Into Larger & Frequent Or Mkt Share Gains In Favour Of Bharti & Jio
• It Remains To Be Seen Whether Govt Could Provide Any Relief Measures
• In Absence Govt Relief, Would Expect FCF For Voda Idea To Be Negative At Least Until FY31
• UBS on Telecom
• Maintain Buy Call On Voda Idea
• We Earlier Highlighted That Voda Idea’s Fair Value/Sh Can Range Between Rs 12 With No Relief On AGR
• SC’s Dismissal Of Petition Now Reduces The Probability Of An Outright Waiver By Govt
• Do Not Rule Out An Equity Conversion Or Deferral (As Was Done Before)
• Need To Be See Whether These Measures Will Be NPV Positive For Equity Holders Of Voda Idea
• CLSA on Telecom
• For Voda Idea, Factor AGR Risk At Rs 7/Sh (40% Of Stock Fair Value) & Retain Underperform
• For Bharti Airtel, AGR Risk Is Lower At Rs 62/Sh (3% Of Fair Value) & Retain Outperform
• In Past, Voda Idea Had Self-Assessed AGR Dues At Rs 21,500 Cr Vs DoT Est Of Rs 58,300 Cr
• In Q1, Voda Idea Debt Included Rs 70,300 Cr For AGR, Besides Rs 1.39 Lk Cr Cr For Spectrum
• AGR Relief Is Crucial For Voda Idea & We Await Industry's Next Steps
• In Absence Of AGR Relief, Voda Idea Could Face Financial Crisis In H2FY26/FY27CL
• H2FY26/FY27CL In When Annual Spectrum & AGR Payments To Govt Of $4-5 Bn/annum Become Due
• Macquarie on Telecom
• Order Of Preference Is Bharti Hexacom, Give Outperform Call
• Outperform Call On Bharti Airtel, Neutral On Reliance Ind,
• Underperform Call On Indus Towers & Vodafone Idea
• With SC Rejects Curative Petition On AGR, Voda Idea FCF Math Challenged
• Without AGR Relief, It Would Take At Least 25-30 Years For Voda Idea To Organically Pay Back Dues
• Further Repayment Timeline Extensions Are Required For Dues To Be Paid
• In Base Case, Continue To See Market-Share Erosion And Meaningful Equity Dilution Risk
• For Indus Towers, Where VI Is A Tenant, Core Earnings Could Have Already Peaked
• MS on Telcom
• Lack Of Potential AGR Relief Is Negative
• Existing Strong Players Could See Their Competitive Position Improve Further
• Think Bharti Airtel Is In A Sweet Spot (Continued Market Share Gains)
• Market Expectations Of Potential Relief Coming Through Will Now Be Dismissed
• Nomura on Voda Idea
• Upgrade to buy, TP Rs 15
• Worst is now behind us
• AGR overhang concludes; recent sharp correction with strong industry outlook provides an opportunity to buy
• Government support can materially ease VIL’s funding gap
• Maintain estimates which factor in a 12% ARPU hike & slowing subscriber loss trends for VIL over FY25-26F and a modest recovery in FY27F, which opine can have upside risks.
• Hence, expect its EBITDA to record a 15% CAGR over FY24-FY27F
• BOFA Sec on Indus Tower
• Buy, TP cut to Rs 450
• AGR decision: Not direct but derivative impact
• 1: No impact on expected on tenancy growth
• 2: Multiple de-rating likely
• 3: Low possibility of lump-sum payment & any special dividend now
• Val @6.9X our FY26E EV/EBITDA inexpensive
• Investec on Mankind Pharma
• Initiate Buy, TP Rs 3300
• Co’s vision to be an innovation-driven & differentiation-focused Co with high entry barrier prods has found a match in BSV
• Believe BSV has potential to drive growth for longer periods
• Cos strong India presence/network would spur a significant uptick in BSV’s India sales given huge complementarity/synergies
• IVF is an underpenetrated & large market ($6bn) & MNKI-BSV has potential to become global leader
• JPM on Pharma
• Mirabegron’s favorable District Court judgment vacated by US Appeals Court
• While development adds uncertainty to litigation outcome, believe unlikely to impact Lupin’s or Zydus’s product strategy
• Mirabegron currently a/cs for 8%/12% of FY25E earnings for Lupin/Zydus
• BoFA Sec on Pharma
• Mirabegron uncertainty weigh on ZYDUSLIF/LPC in near-term
• While do not expect cos to stop supplies (unless there is restriction by court), uncertainty does create a near-term overhang
• Zydus Life – N, TP cut to 1145
• Lupin – UP , TP cut to Rs 1560
• Macquarie on Metals
• Upgrade JSW Steel to O-P; TP raised to Rs 1077
• JSPL top pick; TP raised to Rs 1170
• Hindalco– OP, TP raised to Rs 760
• Tata Steel–O-P, TP Raised 171
• Coal India–TP raised to Rs 541
• Commodities price outlook factors in upside risks over next 6-12mths
• MOSL on LTMindtree
• Buy, TP Rs 7400
• Believe US BFS recovery will remain a key monitorable, (BFSI a/cs for 35% of rev)
• This, coupled with resumption of ERP modernization projects, could catapult revenues higher for LTIM.
