Weekly Market Analysis for Nov 12-17, 2023

A comprehensive round-up of what happened last week in the Indian Markets and outlook for upcoming week

Nov 11, 2023

What happened last week?

Global Market performance was mixed last week. US markets outperformed. Key Indian Indices were up ~1%. Europe and Asia were laggards.
Despite continuous FII selling, the Indian markets continue to inch upwards. FIIs sold for ~3100 crores last week. DIIs bought for ~4100 Crores.
Initially, there was optimism that the US Federal Reserve might stop increasing rates. However, recent remarks by Fed Chair Jerome Powell suggested that interest rates may need to rise further to control inflation, leading to an increase in U.S. 10-Year bond yields.
China faced its first quarterly foreign direct investment deficit, indicating capital outflow pressures and challenges in attracting foreign investments.
India Q2 FY24 Results season has been solid. Around 3000 companies have announced results so far. 1467/3000 (50%) companies have shown a positive net profit growth YoY.
India's services sector growth slowed in October, with the Purchasing Managers' Index (PMI) dropping from 61 to 58.4.
In October, automobile retail sales in India dropped by 8% compared to the same period the previous year. Specifically, two-wheeler (2W) sales decreased by 13%, while passenger vehicle (PV) sales declined by 1.4% year-on-year.
Moody's maintains India's growth projections at 6.7% for 2023 and 6.1% for 2024, citing robust domestic demand as the key driver for continued economic stability in the near future.

Indian Indices Performance

Midcap and Next 50 Stocks outperformed the benchmark Nifty 50 Index. Midcaps continue to be the best performing Index across timeframes.

On a sectoral basis, Pharma and Realty were up 4.26% and 2.85% respectively. Media was the worst hit.

FII Positions Analysis

Cash Market: FIIs sold for about 3100 Crores in the cash market. It is on expected lines. They have still not reduced their short positions on the Index. This indicates that there might be further selling happening in the coming week.

Index Derivatives: FIIs continue ot hold shorts on Index Derivatives. They have marginally reduced their shorts on Friday, but still heavily short. The Short Futures positions are still high.

FII Sentiment is Bearish.

Key Stock Announcements from Last Week

New Orders/Projects/Expansion/CAPEX

L&T Construction awarded contract by GMR Visakhapatnam International Airport Limited for Bhogapuram International Airport in Andhra Pradesh, initially handling 6 million passengers per annum, expandable to 12 MPA.
B.L. Kashyap and Sons Limited secures two new orders worth ₹271 Crores for construction and finishing works in Pune and Bangalore, with a total order book of ₹3,276 Crores.
L&T Construction's WET Business secures contracts from Odisha and Madhya Pradesh governments for lift irrigation projects promoting sustainable development.
Ircon International Limited awarded contract as Nodal Agency to establish Technology Centres across India, with a nodal fee of Rs.84.68 Crores.
Indo-Tech Transformers Limited receives three Letters of Award worth INR 62.70 Crores plus taxes for the supply of transformers.
Genus Power Infrastructures wins order worth Rs 2,259.94 cr (net of taxes).
GRSE receives Letter of Intent from NCPOR for ₹840 crore contract to construct and deliver Ocean Research Vessel.
Vascon Engineers bags ₹350 crore redevelopment project in Mumbai, to complete in 36 months.
Welspun Corp's associate, EPIC, secures contract from Saudi Aramco worth SAR 440 million for steel pipes.
KPI Green Energy Limited's subsidiary, Sun Drops Energia, receives a new 1.60 MW solar power project order under the Captive Power Producer segment, totaling over 139 MW.
Marine Electricals (India) Limited receives order worth INR 8.94 crores from Goa Shipyard Limited for supplying an Integrated Machinery Control System (IMCS), to be delivered over one year.

