Connect with us

Businesses

Markets look tired but expiry could change things

Published

on

New Delhi: Markets were open for four trading sessions in the previous week as there was a trading holiday on Monday. They were a little volatile but managed to close with small gains. There has been sector rotation with banking being at the forefront on Wednesday led by sugar stocks and then fertilizer and finally railway stocks.

What could be a cause of concern going forward is the volumes in the fertilizer stocks when they gained sharply. BSESENSEX gained on three of the four sessions while it lost on one. NIFTY on the other hand gained on two and lost on two sessions.

At the end of the four-day week, BSESENSEX gained 217.13 points or 0.28 per cent to close at 77,209.90 points while NIFTY gained 35.50 points or 0.15 per cent to close at 23,501.10 points.

The broader markets saw BSE100 and BSE200 lose 0.04 per cent and 0.14 per cent respectively while BSE500 gained 0.04 per cent. BSEMIDCAP was down 0.20 per cent while BSESMALLCAP was up 1.44 per cent.

The pace at which the BSESMALLCAP and BSEMIDCAP indices have risen is a cause for concern and yet another fund house has raised valuation concerns in these segments.

The Indian Rupee gained 3 paisa or 0.04 per cent to close at Rs 83.53 to the US Dollar. Dow Jones gained on all four trading sessions of the week and gained 561.17 points or 1.45 per cent to close at 39,150.33 points.

In primary market news, we had one listing, and two issues opening and closing for subscriptions while yet another issue had opened and would close in the following week. Two new issues would open and close in the coming week.

The issue from Le Travenues Technology Limited who had issued shares at Rs 93 debuted on Tuesday, the 18th of June. Shares closed day one at Rs 161.99, a gain of Rs 68.99 or 74.88 per cent.

ALSO READ:  Rolls Royce successfully kicks off flight test of aero engine Pearl 10X

By the weekend the share gained further and closed at Rs 169.18, a gain of Rs 76.18 or 81.91 per cent.

The issue from Dee Development Engineers Limited who had issued shares in a price band of Rs 193-203 received an excellent response and was oversubscribed 102.32 times. The QIB portion was subscribed 206.54 times, the HNI portion subscribed 148.99 times and the Retail portion subscribed 23.21 times. There were 20.61 lakh applications in all.

The second issue was from Akme Fintrade (India) Limited which had issued shares in a price band of Rs 114-120. The issue was subscribed overall 54.24 times with QIB portion subscribed 28.12 times, HNI portion subscribed 129.79 times and Retail portion subscribed 44.14 times. There were 12.07 lakh applications. The QIB portion response was comparatively muted if one looks at other issues and even the HNI response in this issue. This was probably because the company has higher NPA’s and is in a competitive landscape environment in the NBFC space.

The third issue was from Stanley Lifestyles Limited which opened on Friday and would close on Tuesday the issue was subscribed 1.44 times on the first day. The price band is Rs 351-369.

The week ahead sees the issue from Allied Blenders and Distillers Limited open on Tuesday the 25th of June and close on Thursday the 27th of June. The issue consists of a fresh issue of Rs 1,000 crores and an offer for sale of Rs 500 crores in a price band of Rs 267-281.

The company has a distillery in the state of Telangana and 32 bottling plants across the country. Its brand ‘OFFICERS CHOICE’ has been the world’s largest-selling whisky by volume during 2016-2019.

ALSO READ:  India's services sector clocks robust growth in April, lifts business confidence to 3-month high

The company has been under stress and is raising money through the IPO to retire debt to the extent of Rs 720 crores. Further, prior to going public, the promoter has rationalised the board and separated ownership and management. The new board is entirely professional and would entail a saving of rupees 93 crores in terms of compensation to promoters going forward.

The repayment of interest and this compensation would entail a total saving of over rupees 200 crores in the financial year ending March 25. This would change the financials of the company which has just about been positive.

Considering the infrastructure, prospects post rationalisation and improvement in margins, it appears an investment which is warranted considering rising demand, socio-economic acceptance of liquor and growing aspirations.

The second issue is from Vraj Iron and Steel Limited which is tapping the capital markets with its fresh issue of rupees 171 crores in a price band of Rs 195-207. The issue opens on Wednesday the 26th of June and closes on Friday the 28th of June. The company manufactures M S Billets and TMT bars and uses the sponge iron route for doing so.

It is located in Chhattisgarh and has its plants at Raipur and Bilaspur. To better use the flue gas, it has a waste recovery plant and generates power which helps in the reduction of cost. The object of the issue is to raise money for the expansion of sponge iron capacity and MS Billets at Bilaspur and repayment of a loan taken from the bank for funding this project in the interim.

The issue is attractively priced and offers scope for appreciation in the medium term. There could also be listing gains looking at the market mood.

The week ahead sees June futures expire on Thursday. The current value of the June series at 23,501.10 points is 1,012.45 points or 4.50 per cent higher than the start of the series. Bulls are very well placed currently and have the upper hand considering we have a mere four days to expiry.