• However, margin expansion & churn top-level key concerns
• Dow jumps 500 points, S&P 500 closes above 5,700 for the first time a day after Fed slashes rates. 10-, 30-year Treasury yields pop after jobless claims, Philadelphia Fed’s factory gauge. Oil prices rise after Fed delivers big interest-rate cut.
• Dow ATH: 42160.91
• S&P ATH: 5733.57
• Nifty closed @25,415.80 (+38.25) and Sensex @83,184.80 (+236.57) on Thursday GIFT Nifty was trading at 25,536 (as of 7:30 am)
• FIIs net sold equities in cash to the tune of Rs 2,547 cr whereas DIIs bought equities in cash worth Rs 2,013 cr on September 19, 2024
• SC rejects AGR please in a big blow for telcos
• Adani's lead race to pick up 46.6% promoter stake in ITD Cementation
• SEBI has barred Axis Bank from taking up any new debt merchant banking activities
• Reliance Infrastructure Board approves Rs.3014 crore Preferential Issue
• RBI curbs on IIFL Finance gold loan business lifted
• Strong hybrid car sales take off in UP after tax waiver
• PTC India and SEIL seek to invoke bank guarantees to get Bangladesh dues
• Rate cut may not spur capital inflows to equities Jeffries' Wood
• S&P Global reduces India EV penetration estimates
• Oberoi Hotels owner EIH exits UAE in abrupt move
• NTPC approves investment worth Rs 20,922 crore for two power projects
• Infosys to acquire up to 20% stake in space tech startup GalaxEye
• Macrotech Developers plans to acquire Ivanhoe's stake in three entities for Rs.239 crore
• Japan's Daikin invests Rs.1,400 crore in India unit to boost output
• Tata Power and Adaro International in arbitration over coal supply dispute
• India aims to slash logistics costs to single digit percentage in next five years
• Power Grid bags transmission project in Gujarat
• Indian ADRs: HDFC Bank (+2.1%), Wipro (+1.6%) and Dr Reddy's (-0.6%)
• Debt:
• 10 yr G sec yield fell by 2 bps to 6.76% on Thursday
• As per Finance Ministry official, a sharp 50 bps interest rate cut by US Fed will be positive for global as well as Indian economy, but it may not significantly drive capital inflows into the country that would warrant attention
• India is on track to becoming world’s 3 rd largest economy by FY31 as per S&P Global
• Elevated foreign inflows into G secs following India’s inclusion in global bond indices may lead to reduction in banks’ statutory liquidity ratio ( over the long term, as per S&P Global
• Indian companies are opting for cross currency swaps to convert part of their rupee debt into dollars to trim borrowing costs as US interest rates decline, reported Reuters
• Commodities
• Brent crude was up by 1.72% to $74.92 /barrel as a large cut in U S interest rates and declining global stockpiles helped offset some of the demand concerns arising from weak consumption in China
• Gold futures settled higher as the U S Federal Reserve launched its monetary easing cycle with a half percentage point move, boosting bullion to an all time high Spot gold was up by 1.1% to $2,587.35 oz/ on Thursday
• India's rice production this year will be higher than last year despite heavy rains and flooding in some states, Agricultural Minister Shivraj Singh Chouhan said on Thursday
• Indian refiners are jointly negotiating to purchase Russian oil for next year, a government source said on Thursday, with suppliers mostly using Russian insurance for crude priced above a 60 per barrel cap
• Currency:
• Rupee remained flat and closed at 83.69 against the US dollar on Thursday, due to inflow of FIIs in Indian equity market
• US Dollar Index (DXY) fell by 0.34% to end at 100.68 on Thursday, as Dot Plot suggests a gradual easing cycle that hints at three cuts in 2024
• EUR/USD increased by 0.34% to end at 1.116 on Thursday, as BoE leaves interest rates unchanged at 5% as expected
• USD/JPY increased by 0.42% to 142.87 on Thursday, as Bank of Japan is expected to keep interest rates unchanged on Friday
