In this article
Just like Humpty Dumpty, the Indian rupee also had a great fall and the RBI is trying to save it in a very signature Squid Game move before it faces a further tumble. The rupee breached the psychologically important level of 80 against the USD this week sending alarm bells ringing. Luckily, the RBI still had a few tricks up their sleeves and immediately pulled out the forex reserve safety net which was built for precisely such an eventuality.
Not all is sweet in China’s real estate market, with brokers trying to get farmers to buy houses in return for wheat and staples. No, China is not becoming a barter economy but is trying to boost home sales which collapsed by nearly 60% from the previous year. Is it China’s real estate story waiting to topple like a House of Cards leading to a 2008-like downturn? Let’s wait and watch.
The benchmark indices on Friday closed in red following a four-day red streak. Nifty closed with a 1.06% fall at 16,049, a decrease of 171 pts, while BSE Sensex ended the week at 53,761. A one-week comparison reveals a 721 pts or 1.32% fall in the index. Bank Nifty fell by 1.2% during the week, ending at 34,683 pts.
Among the sectoral indices, the IT sector saw a consistent selloff despite strong numbers reported by some IT companies: TCS, HCL and MindTree. Nifty consumer durables led the gains among the sectoral indices.
What to expect from the Markets
-Mr. Abhishek Jain, Head Research, Arihant Capital
India’s stock benchmarks edged higher on Friday. But on a week-on-week basis, they saw a decline, snapping a three-week winning streak. The key factors influencing this fall were volatility in crude prices, rising inflationary concerns, and the trickle of earnings for the quarter that ended in June. Global sentiments were also boosted by fed commentary on the possibility of only a 50 bps hike in the next Fed meeting on the 27th of July. US market has witnessed recovery on hopes of a 50 bps hike. We believe this would aid sentiment in global markets. We continue to maintain a positive bias on the market.
–Mr. Ratnesh Goyal, Senior Research Analyst, Arihant Capital
On the daily chart of Nifty, it is holding the support of short-term moving averages. Whereas, on the weekly chart “Doji” candlestick formation is visible. If both the data are combined and analyzed, then the market may consolidate for this week and we are likely to see stock-specific activity. Nifty can face resistance around 16,150 levels, if it starts to trade above it then it can touch 16,350-16,500 levels. The downside support is 16,020, if it starts to trade below this then it can test 15,900 and 15,800 levels.
If we look at the daily chart of Bank Nifty, it has tested the upward gap area and on the weekly chart “Doji” candle formation is visible. We think Bank Nifty may consolidate further. In the coming trading session if it trades above 35,050 then it can touch 35,300 and 35,600 levels. However, the downside support comes at 34,400 below that we can see the index touching 34,100-33,800 levels.
From the Fundamental Desk
-Mr. Abhishek Jain, Head Research, Arihant Capital
We have a positive outlook of the market and recommend adding Berger paints for trading basis, as expectations of the lower crude price should benefit them. We also recommend Wipro at current levels to add to your portfolios.
- India’s exports to UAE rose by 16.22% to $837.14 million during May-June post-FTA.
- FM seeks WTO relief to export foodgrains from its public stocks to nations facing food crises.
- US June CPI Inflation stood at 9.1%, the highest since December 1981.
- Rishi Saunak is ahead in the race as a UK PM candidate.
- I2U2 to setup UAE backed food parks in India to meet Southwest Asia demands.
- At 7% June retail inflation was above the RBI target for the 6th month in a row. Wholesale inflation was at a 3-month low of 15.18% in June as global prices fall.
- Industrial output (as measured by the Index of Industrial Production) grew by 19.6% in May, up from 7.1% in April.
- Indian staffing industry added 2.2 lakh workforce in 2021-22, 21.9% higher than the previous year: Indian Staffing Federation.
- Nomura has cut India’s 2023 growth forecast to 4.7% from 5.4% earlier.
- Tata Motors has hired global management consulting firm McKinsey & Co. to restructure its commercial vehicle business. Tata Motors has increased the prices of its passenger vehicle range with immediate effect.
- Passenger vehicle wholesales rose by 19% annually in June according to SIAM.
- Luxe car sales jump 55% in H1 over the year-ago period. Mercedes-Benz India reported its highest ever 2nd-quarter sales at 7,573 units – a 56% year-on-year jump.
Banking and Finance
- Yes-Bank chose JC Flowers ARC as a partner to sell its stressed loan portfolio worth ₹48,000 crores.
- Paytm’s June quarter loan disbursals rose 9x to ₹5,554 crores.
- City Union Bank and Bajaj Allianz Life Insurance partner to offer insurance solutions to the bank’s customers.
- SBI, ICICI Bank, and IDFC FIRST Bank raised interest rates on foreign currency non-resident deposits in response to RBI’s relaxation last week to shore up forex inflows.
