KEY HIGHLIGHTS
Rupee weakens Against US Dollar
Rupee weakened by 2 paise to close at 83.95 against the US dollar.
It closed at 83.93 on Wednesday.
Source: Bloomberg
Nifty Records Best Winning Streak In Three Months As ICICI Bank, Airtel Lead Gains: Closing Bell
Benchmark equity indices pared some of their morning gains but still managed to close higher with the Nifty 50 recording their best streak since six sessions that ended on May 23.
The Nifty ended at 0.16% or 40 points higher at 24810.20 and the Sensex closed 0.18% or 147.89 points up at 81053.19. Both the indices recorded their highest closing since August 1.
"The Index has virtually touched the target of 24,870 (Today's high- 24,867.35)," according to Aditya Gaggar, director of Progressive Shares. "The range of 24,850-,25,000 is a bearish gap zone, and considering a one-way rally from the past 5 sessions, a pullback can be anticipated where the Index will find support at 24,720."
Shares of ICICI Bank Ltd., Bharti Airtel Ltd., HDFC Bank Ltd., Grasim Industries Ltd., and Infosys Ltd. contributed the most to Nifty's gains. While those of Tata Consultancy Services Ltd., Mahindra & Mahindra Ltd., Tata Motors Ltd., NTPC Ltd., and Oil & Natural Gas Corp. Ltd. weighed on it.
Sectoral indices ended mixed. Nifty Energy was the top loser and Nifty PSU Bank rose the most.
Market breadth was skewed in favour of buyers. Around 2,462 stocks rose, 1,501 stocks declined, and 90 stocks remained unchanged on BSE.
Broader markets outperformed benchmark indices. The BSE Midcap and Smallcap indices ended 0.67% and 0.47% higher, respectively.
On BSE, 15 sectoral indices advanced and five declined out of 20. The BSE Telecommunication ended with the most gains compared to peers. The BSE Utilities was the worst performing sector.
Markets At Close
Nifty ends higher in the sixth consecutive session recording its best streak in three months
Sensex ends higher for third consecutive session
Both the indices closed at their highest levels since August 1
Nifty ends 0.16% or 40 points higher at 24810.20
Sensex ends 0.18% or 147.89 points higher at 81053.19
Broader indices also ended higher; Nifty Midcap 100 ended 0.69% up and Nifty Smallcap 250 rose 0.32%
Sectoral indices ended mixed; Nifty Energy was the top loser and Nifty PSU Bank rose the most
Grasim and Tata Consumer were top Nifty gainers
M&M and NTPC were top losers among Nifty stocks
July Economic Review
Indian economy sustained its momentum in first 4 months of FY25
Higher GST collection expected in coming months
Seeing robust performance in the services sector
Measures announced in Union Budget will give a big boost to MSMEs, services and manufacturing sectors
Stock market witnessed another bullish run; Nifty & Sensex soared to new heights
Consumer confidence has declined in the current economic situation
There is evidence of trend reversal in external sector in FY25
Steady progress of monsoon will further aid in reducing food inflation in coming months
RBI surveys paint sobering picture of urban consumers’ perception of employment conditions
RBI surveys paint sobering picture of manufacturers’ hiring sentiments
Source: DEA
European Markets Trade Higher
Eraaya Lifespace To Raise Funds
To raise up to Rs 1,025 crore via FCCBs
Source: Exchange filing
Fedbank Financial Approves NCD Issue
Board approves issuance of NCDs worth up to Rs 2,500 crore
Source: Exchange Filing
Reliance Power Hits Upper Circuit
Reliance Power Ltd. rose 4.98% to Rs 37.94, the highest level Sep 4, 2018. It erased most gains to trade 0.72% higher at Rs 36.40 as of 1:22 p.m., compared to 0.18% advance in the NSE Nifty 50 index.