• International Markets
• U S markets rallied on Thursday with the Dow Jones, S&P 500 and Nasdaq up by 1.26%, 1.7% and 2.51%. All 3 major futures indices are trading down by 2-20 bps at the time of writing the report
• The Bank of England left its key bank rate unchanged in its policy meeting on Thursday, which was in line with economists' expectations
• U S initial unemployment claims declined by 12,000 to a seasonally adjusted 219,000 for the week ended 14 Sep Economists polled by Reuters had forecasted 230,000 claims for the latest week
• U S existing home sales declined by 2.5% MoM to a seasonally adjusted annual rate of 3 .86 mn units in Aug 24 from 3.96 mn in Jul 24 The data missed expectations as economists forecasted for a rate of 3.92 mn for Aug 24
• NTPC: CO BOARD HAS ACCORDED INVESTMENT APPROVAL FOR DARLIPALI SUPER THERMAL POWER PROJECT, STAGE-II (1X800 MW) AT AN APPRAISED CURRENT ESTIMATED COST OF INR 11130.98 CRORE
• RELIANCE INFRASTRUCTURE: CO APPROVED RAISING OF FUNDS AGGREGATING UP TO 3,000CR RUPEES THROUGH ISSUE OF EQUITY SHARES
• RELIANCE INFRASTRUCTURE: CO INFORMS ABOUT ISSUANCE OF UPTO 125.6M SHARES OR WARRANTS AT 240 RUPEES PER SHARE
• POWER GRID CORP: CO DECLARED AS SUCCESSFUL BIDDER UNDER TBCB || PROJECT COMPRISES ESTABLISHMENT OF NEW 765/400/220KV (GIS) SUB-STATION NEAR SOUTH OF OLPAD, 765KV & 400KV D/C TRANSMISSION LINES AND ASSOCIATED BAYS EXTENSION WORKS AT OTHER EXISTING SUBSTATION IN THE STATE OF GUJARAT
• RANE HOLDINGS: CO ACQUIRED ENTIRE BALANCE 51% STAKE IN JOINT VENTURE RANE NSK STEERING SYSTEMS
• LEMON TREE HOTELS: CO LAUNCHES ITS TENTH PROPERTY IN UTTARAKHAND WITH LEMON TREE RESORT, MUSSOORIE
• ABBOTT INDIA: CO SIGNS A NON-EXCLUSIVE PATENT LICENSE AGREEMENT WITH TAKEDA PHARMACEUTICALS CO || CO SAYS AGREEMENT TO MARKET AND DISTRIBUTE "VONOPRAZAN" IN INDIA
• AU SMALL FINANCE BANK: CO AND NIVA BUPA JOIN HANDS TO PRIORITIZE CUSTOMER HEALTH || AU SFB’S ONE CRORE PLUS CUSTOMERS CAN NOW CHOOSE FROM NIVA BUPA’S RANGE OF HEALTH INSURANCE PRODUCTS
• EMS: BOARD MEETING OUTCOME || CO APPROVED RAISING OF FUNDS BY ISSUANCE OF SHARES WORTH 4 BLN RUPEES VIA QUALIFIED INSTITUTIONS PLACEMENT
• NTPC: CO BOARD HAS ACCORDED INVESTMENT APPROVAL FOR SIPAT SUPER THERMAL POWER PROJECT, STAGE-III (1X800 MW) AT AN APPRAISED CURRENT ESTIMATED COST OF INR 9790.87 CRORE
• IndoStar Capital Finance Limited has approved the sale of its shareholding in IndoStar Home Finance Private Limited to WITKOPEEND B.V. , affilate of EQT for INR 1700 Cr, subject to shareholder and regulatory approvals. IHFPL contributed 21% of the company's consolidated revenue in the financial year 2024.
• Global stock rally extends, yen dips before Bank of Japan policy decision - CNBC TV18
• Equities opened higher in Japan and Australia, while Hong Kong share futures also climbed. A gauge of global stocks set a fresh peak alongside US shares Thursday. The S&P 500 rose 1.7% and the Nasdaq 100 added 2.6%.
• Nike shares surge 8% afterhours after decision to replace CEO with longtime company veteran - CNBC TV18
• Elliott Hill, 60, originally joined Nike in 1988 and served as president of consumer and marketplace before he retired in 2020.
• Suzlon Energy excluded from Stage 1 Additional Surveillance Measure framework - CNBC TV18
• Shares of Suzlon Energy Ltd ended at ₹80.97, up by ₹0.13, or 0.16% on the BSE.
• FedEx shares fall 11% in extended trading after profit miss, weak outlook for 2025 - CNBC TV18
• Expectations for higher revenue and profits from premium services in the US also failed to materialize, Chief Financial Officer John Dietrich said on the call.
• Sebi bars Axis Capital from taking new debt merchant banking assignments - CNBC TV18
• In its interim order, Sebi said, "ACL provided guarantee/indemnity towards redemption of NCDs in the guise of underwriting, which it was not permitted to do under the existing regulatory framework."