Key Mergers/Acquisitions/Joint Ventures/Partnerships/Collaborations

Arvind Fashions to sell subsidiary Arvind Beauty Brand Retail (ABBRL), operator of Sephora India, to Reliance Beauty & Personal Care (RBPCL) to fund brand portfolio growth and debt repayment.
Lemon Tree Hotels signs license agreement for a 150-room property in Yadagirigutta, Telangana, under the brand Keys Select by Lemon Tree Hotels, expected to be operational by FY26.
Bharti Airtel enters into a share purchase agreement (SPA) with Manipura Digital Infrastructure Opco Pte Ltd to transfer its entire stake in Firefly Networks for Rs 6.05 crore.
L&T Infrastructure Development Projects (L&T IDPL) to sell its complete shareholding in Interise Investment Managers, a wholly-owned subsidiary, for Rs 103.86 crore.
Bata India enters a licensing and manufacturing agreement with Authentic Brands Group to introduce and market the lifestyle brand Nine West in India.
Biocon Biologics to sell its dermatology and nephrology business units in India to Eris Lifesciences for Rs 366 crore, with the deal expected to close by November 2023.
Ashok Leyland approves an investment of Rs 1,200 crore in Switch Mobility for capital expenditure, R&D, and operational requirements.
Hindustan Aeronautics signs a contract with Airbus to establish MRO facilities for the A-320 family of aircraft in Nashik, Maharashtra.

Key Buying/Selling Deals

Cello World Limited: Reliance Commercial Finance Limited bought 1,600,060 shares at Rs. 794.2 per share.
Ikio Lighting Limited: Goldman Sachs Funds Goldman Sachs India Equity Portfolio sold 634,055 shares at Rs. 346.77 per share.
Honasa Consumer Limited: Smallcap World Fund Inc bought 3,383,514 shares at Rs. 333.01 per share.
Shriram Piston & Ring Ltd: K S Kolbenschmidt GmbH sold 297,780 shares at Rs. 1,054.14 per share.
Orient Green Power Co Ltd: Axis Trustee Services Limited sold 15,000,000 shares at Rs. 16.62 per share.
Sjs Enterprises Limited: Ashish Kacholia sold 160,000 shares at Rs. 653.22 per share.
Aegis Logistics Ltd: Smallcapworld Fund Inc sold 1,826,245 shares at Rs. 294 per share.
Plaza Wires Limited: Chanakya Opportunities Fund I sold 925,000 shares at Rs. 117.48 per share.
Kavveri Telecom Products: General Insurance Corporation Of India sold 197,344 shares at Rs. 10.84 per share.

Key Business Updates

NTPC commissions the first part (50 MW out of 150 MW) of the Dayapar Wind Energy Project Phase-I in Bhuj, Gujarat, bringing its total installed and commercial capacity to 73,874 MW.
Tata Group companies raise $660 million from the overseas debt market in the first half of the current financial year to support their operations due to increased demand for their products.
HDFC Bank recruits 56,310 employees between March 2022 and September 2023, addressing attrition and expanding its workforce.
Infosys forms a new Strategic Collaboration Agreement (SCA) with Amazon Web Services Inc (AWS) to provide technology transformation and industry-specific solutions to financial organizations across the EMEA region.
Infosys McCamish Systems in the US experiences a cybersecurity incident disrupting certain applications and systems.
Adani Ports, holding a 51% stake in Colombo West International Terminal, secures funding of $553 million from the US Development Finance Corporation (DFC).
Hero MotoCorp plans to enter the UK, Spain, and France markets by mid-2024, starting with the electric scooter VIDA V1, followed by high-capacity premium internal combustion engine (ICE) motorcycles and scooters.
Pidilite plans to establish a lending business offering credit within its ecosystem to support business growth, primarily focusing on providing small-value retail loans.
PNB Housing Finance aims to expand its affordable housing branches to 160 by the end of the current financial year and increase disbursements in this segment.
Adani Green Energy becomes India's largest green energy company with an installed capacity of 8.4 GW, surpassing competitors like ReNew, Tata Power, and Greenko Energies.

Fund Raising

Ethos, the largest luxury watch retailer, approved the allotment of 11,31,210 equity shares to eligible qualified institutional buyers at an issue price of Rs 1,547 per share, amounting to Rs 175 crore.
Titagarh Rail Systems has announced its intention to raise up to ₹700 crore through a Qualified Institutions Placement (QIP). Additionally, the company is actively seeking a strategic partner for its shipbuilding, bridges, and defense business segments.

Important Upcoming Events

Monday (November 13)

India Retail Inflation Data Release
Protean eGov Technologies IPO Market Debut

Tuesday (November 14)

India WPI Inflation Data Release
Market Holiday

Wednesday (November 15)

India Trade Deficit Data Release
China Industrial Production Data Release

Thursday (November 16)

US Initial Jobless Claims Data Release

Friday (November 17)

India Bank Loan Growth Data Update

That’s all for this week! Happy Deepavali Folks!