TVS Motor Hits Lifetime High
Shares of TVS Motor Co. Ltd. jumped to hit its lifetime high after the company launched TVS Jupiter 110, which is equipped with Nextgen lightweight compact futuristic High-performance engine and iGO Assist
Nucleus Software Buyback Details Released
4.48 lakh shares, 1.67% of the share capital, to be bought back
Record date for determining eligibility Sept. 3
Buyback through tender offer
Buyback price: Rs 1,615 per share
Buyback size: Rs 72.36 crore
GAIL In MoU With Petron
Signs MoU with Petron to explore setting up of 500 kilo ton per annum bio-ethylene plant in India
Source: Exchange Filing
ICICI Prudential Offloads Stake In TVS Motor
ICICI Prudential MF cuts stake in company by 2.01%
ICICI Prudential MF's stake in company now stands at 7.23%
Source: Exchange Filing
Wonder Electricals Approves Share Split
Board approves splitting of each share into 10
Source: Exchange Filing
Dabur India Signs MoU With Tamil Nadu Government
Signs MoU with Tamil Nadu govt to set up manufacturing facility
To invest Rs 135 crore for phase 1 of Tamil Nadu facility
To invest total Rs 400 crore over 5 years for Tamil Nadu manufacturing facility
Source: Exchange Filing
Escorts Kubota Merger Approved By NCLT
NCLT approves merger of Escorts Kubota India, Kubota Agriculture Machinery & company
Source: Exchange Filing
Ola Electric Hits Lowest Level Of This Week
The scrip fell as much as 8.7% to hit Rs 126, its lowest level since August 16. At 11:45 a.m., it pared losses to trade 5.3% down at Rs 130.77, when the Nifty was 0.3% higher.
Transport Corp. Hits Life High After Buyback Proposal
Shares of Transport Corp. of India have surged close to 19% to hit an all time high as the company announced its first ever buyback proposal.
The board of directors of the industry-specific logistics solutions company will meet on Aug. 24 to consider a buyback of its equity shares, according to an exchange filing.
IndiGo Shares Gain As HSBC Remains Bullish On Business Class Service Launch
Shares of InterGlobe Aviation Ltd. gained on Thursday after HSBC remained bullish with the airlines launching business class service on some of its key metro routes.
Broader Indices Outperform Benchmarks
Broader indices outperformed the benchmarks. At 11:00 a.m., the Nifty Midcap 100 was 0.8% up and Nifty Smallcap 250 was 0.7% higher after hitting its record high when the benchmarks were 0.2% higher.
Zen Technologies Hits Record High After Rs 1000-Crore QIP
Shares of Zen Technologies Ltd. touched an all-time high in early trade on Thursday after it launched a qualified institutional placement to raise up to Rs 1,000 crore.
Shyam Metalics Announces Clean Energy Project Phase 1
Announces phase 1 of clean energy project
Finalises first 20.43 MW out of the announced 100 MW
Project divided in 3 phases with capital investment of Rs 50 crore
Source: Exchange Filing
August PMI Data
August flash services PMI at 60.4 vs 60.3 in July
August flash manufacturing PMI at 57.9 vs 58.1 in July
August flash composite PMI at 60.5 vs 60.7 in July
Source: Bloomberg
PVR Inox Promoters Sell Stake In Company
Promoters sell 0.33% stake in company on August 20
Promoters stake in company now stands at 6.07%
Source: Exchange Filing
Edelweiss Financial Promoters Divests Shares In Nuvama
Promoters divest shares to comply with minimum public shareholding requirements stipulated by regulatory authorities
Source: Exchange Filing
Transformers & Rectifiers Gets New Orders
Gets export order worth $14 million from Linxon Global
Gets export order worth $2.8 million from Arcelor Mittal
Source: Exchange Filing
Kalyan Jewellers Shares Surge After Block Deal
Shares of Kalyan Jewellers were up 8.27% on Thursday after several block deals involving a total of 6.6 crore stake in Kalyan Jewellers took place on the exchanges on August 22 with Highdell Investment likely selling its part stake to promoter Trikkur Sitarama Iyer Kalyanaraman.
IREDA Surges On Fund Raise Announcement
Indian Renewable Energy Development Agency Ltd. rose to the highest level in nearly three-weeks after the company announced its board will consider raising Rs 4,500 crore via multiple financial instruments.
