Weekly Market Analysis for Nov 20-24, 2023
A comprehensive round-up of what happened last week in the Indian Markets and outlook for upcoming week
What happened last week?
Global Markets ended in green last week continuing the bullish momentum from last week. US Markets were up by 3.8%.
Indian Indices were higher by 1.3% last week. Nifty closed around 19731.
Nifty Midcap and Next 50 Stocks outperformed Nifty last week. Both were up by 2.5% last week.
With respect to sectoral indices, IT and Realty were the top performers. Realty Index is up by almost 50% in the last 6 months.
Corporate earnings for the Q2 FY24 is coming to an end and it has been a good season so far. 1771 out of 3661 companies that have released Q2 Results so far have shown positive results. That is phenomenal.
Key sectors such as Automobiles, BFSI, and Cement were the top performers this earnings season.
Oil price stability, due to reduced Middle East tensions, and positive domestic inflation data were some positives.
The Reserve Bank of India (RBI) implemented stricter regulations for personal loans and credit cards, increasing capital requirements and risk weights for banks and NBFCs, impacting the sector.
The Indian government has reduced the windfall tax on diesel and crude oil. Tax on crude oil has been decreased to ₹6,300 per ton (approximately $75.70) from the previous rate of ₹9,800 per ton.
Wholesale Price Index (WPI) Inflation rate, fell to a three-month low of -0.52% in October. This marks the seventh successive month of the WPI remaining negative, as reported by the Ministry of Commerce and Industry.
FII Positions Analysis
FII sold about 214 Crores and DIIs bought 1580 Crores in the cash market.
FII Index positions suggest that they continue to be short on the Index. FIIs have added more shorts on the Index on Friday. Props are also short now on the Index.
FIIs have significantly reduced their short positions in the Stock Derivatives segment.
Key Stock Announcements from Last Week
New Orders & Projects
Rail Vikas Nigam Limited secured a Central Railway construction contract valued at INR 311.17 crore, slated for completion within 18 months.
PTC Industries has signed a multi-year contract with Safran Aircraft Engines to produce titanium-casting parts for Safran aircraft engines.
RPP Infra Projects Ltd has acquired contracts worth INR 133.48 crore for construction and maintenance, including projects for the Bangalore Metro and water supply initiatives in Tamil Nadu, marking a rise in revenue and profits for the recent quarter.
Marine Electricals (India) Limited has been awarded new contracts totaling INR 23.34 crore, which are expected to be fulfilled over the next two years, with a note that these contracts do not involve any related party transactions.
Integra Essentia Limited announced receiving orders close to INR 150 million from Sarveshwar Foods Limited and Himalayan Bio Organic Foods Limited, with an additional aim to supply Agro-Products worth about INR 900 million annually to the Sarveshwar Group.
JSW Infrastructure has been awarded a project by the Karnataka Maritime Board to develop a port in Keni, Karnataka, with a projected cost of Rs 4,119 crore and a capacity of 30 MTPA.
Torrent Pharmaceuticals and Zydus Lifesciences have made a joint announcement about their recent partnership. They have agreed on a licensing and supply arrangement that will enable them to co-market the drug Saroglitazar Mg in India, which is used for treating Non-Alcoholic SteatoHepatitis (NASH) and Non-Alcoholic Fatty Liver Disease (NAFLD).
Lupin Limited has entered into an exclusive agreement with Amman Pharmaceuticals Industries (Amman Pharma) to market and commercialize Ranibizumab, a biosimilar of Lucentis, in West Asia.
Hindustan Aeronautics Ltd (HAL) has reported the establishment of a joint venture with Safran Helicopter Engines from France, named "Safhal Helicopter Engines Pvt Ltd." The new venture will focus on a wide array of activities including the design, development, certification, production, sales, and support of helicopter engines.
Key Partnerships & Collaborations
Usha Martin subsidiary Brunton Wire Ropes FZCo incorporates a joint venture in Saudi Arabia, expanding its global presence.