• #CNBCTV18Market | #GIFTNifty higher, trading at a premium of more than 50 pts from Nifty Futures thursday close, indicates a start in the green for the Indian market
• #ChinaDataWatch | 5-yr Loan Prime Rate Unchanged At 3.85% Vs Est Of 3.85%
• 1-yr Loan Prime Rate Unchanged At 3.35% Vs Est Of 3.35%
• #IndoStarCapital Finance announces sale of IndoStar Home Finance to WITKOPEEND B.V., an affiliate of BPEA EQT Mid-Market Growth Partnership (“EQT”), a global private equity investor, for Rs 1,750 cr on a fully diluted basis
• #CNBCTV18Market | GS gives sell call on Vodafone Idea, target ₹2.5/sh, buy call on Bharti Airtel, target ₹1,700/sh
• SC’s move on AGR raises probability of larger & more frequent tariff hikes for Vodafone Idea
• GOLDMAN SACHS ON TELECOM
• Sell Call On Vodafone Idea, Target 2.5/Sh, Sell Call On Indus Towers, Target 350/Sh
• Buy Call On Reliance Ind, Target 3,430/Sh, Buy Call On Bharti Airtel, Target 1,700/Sh
• SC Rejects Curative Petition On AGR
• In Base Case Were Not Building Any Reduction In AGR Liability.
• SC's Move On AGR Raises Probability Of Larger & More Frequent Tariff Hikes For Vodafone Idea
• Vodafone Idea May See Tariff Hikes To Be Able To Bridge The FCF Gap
• SC's Move May Also Result Into Larger & Frequent Or Mkt Share Gains In Favour Of Bharti & Jio
• It Remains To Be Seen Whether Govt Could Provide Any Relief Measures
• In Absence Govt Relief, Would Expect FCF For Voda Idea To Be Negative At Least Until FY31
• CLSA ON TELECOM
• For Voda Idea, Factor AGR Risk At ₹7/Sh (40% Of Stock Fair Value) & Retain Underperform
• For Bharti Airtel, AGR Risk Is Lower At 62/Sh (3% Of Fair Value) & Retain Outperform
• In Past, Voda Idea Had Self-Assessed AGR Dues At 21,500 Cr Vs DoT Est Of 58,300 Cr
• In Q1, Voda Idea Debt Included ₹70,300 Cr For AGR, Besides 1.39 Lk Cr Cr For Spectrum
• AGR Relief Is Crucial For Voda Idea & We Await Industry's Next Steps
• In Absence Of AGR Relief, Voda Idea Could Face Financial Crisis In H2FY26/FY27CL
• H2FY26/FY27CL In When Annual Spectrum & AGR Payments To Govt Of $4-5 Bn/annum Become Due
• MACQUARIE ON TELECOM
• Order Of Preference Is Bharti Hexacom, Give Outperform Call
• Outperform Call On Bharti Airtel, Neutral On Reliance Ind,
• Underperform Call On Indus Towers & Vodafone Idea
• SC Rejects Curative Petition On AGR, Voda Idea FCF Math Challenged
• Without AGR Relief, It Would Take At Least 25-30 Years For Voda Idea To Organically Pay Back Dues
• Further Repayment Timeline Extensions Are Required For Dues To Be Paid In Base Case, Continue To See Market-Share Erosion And Meaningful Equity Dilution Risk
• For Indus Towers, Where VI Is A Tenant, Core Earnings Could Have Already Peaked
• INVESTEC ON MANKIND PHARMA
• • Initiate Buy with target price of Rs 3300
• • Strong (ubiquitous) execution & brand equity marries BSV's super-specialty
• • Believe BSV has the potential to drive growth for longer periods
• • BSV's Specialty strengths (R&D and sourcing as moats) would further Mankind's vision
• • Strong India presence/network would spur a significant uptick in BSV's India sales given huge complementarity/synergies
• • Specifically, IVF is an underpenetrated and a large market and Mankind-BSV has the potential to become a global leader
• • Believe Street underappreciates the 'Special'ty / biz moat of BSV both in the near and longer term
• JPM on Pharma
• Mirabegron’s favorable District Court judgment vacated by US Appeals Court
• While development adds uncertainty to litigation outcome, believe unlikely to impact Lupin’s or Zydus’s product strategy
• Mirabegron currently a/cs for 8%/12% of FY25E earnings for Lupin/Zydus
• MOSL on LTMindtree
• Buy, TP Rs 7400
• Believe US BFS recovery will remain a key monitorable, (BFSI a/cs for 35% of rev)
• This, coupled with resumption of ERP modernization projects, could catapult revenues higher for LTIM.