Angel One Clarification On DB Stock Broking Association
Entity 'DB Stock Broking' not authorised person of company
However, Deepankar Barman registered as an authorised Person in individual capacity since 2019
Reports state Deepankar Barman being associated with DB Stock Broking
Source: Exchange Filing
Sectoral Indices That Hit Life High
Bajaj Auto Gets Approval For 13 PLI Schemes Applications
Company met mandatory requirements of 50% minimum Domestic Value Addition (DVA) requirements
Approvals can potentially be for both EV scooter/ bikes as well as components
Source: People in the Know
Shyam Metalics Rallies To Life High As UBS Bullish
Shares of Shyam Metalics and Energy Ltd. surged 10% after brokerage firm UBS gave the company a 'buy' rating as it forecasts robust profit growth for the company.
Paytm Hits Over Six-Month High
One 97 Communication Ltd.' share prices rose to the highest level in over six month as the company will sell its events ticketing and entertainment business to Zomato Ltd. Paytm has also slashed salaries of its non-executive directors.
Zomato Pares Gains After Jumping Nearly 3%
Shares of Zomato Ltd. gained over 2% after market open on Thursday after it announced mega acquisition of the entertainment and ticketing business from Paytm parent One97 Communications Ltd.
Nifty, Sensex Open Higher Tracking Global Cues; HDFC Bank, ICICI Bank Lead Gains: Opening Bell
Benchmark equity indices continued their uptrend after minutes from US Federal Reserve meeting strengthened the expectations of a rate cut in September.
At pre-open, the Nifty 50 was at 24863.40, up by 0.38% or 93.20 points and the Sensex rose 0.37% or 301.79 points to 81207.09.
"Dovish comments from US Federal Reserve officials about the possibility of cutting interest rates have boosted global markets, with oil prices dropping to a seven-month low," said Vikas Jain, head of research at Reliance Securities.
"We expect volatility to increase in the second half of the day with respect to the weekly expiry and expect some rollover movement in individual stocks," he added.
Shares of Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Bharti Airtel Ltd., and Axis Bank Ltd. contributed the most to the gains.
While those of Power Grid Corp. Of India Ltd., Mahindra & Mahindra Ltd., NTPC Ltd., Dr Reddy's Laboratories Ltd., and Shriram Finance Ltd. weighed on the Nifty.
Most sectoral indices were higher with Nifty FMCG leading the gains and Nifty Energy falling the most.
Nifty, Sensex Higher At Pre-Open
At pre-open, the Nifty 50 was at 24863.40, up by 0.38% or 93.20 points and the Sensex rose 0.37% or 301.79 points to 81207.09.
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.85%.
It closed at 6.86% on Wednesday.
Source: Bloomberg
Rupee Opens Flat Against US Dollar
Rupee opened flat at 83.94 against the US dollar.
It closed at 83.93 on Wednesday.
Source: Bloomberg
HG Infra Engineering Founders Sell 2.76% Stake
Founders sell 2.76% in company via open market on August 20
Founders stake in company falls to 71.77% from 74.53% earlier
Source: Exchange Filing
CLSA On Vedanta
Maintains 'outperform' at Rs 520 target,14% upside
Strong commodity cycle and margin expansion to drive upside
Expects stock to catch up as commodity prices remain resilient
Expects rebound in aluminium, copper prices
Recent corporate actions augur well for company's deleveraging efforts
Tweak FY25-27 net profit estimates lower by 1% to factor in Hindustan Zinc stake sale
Nuvama Upgrades Mphasis Rating To 'Buy'
Upgrade to 'buy' from 'hold', target price Rs 3,500, upside 15%
Taking giant strides to capture early-mover advantage in AI space
See Mphasis at an inflection point
Factors that led to underperformance in last two years, likely to reverse
Interest rate cuts are likely to lead to a revival in tech spending by US
Has backfilled DXC channel with growth in other verticals/clients
It now contributes only 3% to the top line (from 28% in FY19)
Paytm Clarification On Independent Director Report
Clarifies on report of company seeking shareholders’ nod for appointment of Gulshan Rai's as Independent Director
Not seeking shareholders’ nod for Gulshan Rai's appointment as Independent Director incorrect
Board has not approved proposal for appointment of Gulshan Rai as Independent Director
