Finvezto Daily Market Bytes, 19 Dec 2024
Fed's Rate Check; IPOs Triumph amidst weak market; Marico's Tax Win; Q-Com for Auto Parts ; Pawan Hans Gets Wings & much more..
In today’s edition, we cover:
Fed's Rate Check
IPOs Triumph amidst weak market
Marico's Tax Win
Q-Com for Auto Parts
Pawan Hans Gets Wings
Key Stock Updates
Here’s a quick market snapshot before we start. GIFT Nifty indicates a gap down opening for the Indian Markets.
Fed's Rate Check
US Federal Reserve cuts rates to 4.25-4.5% but plans only two cuts for 2025.
Markets tanked post the announcement.
S&P 500 sank 2.96% to 5,869, Nasdaq tanked 3.62% to 19,380, and Dow fell 2.61% to 42,300.
Dow marked its tenth straight day of losses - a streak not seen since 1974.
US VIX shot up by 70% !!!
Why is the Fed cautious going into 2025?
Although the Job market stays strong with 173,000 new jobs monthly, Inflation has stuck above Fed’s 2% target and is projected to end at 2.5% by 2025.
IPOs Triumph amidst weak market
Three IPOs shine on stock market debut defying weak market sentiment.
MobiKwik listed at ₹440 up from IPO price of ₹279, then surged to hit upper circuit at ₹528. Market cap reached ₹4,101.8 Cr by EOD.
Fellow debutants Vishal Mega Mart and Sai Life Sciences also had good starts - listing gains of 33.3% and 18.4% respectively.
Quite a feat considering Sensex and Nifty both dropped nearly 0.6% yesterday.
Marico's Tax Win
Supreme Court settles a 15-year tax puzzle.
Pure coconut oil in small packs will now be treated as edible oil, dropping GST from 18% to 5%.
Manufacturers selling pure coconut oil in small packs will pay significantly less tax.
The 15-year dispute between Excise department and Manufacturers finally ends, benefiting companies like Marico and Madhan Agro Industries.
Q-Com for Auto Parts
myTVS launches quick delivery of auto parts within 1-2 hours.
The model aims at converting local retailers into 'dark stores' for efficient distribution.
Retailers who once struggled with excess inventory, can now free up working capital. myTVS will manage the inventory, handle the digital tracking and the Retailers can focus on Sales.
The pilot's already running in 14 locations across Tamil Nadu and Karnataka. By March 2025, myTVS eyeing 50 dark stores across four states.
myTVS has built India's largest digital auto parts catalog with 8 million items. They have cracked a problem that has haunted the industry for years - standardizing part names across manufacturers.
Since 2020, MyTVS has grown 30-35% yearly versus industry's 5%, hitting ₹1,800 crore revenue in FY24.
Pawan Hans Gets Wings
Government-owned Pawan Hans clinches 10-year helicopter contract worth ₹2,000 crore from ONGC for offshore operations.
4 Dhruva NG helicopters, made in India by Hindustan Aeronautics Limited (HAL), will take to the skies for this operation.
This win for Pawan Hans is a vote of confidence in Indian-made helicopters for critical oil and gas operations. Usually, these contracts go to foreign-made choppers.
The deal shows growing trust in indigenous aviation capabilities.
Key Stock Updates
New Orders
Nitco secured ₹105 crore work order from Prestige Group for tiles and marble supply
J Kumar Infraprojects bags ₹632 crore NBCC contract for DTC colony project
Inox Wind secures 60 MW wind turbine order from Serentica Renewables
Gensol Engineering wins 22 MW solar project worth ₹88 crore in Punjab
Partnerships, Investments & Acquisitions
Interarch Building Products partners with Jindal Steel for multi-story building construction
ITC buys 2.44% stake in EIH and 0.53% stake in HLV from Russell Credit
Lloyds Metals acquired 79.82% stake in Thriveni Earthmovers for ₹70 crore
Vakrangee partners with Canara Bank for banking service delivery
Core Business Updates
FDC receives US FDA final approval for Cefixime 400 mg tablets
Gandhar Oil Refinery gets FDA establishment inspection report for Taloja facility
Infosys opens development centre in Kolkata with ₹426 crore investment
Lupin gets US FDA approval for Emtricitabine and Tenofovir Alafenamide Tablets
Gulshan Polyols 250 KLPD plant receives ₹2 per litre bioethanol incentive
Corporate Actions & Fund Raising
Bank of Baroda approves raising ₹10,000 crore through long-term infrastructure bonds
Swelect Energy Systems to raise ₹139 crore via private placement NCDs
Steel Exchange of India considers ₹600 crore fund raise through QIP
Zaggle Prepaid opens QIP with ₹550.73 per share floor price
Management Changes
State Bank of India appoints Rama Mohan Rao Amara as Managing director
Asian Paints sees exit of two senior executives from retail and home decor
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Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This daily update highlights market trends for your awareness. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.