• However, margin expansion & churn top-level key concerns
• #CNBCTV18Market | GS gives sell call on Vodafone Idea, target ₹2.5/sh, buy call on Bharti Airtel, target ₹1,700/sh
• SC’s move on AGR raises probability of larger & more frequent tariff hikes for Vodafone Idea
• #ChinaDataWatch | 5-yr Loan Prime Rate Unchanged At 3.85% Vs Est Of 3.85%
• 1-yr Loan Prime Rate Unchanged At 3.35% Vs Est Of 3.35%
• #CNBCTV18Market | Without #AGR relief, it would take at least 25-30 years for #VodaIdea to organically pay back dues, further repayment timeline extensions are required for dues to be paid
• Macquarie on #Telecom
• #CNBCTV18Market | For #VodaIdea, factor #AGR risk at ₹7/sh (40% of stock fair value) & retain underperform. AGR risk is lower for Bharti Airtel, at ₹62/sh (3% of fair value) & retain outperform
• CLSA on Telecom
• #IndoStarCapital Finance announces sale of IndoStar Home Finance to WITKOPEEND B.V., an affiliate of BPEA EQT Mid-Market Growth Partnership (“EQT”), a global private equity investor, for Rs 1,750 cr on a fully diluted basis
• IIFL FINANCE
• RBI has lifted the restrictions imposed on the gold loan business of IIFL Finance Limited
• RBI appointed audtor had completed special audit in June
• Curbs were put in March 2024
• Zydus / Lupin (-VE)
• Setback in gMyrbetriq litigation
• The US Court of Appeals for the Federal Circuit has vacated a US District Court judgement that favored generic companies in the patent litigation around gMyrbetriq and remanded the matter back to the District Court.
• Balkrishna Inds
• Completed the capex for 30,000 MTPA of high value of advanced carbon material and commissioned the plant.
• HUDCO
• Has a potential for extending loan assistance in the range of Rs. 75,000 Crore to Rs. 1,00,000 Crore under Pradhan Mantri Awas Yojana-Urban 2.0
• Phoenix Mills
• Has been declared as the highest bidder for two prime city-centric plots in Mohali, Punjab with a combined bid value of approximately Rs. 891 crores
• IDFC First Bank
• RBI granted approval for re-appointment of V.Vaidyanathan as MD and CEO
• Tenure extended to December 2027
• NTPC
• Board approved investments worth Rs 21000cr in 2 thermal power projects
• Axis Bank (-ve)
• SEBI bars Axis Capital from merchant banking in debt segment
• Clarification: Axis Bank is of the view that there is no material impact on the Bank on account of the Interim Order against ACL since ACL’s profit after tax (PAT) for FY 23-24 was ~0.70% of Axis Bank’s consolidated PAT
• Investec on IndiGo
• Downgrade to Sell from Hold; TP at Rs 4050
• Out-of-sync valuation ignores margin risk
• Unexciting growth, yet premium valuation
• Nomura on Vodafone Idea
• Upgrade to Buy from Neutral; TP at Rs 15
• The worst is now behind us; AGR overhang concludes
• Recent sharp correction with strong industry outlook provides an opportunity to buy
• Morgan Stanley on Steel
• SAIL – Maintain Underweight; Cut TP to Rs 105 from Rs 110
• Tata Steel – Maintain Underweight with TP of Rs 135
• JSW Steel – Maintain Equal-weight; Hike TP to Rs 895 from Rs 815
• JSPL – Maintain Equal-weight; Hike TP to Rs 970 from Rs 885
• BofA
• Lupin – Maintain Underperform; Cut TP to Rs 1560 from Rs 1660
• Zydus Life – Maintain Neutral; Cut TP to Rs 1145 from Rs 1310
• Factor uncertainty in Mirabegron revenue by discounting target multiple
• India to cut port charges, buy 5 used container vessels-(Shipping Maritime +ve)
• INDIA
• Japan's Daikin invests Rs 1.4k cr in India unit to boost output-Largest investment so far
• ETIHAD AIRWAYS GROUP CEO-We are pleased with performance in India—aim to double capacity
• Stocks in News post Market closure
• AU Small Finance Bank: The bank partnered with Niva Bupa to offer health insurance products.
• HUDCO: The company said it has the potential for extending loan assistance in the range of Rs 75,000 crore to Rs 1 lakh crore under Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) scheme guidelines
• Sandur Manganese: The Karnataka pollution board granted consent of operation for the company’s manganese and iron ore mines for the enhancement of manganese ore production from current 0.43 MTPA to 0.55 MTPA
• Jyothy Labs: The company acquired laundry service brand Quiclo from Smartwash Solutions along with its software and customer database for Rs 70 lakh to strengthen its laundry service business and customer base in Hyderabad
• VELOX SHIPPING AND LOGISTICS LIMITED : The company has adopted a new set of Memorandum of Association (MOA) and Articles of Association (AOA) which has been approved by the Registrar of Companies.
• Thomas Cook: The company inaugurated its new franchise outlet in Chennai. The new Chennai outlet expands the company's network to 9 locations in the city and 15 across Tamil Nadu.
• Balkrishna Industries Limited : The Company has completed the capex for 30,000 MTPA of high value of advanced carbon material and commissioned the plant.
• Shraddha Prime Projects Limited : The Company announces the launch of its new redevelopment project, SHRADDHA PRATHAM, located at Magathane, Borivali East, Mumbai.
• Tata Communications Limited : Company has issued and allotted Commercial Paper aggregating to an amount of ₹250 crores.
• Unitech Limited : The Company Acquired the 9,37,500 equity shares in M/s Unitech Holdings Limited, a wholly-owned subsidiary of M/s Unitech Limited, on rights issue basis. for aggregating amount to Rs. 15.00 Crores.