Source: Exchange Filing
Bharti Airtel Adjusts FCCB Conversion Price
Adjusts conversion price of Foreign Currency Convertible Bonds to adjusted to Rs 515/share from Rs 518/share
Source: Exchange Filing
Nazara Tech To Infuse Up To Rs 45.9 Crore In UK Arm
Signs pact with arm Nazara Technologies UK for infusion of up to Rs 45.9 crore into Nazara UK
Signs loan agreement with Nazara UK for proposed grant of loan not exceeding Rs 183.5 crore
Source: Exchange Filing
Brokerages On Zomato
Bernstein
Maintains outperform with target of Rs 275 implying 6% upside
Paytm’s ticketing business acquired for $250 million, valued at EV/GMV of 1 time
Acquisition will expand the addressable market for Zomato into event ticketing business
Ticketing business grew 29% YoY to $240 million in GMV in FY24
Margins were at 1.5% Adj. EBITDA; 10Mn+ transacting users generating over 78 million tickets
GMV = Gross Merchandise Value = total value of goods / services sold
Nomura
Retains Buy with unchanged target price of Rs. 280
Not incorporated the newly-acquired business in their price target calculation
Key drivers for Zomato’s share price in the near-term are the continuing growth momentum in Quick commerce
Expects 100% CAGR in GOV over FY24-26E
Food Delivery business clocks steady 20-25% annual growth in the medium term
Key risks:
Capital allocation of around $1.5 billion cash, slowing growth in Food delivery and Q-commerce businesses
Smooth integration of the acquired businesses into the new District app
Cash burn initially to incentivise the users to migrate from Paytm’s app to Zomato and District apps
Emkay
Retains BUY with target price of Rs 270
Acquisition gives size and scale to Zomato's going out business
Acquisition acting as an additional growth engine over the medium-to-long term
Lends credence to the company's aim of building a one-stop destination for “District” app
Management’s strong execution track record grants confidence
Will consider the acquisition in estimates after deal closure
Elara
Reiterates 'buy' with a target of Rs 320, implying 23% upside
Currently values going-out business at Rs 45 billion after assuming consolidation of the Paytm business
India may see a live event ticketing CAGR of 17.6% in CY23-26, as per E&Y
Online ticketing market for live events (sports and concerts) is valued at Rs. 99 billion
Believes there is potential for the ticketing business to report a healthy CAGR of 15-20%
Book my show and PayTM combined account for 85-90% of online bookings for multiplexes
Higher ticket prices on premium content would drive convenience revenue
Book my Show may remain the market leader in the entertainment ticketing business
Paytm is one-fourth the size of market leader Book my show
Book my show generates an EBITDA margin of 13% versus Paytm Live’s 10%
Believes the live ticketing business will continue to account for a larger share of revenue for both aggregators
Zomato’s live business has annualised run rate of Rs 4 billion, will move up by 75% to Rs 7 billion post acquisition
Do not expect any major revenue or an earnings upgrade
Zomato has a big advantage with a large customer base
Zomato has a healthy cash and investment pile of Rs 124 billion as of FY24
Jefferies
Maintains Buy with target of Rs 335 from earlier Rs 275
Valuation looks compelling in context of growth and margins
Low capital intensity promises high return ratio in steady state
Incorporates acquisition and value of going out at 2.5 times GMV (in line with blinkit)
Global Cues
U.S. Dollar Index at 101.24
U.S. 10-year bond yield at 3.80%
Brent crude 0.13% lower at $75.95 per barrel
Nymex crude 0.24% lower at $71.76 per barrel
GIFT Nifty down 13.50 points or 0.05% at 24,880.50 as of 7:25 a.m.
Bitcoin was down 0.5% at $60,947.75
F&O Cues
Nifty August futures up by 0.34% to 24,798 at a premium of 28 points.
Nifty August futures open interest down by 0.5%.
Nifty Bank August futures down by 0.17% to 50,806, at a premium of 121 points.
Nifty Bank August futures open interest down by 1.9%.
Nifty Options Aug. 22 Expiry: Maximum call open interest at 25,000 and maximum put open interest at 24,300.
Bank Nifty Options Aug. 28 Expiry: Maximum call open interest at 58,000 and maximum put open interest at 52,800.
