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 03, 2024

• Summary of Market Participants Positioning in the Derivative Segment for 1st October, 2024.
• Synopsis:
• FIIs sold to the tune of 5579.35 cr while DIIs bought to the tune of 4609.55 cr.
• FIIs' Long short ratio for index futures is at 79.39 as on a net basis, they sold 20290 index futures.
• On the stock futures front, FIIs have sold to the tune of 21096 contracts, while on the Options Front, FIIs sold 27173 call contracts and bought 55982 Put Option contracts.
• Nomura on Steel
• initiate Buy on JSW Steel , TP Rs 1220
• Initiate Buy on JSPL , TP Rs 1200
• Strong domestic demand, continued deleveraging & global monetary easing to support Indian steel majors
• Domestic HRC prices to remain range-bound in 2HFY25F; expect marginal recovery in FY26F
• Cost drivers to partially offset moderation in realization
• China HRC margins trading at trough levels; expect recovery soon
• MS on on Steel Cos
• JSPL– Upgrade to OW from EW, TP Raised to Rs1200 from Rs 970
• JSW Steel– Upgrade to OW from EW, TP Raised to Rs1150 from Rs895
• Tata Steel– Upgrade to EW from UW, TP Raised to Rs175 from Rs135
• SAIL– Maintain UW, TP raised to Rs125
• Domestic inventory digestion has been muted, but China's recent stimulus should drive p+ve sentiment & support steel prices
• This & lower risks of imports should support spreads in near term
• Expect stocks to do well over next few months
• HSBC on ITC
• Buy, TP Raised to Rs 580
• All 4 factors that shape our investment thesis favourably align, enhancing risk/reward appeal
• Widened discount to FMCG peers, stable tax regime for Cigarettes, & formidable FMCG-Others biz contribute to attractiveness in volatile backdrop
• Downside risks include share price sensitivity to excessive tax shocks, worse-than-expected cigarette volume growth, & slowness or market share loss in FMCG-Others
• Jefferies on Syngene
• U-P, TP Rs 640
• Jefferies analyst David Windley's recent reports indicates several CROs pointing to a slowing biotech market.
• Other headwinds include prolonged biotech funding weakness, lengthening of biotech RFP and contract cancellations
• With 60% of revenue coming from research services & 15% of total revenue from biotech firms, Co's 2HFY25 recovery could be delayed
• These trends suggest significant downside risk to Cos earnings
• CLSA on Crompton Cons
• O-P, TP raised to Rs 500 from Rs 370
• Soft near-term demand led to weakness in stock
• However, believe its transformation is in right direction, with focus on premiumisation, a differentiated go-to-market strategy and change in sourcing mix
• Nomura on Marico
• Buy. TP Rs 780
• Consol rev growth of high-single digit & India vol growth of mid-single digit– tad better than expected
• Believe Co will report better-than-peers sales for 2Q
• Int. biz delivered low-teen (CC) sales growth, better than expectation of 10% y-y growth
• Investec on Angle One
• Buy, TP raised to Rs 3000
• SEBI announced final F&O regulations that are marginally lenient than original draft
• Though it is impossible to predict clients’ trading behaviour, lower impact on F&O vol to -25% from -30% earlier
• Increase target multiple to 20x
• GS on Dabur
• Neutral. TP Rs 580
• 2Q performance significantly weaker than expected
• Likely vol decline of 7-8% in India biz
• Co attributed vol decline to a correction in distributor inventory levels
• Co however stated that they expect biz to return to growth from 3QFY25
• Macquarie on Dabur
• Neutral, TP cut to Rs 560
• Pre-2Q points to weaker than expected mid-to-high teens Ebitda decline given monsoon-led demand weakness & rationalisation of channel inventory.
