Weekly Market Analysis for Nov 28-Dec 01, 2023
A comprehensive round-up of what happened last week in the Indian Markets and outlook for upcoming week + Nifty Analysis
What happened last week?
Most Global markets ended in the green on a weekly basis. Indian markets were up by ~0.3% relatively underperforming global markets.
Nifty Midcap Continues to outperform the Index. Up by 0.42% last week.
On a Sectoral basis, Realty and Pharma continued to move up. Realty has had a phenomenal run over the last year. Up by 58%.
Q2 Earnings season is coming to an end. Overall Corporate Revenues grew by 4% and Net Profit grew by 30% on a YoY Basis. Operating Income & Margins improved on a YoY Basis.
The U.S. Federal Reserve's minutes indicated a restrictive monetary policy with little interest in rate cuts.
Dutch election results are being closely watched, with an exit poll indicating a potential victory for Geert Wilders' Freedom Party.
A ceasefire in Gaza marks a step towards de-escalation of tensions.
Global market momentum, a fall in the US 10-year bond yield and a drop in the Dollar Index to a 3-month low have boosted market sentiment.
In the first half of FY24, new enrolments in the Employees’ Provident Fund Organisation (EPFO) decreased by 10.1%, from 6.52 million last year to 5.86 million, signalling a deceleration in formal job growth.
Foreign direct equity investments in India declined by 24% to $20.5 billion in the first half of the financial year 2023-24 compared to the same period the previous year.
FII Positions Analysis
FIIs were net buyers in the cash market with net purchase of +₹1471 Crores. DIIs were also net buyers in the cash market (+₹2112 Crores)
FIIs continue to hold short positions on the Index Derivatives segment. But they have turned positive with respect to Stock Derivatives.
Nifty Open Interest Analysis
More CALLs have been written compared to PUTs in the near ATM strikes. PCR is 0.75.
Also, on the last trading day more CALLs were added compared to PUTs. You can see in the graph below (Refer PUT change and CALL change) that more CALLs have been added at 19800 and 19900 levels.
19800-19900 will continue to act as resistance for the coming week as well based on the current sentiment.
Key Stock Announcements from Last Week
New Orders & Projects
Talbros Automotive Components Ltd. has secured orders worth Rs. 580 crores from domestic and international clients, including significant export and electric vehicle (EV) orders.
Vascon Engineers Limited received a Letter of Intent for a Rs. 356.78 crore construction project of a general hospital in Pune, to be completed in 36 months.
KEC International Ltd. has won new contracts valued at Rs. 1,005 crores in various sectors, with a significant year-to-date order intake.
South West Pinnacle Exploration Limited obtained a Rs. 38 crore contract for diamond core drilling in Rajasthan from Hindustan Copper Limited.
RailTel Corporation of India Ltd. has been awarded a Rs. 52.87 Crore surveillance and traffic management project by Gujarat Informatics Limited.
RITES secured a tender worth $37.68 million for 10 diesel electric locomotives from CFM Mozambique but lost a tender for 300 high-side wagons.
Oriental Rail Infrastructure secured orders worth Rs 19.92 crore from Rail Coach Factory (RCF) to manufacture and supply seats and berths for AC 3-tier and 2-tier coaches.
KPI Green Energy Limited received orders for a 4.66 MW solar power plant, expanding their portfolio to over 143 MW in the CPP segment.
Bondada Engineering received work orders worth Rs 32.72 crore from Dinesh Engineers to supply 40-meter towers with accessories.
Techknowgreen Solutions has secured orders totaling Rs 3.39 crore, including a significant Rs 2.23 crore order from pharmaceutical giant Cipla and a Rs 1.16 crore order from STT Global Data Centres India, indicating a robust demand for its services.
Key Partnerships & Collaborations
NBCC (India) entered into an MOU with the Institute of Chartered Accountants of India (ICAI) for planning, designing, and executing building and renovation works.
Tech Mahindra, through its subsidiary Tech Mahindra (Americas) Inc., has entered into a collaboration agreement with NEOM Tech and Digital Company (TONOMUS) to establish a joint venture that will provide technology and digital services supporting smart cities and communities.
Karnataka Bank has formed a strategic partnership with HDFC Life Insurance to offer life insurance products, benefiting customers seeking financial security and life protection.
ABB India and Titagarh Rail Systems have formed a strategic partnership to supply propulsion systems for metro rolling stock projects in India, including the transfer of technology for driverless metro systems.
HCKK Ventures has announced the merger of Softlink Global, a logistics technology solutions leader, into its portfolio, subject to regulatory approval, at an approximate valuation of Rs 430 crore, enhancing its technology sector offerings.