Securities in ban period: Aarti Industries, Aditya Birla Fashion, Balrampur Chini Mills, Birlasoft, Gujarat Narmada Valley Fertilizers & Chemicals, Granules India, Hindustan Copper, India Cements, LIC Housing Finance, National Aluminium, PEL, and Sun TV Network.
Trading Tweaks
Price band change from 20% to 10%: Tasty Bite Eatables.
Ex/record dividend: Indian Railway Finance Corp., Jindal Steel and Power, Aster DM Healthcare, Globus Spirits, Goldiam International, Relaxo Footwears, Sirca Paints, and Hester Biosciences.
Ex/record AGM: Aster DM Healthcare, Globus Spirits, Sirca Paints, Expleo Solutions, Hester Biosciences, Honasa Consumer.
Moved into short term ASM Framework: Angel One, Edelweiss Financial Services, Godfrey Phillips India, J.G. Chemicals, and Tasty Bite Eatables.
Moved out of short term ASM Framework: Garware Hi-Tech Films, Kfin Technologies, Sakuma Exports.
Insider Trades
Man Infraconstruction: Promoter Mansi P. Shah bought 50,000 shares on Aug. 20.
Info Edge (India): Promoter Hitesh Oberoi sold 40,060 shares on Aug. 20; Promoter Endeavour Holding Trust sold 38,973 shares on Aug. 20.
Prataap Snacks: Promoter Rajesh Kumar Metha sold 1.85 lakh shares on Aug 19. Promoter Arvind Kumar Metha sold 65,000 shares, Promoter Rajesh Kumar Metha sold 0.14 crore shares and Promoter Rajesh Kumar Metha sold 1.47 lakh shares.
IPO Offerings
Interarch Building Products: The public issue was subscribed to 93.53 times on day 3. The bids were led by qualified institutional investors (205.41 times), non-institutional investors (128.42 times), employees reserved (24.19 times), and retail investors (19.11 times).
Orient Technologies: The public issue was subscribed to 6.65 times on day 1. The bids were led by retail investors (10.5 times), non-institutional investors (6.17 times), and qualified institutional investors (0.02 times).
Block Deals
PNB Housing Finance: General Atlantic Singapore Fund FII Pte. sold 1.33 crore shares (5.13%) and Pioneer Investment Fund sold 6.23 lakh shares (0.23%) at Rs 802.5 apiece. While the Government of Singapore bought 36.45 lakh shares (1.4%), Aditya Birla Sun Life Mutual Fund bought 18.69 lakh shares (0.71%) and HSBC Mutual Fund bought 8.09 lakh shares (0.31%) at Rs 802.5 apiece. Morgan Stanley Asia Singapore Pte was among others to acquire 2.49 lakh shares (0.14%) at Rs 802.5 apiece.
Bulk Deals
Cyient DLM: Cyient sold 1.14 crore shares (14.5%) at Rs 764.4 apiece. On the other hand, Morgan Stanley Asia Singapore Pte bought 41.37 lakh shares (5.22%), Aditya Birla Sun Life Mutual Fund bought 19.79 lakh shares (2.5%) and Nippon India Mutual Fund bought 13.2 lakh shares (1.66%) at Rs 764.4 apiece. HDFC Mutual Fund bought 11.35 lakh shares (1.43%), Citigroup Global Markets Mauritius Private Limited bought 5.04 lakh shares (0.63%) and Edelweiss Mutual Fund bought 4.1 lakh shares (0.51%) at Rs 764.4 apiece.
Trent: Dodona Holdings sold 2.46 lakh shares (0.06%) at Rs 6,790 apiece and Siddhartha Yog bought 2.46 lakh shares (0.06%) at Rs 6790 apiece.
Kiri Industries: Griffin Growth Fund VCC bought 40.98 lakh shares (7.9%) at Rs 373.85 apiece and Lotus Global Investments Limited sold 40.98 lakh shares (7.9%) at Rs 373.85 apiece.
Delhivery: Nexus Ventures Iii sold 78.19 lakh shares (1.06%) at Rs 440 apiece.
