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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October 09, 2024

• Today's Headlines from :-
• Economic Times
• Edelweiss Financial announces Rs 200 crore NCDs with up to 11% annual yield
• Sebi outlines specific due diligence of investors, investments of AIFs
• Hyundai Motor India IPO opens next week with likely price band of Rs 1,865-1,960: Report
• Gross enrolments under Atal Pension Yojana cross 7 crore mark
• Centre eases export norms for some dual use software, tech items to 41 nations
• Global recognition race drives CSR spend on sports, art
• US trade deficit narrows sharply in August
• Tata Motors Group global wholesales down 11 pc at 3,04,189 units in Q2
• Patanjali Foods gets CCI nod for Rs 1,100-crore buyout of parent's home & personal care business
• Torrent Power to supply of 2,000 MW Energy Storage Capacity to MSEDCL
• BioPrime raises $6 million from Belgium’s Edaphon, others
• Andrew Ng’s fund invests in AI healthcare platform Jivi
• Road safety startup Nayan Tech raises $2 million
• Business Standard
• Embassy Reit raises Rs 2,000 crore to repay NCDs maturing in October
• Consortium backed by 10 biz leaders to hold inaugural quality symposium
• Foxconn arm Yuzhan Technology to infuse Rs 13K cr to set up TN factory
• GIC considering possible sale of 50% stake in Greenko Energy: Report
• Essar aims to turn Stanlow into world's 1st decarbonised green refinery
• Akasa Air to run safety tests on 14 of 25 planes amid rudder issue
• Tata Tech-BMW form 50:50 JV to focus on software-driven solutions
• Beverage major PepsiCo sees double-digit organic revenue growth in India
• IndoSpace to invest Rs 4,500 crore in Tamil Nadu logistics parks
• ICICI Bank, PhonePe partner to provide credit line on UPI for customers
• Magicpin largest food delivery app on ONDC, logs 150,000 orders daily
• Amneal Pharma to invest Rs 1,600 crore in Gujarat to make GLP-1 drugs
• Banks should avoid long-term, high-risk lending: FM Nirmala Sitharaman
• Adani Green's 4 subsidiaries plan to raise up to $1 bn in dollar bonds
• Non-life premiums fall 6.5% in September as crop, auto segments drag
• NSDL gets Sebi nod for IPO over a year after filing offer document
• Financial Express
• Cognizant favoured H-1B holders over non-Indian workers
• Infosys expands collaboration with Old National Bank for digital transformation
• Sleepwell parent Sheela Foam to acquire 10.5% stake in Furlenco
• Airtel, Nokia collaborate to drive sustainability initiatives for mobile networks
• Trai dismisses Jio’s demand for revising satcom spectrum pricing paper
• India can generate 8-10 million tonnes of sustainable aviation fuel by 2040: Report
• Mint
• Govt directs big retailers to reduce pulses prices in line with mandi trends
• Oil sheds 5% over ceasefire talks in Lebanon amid Israel-Iran war; Brent at $77
• Biden's overseas trips cancelled as US awaits ‘potentially catastrophic’ storm
• Sebi proposes new rules for sharing for financial market data
• India can attract $15 bn Taiwanese investment in electronics, EV infra: Ficci
• India to pass new law on oil exploration in next parliament session, says Puri
• Centre's plan to raise ₹20,000 cr via green bonds is conditional on greenium
• Sebi proposes allowing stockbrokers to trade in govt securities
• World Bank forecasts further slowdown in China's growth despite stimulus.
• ”Change your words, change your world.”
• FX Hub:
• *Snapshot:
• US Fed officials remain cautious about easing policy too much, too soon. Fed minutes eyed today. RBI expected to stay status quo but there can be change in stance. DXY resisting 103.00 mark. For USDINR, 83.85 acts as a support while 84.00 a resistance.
• Market Brief:
• - The RBI’s rate-setting panel is widely expected to keep the benchmark repo rate unchanged at 6.5% for the tenth straight meeting, with a view to balance inflation and economic growth. However, there can be a change in policy stance of ‘withdrawal of accommodation’. This is the first RBI MPC meeting after three new external members appointed by the government on the panel last week.
• - The Reserve Bank of New Zealand (RBNZ) announced on Wednesday that it lowered the Official Cash Rate (OCR) by bps from 5.25% to 4.75%, following the conclusion of the October policy meeting.
• - The US Goods and Services Trade Balance data from August revealed a larger than expected recovery in the deficit. The Actual number came in at $-70.4 billion against the previous deficit of $-78.8 billion and better than the expected $-70.6 billion estimate.
• - The CME Fedwatch Tool shows an 88.7% chance of a 25 bps interest rate cut at the next Fed meeting on November 7, while 11.3% is pricing in no rate cut. Chances for a 50 bps rate cut have been fully priced out now.
• - Another round of US inflation figures is due tomorrow, with the release of September’s US Consumer Price Index (CPI). Core US CPI is expected to ease to 0.2% MoM from the previous 0.3%, while annualized headline CPI inflation is forecast to tick down to 2.3% YoY from the previous 2.5%.