- Kotak Bank-backed ARC acquires ₹1,470 crores from L&T Finance
Energy and Infrastructure
- Coal India’s Capex rose 64.8% year on year to ₹3,034 crores in the June quarter.
- Rail Vikas Nigam won the NHAI road project worth ₹1,844 crores in Himachal Pradesh.
- Adani and I-squared Capital-backed AG&P City Gas are in talks to buy Morgan Stanley’s stake in Unison Enviro. The deal will value the company at around $150-200 million.
- Wipro PARI to buy Hochrainer, which supplies automation technology and assembly systems.
IT and Telecommunications
- Adani sends Airtel-Vodafone sweating by participating in the 5G spectrum auction, clarifying that it is not looking to enter consumer mobility.
- Reliance Jio is likely to spend up to ₹60,000 crores in 5G auctions, and Airtel may line up ₹50,000 crores. Airtel has deployed its first 5G private network at Bosch Automotive Electronics India.
- L&T has received orders for setting up 10.8-MW capacity data centres in Mumbai and Navi Mumbai.
- TCS launched its 5th global research and innovation centre in Toronto.
- RITES has partnered with the Centre for Railway Information systems to provide innovative IT solutions for railroad operations.
- VIL shareholders approve ₹436 crores equity allocation to Vodafone.
- Adani Ports has won a $1.18 billion bid for Haifa port in Israel. It will hold a 70% stake in the port.
- NMDC has fixed lump ore prices at ₹3,900 per ton and prices for “Fines” are fixed at ₹2,810 per ton.
- Adani Group to buy two land parcels from K Raheja Corp for ₹1,500 crores.
- Adani Ports achieved 100 MMT cargo volume in Q1 FY23.
- Airlines face turbulence among mass sick leaves, technical glitches
- Serum Institute has become the first Indian company to export covid vaccines to the US market. It will export Novavax’s Nuvaxovid to the US.
- Cipla will acquire the nutritional supplement brand Endura Mass.
- Crompton Greaves allotted non-convertible debentures aggregating to ₹325 crores.
- BLS International Services signed an agreement with the Government of Karnataka as an operations partner for 2 divisions, Mysore and Kalburgi.
- Bajaj Healthcare has forayed into the opiate processing business.
- Sagar Cements is leading the race for acquiring Jaypee Group’s Andhra Cement.
- HCL Tech reported a 2.4% year-on-year rise in net profit at ₹3,283 crores in Q1. Revenue for the quarter rose 16.92% to ₹23,464 crores compared to ₹20,068 crores in Q1 2021.
- Mindtree’s net profit for Q1 stood at ₹471.6 crores, up 37.3% year-on-year. For the full report click here.
- HDFC Bank net up 19% to ₹9,196 crores, provision for bad loans drops 34% YoY, net interest income 14.5% higher at ₹19,481 crores.
- Tata Power’s subsidiary TP Saurya gets Solar Energy Corporation’s nod to set up a 600 MW hybrid power project in Karnataka.
- India has been ranked, 135th place (out of 146) in terms of gender parity according to the World Economic Forum.
- Govt will stop e-reverse auctions for green energy projects as it leads to an artificial lowering of prices.
- CDPQ Infrastructure to buy a 10% stake in Apraava Energy from the parent CLP group.
- JSW, Torrent Power, Apraava and Sembcorp are in the race to acquire 700 MW of wind and solar assets under Vector Green energy.
- BluSmart Electric Mobility is close to raising $250 million from investors.
- PMI to have around 900 electric buses in India by December 2022.
- Indian electric rickshaw battery market value to hit $295.4 million by 2030 – report.
- The Indian electric vehicle sector has seen a 108% increase in employment over the past two years – survey.
- Magenta Mobility partners with Amazon India for the deployment of electric vehicles in Hyderabad.
- Honda Motorcycle & Scooter India appoints Kyndryl as a technology partner
- Gurugram to deploy 150 electric buses instead of 100 CNG minibuses.
- CHARGE+ZONE announces plans for renewable energy for their charging network across India.
- CESL starts the deliberation process for deploying 50,000 electric buses by 2030 in India.
- Bharat Alt-Fuel to establish a unit in Tamil Nadu with an investment of ₹250 crores to make electric vehicles, batteries, and motors.
- EV startup Ather energy posts 411.9% revenue growth for FY22.
- Haryana has become the latest state in India to unveil an EV-friendly policy.
- Vitesse Technologies, a manufacturer of modern drive technologies and electrification solutions inaugurated a plant at Talegaon, Pune.
- Greaves Retail, the retail arm of Greaves Cotton, has inaugurated its AutoEVmart, its multi-brand EV retail store.
That’s all for now folks! See you next week! To get the latest updates in the markets, follow us on Facebook, Instagram, and Twitter.