• KIRLOSKAR BROTHERS LIMITED : The Company along with The Kolhapur Steel Limited, its wholly owned subsidiary, have entered into a Share Subscription and Shareholders Agreement (SSHA) for acquisition of 26% of equity share capital (upto Rs. 50 Million) of Sunsure Solarpark Nineteen Private Limited. This investment is intended for the purpose of solar power captive consumption
• CESC LTD. : Purvah Green Power Private Limited, a Subsidiary of the Company has incorporated the Wholly Owned Subsidiary Companies .they are LKP Renewable Private Limited (2)DRP Renewable Private Limited (3) SKG Renewable Private Limited.
• Geojit Financial Services Limited : Board Approved Right issue.Rights Issue Price: Rs. 50 per equity share & b) Rights entitlement ratio: one equity share for every six equity shares held by eligible equity shareholders of the Company as on the record date. i.e., ratio of 1:6.
• LTIMindtree Limited : The Company has received demand Order from the Office of the Principal Commissioner of Central Tax, Bengaluru issued by Joint Commissioner.
• Ramky Infrastructure Limited : Company has received an award under the "Most Admired Emerging Company in Water Infrastructure " Category at the "Times Group 9th edition of ET NOW Infra Focus Awards 2024 ".
• Infosys Limited : Company has agreed to invest in SpaceTech startup, GalaxEye up to INR 17 Crores (approximately US$ 2.0 million) as part of Infosys Innovation Fund .
• Cinerad Communications Limited : Board approved the Draft Letter of Offer in relation to the Rights Issue of the Company to be filed with BSE Limited (the “Stock Exchange”) for their in-principle approval for listing of the Rights Equity Shares on their exchanges.
• Cosmic CRF: The company’s unit bagged an order worth a gross value of Rs. 127 crore for supply of cold-formed steel sheet piles.
• UNIPHOS ENTERPRISES LIMITED : Company would be availing Loan not exceeding Rs. 50 Crores for business / general corporate purpose. The same will be secured by pledge of 22,25,000 equity shares ofUPL Limited held by the Company that constitutes 5.63% of Company's aggregate holding in equity shares of UPL Limited.
• IIFL Finance: The RBI lifted its restrictions imposed in March on gold loans businesses. The company can now resume sanctioning, disbursal, assignment, securitisation, and sale of gold loans
• Dhruv Consultancy Services Limited : Company in association with Tritia Engenharia Lda has received the “Letter Of Contract Award” (LOA) towards the Consultancy Services in form of evaluation of High Crash Locations, Design of Roads Improvements, Preparation of Tender Documents, Support to ANE, IP during the Bidding Period and Supervision of the Implementation of the Works from the office of Director General – Departamento De Aquisicoes, Mozambique .The contract price for the said Project will be Rs. 4,18,39,853 including taxes.
• EMS Limited : Company has receipt the lowest bidder (L-1) status as its biggest tender awarded by Kolkata Municipal Corporation. The estimated order value is approximately Rs. 68149.43 lakhs(681.49crores) including Operations & Maintenance of 15 years. And also The company approved raising up to Rs 400 crore via QIP.
• Laxmi Organic Industries Limited : Company will set up a synthetic organic chemical manufacturing unit in Jagatsinghpur. & Company approached the Odisha Government for a parcel of land to explore the possibility of establishing a facility, no investment decision has been finalized and approved. Our decision will be based on land availability and a thorough feasibility assessment.
• Tega McNally Minerals Limited, a wholly owned material subsidiary of the Company has received a demand order for collection of state tax along with interest and penalty.Tax liability – Rs. 80,16,728/-; Interest – Rs. 73,40,628/-; Penalty- Rs. 8,01,673/-.
• BGR Energy Systems Limited : The Company has received Rectification order from the Deputy Commissioner of GST, Raipur, Chattisgarh, with “NIL” tax.
• Cargosol Logistics Ltd : Company is expanding its fleet to support the significant rise in road transportation driven by a growing customer base. This strategic move enhances our capacity to handle increased volumes, ensuring timely deliveries and operational efficiency.
• Hariom Pipe Industries Limited : Board meeting to be held on September 24, 2024, to approve for fund raising in various matters including QIP.
• EMS Limited : Board Approved Raising of funds by way of issuance of equity shares of the Company having face value of Rs. 10/- each, for an aggregate amount not exceeding ₹ 400 Crores by way of qualified institutions placement (‘QIP’) in one or more tranches .
• The Phoenix Mills: The company’s unit Casper Realty was declared the highest bidder for two city-centric plots in Mohali, Punjab.
• Abbott India: The company is in a non-exclusive agreement with Takeda Pharma to market and distribute Vonoprazan drugs in India
• Datamatics Global Services Limited : Dextara Digital (UK) Private Limited which is the Step-down Subsidiary of the Company based in UK has been dissolved.