• - The German Industrial Production for August has come in better than expected. On a monthly basis, Industrial Production grew at a robust pace of 2.9%, compared to estimates of 0.8% after contracting by 2.4% in July.
• - ECB policymaker and Austrian central bank Governor Robert Holzmann advised to proceed with caution on further interest rate cuts as inflation has yet not been defeated. In September, the Eurozone flash Harmonized Index of Consumer Prices (HICP) decelerated to 1.8% YoY.
• *Major events (IST):
• - 10am: RBI policy (INR)
• - 5:30pm: FOMC Member Bostic Speaks (USD)
• - 6:45pm: FOMC Member Logan Speaks (USD)
• - 8pm: Crude Oil Inventories (USD)
• - 11:30pm: FOMC Meeting Minutes (USD)
• *Commodities/Debt:
• - DXY: 102.52, Brent Oil: $77.66, Gold: $2622, 10Y Gsec: 6.81, 10Y UST: 4.02
• *Technicals (Support and Resistance):
• a. EUR/USD: 1.0920-1.1050
• b. GBP/USD: 1.3040-1.3150
• c. USD/JPY: 146.20-149.80
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• Thanks & Regards,
• Kunal Sodhani (Beast)
• (Personal view)
• MS on RIL
• OW, TP Rs 3325
• Cyclical challenges, especially in refining & retail, likely to continue – but priced in
• In 2025, as new refining capacity is absorbed, retail profitability improves, and new energy cashflows kick in, re-rating should regain traction
• MS on Torrent Power
• OW, TP Rs 2268
• CO received LoA from Maharashtra Discom for 2GW of pumped storage(includes 1.5GW announced on 17 Sep 24)
• Co expects annual rev of Rs16.8bn
• Think project could generate equity IRR of 15%, assuming capex of Rs50m/MW & 80/20debt:equity
• Nomura on SBI
• Buy, TP Rs 980
• Time to get back onboard; top sector pick
• SBI should continue to deliver well on asset quality
• Relatively well-placed amid both tougher deposit conditions & potential rate cuts
• Attractive valuations at 1x FY26F P/BV (6.7x P/E)
• Nomura on AMCs
• Project an 18% CAGR AUM for industry over FY24-30F, led by growth in equity & passive segments
• Growth of ETFs will continue to be driven by institutional flows
• Core operating profitability likely to moderate, albeit gradually
• CITI On DIVIS Labs
• Initiate Buy, TP Rs 6400
• FY26/27E EBITDA is 3/12% ahead of consensus, primarily driven by GLP-1 (US$95m in FY27E) & new products in CS
• Failure to scale up in CS is a key risk to our thesis that capture in bear case TP of Rs5100– no sales of GLP-1
• CITI on IGL
• Buy. TP Rs 620
• CNG 2-w sales witnessing traction
• Revised guidelines seek to ban inter-state buses that are not running on clean fuels from entering Delhi when air pollution turns severe;
• Concerns on sharp petrol/diesel price cuts have abated
• Emkay on Escorts
• Upgrade to BUY, TP Rs 4700/sh
• Valued at 30x Sep-26E PE + Rs320 cash/sh
• Recently-concluded monsoons lifts outlook for upcoming crop cycles
• Industry base turning favorable Kubota's intent to increase sourcing from India key mid-to-long term driver
• Antique on Gravita
• Buy, TP Raised to Rs 2920 from Rs 1710
• Board approval for Rs 10 bn fund raise, which believe is aimed at capitalizing on inorganic growth opportunities as well as new lines of biz
• Increase FY25/ 26/ 27 EPS est by 3%/ 8%/ 18%
• India Daybook – Stocks in News
• Torrent Power: Company has secured two Letter of Awards from MSEDCL for a total of 2,000 MW Energy Storage Capacity from Pumped Hydro Storage Plants (Positive)
• Phoenix Mills: Consumption in Q2 FY25 at Rs. 3,289 cr, up 25% over Q2 FY2 (Positive)
• Olectra: Emerges lowest bidder for supplying 327 electric buses to Himachal Pradesh Govt. Boosting eco-friendly transportation Strengthening sustainable infrastructure. (Positive)
• Dr. Reddy’s Laboratories: Company subsidiary announces promising Phase 1 results for autologous CAR-T cell therapy (Positive)
• IRFC: Company Board approved financing of 20 BOBR Rakes to NTPC for Rs 700 Cr under Finance Lease. (Positive)
• Aarvi Encon: Company gets order worth Rs 1.73 billion (Positive)
• Infosys: Company and Old National Bank have expanded their four-year partnership. (Positive)
• GR Infraprojects: Company subsidiary, GR Bilaspur Urga Highway Private Limited, has achieved provisional completion of the 4-laning project on NH-130A in Chhattisgarh. (Positive)
• PNB Gilts: Indian government bonds to be included in the FTSE EM Government Bond Index (Positive)
• IRBInfra: September toll collections up 19.2% at ₹501.8 cr vs ₹421 cr (YoY) (Positive)
• Tata Technologies: Company and BMW Group establish BMW TechWorks India - a Joint Venture to drive automotive software and business IT innovations. (Positive)
• Welspun Ent: Receives Rs 1990 cr award from BMC for tunnel project (Positive)
• VBL: PepsiCo reported a double-digit revenue growth in India and other emerging markets for the third quarter, despite subdued overall growth globally. (Positive)
• Vedanta: Board meeting rescheduled to today for interim dividend announcement (Positive)