• Cut FY26/27E EPS 5% each given slower than expected demand
• UBS on Sun Pharma
• Both Nidlegy in EU & Fibromun together at peak sales can add US$200-300mn revenues & Sun's share on profitability would be 50% for Nidlegy and 55% for Fibromun
• JPM on Sun Pharma
• OW, TP Rs 1800
• Management meet takeaways
• 1) margins likely to see some pressure due to investments in specialty & India biz
• 2) healthy volume growth in core therapies in India
• 3) gStelara’s potential entry in 2025 unlikely to have major impact on Ilumya sales
• 4) Leqselvi launch timeline still uncertain
• 5) U.S. generics biz impacted by compliance issues, & remediation efforts under way
• 6) co evaluating specialty assets in its key therapy areas (derma, ophthalmology)
• JPM on KPIT Tech
• Upgrade to OW from Neutral, TP Raised to Rs 2000 from Rs 1700
• Stk underperformed last 1M/3M(down 8%/3% ) on -ve news flow around EV as global OEMs push out EV targets
• CO few top clients, BMW, Honda & Renault, have so far not announced any scale-back of EV plans
• BMW/Honda maintain their 50%/40% EV penetration targets by 2030
• Co’s EV exposure is 20% with rest coming from ADAS & connected vehicles where strong spends continue
• Upgrade Rev by 1-2% & margins by 20-30bps
• Nifty closed @25,796.90 (+13.95) and Sensex @84,266.29 (-33.49) on Tuesday GIFT Nifty was trading at 25,742 (as of 7:30 am)
• FIIs net sold equities in cash to the tune of Rs 5579 cr whereas DIIs bought equities in cash worth Rs 4609 cr on October 1 2024
• SEBI notified a six step plan to curb retail participation in equity derivatives lot size to increase to Rs 15 - 20 lacs weekly expiry contracts restricted to one index per exchange Reliance forays into Bhutan to set up largest solar plant in the country
• Adani gets Maha govt nod for Dharavi project land
• Godrej Properties approves Rs.6,000 crore fund raise through various methods
• Banks to seek govt assurance before lending to Vi
• 2 W majors record 9-28% increase on strong domestic demand
• IPO rush 41 companies file papers in Sepr 15 in one day
• Record office space leasing in 2024 Jan-Sept period JLL
• Siti creditors ordered by NCLT to reverse Rs 143 cr worth transactions
• Dr Reddy's inks licensing pact with Gilead to commercialise HIV drug
• NCC wins orders worth Rs. 2,327 crore in September, the highest in at least four months
• JSW Energy Arm Bags Pumped Hydro Storage Project From Maharashtra State Electricity Distribution
• Reliance Infra to raise Rs 2390 crore via FCCB issue
• Marico Q 2 revenue growth in high single digits
• THDCIL to invest Rs 8,800 cr in pumped storage projs in Rajasthan CMD Vishnoi
• CK Birla Healthcare to raise $150 m to expand, cut debt
• Indian ADRs: Wipro (-1.4%), ICICI Bank (-0.8%) and Dr Reddy's (-0.4%)
• Debt:
• 10 yr G sec yield fell by 2 bps to 6.73% on Tuesday Debt market remained closed on Wednesday
• Indian states accepted entire notified amount of Rs 19,942 cr in weekly auction
• RBI accepted Rs 93,815 cr against notified amount of Rs 1.75 lakh cr in 3 day variable rate reverse repo (VRRR) auction
• India’s gross GST collection rose by 6.5% YoY to Rs 1.73 lakh cr in Sep’ 24 vs Rs 1.75 lakh cr in Aug’ 24
• India’s Manufacturing PMI moderated to 56.5 in Sep’ 24 from 57.5 in Aug’ 24
• Commodities
• •
• Brent crude was up by 0.28% to $74.67 /barrel on Wednesday on worries that the escalating conflict inthe Middle East could threaten oil supplies from the world's top producing region, but a large build in U S crude inventories limited gains.
• Gold futures settled lower as traders hunkered down for more US economic cues and developments on the Middle East conflict Spot gold was down by 0.09% to $2660.35/oz on Wednesday
• Cumulative coal production reached 453.01 million tonnes (MT) in the first 6 months of FY25 as compared to 427.97 MT during the same period last fiscal, registering a growth of 5.85% according to the Ministry of Coal
• India’s diamond imports declined 54% in August to 5.6 mn carats compared to the same month last year, as the country remains a dominant player in the global diamond industry, responsible for producing 95 of the world’s polished diamonds, data from Gem and Jewellery Export Promotion Council (GJEPC) showed on Tuesday
• Currency:
• Rupee appreciated by 2 paise to settle at 83.82 against the US dollar on Tuesday With Wednesday being a bank holiday, rupee closed at 83.25 in the overseas NDF market
• US Dollar Index (DXY) increased by 0.83% to end at 101.61 on Wednesday, as US ISM Manufacturing PMI is expected to improve to 47 5 in September, from the previous 47 2 reading
• CHF/USD fell by 0.44% to end at 1.178 on Wednesday, as escalating Middle East tensions boost safe haven flows
• USD/AUD increased by 0.40% to 1.452 on Wednesday, as the RBA is widely expected to hold a hawkish stance regarding its policy outlook
• USD/CAD increased by 0.05% to end at 1.349 on Wednesday, as oil prices rise amid Middle East tensions and underpin the Loonie weighing on the major
• International Markets
• U S markets closed marginally in the green on Wednesday with the Dow Jones, S&P 500 and Nasdaq up by 0.09%, 0.01% and 0.08% respectively All 3 major futures indices are trading down by 3-8 bps at the time of writing the report
• U S S&P global manufacturing PMI remained in the contraction zone and declined to 47.3 in Sep-24 vs 47.9 in Aug-24 The ISM manufacturing PMI also remained in the contraction zone and was unchanged in Sep 24 at 47.2
• As per the US JOLTS data, the number of job openings increased to 8.04 mn in Aug 24 from an upwardly revised 7.71 mn openings in Aug 24 and was above market expectation of 7.65 mn
• German manufacturing PMI declined to 40.6 in Sep 24 from 42.4 in Aug 24 but came in above preliminary estimates of 40.3