ALSO READ:  Thiruvananthapuram Int'l Airport run by Adani Group recognised as best airport at arrivals globally

Even though markets seem to be tiring out and are finding it difficult to hold on, the momentum and the fact that it’s a mere four days to go, would ensure that they win the series. They may at best concede some ground. One needs to remember that FPIs have been covering their shorts this series after the results of the general elections were announced on 4th June.

Markets seem to be trading in a broad range where 23,650-23,700 is a top at the moment on NIFTY and 22,800-850 a bottom. These levels seem difficult to be taken out currently and it should be a tough time to break out. The biggest driver in the immediate future is the budget which could happen during the period 18th-23rd July. This event has the potential to make the markets break in either direction.

The strategy for the week ahead would be to remain cautious with expiry happening. The bears led by FPIs will try to bounce back to the extent possible. Further there would be little or no news flow as well. Sector rotation is already happening and new stock ideas are difficult to come by. In such a scenario its advisable to play safe and take some money off the table. Keep the money aside for a day when new ideas emerge.

In conclusion, trade cautiously in a week where volatility is likely to rise on account of expiry as the bulls and bears intensify their action.

(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)

–IANS

arun/dan

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Businesses

India’s defence exports record over 30-fold quantum leap in last 10 years

Published

on

By

New Delhi, July 14 (IANS) India’s defence exports have recorded a 30-fold quantum leap over the last 10 years from a mere Rs 686 crore in the financial year 2013-14 to a record Rs 21,083 crore in FY 2023-24, reflecting the global acceptability of Indian defence products and technologies.

With exports reaching more than 85 countries across Southeast Asia, the Middle East, Africa and Latin America, India’s defence industry has shown its capability of design and development to the world, with around 100 firms exporting defence products at present, a senior official said.

To give a push to defence exports, the Government has taken a number of policy initiatives like ‘Make in India’ and rolled out economic reforms over the last 10 years. Export procedures have been simplified and made industry-friendly with end-to-end online export authorisation curtailing delays and bringing Ease of Doing Business, he added.

Further, the Atmanirbhar Bharat initiatives have helped the country by encouraging indigenous design, development and manufacture of defence equipment in the country, thereby reducing dependence on imports in the long run.

ALSO READ:  India's first Metro stretch to be upgraded with aluminum third rails

A significant development has been the emergence of the private sector as a supplier of defence equipment with companies such as Larsen & Toubro, Tata Advanced Systems, and Bharat Forge emerging as major players.

Of the total value of production in 2023-24, about 79.2 per cent has been contributed by DPSUs/other PSUs and 20.8 per cent by the private sector. The official data shows that in terms of absolute value, both DPSUs/PSUs and the private sector have recorded steady growth in defence production.

India’s export basket of defence products includes missiles, radars, naval systems, helicopters, and surveillance equipment.

India has made substantial progress in the indigenous production of advanced naval systems that also cater to the export market. Advanced platforms like the INS Vikrant aircraft carrier highlight the achievement in this segment. Fast-attack naval craft, offshore patrol vessels, and various maritime weapon systems are other products that are being exported. The export of BrahMos supersonic cruise missiles, developed jointly with Russia, has been another major achievement, with countries like the Philippines purchasing the system recently.

ALSO READ:  India highlights need for stable oil prices in talks with OPEC

–IANS

sps/uk

Continue Reading

Businesses

Market outlook: Q1 results, FII inflow, monsoon updates key factors next week

Published

on

By

Mumbai, July 14 (IANS) The Indian equity market experienced one of the best weeks of 2024, with the Nifty and Sensex reaching all-time highs of 24,592.20 and 80,893.51, respectively, before closing at 24,502.15 and 80,519.34.

This marked gains of 0.73 per cent for the Nifty and 0.65 per cent for the Sensex. Both benchmark indices extended their winning streak for a sixth consecutive week.

It is the first time ever that the nifty closed above 24,500.

On the other side, small-cap and mid-cap stocks underperformed compared to large-cap. However, several PSU stocks posted staller gains during last week.

The outlook of the market will be guided by several domestic and international factors next week.

On the domestic front, upcoming budget-related announcements, Q1 Fy25 results, monsoon updates and foreign institutional investments (FIIs) inflows will catch investors’ eyes in the week ahead.

On the global front, China will be a significant focus. The country is scheduled to announce its GDP and Index of Industrial Production (IIP). Additionally, there is speculation about a major economic stimulus announcement, which could keep the metal sector in the spotlight.

ALSO READ:  Vistara responds to uptick in flight cancellations

Other global factors to watch include the speech by the US Federal Reserve Chairman, US retail sales figures, and macroeconomic data from Japan. These developments are likely to influence market movements and investor sentiment.

Vinod Nair, Head of Research of Geojit Financial Services said: “We expect stock-specific moves to gain traction due to the ongoing earnings season; indeed, IT will be in the limelight due to the good start to the earnings and outlook.”