• Gensol Engineering: Company's engineering, procurement, and construction order book crosses the Rs 4,000 crore level (Positive)
• RPP Infra: Company bags Rs 318.6 crore contract for road development. (Positive)
• Tata Communications: Company will announce its Q2 FY25 results on October 17th, 2024. (Neutral)
• Wipro Limited: Company will announce its Q2 FY25 results on October 17, 2024 (Neutral)
• Dhunseri Ventures: Company enters into share purchase agreement with Dhunseri overseas for $ 4.7 million (Neutral)
• JSW Infrastructure: Company announced the appointment of Rinkesh Roy as Joint Managing Director & CEO, effective November 8, 2024. (Neutral)
• SKF India: Company board approved evaluation, selection of demerger of industrial business, Company approved incorporation of wholly owned subsidiary. (Neutral)
• Reliance Ind: Reliance Retail's Tira exclusively launches Augustinus Bader in India. (Neutral)
• Schneider Electric: Company’s appeal against ₹2.2 crore tax demand for FY18 rejected. (Neutral)
• Signature Global: Pre-sales at Rs 2,780 cr vs Rs 980 cr, up 184% YoY (Neutral)
• PB Fintech: IRDAI issues observations from inspection for wholly owned arm Policy Bazaar (Neutral)
• OLA Elec: Ministry of road transport & highways may seek explanation from Ola Electric regarding customer complaints, sources to CNBC. (Negative)
• Timken: Company said it has received a demand order from the Income Tax Department, requiring an additional ₹100 crore in income adjustments for the assessment year 2021-22. (Negative)
• Equity
• Nifty closed @25,013 (+217) and Sensex @81,635 (+585) on Tuesday GIFT Nifty was trading at 25,139.50 (as of 7:30 am)
• FIIs net sold equities in cash to the tune of Rs 5 730 cr whereas DIIs bought equities in cash worth Rs.7,001 cr on October 8 2024
• Tata Technologies and BMW have finalised a 50:50 JV aimed at strengthening BMW’s software capabilities as the auto industry increasingly shifts towards digital and software driven solutions
• Vodafone Idea said it has been in discussion with the DoT for the waiver of bank guarantee which the company is required to submit a year before the due date for payment of spectrum acquired prior to 2022
• Even as PepsiCo trimmed its sales forecast for the year upon missing estimates, it witnessed double digit organic revenue growth in India during 3QCY24
• Signature Global Q 2 Update The company reported its “best ever" half year pre sales for Q2FY25 amounting to Rs 5900 crore in the first half of fiscal 2025
• JSW Infrastructure Ltd ..'s board approved the appointment of Rinkesh Roy as a joint managing director (MD) and chief executive officer (CEO)
• IRB Infrastructure toll revenue collection rose 19% to Rs.502 crore in September
• The Hyundai India IPO, a pure offer for sale, will see the South Korean parent company offload 14.2 crore shares in a price band of Rs 1,865 - 1,960 apiece to raise up to $3.3 bn
• SEBI approved the IPO of NSDL and the issue will consist only of an offer for sale component
• Embassy Office Parks REIT raised Rs 2 000 crore debt to repay its non convertible debentures maturing in October
• Indian ADRs: Infosys (+1.8%) ICICI Bank (+1.7%) HDFC Bank (+1.6%)
• Debt:
• 10 yr G sec (old) yield fell by 4 bps to 6.81% on Tuesday
• Indian states accepted entire notified amount of Rs 18,700 cr in weekly auction
• Global bond index provider FTSE Russell has decided to include India's sovereign bonds in its Emerging Markets Government Bond Index (EMGBI) starting Sep’ 25 with a weight of 9.35%
• Finance Minister said banks should avoid long term, high risk funding and instead focus on mobilising deposits, retail lending, and supporting medium term projects to prevent a recurrence of NPA crisis
• SEBI is planning to allow brokers to deal in government securities by accessing negotiated dealing system order matching (NDS-OM) platform to increase retail participation in G secs
• Commodities
• Brent crude was down by 4.51 to $77.47 /barrel on Tuesday on news of a possible ceasefire between Hezbollah and Israel, although prices found some support on fears of a potential attack on Iranian oil infrastructure
• Gold futures settled lower and were on track for their biggest drop on a percentage basis in 1-1/2 months as recent U S employment data lowered expectations for a bigger rate cut, while markets awaited minutes of the U S Federal Reserve's latest policy meeting for fresh signals Spot gold was down by 0.82 to $2,622.03/oz on Tuesday
• India's tea exports surge 23.79 In January-July 2024 from the year ago period, reaching 144.50 mn Kgs, Tea Board said
• Globally, around 50 billion cubic meters ( per year of natural gas contracts were inked with upcoming, or post Final Investment Decision ( projects from January to August 2024 of which India cornered the highest share of 30%