• SKY INDUSTRIES LIMITED : Board has approved the purchase of land admeasuring 17049.00 sq. mts situated at Khattalwada, Taluka-Umbergaon, District-Valsad, Gujarat from an unrelated third party seller for setting up of greenfield project as a part of the Company’s expansion plan. The Company is in the process of executing definitive agreement(s) in accordance with the applicable laws and procedural requirements. Agreement Size -Rs. 6.82 Crore .
• Lemon Tree Hotels Limited : Company opening of Lemon Tree Resort, Mussoorie. This managed hotel is the tenth property of the group in Uttarakhand.This resort will feature 44 well-appointed rooms and suites, Citrus Café – a multi-cuisine coffee shop, event spaces and other public areas. The resort will also feature a well-equipped fitness centre and banquet facility in the second phase.
• Tata Power: The company sought arbitration in dispute with Adaro International over coal supply. Adaro made a claim of $106 million, and Tata Power made a counterclaim of $230 million.
• Power Grid Corp.: The company was declared a successful bidder for the Khavda transmission project in Gujarat
• The Company has acquired from NSK Ltd., Japan (‘NSK’) the entire balance 51% equity stake in the joint venture company viz.;M/s. Rane NSK Steering Systems Private Limited (‘RNSS’). Pursuant to the acquisition, RNSS has become a Wholly Owned Subsidiary (100%) of the Company and would be renamed as Rane Steering Systems Private Limited’.
• D & H MIDDLE EAST FZE : The wound up of a wholy owned Subsidiary company named D & H MIDDLE EAST FZE ,in Dubai, UAE incorporated in Dubai.
• Wipro Limited : Cloudsocius DMCC - Dubai, stepdown subsidiary of Company, has been voluntarily dissolved and the Company received confirmation of the aforesaid dissolution from the Dubai Multi Commodities Centre (“DMCC”) Authority
• EFC Ltd: Ek Design Industries Limited (‘Ek Design’) Unlisted Subsidiary of the company is proud to announce the commencement of Commercial Production at Ek Design Factory spread over 3 Acres of land at Fursungi, Pune.
• Williamson Financial Services: an order dated 18.09.2024 has been passed against the Company by the Hon’ble Bombay High Court. As per the order, to jointly and severally pay a sum of Rs.33,20,76,377.69 along with interest @ 18% p.a. and other charges
• Global Surfaces Ltd: Global Surfaces FZE ("GS FZE"), a wholly owned subsidiary of Global Surfaces Limited has announced the Global launch of its product “Quartzites” in a showcase event held in Dubai on September 19, 2024.
• Whirlpool: Board of Directors of Whirlpool of India Limited (Company) at their meeting held on 19th September, 2024 accorded their approval for acquisition of further 9.56% of the issued and paid up share capital of the Company’s subsidiary, Elica PB Whirlpool Kitchen Appliances Private Limited (Subsidiary) and accordingly the Company has executed a share purchase agreement in this regard. Post completion of the acquisition, the Company would hold ~96.81% shares of the Subsidiary.
• NTPC: The company received investment approval for Darlipali project at an estimated cost of Rs 11,131 crore and received investment approval for Sipat project at an estimated cost of Rs 9,791 crore
• Reliance Infra: The company approved raising up to Rs 3,014 crore via preferential issue of shares. It will also seek shareholder's nod to raise another Rs 3,000 crore.
• IDFC Bank: The bank received RBI approval for re-appointment of V Vaidyanathan as MD and CEO for three years
• Geojit Financial: The company approved rights issue at Rs 50 per share to issue 1 share for every 6 held by eligible holders.
• Sula Vineyards: The company launches Sula Merlot priced at Rs 895.
• Morgan Stanley on Steel
• SAIL – Maintain Underweight; Cut TP to Rs 105 from Rs 110
• Tata Steel – Maintain Underweight with TP of Rs 135
• JSW Steel – Maintain Equal-weight; Hike TP to Rs 895 from Rs 815
• JSPL – Maintain Equal-weight; Hike TP to Rs 970 from Rs 885
• India to cut port charges, buy 5 used container vessels-(Shipping Maritime +ve)
• Here are the stocks to watch in trade today.
• How foreign and local funds played the markets on Thursday.
• Today on The Daily Brief we deep dive into these stories:
• 1. Will RBI cut rates after the Fed?
• The US Federal Reserve has cut interest rates by 0.5 percentage points, the first in 4 years, aiming to stabilize the US economy. While this impacts global markets, the RBI may not follow suit immediately. If RBI doesn't cut rates, it could lead to cheaper imports and more expensive exports, impacting sectors like textiles and agriculture. With inflation, especially food inflation, still a concern, RBI's decision remains complex and crucial for India's economic stability.