Wipro is partnering with NVIDIA to expedite the application of generative AI in healthcare, a move that could lead to enhanced patient experiences and operational efficiency within the ACA, Medicare, and Medicaid segments.
Shalby has finalized an amendment agreement to manage and construct 175 new hospitals in Santacruz, Mumbai, with the Santacruz Residents Association and Bhikhubai Chandulal Jalundwala General Hospital, subject to approval from the Charity Commissioner, Mumbai.
TVS Motor Company is expanding its international footprint by entering Vietnam in partnership with Minh Long Motors, offering a range of two- and three-wheeler vehicles, following their recent move into the European market starting with France.
LTIMindtree launched a Quantum-Safe VPN in London in collaboration with Quantum Xchange and Fortinet.
Key Business Updates
Tata Consultancy Services faces a legal setback as the U.S. Supreme Court declines to hear its appeal, resulting in a provision for approximately $125 million in punitive damages, which will be reflected in the upcoming financial statements.
Maruti Suzuki India is on the verge of a significant equity expansion, with plans to allot over 123 million shares to Suzuki Motor Corporation, pointing towards a closer integration with its parent company.
Bajaj Finance has temporarily suspended the issuance of Existing Member Identification Cards (EMI cards) to new customers due to deficiencies observed by RBI.
Titan Company has received the green light from the Competition Commission of India to increase its stake in CaratLane by 27.18 percent, a strategic enhancement in its jewelry segment that could bolster market presence.
Aurobindo Pharma’s Units I and III in Telangana received a positive inspection from the US FDA with zero observations during the pre-approval inspection.
Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power Company, has achieved a remarkable milestone by surpassing 1.4 GW in group captive project capacity within the last seven months, contributing to a total renewables capacity of 7,961 MW as of October 2023.
Honasa Consumer’s brand Mamaearth reported a 94 percent year-on-year surge in consolidated net profit at Rs 29 crore for the quarter, with revenues climbing 21 percent to Rs 496 crore, and a 53 percent increase in EBITDA at Rs 40 crore.
Prestige Estates Projects introduces Prestige Glenbrook in Bangalore, estimating Rs 550 crore in revenue potential.
Key Regulatory Updates
Vedanta’s long-term bank facilities and debt instruments have been downgraded by CRISIL Ratings from AA+ to AA. The company also received a GST demand order of Rs 1,38,54,401, and an appeal is in progress.
Poonawalla Fincorp received a penalty order of Rs 2.87 lakh for excess GST input, covering FY18, FY19, and FY20.
Lupin received tentative US FDA approval for generic Canagliflozin tablets, used for type 2 diabetes, and exclusive approval for Bromfenac Ophthalmic Solution.
Siemens faces a service tax liability order of Rs 23,68,12,903 from the CGST & Central Excise Commissionerate.
Key Buying & Selling Deals
Warren Buffett's Berkshire Hathaway has sold its entire stake in Paytm for ₹1370 Cr at ₹877.29 per share. Ghisallo Master Fund LP (Ghissalo) acquired 42.75 lakh shares for ₹375Cr, amounting to a 0.67 percent stake in Paytm. Ghisallo had earlier bought ₹266 crores worth of shares of PayTM at ₹534 per share from Alibaba in January 2023.
Cohesion Mk Best Ideas Sub-Trust purchased 668,000 shares of Diamondyd at Rs. 805.05 each.
Emerging India Growth Fund sold 300,000 shares of Himtek at Rs. 104.94, while Meru Investment Fund Pcc-Cell 1 bought 93,461 shares at Rs. 103.6.
Nomura India Investment Fund Mother Fund bought 940,000 shares of Signature Global India Ltd at Rs. 726.4 per share.
Elm Park Fund Limited purchased 1,285,000 shares of Crest Ventures Limited at Rs. 301.5 each.
Ashish Rameshchandra Kacholia sold 347,000 shares of Sjs Enterprises Limited at Rs. 627.77.
Societe Generale sold 615,945 shares of Rategain Travel Techn Ltd at Rs. 663.74 per share.
State Bank of India offloaded 8,873,785 shares of Sepc Limited at Rs. 20 and 208,202 shares of Rajshree Sugars & Chem at Rs. 52.16.
Key Upcoming Events
Monday, November 27:
Market Holiday
US new home sales data for October
Wednesday, November 29
The Euro Area economic sentiment data
Thursday, November 30
India will release GDP data for Q2 ending September 2023
China will publish official manufacturing and non-manufacturing PMI data for November.
Euro Area inflation rates for November
The OPEC and non-OPEC ministerial meeting will take place, with focus on decisions regarding production and output cuts.
Friday, December 1:
Automobile manufacturers will release wholesale dispatch numbers for November.
The S&P Global and Caixin China General Manufacturing PMI data for November will be released.
That’s all for this week.