New Highs and New Deals | Weekly Stock Market Updates 27 Nov
Weekly Stock Market Updates. Catch up on all that’s trending in the last week and get ready for the Monday markets with insights from our expert research team.
In this article
The FIFA World Cup is on! And it is full of surprises, controversies and twists and turns. In India, not only did Jio clash with Elon Musk in a war of words but also faced a huge backlash when it failed to stream FIFA matches.
The NDTV- Adani saga gets curiouser and curiouser. The open offer to purchase NDTV’s shares from the market from Nov 22 to Dec 5th. Adani has already acquired 6% of NDTV shares at Rs 294 per share. Guess the market price? Rs 385 per share (Friday close)! Who is selling these shares at such a steep discount to Adani and why?
Talking about curious deals. Businessman Ramesh Chauhan is looking for a buyer for his packaged water company Bisleri International and it looks like Tata is going to quench the thirst of Tata Consumers. Tata Group which already owns “Himalaya” packaged drinking water, Tata Copper Plus Water and Tata Gluco+ seems all set to acquire the Bisleri brand in a deal worth close to Rs 7,000 crores. And what’s curious is that Chauhan’s daughter is not interested in inheriting the company, after strengthening the company’s brand image, manufacturing, and market presence and serving as the company’s vice chairperson.
The US Federal Reserve cooling down on aggressive rate hikes brought cheer to investors. Both the benchmark Sensex and Nifty touched new record highs on Friday. While the Sensex hit 62,447.73, and the Nifty crossed 18,500. Nifty closed the week on a positive note of 1.12% at 18,513 with 205 pts gain and BSE Sensex ended the week at 62,294 On a week-on-week basis, Sensex gained 1.02%. Bank Nifty was positive by 1.29% during the week, ending at 42,984
PS: If you own credit cards, here is some good news. RBI has asked credit card companies to change their calculation of the interest amount you owe. This will reduce the interest charged to you if you paid only the minimum amount due on your credit card for multiple months.
💰Stock Picks
From the Technical Desk
-Ms Kavita Jain, Sr Research Analyst and Learning Head, Arihant Capital
From the Fundamental Desk
-Mr Abhishek Jain, Head Research Arihant Capital
We expect Zomato to take advantage of a significant structural growth opportunity, due to India’s favourable demographics, along with strategic investments like Blinkit acquisition and investments in cloud kitchen by the company, Zomato has smartly positioned itself as one of the frontrunners in quick delivery Ecommerce, and Zomato will potentially continue to improve revenues and become profitable soon. At ₹62, the company trades 3.4x FY25E P/B.
One 97 Communications (Paytm) shows improvement in margin profile with better monetization suggesting achievement of operating profitability (positive EBITDA before ESOP cost) ahead of its guided timeline of Q2FY24. At ₹452, the company trades 2.34x FY25E P/B.
📈Market Outlook
–Mr. Ratnesh Goyal, Senior Research Analyst, Arihant Capital
Nifty
On the daily chart of Nifty, we observe the Doji candlestick formation. Whereas, on the weekly chart we can see a breakout of the consolidation phase. We conclude that the market will remain on the uptrend. Nifty can face resistance around the 18,550 level; if it starts to trade above that, then it can touch the 18,650-18,800 levels. On the downside support is 18,400. If it starts to trade below then it can test the 18,250 and 18,100 levels.
Bank Nifty
On the daily chart of Bank Nifty, we observe Doji candlestick pattern formation. In the weekly chart of Bank Nifty, we can see a breakout of the consolidation phase. It appears that Bank Nifty may continue to outperform Nifty. In the coming trading sessions, if it trades above 43,100 then it can touch 43,500 and 43,800 levels. However, the downside support comes at 42,500; below that we can see 41,800-41,500 levels.
🔎Quick Bites
Global
- The Australian parliament has cleared a free trade agreement with India.
Economy
- Government seeks to shrink the budget deficit as global headwinds loom.
- Economists see Q2 GDP growth at a median of 6.45%.
- India’s foreign exchange reserves rose $2.54 billion to $547.25 billion for the week ending Nov 18.
Banking and Finance
- SBI to consider raising ₹10,000 crores via infrastructure bonds.
- PNB received the government’s approval to divest its entire stake in UTI Asset Management.
- RBI asked Paytm to reapply for a payment aggregator licence within 120 days.
