No time to catch up with news of the weekly market? We’ve got you. Snuggle up with your chai/coffee ‘coz Arihant Capital is here with the last week’s market wrap-up and outlook for the week ahead.
In this article
The last week started on a grim note. When we published our last newsletter, the news of Cyrus Mistry’s untimely death was doing rounds. The billionaire businessman and former Tata Sons chief, Cyrus Mistry died in a car crash leading to a discussion on road safety and putting pressure on automobile companies to enhance their road safety measures.
Rishi Saunak an Indian-origin ex-Chancellor of the United Kingdom lost to Liz Truss in the race to become the next prime minister. The queen appointed Liz Truss as the next Prime Minister at Balmoral, Scotland. Who knew this would be her last official act as queen.
We are saddened by the loss of Her Majesty Queen Elizabeth II and send our condolences to the Royal Family. Queen Elizabeth II, the longest-reigning monarch in Britain’s history passed away on Thursday at the age of 96. With 70 years on the throne, she was the second-longest continuously ruling monarch in history after King Louis XIV. Britain was prepared for such an inevitable crisis and the most-dreaded words “London Bridge has fallen” were used to intimate the new PM of her demise. The Queen is now succeeded by King Charles III. Almost prophesizing the end of the legacy: PM Modi recently renamed the colonial era “Raj Path” to “Kartavya Path”.
Let us now whisk you away from the gloom of the last week to help you get refreshed for the week ahead. Grab your coffee or tea or well, popcorn. The box office showed some revival with the latest entry into #Astraverse, with #Brahmastra. Or did it? Twitterati has flooded the internet with pictures of empty theatres while news shows great collections.
Which is fake? We won’t have to worry much longer as the Indian govt has decided to crack down on fake reviews and paid promotions.
ICYMI – SEBI has also cracked down on Algo trading platforms making false claims regarding the past performance of strategies. RBI has released a list of 34 illegal forex trading platforms and cautioned the public not to use these platforms.
Alright, let us get down to the weekly market performance – Nifty closed the week on a positive note of 1.68% at 17,833 with 294 pts gain while BSE Sensex ended the week at 59,793 On a week-on-week basis, Sensex gain of 1.68% pts. Bank Nifty was up by 2.52% during the week, ending at 40,416.
On the sectoral front, Nifty PSU, Nifty I.T, Nifty Media, Nifty Metal and Nifty Pharma indices surged the most.
📈What to expect from the markets
–Mr Abhishek Jain, Head of Research, Arihant Capital
India’s stock market closed with a positive momentum led by gains in I.T and Banking stocks. This is the best week for the market nearly a month since the week ended August 12. Last week, the global market has witnessed a recovery on factors like a fall in commodity prices especially crude and gas prices. Some of the companies like Docusign have also posted decent numbers in US markets. On the domestic side, the Indian market continues to outperform with value buying seen in beaten-down sectors like IT.
–Mr Abhishek Jain, Head of Research, Arihant Capital
We are recommending 2 midcap stocks for the next week. KEC International can be looked at at current levels, we believe one can add at current levels on recovery in transmission space. Ashoka Buildcon can also be looked for long term. We like the stock with a price objective of ₹150 in the next 12 months. We expect debt to trim substantially from ₹7,000 crores post Macquarie asset sale. The company has a strong EPC order book of ₹15,000 crores.
- There’s a new King in town: King Charles III proclaims Britain’s monarch.
- Liz Truss, the new Britain PM announces a £100 billion plan to reduce energy bills for homes and businesses.
- EU Nations seek a joint approach to contain energy prices.
- The European Central Bank hiked interest rates by 0.75% to tame rising inflation.
- Global slowdown and export duty on steel products hurt India’s exports which dropped marginally to $33 billion in August 2022.
- Europe says Russia’s weaponizing energy to force the West to remove sanctions and punish it for supporting Ukraine.
- OPEC+ countries have decided to cut their oil supplies to the global economy by 100,000 barrels per day in Oct
- India has banned exports of rice and imposed a 20% export duty on non-Basmati rice to boost domestic supplies.
- “India exports 6X more oil from Russia as compared to pre-war period” according to FM.
- India ranked 132/191 on Human Development Index
- Chartbuster: India’s global market cap share at an all-time high.
Banking and Finance
- Paytm (One97 Communications), denied any link with the merchants that are under the ED scanner in the Chinese loan app case.
- Axis Bank partners with technology-based company PayNearby to boost its credit growth in the segment.
- HDFC Bank said it has mobilized ₹3,000 crores from bonds to fund business growth. Bank of Maharashtra has raised ₹710 crores through bonds. SBI will raise ₹7,000 crores using bonds. Bank of Baroda has raised ₹2,474 crores by issuing bonds at the rate of 7.88% through stock exchanges.
