Bulls Charge, Yogi raaj. What next? | Weekly market wrap-up 11 Mar
In this Weekly Market Newsletter:
Grab your morning tea and read up! Here’s a quick snapshot of what the markets were up to last week and what to watch out for in the next week.
📊Market Wrap-up
While the Russia- Ukraine crisis is still in the heat, the investors found cause to celebrate as talks continue. Breaking a 35-year-old jinx, Yogi Adityanath becomes the first sitting CM to return to office as BJP wins in Uttar Pradesh. Markets start to feel the heat of supply chain disruptions.
A sigh of relief for D-street investors as the major benchmark indices gained significantly after their 4-week losing streak.
| Sensex 55,550 ▲1.216 (2.24%) | Nifty 16,630 ▲385 (2.37%) | |
| Bank Nifty 34,546 ▲138(0.40%) | Nifty Midcap 100 28,210 ▲693 (2.52%) |
All sectoral indices went up, but Nifty Media outshined all other indices by topping the list of best-performing sectors, gaining ▲6.73% to close at 2,131.
Now let us see how the other sectors performed with the bulls & the bears
| Nifty Healthcare 8,396 ▲6.41% | Nifty IT 35,349▲3.43% |
| Nifty Pharma 13,399 ▲6.34% | Nifty Realty 34,408 ▲3.30% |
🔎Top Gainers and Losers….
| Top Gainers | Top Losers | ||
| Cipla | 12.1% | Britannia | -5.1% |
| IOC | 9.2% | Axis Bank | -3.4% |
| Sun Pharma | 8.7% | Eicher Motors | -2.10% |
| Asian Paints | 7.1% | Maruti | -2.00% |
| Tata Consumer | 6.9% | ICICI Bank | -1.50% |
📈 What to Expect From the Markets?
-Mr. Abhishek Jain, Arihant Capital’s Research Head
As global tensions are easing out, Indian markets have seen a smart recovery in tune with the global markets. The markets would keep an eye on Russia – Ukraine developments.
As per our discussion with various auto ancillary and cement players, Q4 is expected to be a soft quarter on an overall basis. Margins are expected to be weaker on a QoQ basis with input cost pressure to be seen with lower volumes. Investors should only add quality stocks in auto ancillaries and cement sectors on a long-term basis. If you have any exposure in the auto ancillary and cement sectors, you need to remain with large caps.
Sectors like real estate can be a good play for portfolios. We like Godrej prop, Kolte Patil, Tarc, and Sunteck among real estate bets.
🔭Market Outlook
Mr. Ratnesh Goyal, Senior Research Analyst
Nifty
On the daily chart of Nifty, it is still trading below 200 SMA with an oversold position. On the weekly front, it formed a positive candle but it takes time to activate. We conclude that Nifty Futures may consolidate. If it crosses the 16,700 level it will see a bounce towards 16,900 and 17,050 levels. But on downside support, if it crosses below 16,150 then it can test the level of 15,980 and 15,700 levels.
Bank Nifty
On the daily chart of Bank Nifty, it is trading near the gap area. While on the weekly chart the index has formed “Doji” candle formation. Together we conclude that Bank Nifty futures may follow the sell-on-rising movement but we need to be cautious from a higher level. This week Bank Nifty futures closed at 34,605 levels. In the coming trading session if it holds below 34,200 then weakness could take it to 33,800 and 33,500 whereas minor resistance on the upside is capped around 35,200-35,500 levels.
📰News you shouldn’t miss!
The effects of war
The supply chain crisis is making the chip situation worse, while the shipping industry braces for new shocks. India signs deals to export 5,00,000 tonnes wheat, as global prices surge. Coffee industry braces for more supply chain ‘chaos’ as oil soars. Nickel prices soar above $100,000 a metric ton as rare metal supply decreases due to war in Ukraine causing serious damage to the global nickel market and related upstream and downstream industries.
Banking and Finance
- HDFC Bank says it will reverse market share loss as new cards join spending.
- Mahindra Finance USA, a joint venture with Rabobank Group, has been extended.
- Micro loans disbursed by BFIL a subsidiary of IndusInd bank sans customers’ consent due to technical glitch. Exposure to the tune of ₹13.5 crores against provisions of ₹3,000 crores.
- IRDAI proposes to hike third-party motor insurance premiums for FY 22-23.
- PNB Housing board approves raising up to ₹2,500 cr via rights issue.
- SBI is in talks with Tata Motors’ finance arms to acquire its automobile loan portfolio of ₹14,500 crore.
- ICICI Prudential Life Insurance’s February new business premium fell 22.8% YoY.
- RBI bans Paytm Bank from onboarding new customers.
Energy
- RIL stepped in to supply diesel-starved Europe. RIL’s Jamnagar facility is increasing crude processing & deferring shutdown due to maintenance to take advantage of surging diesel demand.
- Indraprastha Gas received a letter of intent from the Petroleum and Natural Gas Regulatory Board for development of CGD network in Banda, Chitrakoot and Mahoba in Uttar Pradesh.
- Supreme Petrochem to expand its polystyrene plant in Maharashtra by 30,000 million tonnes per annum.
- NTPC completes trial of unit-3 of Nabinagar Power Generating Company.
- Tata Power backed Resurgent Power has emerged as the successful bidder for South East UP Power Transmission Co.
- Coal India will not have the luxury to retain loss-making mines.
- Coal India’s Subsidiary BCCL has posted a record 61% growth in its production to 3.24 million tonne (mt) in February this year over Feb’21.