Arvinder Singh Nanda, Senior Vice President of Master Capital Services, said that on the daily chart analysis, Nifty has exhibited a breakout from the psychological resistance level of 24,500, indicating that the bullish trend is likely to continue into the next week.

“Despite this positive trend, buying on dips is expected to provide resilience to the market. However, strong upward movements may attract profit booking, making a sustained rally challenging,” Nanda added.

–IANS

avs/kvd

Continue Reading

Businesses

Indian realty sector saw over Rs 5,327 cr investment from domestic investors in April-June

Published

on

By

New Delhi, July 14 (IANS) Keeping up with the growth momentum in the Indian real estate industry, the domestic investors pumped in around $638 million (more than Rs 5,327 crore) in the real estate sector in the second quarter this year, from $127 million in the same period last year.

According to data from leading real estate consultant Vestian, institutional investments in the real estate sector surged 96 per cent in the April-June period to $3.1 billion, from $1.6 billion in the same period last year.

“The Indian real estate sector garnered significant investments in the second quarter of 2024, dominated by foreign investors as the looming uncertainty over the major economies of the world has faded away,” said Shrinivas Rao, CEO, Vestian.

According to the firm, foreign investors had the highest share of 71 per cent of the total investments in Q2 2024.

Industrial and warehousing sector reported a single large deal worth $1.5 billion, accounting for 48 per cent of the total investments received in Q2.

ALSO READ:  India's services sector clocks robust growth in April, lifts business confidence to 3-month high

According to a latest Hurun report, with real estate companies worth $36 billion in 2024, India is accelerating to become the real estate capital of Asia.

Residential sales in India are expected to grow 10-12 per cent in FY2024-25, according to the ‘2024 GROHE-Hurun India Real Estate 100’ report.

India is projected to add 200,000 km of national highways by 2037, fostering the growth of micro cities and further value addition by India’s real estate sector, he added.

–IANS

na/kvd

Continue Reading

Businesses

'FPI community to play key role in positioning India as 3rd largest economy'

Published

on

By

New Delhi, July 13 (IANS) The net foreign portfolio investor (FPI) inflows turned green this month, both in the equity and debt segment, and as India enters ‘Amritkaal’, the FPI community will play a major role in positioning it as the third largest economy in the world, market experts said on Saturday.

There was a total net inflow of Rs 2,82,338 crore for both equity and debt in FY24.

According to market watchers, the reason for a quick rebound in the capital markets can be attributed to the positive sentiments, a stable government’s assurance on continuity of reforms, tepid US Fed rates, and strong domestic demand.

“The recent announcements in IFSC Gift City for wide participation for foreign and Indian investors has also diverted the international players to allocate a substantial portion of their global portfolio to India markets,” said Manoj Purohit, Partner and leader, FS Tax, Tax and Regulatory Services, BDO India.

In the first week of this month, FPIs infused Rs 7,962 crore in equity while their debt investments in the same period stood at Rs 6,304 crore.

ALSO READ:  Vistara responds to uptick in flight cancellations

All eyes are on the budget proposals to be tabled on July 23 which will hopefully announce path-breaking reforms providing India a golden opportunity against the other emerging global markets. “As India enters ‘Amritkaal’, the FPI community will play a major role for the nation to position as the third-largest economy in the world,” said Purohit.

–IANS

na/vd

Continue Reading

Businesses

Robust sovereign credit rating agencies need of the hour: Amitabh Kant

Published

on

By

New Delhi, July 13 (IANS) As India embarks on its journey to become ‘Viksit Bharat’ by 2047, it’s important that we have appropriate credit ratings and call out global agencies for biases and lack of transparency for not objectively assessing India’s strong economic fundamentals, G20 Sherpa and former NITI Aayog CEO, Amitabh Kant, said on Saturday.

Addressing the CareEdge Ratings ‘Conversations 2024’ conference in Pune, he said the notion that developing countries offer more risky investments is not solely based on objective financial metrics but is significantly influenced by subjective assessment.

Kant stressed the need for promoting home-grown credit ratings agencies, saying that appropriate sovereign credit ratings are actually a very critical issue that impacts not only India but also the entire emerging economies.

Hailing India’s high growth rate of around 8.2 per cent, he stressed that future growth will come from cutting-edge areas.

According to Najib Shah, Chairman, CareEdge, the world is moving away from domination by a single superpower, a single currency and moving towards a more balanced and complex system that’s emerging and evolving.

ALSO READ:  Thiruvananthapuram Int'l Airport run by Adani Group recognised as best airport at arrivals globally

“Such an environment also has implications for the financial situation. Destructive competition between the US and China has ushered in a new era of competing geopolitics and economies. The role of the credit rating agency will be important here for acting in a transparent, competitive, professional manner,” Shah told the gathering.

At the event, Gulshan Malik, Deputy Managing Director, State Bank of India (SBI) said the banking sector in India is adequately capitalised as well as ready to fund the next phase of growth which is very critical.

–IANS

na/rad

Continue Reading

Trending