One 97 Communications has entered a partnership with Amadeus to use AI for improving travel experiences, with a plan to integrate Amadeus’s travel platform over three years.
Key Buying & Selling Deals
The Patel family, promoters of GMM Pfaudler, will purchase a 1% stake from Pfaudler Inc. at Rs 1,700 per share.
2I Capital PCC sold 2 million shares of Swan Energy Limited at Rs. 427.81 each.
The Pabrai Investment Fund IV LP sold 180,187 shares of Nuvama Wealth Management Ltd. for Rs. 2785.17 each.
State Bank of India sold 1.93 million shares of MSP Steel & Power Ltd. at Rs. 18.53 each.
Goldman Sachs India Equity Portfolio bought 2.32 million shares of Ask Automotive Limited at Rs. 310.05 each.
Tryrock Capital Trust I sold 114,000 shares of Goyal Salt Limited for Rs. 168.68 each.
SVF Doorbell (Cayman) Limited sold 18.31 million shares of Delhivery Limited for Rs. 403.51 each.
Antara India Evergreen Fund Ltd sold 3.21 million shares of Paisalo Digital Limited at Rs. 80.25 each.
Key Business Updates
Reliance Industries' subsidiary, Reliance Jio Infocomm, saw an addition of 3.24 million users in August, taking its total wireless subscriber base to 445.7 million, as per the latest data from the telecom regulator TRAI.
Bharti Airtel also experienced growth, adding 1.217 million wireless subscribers, which brought its total mobile subscriber count to 376.4 million for the month. On the other hand, Vodafone Idea faced a decline, losing 49,782 subscribers, with its wireless subscriber base decreasing to 228.2 million in the same period.
PVR INOX has launched a six-screen multiplex Maison INOX in Mumbai and a four-screen multiplex at Utkal Kanika Galleria Mall in Bhubaneswar, increasing its network to 1,711 screens.
Apollo Hospitals has announced a 250-bed new hospital in Pune at an overall cost of Rs 675 crore.
Biocon Biologics has received approval from the UK’s MHRA for YESAFILI, a treatment for neovascular (wet AMD) and age-related macular degeneration.
Asian Paints has increased the production capacity of its Khandala plant to 4 lakh KL per annum with an investment of Rs 385 crore from internal accruals.
TVS Motor Company is making strides in Europe through a new deal with Emil Frey for import and distribution, marking its expansion into the European market.
SJVN, a government-owned hydroelectric power company, has entered a power purchase agreement through its subsidiary SGEL for a 200 MW wind project at Rs 3.24 per unit, expanding its wind capacity to 497.6 MW.
IDFC FIRST Bank has received in-principle approval from PFRDA for the amalgamation scheme with IDFC and IDFC Financial Holding Company and ‘no objection’ from NSE and BSE.
Vedanta’s subsidiary Malco Energy has formed Vedanta Copper International VCI Company to set up a copper rod manufacturing unit in Saudi Arabia.
RateGain Travel Technologies has launched a QIP issue on November 15, with the floor price set at Rs. 676.66 per share.
The Reserve Bank of India has directed Bajaj Finance to cease loan operations under its eCOM and Insta EMI Card programs for not following digital lending guidelines.
Brigade Enterprises is planning to develop around 2 million square feet of residential space in Bengaluru, with an expected GDV of Rs 2,100 crore, in partnership with Krishna Priya Estates and Micro Labs.
Important Upcoming Events
Tuesday, November 21
Indian Renewable Energy Development Agency Limited IPO Subscription Opens
Wednesday, November 22
Tata Technologies Limited IPO Subscription Opens
Gandhar Oil Refinery India Limited IPO Subscription Opens
Fedbank Financial Services Limited IPO Subscription Opens
Flair Writing IPO Subscription Opens
US Initial Jobless Claims Data Release
Thursday, November 23
Euro Area Manufacturing and Services PMI Data for November
Friday, November 24
India's Foreign Exchange Reserves Data
US Manufacturing PMI Flash Reading for November
That’s all for this week!