• 2. India’s rising trade deficit
• India’s trade deficit widened to $30 billion in August, the highest in 10 months, driven by a surge in gold imports and weakening exports. Factors include reduced gold import duties and global challenges like China's economic slowdown and supply chain disruptions. Solutions include boosting domestic manufacturing, leveraging service sector surpluses, and attracting more foreign investment. Despite the deficit, India’s high foreign reserves offer some protection, but long-term improvements are needed.
• Major US rate cut: What will India do?
• Our goal with The Daily Brief is to simplify the biggest stories in the Indian markets and help you understand what they mean.
• *SEC. IN F&O BAN FOR, 20-SEP-24
• 1 AARTIIND
• 2 BIOCON
• 3 BSOFT
• 4 CHAMBLFERT
• 5 GNFC
• 6 GRANULES
• 7 LICHSGFIN
• 8 NATIONALUM
• 9 OFSS
• 10 PNB
• 11 RBLBANK
• 12 SAIL
• *ADDITION : CHAMBLFERT, NATIONALUM,SAIL*
• *DELETION : BALRAMCHIN *
• *Fund Houses Recommendations*
• Macquarie on *JSW Steel:* Upgrade to Outperform on Company, raise target price at Rs 1077/Sh from Rs 884/Sh (Positive)
• Macquarie on *Hindalco:* Maintain Outperform on Company, raise target price at Rs 760/Sh from Rs 597/Sh (Positive)
• Macquarie on *Coal India:* Maintain Outperform on Company, raise target price at Rs 541/Sh from Rs 465/Sh (Positive)
• Macquarie on *JSPL:* Maintain Outperform on Company, raise target price at Rs 1170/Sh from Rs 1070/Sh (Positive)
• Macquarie on *Tata Steel:* Maintain Outperform on Company, raise target price at Rs 171/Sh from Rs 162/Sh (Positive)
• BofA on *Reliance Ind:* Maintain Buy on Company, target price at Rs 3430/Sh (Positive)
• BofA on *Bharti Airtel:* Maintain Buy on Company, target price at Rs 1700/Sh (Positive)
• Investec on *Mankind:* Maintain Buy on Company, target price at Rs 3300/Sh (Positive)
• Citi on *Vodafone Idea:* Maintain Buy on Company, target price at Rs 17.0/Sh (Positive)
• Nomura on *Vodafone Idea:* Upgrade to Buy on Company, target price at Rs 15.0/Sh (Positive)
• InCred on *IIFL Finance:* RBI has lifted the embargo on IIFL Finance for gold lending (Positive)
• UBS on *Vodafone Idea:* Company’s fair value per share can range between Rs12 (no relief on AGR) to Rs24 (full relief / waiver of AGR) (Neutral)
• Nuvama on *Vodafone Idea:* Maintain Hold on Company, target price at Rs 11.5/Sh (Neutral)
• MS on *Tata Steel:* Maintain Underweight on Company, target price at Rs 135/Sh (Neutral)
• MS on *JSPL:* Maintain Equal weight on Company, raise target price at Rs 970/Sh (Neutral)
• MS on *JSW Steel:* Maintain Equal weight on Company, raise target price at Rs 895/Sh (Neutral)
• BofA on *Indus Tower:* Maintain Buy on Company, cut target price at Rs 450/Sh (Neutral)
• GS on *Indus Tower:* Maintain Sell on Company, target price at Rs 350/Sh (Neutral)
• BofA on *Zydus Life:* Maintain Neutral on Company, cut target price at Rs 1145/Sh (Neutral)
• BofA on *Lupin:* Maintain Neutral on Company, cut target price at Rs 1560/Sh (Neutral)
• CLSA on *Telecom Sector:* For Voda Idea, factor AGR risk at ₹7/sh (40% of stock fair value) & retain underperform. AGR risk is lower for Bharti Airtel, at ₹62/sh (3% of fair value) & retain outperform (Neutral)
• MS on *Telecom Sector:* Lack of potential AGR relief is negative. Think *Bharti Airtel* Is In A Sweet Spot (Neutral)
• MS on *SAIL:* Maintain Underweight on Company, cut target price at Rs 105/Sh (Negative)
• GS on *Vodafone Idea:* Maintain Sell on Company, target price at Rs 2.5/Sh (Negative)
• Investec on *Indigo:* Downgrade to Sell on Company, target price at Rs 4050/Sh (Negative)
• Adani Group set to acquire 46.64% stake in ITD Cementation India for Rs 5,888.57 crore
• The Adani Group is set to acquire a 46.64% stake in ITD Cementation India for Rs 5,888.57 crore to enhance its civil engineering capabilities. This acquisition will trigger an open offer for an additional 26% stake. A formal announcement is expected soon.
• *GLOBAL UPDATE*
• Dow Jones surges 500 points, S&P 500 crosses 5,700 to close at record highs post FedRate cuts.
• ED grills ex-CFO of Religare Enterprises in money laundering probe
• The ED had last week lodged an enforcement complaint information report to investigate an alleged money-laundering offence. The ED's case is based on an FIR registered with the Mumbai Police, where the central agency is the complainant.