Nuvama Wealth Management: Rashesh Chandrakant sold 4 lakh shares (1.13% stake) at Rs 6,204 apiece.
Stocks To Watch
Zomato: The company will acquire Paytm's entertainment ticketing business for Rs 2,048 crore. Paytm will transfer the movie ticketing business to unit Orbgen Tech, which will be acquired by the company for Rs 1,265 crore, and unit Wasteland Entertainment will be bought by Zomato for Rs 784 crore.
One97 Communication: The company announced significant cuts in the annual salaries of its non-executive independent directors, Ashit Ranjit Lilani and Gopalasamudram Sundararajan.
Kalyan Jewellers: Highdell to sell a 2.36% stake to promoter Trikkur Sitarama Iyer for Rs 1,300 crore, at Rs 535 per share.
India Grid Trust: Sponsor Esoteric II to sell up to a 17.32% stake in the company via OFS, which includes a base offer of up to 9.66% with an oversubscription option of an additional 7.66%. The floor size for OFS is set at Rs 132 per share. OFS is to take place on Aug. 22 and 23.
IREDA: The company is to consider raising funds up to Rs 4,500 crore through FPO, QIP, or other means.
Zen Technologies: The company will launch its QIP and has set the floor price at Rs 1,685.18 per share.
Welspun Enterprises: The company arm received an order worth Rs 160 crore from BMC for the rehabilitation of man-entry sewers by trenchless technology in Mumbai.
Punjab National Bank: The government has extended Kalyan Kumar's term as executive director for two years beyond Oct. 20.
L&T Technology Services: The company has extended collaboration with Paris-based Thales for software monetisation solutions.
RVNL: The company signed an MoU with Dhaya Maju Infrastructure for rail infrastructure projects in the ASEAN market, with a special focus on establishing a manufacturing base in Malaysia for railway coaches.
Hudco: The company signed an MoU with the Yamuna Expressway Industrial Development Authority to extend loan assistance towards projects on both sides of the Yamuna Expressway.
Kilburn Engineering: The company will consider raising funds on Aug. 26.
BEML: The company partnered with the Indian Navy to develop advanced marine applications for defence.
Earnings Post Market Hours
Procter & Gamble Health Q4 (YoY)
Revenue down 6% at Rs 284 crore versus Rs 301 crore.
Ebitda up 6% at Rs 48 crore versus Rs 45 crore.
Ebitda margin at 17.01% versus 15.07%.
Net profit down 44% at Rs 17 crore versus Rs 30 crore.
GIFT Nifty Trades Near 24,900
The August futures contract of the GIFT Nifty was trading flat at 24,888 as of 06:56 a.m.
Asia-Pacific markets rose on overnight gains in US stocks. Investors in the region await the Bank of Korea's policy decision.
The Nikkei 225 was trading 278.02 points or 0.73% higher at 38,229.82 as of 06:21 a.m.
The Kospi was 3.73 points, or 0.14% higher at 2,704.86 as of 06:22 a.m.
US stocks gained after minutes of the Federal Reserve's July policy meeting showed that some of the decision maker acknowledged the need to cut rates. On Wednesday, the S&P 500 and Dow Jones Industrial average ended 0.42% and 0.14% higher, respectively. The Nasdaq Composite index settled 0.53% higher.
Brent crude was trading 0.07% lower at $76.00 a barrel. Gold rose 0.04% to $2,513.52 an ounce as of 06:28 a.m.
Indian benchmark stock indices ended Wednesday's choppy session on a positive note, with the NSE Nifty 50 recording a five-day winning streak as ITC Ltd. and Bharti Airtel Ltd. gained.
The NSE Nifty 50 settled 71.35 points, or 0.29% higher at 24,770.20, and the S&P BSE Sensex ended up 102.44 points, or 0.13% at 80,905.30.
Overseas investors stayed net sellers of Indian equities on Wednesday for the third straight day. Foreign portfolio investors offloaded stocks worth Rs 799.9 crore, while domestic investors stayed net buyers for the 13th session and bought equities worth Rs 3,097.5 crore, according to provisional data from the National Stock Exchange.
The Indian currency depreciated by 14 paise to close at 83.93 against the US dollar.
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