No time to catch up with the markets during the week? Be in the know of all things stock markets before Monday hits us again. Check out Arihant Capital’s Weekly Market Wrap-up and show some love in the comment section below.
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This week in the stock markets was a lot like Daenerys Targarean’s dream of “Breaking the wheel”. In the tussle between the Bulls and the Bears, the markets decided to end the week on a flat note. Yes, we have the Game of Thrones fever, how could we not? As we eagerly await the “House of Dragons” premier, this is the perfect time for a rewind.
Let’s come down from the fantasy world of Westeros to the real world of Dalal Street. The benchmark indices did not show significant gains, Nifty closed the week with an increase of 0.34% at 17,759. BSE Sensex ended the week at 59,646, a week-on-week gain of 0.31%. Bank Nifty muted by 0.14% during the week, ending at 30,036. Markets witnessed profit booking as bears came growling.
In other news, there are talks of global acquisitions. Reebok’s owner Authentic Brands Group is acquiring Ted Baker in a deal worth $255 million. A business tycoon recently joked about one huge acquisition: do you know who? Simply click on the photo below and let us know your answer.
While we talk about acquisitions, there is something we want you to know. If you are a 90s kid, we are sure you would have tasted “Crax”. The company that makes Crax and several other snacks is DFM Foods and Advent International currently owns about 3/4th of DFM. Advent recently proposed to delist the food brand from the stock exchanges. Yes, people scrambled to buy the stock before the share buyback, and the stock hit the upper circuit.
Don’t know what we are talking about? Find out more about Upper and Lower Circuits here.
📈What to Expect from the Markets?
–Mr. Abhishek Jain, Head Research, Arihant Capital
India’s stock benchmarks gained for the fifth week in a row, supported by FMCG and energy stocks. Nifty rallied 0.34% during the week. On the sectoral front, Realty, FMCG, I.T, and Media stocks gained, while PSU bank and Pharma closed on negative sentiment. We have been advising caution for the last 2-3 weeks. All eyes would be on the Jackson hole summit next week.
–Mr. Ratnesh Goyal, Senior Research Analyst, Arihant Capital
On the daily chart of Nifty, we observe a bearish candlestick formation. On the weekly chart, we observe a Doji candlestick pattern formation. Upon analysis, it seems that the market may consolidate here. Nifty can face resistance around the 17,850 levels, if it starts to trade above it, then it can touch 17,950-18,050 levels. On the downside, the support is 17,650 on falling further, it can test 17,500 and 17,350 levels.
On the daily chart of Bank Nifty, we observe a bearish candlestick pattern. The weekly chart shows a Doji candlestick pattern. On analyzing then it seems that Bank Nifty may also consolidate here. In the coming trading session, if it trades above 39,250 then it can touch 39,500 and 39,700 levels, however, downside support comes at 38,750 below that we can see 38,500-38,400 levels.
- Cotton supply shrinks washed by Indian rains, dried by Chinese heatwave and US-Brazil’s draughts. Cotton prices soar by 30%.
- Nepal signs MOU with National Hydro Power Corporation Ltd (NHPC) for 2 projects totalling 1,200 MW.
- Citigroup struggled to monitor UK traders reaping $3.1 billion: FCA
- Reeling under 38,000 lawsuits, Johnson and Johnson has finally decided to say goodbye to its flagship baby powder.
- UK inflation hits a new 40-year high as food prices rocket.
- India eases Russian oil buying in July and boosts Saudi imports.
- China’s central bank lowered its one-year policy rate to 2.75% to support the country’s economy, which has been impacted due to repeated Covid-led lockdowns and restrictions.
- Sri Lanka may have just annoyed India by allowing Chinese ships to dock.
- India’s gold imports rose 6.4% to $12.9 billion from April-July owing to healthy demand.
- Rupee gains as FPIs Pump in $2.8 bn in August, FII inflows pick up. and RBI sold a record $18b in forwards markets to support Rupee.