- IOC signs a pact with APSEZ to expand crude oil volumes at Mundra Port, it will also enlarge Panipat pipelines for ₹9,000 crores.
- Tata Power’s Indonesian mining permit renewed for 10 years, ensuring robust supply for its imported coal-based thermal plants
- Maharashtra sends notice to Tata Power for Mumbai power outage.
Pharmaceutical
- Lupin’s newly opened reference laboratory in Kolkata to help it’s expansion plans in East India.
- Wipro to partner with Pandorum Technologies to shorten time-to-market and maximise patient outcome.
- Zydus unit to acquire brand from US-based BridgeBio Pharma.
- Mary Kom to be brand ambassador for Lupin’s Shakti project campaign to increase cardiovascular health awareness in women.
- Natco Pharma launches the first generic version of Revlimid in the U.S. market.
- The Union Commerce Ministry looks to impose an anti-dumping duty on dicyclohexylcarbodiimide imported from China for five years to protect domestic industry from cheap imports.
IT and Technology
- Infosys, Dow Jones announce expanded collaboration to build out innovative digital strategies and enhanced experiences for their users.
- TCS shares buyback at ₹4,500/share from 9th to 23rd March 2022.
- Infosys to collaborate with Telenor Norway, to transform its finance and supply chain operations.
- Info Edge acquired 76% stake in online dating company Aisle Network for ₹91 crore.
- TCS, Infy et al. are hiring lakhs of freshers.
Aerospace
- Jindal Stainless (Hisar) gets international certification in aerospace industry.
- Globetrotters alert! Commercial international flight services resume from 27 March.
Manufacturing and Heavy Industries
- Chaos in nickel prices hits stainless steel and new energy batteries (EV) industry
- NMDC has executed the share purchase agreement for sale of its entire equity holding of 10.1% in Neelachal Ispat Nigam.
- Atul expanded its Sulphur Black manufacturing facility,increasing capacity from 9,800 to 26,000 tonnes per annum.
- Tata Steel and Tata Steel Long Products, executed the share sale agreement for acquisition of 93.71% equity shares in NINL.
- ISGEC Heavy Engineering secures order for cement waste heat recovery.
- Bharat Forge Subsidiary KSSL Incorporates JV Company SMTL for upgradation and manufacturing/ providing solutions for marine and defence products.
- Larsen & Toubro launched B2B e-commerce platform L&T-SuFin to sell industrial products.
- Vedanta, Welspun among 29 bidders in fray for Mittal Corp.
Others
- TVS Motor launches TVS Raider in the 125cc segment for young customers in Bangladesh.
- RIL opens the Jio World Centre in Mumbai’s Bandra Kurla Complex.
- JK Cement to enter into the paint business to invest ₹600 cr spread over 5 years.
- Reliance Retail to set up their own stores in Future’s locations, launching soon.
L&T Construction has won a significant order from Delhi Metro Rail Corporation (DMRC) to design and construct the underground metro project of Phase-IV of Delhi MRTS.
🚀IPO Corner
- Ahead of IPO, LIC Q3 profit jumps to ₹235 crore. Meanwhile, Govt to file final papers for LIC IPO with SEBI soon.
- SEBI tightens IPO valuation scrutiny, jolts startups eyeing listings.
- Looking to go public by 2023, BigBasket’s valuation may touch $4-5 billion as sales rise.
- Sachin Bansal’s Navi Technologies files draft papers for ₹3,350 crore IPO.
🔌Sustainability Corner
- India targets 85% of energy needs from green sources. This may require an investment of ₹60 lakh crores and will reduce coal usage and build 1,125 GW of renewable energy capacity and encourage domestic manufacturing of 50 GW of renewable energy equipment by 2047
- Electric scooter prices can increase by ₹45,000 by FY 2025.
- Tube Investments of India acquired a 70% stake in Cellestial E-Mobility.
- 10 bidders approved under the PLI scheme for battery manufacturing like Exide Industries, Amara Raja Group, Reliance New Energy and Ola Electric. In the auto sector, the 20 approved bidders include leading automakers Tata Motors and Hyundai Motor, as well as six startups.
- EV sales picked up in Feb due to new players. However, the electric 2-wheelers sales outpace Electric Cars by huge numbers. Registered EV sales cross 1 lakh mark in 2022; Electric 2W sales grow 433%.
- Tata Power has collaborated with Enviro of Vatika Group to install 59 public and semi private EV charging points at its properties across Gurugram.
- Airtel acquires 9% stake in renewable energy firm Avaada clean for ₹7.88 Cr.
- Karnataka Bank partners with SELCO Solar Light Private Limited to finance solar-based livelihood products.
- Gensol Engineering secures ₹267.79 crore funding for expansion of EV business
- Greaves Cotton is taking an EV ride at the cost of auto engines.
- Bayer CropScience will sell its environmental science professional business to Cinven for USD 2.6 billion.
- NTPC began commercial operation of 74.88 megawatt capacity (MW) of its 296 MW Fatehgarh solar power project.
- Sony, Honda partner to make Tesla-rivalling electric vehicle soon. Expected to be in markets by 2025.
- Electric bus manufacturer Olectra Greentech acquired a 34% stake in Evey Trans (MHS). Evey will be engaged in the business of leasing electric vehicles.
- Tata Motors bags order for 65 electric vehicles from KSEB.
- MG outlined an investment of ₹2,000 crore to supercharge its EV business for FY22 and FY23 and is currently weighing various options to raise more funds