- LIC bought 2.01% shares in M&M Financial Services via an open market transaction.
- T+1 settlement will be applicable for all F&O stocks from January 2023.
- ICICI Bank and Axis Bank acquired a stake in the proposed JV between Indian Oil and Chennai Petroleum Corporation.
- Shriram Transport Finance will merge with Shriram Capital and Shriram City Union Finance.
Industry
- Govt mulls selling 5%-10% stake in Coal India, Hindustan Zinc, Rashtriya Chemicals.
Energy and Infrastructure
- The Lanco Amarkantak Power auction which would be a tough competition between the Ambanis and Adanis has been rescheduled by a week.
- LNG storage is planned at major ports at ₹20,000 crore investment.
- Adani Enterprises to raise up to ₹20,000 crores via FPO.
- L&T to construct an Executive Enclave housing the PMO, cabinet secretariat, India House and the National Security Council Secretariat for ₹1,189 crores.
IT and Telecom
- Reliance gets green approval for the world’s largest submarine cable.
- Jio has received NCLT approval to acquire Reliance Infratel.
- India’s total mobile subscriber base fell by 3.6 million in September. Jio added 7.2 lakh users in September, and Airtel added 4.12 lakh. Vodafone Idea lost 40 lakh subscribers.
- Nxtra Data, a subsidiary of Bharti Airtel, has started the construction of its new hyper-scale data centre in Kolkata.
Other
- Biocon Biologics allots equity shares worth Rs 2,205.63 crore to Biocon
- Biocon partners with Zentiva for the commercialization of Liraglutide in Europe
- Zydus Lifesciences received USFDA approval for a stomach and intestine ulcer treatment injection.
- Glenmark Pharma signed a pact with Pfizer for a cancer drug.
- Deepak Fertilisers signed a long-term binding contract with Aarti Industries for offtake and supply of Nitric acid.
- JK Paper to acquire Horizon Packs, and Securipax Packaging for Rs 578 cr
🚀IPO Corner
- Keystone Realtors Limited is listed at ₹555, a 3% premium to its issue price of ₹541 per share on the NSE and BSE.
- Inox Green is listed on NSE at ₹60, a 7.7% discount below its issue price. It is listed on BSE at ₹60.50.
- Kaynes Technology India Ltd is listed on the NSE at ₹778, a 32.5% premium over its issue price.
- Archean Chemical made its listing debut with a 10% premium to its issue price of ₹407 per share.
- Five Star Business Finance is listed 1% below its issue price of ₹474.
- Uniparts India Limited IPO to start on 30 Nov
- Dharmaj Crop IPO will open for subscription on November 28. The price band has been set as ₹216 – ₹237 per share.
🔌Sustainability Corner
- Toyota places its bet on strong hybrids in India’s green push.
- India wants solar manufacturers to bid for $2.4 billion in aid.
- HDFC Bank plans to go big on EV loans.
- Rooftop solar capacity installations in India fell 29% to 320 megawatts (MW) in July-September 2022.
- Laurus Labs will buy a 26% stake in Ethan Energy at ₹52.70 per share.
- Apollo Tyres launched special tyres targeted for electric vehicles in Europe.
- Hindustan Motors has signed an MOU to extend EV domain across the border to enhance the production of eco-friendly EVs.
- Infosys entered a strategic collaboration with Envision AESC to digitise and automate processes at latter’s EV battery manufacturing plants.
- Ultraviolette Automotive launches India’s most expensive electric motorcycle – the F77 – at ₹380,000. Deliveries start from January 2023.
- Continental develops lighter & improved brake caliper for EVs contributing to increased vehicle range.
- Ather Energy inaugurates second manufacturing unit in Tamil Nadu.
- Mahindra Financial Services‘ Quiklyz inks MoUs with 5 last-mile mobility players for 1,000 electric three-wheelers.
- Government of India’s Production Linked Incentive (PLI) schemes for semiconductors & ACC batteries to trigger annual investment of ₹1 lakh crore in manufacturing capex from FY2024, rising to ₹1.7 lakh crore by FY2026.
- Tata Motors partners HDFC Bank to offer EV inventory finance to dealers.
- Ather Energy targets growing demand for EVs in Delhi-NCR, opens two new showrooms as it looks to capitalise on demand.
- Ather to also expand Ather Grid charging network in the region from 30 to 120 stations by March 2023.
Also read: ESG Investing & Its Emergence in India