- Paytm reported strong growth in its payments and credit business. Its loan disbursals rose nearly 5 times to ₹4,517 crores as compared to last year. It also reported a 72% year-on-year jump in its merchant payment volumes (aka. GMV) to ₹2.1 lakh crore.
Energy and Infrastructure
- Petronet LNG Ltd will invest ₹40,000 crores in the next five years for expanding import infrastructure as well as foraying into a new business to boost profitability to ₹10,000 crores.
- NTPC has registered a 62% growth in coal production from its captive mines.
- Anil Ambani’s Reliance Power Ltd (RPL) will raise ₹933 crores by offloading a 15% stake in the company to VFSI Holdings.
- The Union environment ministry has extended the deadlines for thermal power plants to install pollution control technologies and comply with new emission norms.
- NTPC has acquired the stressed Jhabua thermal project (600Mw) for ₹925 crore
- Kalpataru Power secured new orders worth ₹1,345 crores.
- IEX’s total traded volume fell 18% YOY to 7805 million units in August
- Max Ventures & Industries subsidiary Max Estates acquired a 100% stake in Acreage Builders for ₹291.5 crores.
- Adani set to export power to Bangladesh
IT and Telecom
- Mindtree is planning to set up a development centre in Kolkata.
- Wipro has entered a collaboration with Palo Alto Networks to deliver managed security and network transformation solutions.
- Paras Defence ties up with a Czech company for the anti-drone system.
- Tanla platforms board has announced a ₹170 crore share buyback.
- Infosys enters a 5-year agreement with Spirit Aerosystems.
- Dixon Technology to manufacture TV sets on Android and Google TV platforms
- The new iPhone 14 has launched, and it will be to be manufactured in India in the next 2-3 months by Foxconn in Chennai. Tata Group is also in talks to join the elite club of iPhone makers.
- Airtel to launch 5G services by Oct.
- Singtel sells 1.76% in Airtel via block deals for ₹7,000 crores.
- Adani’s open offer for NDTV is to go live on Oct 17.
- Reliance Retail Ventures Ltd (RRVL) has bought a controlling stake in makeup and personal care brand Insight Cosmetics for $10-15 million. Reliance announced its entry into the FMCG space, and is now in talks to acquire a batch of retail companies for brands such as Garden Namkeens from CavinKare, Lahori Zeera and Bindu Beverages, and is at an advanced stage of negotiations with them. Reliance has internally set a target of ₹50,000 crore turnover for the FMCG business.
- IndiGo, will sell up to a 2.8% stake in Interglobe Aviation Ltd through a block deal that will fetch at least USD 250 million.
- Biocon sold a 5.1% stake in Syngene International.
- Adani Group’s open offers for Ambuja Cement and ACC get modest investor responses.
- Dreamfolks listed on NSE at ₹508.70 a 56% premium to the issue price, on BSE it opened at ₹505 up 54.91%.
- Aprameya Engg files draft papers for IPO.
- Tamilnad Mercantile Bank IPO subscribed 2.86 times on the last day of the bidding process. Let’s find out in this interview with Mr Abhishek Jain, Head of Research at Arihant Capital about the reasons for muted response to the IPO.
- E-bus maker PMI Electro Mobility working on a range of electric trucks, and intercity buses, and trials with multiple state transport units will begin by Q1 of FY24.
- NTPC has reached an agreement with the armed forces to supply renewable energy power.
- Tata Power Renewable Energy Limited, an arm of Tata Power said it will set up a 100 MW solar power plant for Viraj Profile in Maharashtra.
- HOP Electric and its vendors plan a ₹1,000-cr EV Park in Rajasthan.
- Olectra gets order for 100 electric buses worth INR 151 Cr from Assam.
- World EV Day was celebrated on Sep 9th. Tarun Mehta, C-Founder & CEO, Ather Energy stated that this year’s World EV Day is particularly significant. EV demand has been increasing across the country in recent months.
- Mahindra has taken the wraps off its all-electric XUV400, which is based on the compact XUV300 SUV.
- Adani Group will build Giga factories as part of a $70 bn investment in clean energy by 2030.
- Tata Motors launched India’s first CNG truck in the medium and heavy commercial (M&HCV) vehicle segment.
- Tata Power said that it has set up more than 450 electric vehicles (EV) charging facilities across over 350 national highways in India.
- Crypto mining is threatening US climate efforts according to White House reports.
- Reliance Industries to acquire a 79.4% stake in US-based SenseHawk for $32 million.
Also read: ESG Investing & Its Emergence in India