- Centre revises windfall tax on oil products. The government on Thursday cut the windfall tax on domestic crude oil to ₹13,000 per tonne from ₹17,750 per tonne. Meanwhile, the export duty on diesel was hiked to ₹7 per litre from ₹5 per litre. The government also levied a tax of ₹2 on aviation turbine fuel (ATF) exports.
- India’s July wholesale price index-based inflation slumped to a five-month low of 13.93%.
- IPO Buzz: companies file papers to raise ₹7,500 crores.
- Mahindra weighs acquisition of GM’s Talegaon factory.
- Nifty Auto outperforms Nifty due to robust demand visibility.
Energy and Infrastructure
- Techno Electric bags large orders worth ₹1,455 crores from Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL).
- The electricity grid operator barred several state electricity distribution companies(discoms) from power exchanges due to high outstanding. Dues drop 80% the day after the exchange ban,
- Adani Power to buy DB Power for ₹7,017 crores.
- SBI takes Bajaj Hindusthan Sugar to NCLT to recover its dues to the tune of ₹4,800 crores to several banks.
- Arvind SmartSpaces and HDFC Cap join hands for a ₹900-crore reality platform.
- Adani Logistics to Buy Inland Container Depot Tumb for ₹835 crores.
Banking and Finance
- How to sell a bank? The government reaches out to TPG, Carlyle, and Fairfax to sell a stake in IDBI Bank.
- UPI may attract charges: RBI now seeks public comments.
- Tata Asset Mgmt considers buying 45% in UTI AMC
IT and Telecom
- Jio adds 4.22m users in June; Vi’s user base shrinks by 1.8 m subscribers.
- Vodafone and CPDQ are in talks over Indus Towers sale.
- Airtel to raise up to ₹3,000-cr debt for 5G instalment.
- TCS delays June quarter variable pay for select employees
- TRAI will discuss satellite spectrum allocation soon. Airtel, Jio, and Adani pay 5G spectrum auction dues to the telecom department. Adani Data Networks applies for a universal licence in six circles.
- Mobile handset assembly imports to attract 15% duty, 10% for display only.
- HAL expands its footprint in Malaysia.
- Power Mech bags order worth ₹6,163 crores from Adani Group for five Flue Gas Desulphurization (FGD) projects from the Adani Group. The order size is over 2 times its FY22 revenues.
- RITL lenders and RIL reach a takeover deal.
- Zomato-backed logistics provider Shiprocket joins the unicorn club after a Series E round that increased its valuation to $1.23 billion.
- SEBI approves Adani’s open offer for Ambuja, ACC.
- Flop show- trouble for PVR – Inox merger post a complaint to CCI.
- Piramal demerger gets an NCLT nod.
- Akasa Air capitalised enough to place a new aircraft order in 18 months: CEO Vinay Dube.
- India-made integrated solar roofing system gets Dubai authority nod.
- Larsen & Toubro (L&T) commissioned its first green hydrogen plant at its engineering complex in Hazira, Gujarat on Saturday. The plant will produce 45 Kg of green hydrogen daily
- Switch Mobility unveils country’s first electric double-decker air-conditioned bus
- Auto major Mahindra and Mahindra (M&M) unveiled five new electric SUVs on 15 August in the UK.
- M&M is in talks with Volkswagen to form an Electric Vehicle platform which will help speed up EV rollout.
- Tata Motors plans to launch the Avinya, its pure electric car by 2025.
- Torrent Power is the frontrunner to acquire Vector Green Energy — US-based Global Infrastructure Partners’ 700MW clean energy platform in India — in a deal worth about ₹5,000 crore.
- Tata Elxsi brings new-age solutions for driverless cars, connected vehicles and more initiatives for nearly 500,000 on-road vehicles across its lineup of electric, passenger, and commercial vehicles.
- Electronic, car companies hit top gear to increase output by 15-20% YOY for festivities.
- India’s chip component market to grow to USD 300 billion from 2021 to 2026. India is poised to be the second largest market in the world in terms of scale and growing demand for semiconductor components across several industries and applications.
- Hero Electric, the No. 1 electric two-wheeler OEM in India in July 2022 with 8,953 units retailed, partners AU Small Finance Bank to provide customised finance for speedier adoption of EVs.