Morning Update :–The Nifty saw significant gains from Hero MotoCorp, Eicher Motors, Axis Bank, Bajaj Finserv, and M&M, while Dr Reddy’s Laboratories, HCL Technologies, and Infosys fell.
Sensex – Rise +240 Points at 71,897
Nifty 50 – Rise   +74 Points at  21,693
Indian Market
FII AND DII
FII Sold | Â 1,721.35 Cr |
DII Bought | 2,080.01 Cr |
Indian Market News
- US markets rise as megacaps dominate; inflation data and earnings on deck.
- Oil prices soar as tensions in the Middle East escalate.
- Asia stocks surge ahead of US CPI, and Nikkei surpasses 35,000.
- South Korea’s central bank kept rates unchanged, as predicted.
- Retail inflation may have reached a four-month high of 5.9% in December due to the low base effect.
- Aurobindo Pharma considers mammoth IPO of Eugia Pharma Specialities to raise roughly Rs 4,500 crore.
- Wipro’s Q3 revenue may fall 4% QoQ due to sluggish demand; salary hikes would affect profits.
- Morgan Stanley’s View on Bank of IndiaÂ
- Bank of India Q3 deposits surge 9% YoY to Rs 7.1 lakh billion, while advances grow 11.5%.
- Â Motilal Oswal View on Metro Brands.
- Â SpiceJet shareholders approve the preferential distribution of shares and warrants.
Global Markets updates
GIFT Nifty
The GIFT Nifty shows a somewhat positive opening for the broader market, up 15.5 points. GIFT Nifty futures were at 21,710 points after reaching a high of 21,735 points.
US Markets
Stock futures on Wall Street remained flat as the market prepared for inflation data and the start of the fourth-quarter earnings season. The S&P 500 added 0.04%, Nasdaq 100 futures increased 0.1%, and Dow Jones Industrial Average futures gained 0.01%. KB Home shares lost 2% after the company issued full-year revenue guidance of $6.4 billion to $6.8 billion. All three major indexes rose, with the S&P 500 adding 0.57%, the Nasdaq Composite gaining 0.75%, and the Dow increasing 0.45%.
European Markets
European markets experienced a second consecutive session of dip, with the Stoxx 600 index closing 0.17% lower. Mining stocks remained the worst performers, while media stocks rose 0.75%. Retail stocks saw a 0.15% increase, with Greggs near the top of the European benchmark. Sainsbury’s Christmas sales growth was disappointing, leaving the stock down 6.3%. Asia-Pacific markets mostly turned lower, with Japan stocks extending gains after a 33-year high. U.S. stocks were little-changed on Wednesday morning. Investors are awaiting the release of U.S. inflation data for December and the U.S. producer price index.
Asian Markets
Asia-Pacific markets saw a surge, with Japan extending its record rally ahead of U.S. inflation figures for December. The Nikkei 225 in Japan jumped 1.88%, crossing the 35,000 mark for the first time since February 1990. The Topix also gained 1.49% to hit 33-year highs. South Korea’s Kospi increased 0.17%, while Kosdaq rose 0.72%. The Bank of Korea is expected to announce its rate decision, with economists expecting it to hold its benchmark lending rate at 3.5% for its eighth meeting in a row. The S&P/ASX 200 in Australia started the day 0.42% higher.
Oil Prices
Oil prices remain stable on Wednesday, with concerns about poor economic growth and growing US output offset by Middle East supply concerns due to the Israel-Hamas conflict and the closure of a major Libyan oilfield. The Energy Information Administration predicted that US crude production will reach a record high in 2024, despite production cuts by the Organisation of the Petroleum Exporting Countries and its allies. U.S. West Texas Intermediate crude futures increased by 21 cents to $72.48 a barrel, while Brent crude futures increased by 10 cents to $77.69. John Evans, an oil broker at PVM, stated that the trading of oil prices is not reliable and that Europe’s bleak economic outlook has impacted demand forecasts. On Tuesday, crude prices increased by 2% after Monday’s losses of over 3%.
Dollar Index
One dollar was trading around Rs 83.02, while the Dollar index saw a 0.06 percent decline in futures trading at 102.57.
Gold Prices
A little weaker US dollar helped drive up gold prices on Wednesday, ahead of an important inflation data that may provide some guidance on whether the Federal Reserve will start lowering interest rates this year.
An ounce of spot gold increased by 0.2% to $2,032.90. Futures for US gold increased by 0.3% to $2,039.60 an ounce. “Bullion may have to give up more of its gains from the last quarter of 2023 if the CPI figures come in higher than expected, potentially compelling the Fed to postpone its policy pivot,” stated Han Tan, chief market analyst at Exinity Group.
News Updates
Exclusive: JSW Cement selects bankers and launches massive Rs 6,000-cr IPO following the listing of JSW Infra.
Several persons acquainted with the issue said that Sajjan Jindal’s JSW Group has approached investment bankers to help with the group company JSW Cement’s IPO.
One of the aforementioned individuals, who asked to remain anonymous, stated, “As of right now, the target is to raise up to Rs 6,000 crore, mop up growth capital and fund the company’s aggressive expansion plans.” He continued by saying that the magnitude of the share sale had not yet been decided.
Leading the charge is Parth Jindal, whose intention to list JSW Cement comes after the group’s first public offering (IPO) in thirteen years, that of JSW Infrastructure. With a capacity of 60 million tonnes annually, the so-called green cement maker hopes to rank among the top five cement makers in the country in the next five years.
4% QoQ revenue decline expected for Wipro in Q3 due to sluggish demand; wage increases will hurt margins
Analysts predict that Wipro Ltd, a significant player in the IT industry, will see a 4% quarter-over-quarter (QoQ) decline in revenue for the third quarter of the current financial year due to greater than usual furloughs, notably in the banking, financial services, and insurance (BFSI) and hi-tech verticals. This is anticipated to keep net profit limited in Q3 FY24, combined with weak discretionary demand and cross-currency tailwinds. On January 12, 2024, the corporation is supposed to release its October–December results.
Five brokerages’ average forecast states that revenue will drop by 4% on a quarter-over-quarter basis to Rs 22,408 crore. In terms of revenue growth for the quarter, this would be worse than the extreme end of the management projection band, which is between -1.5 and -3.5 percent. However, Wipro’s net profit is probably going to plummet sharply, dropping by 9% on a quarter-over-quarter basis to Rs 2,756 crore.
In an effort to earn about Rs 4,500 crore, Aurobindo Pharma is currently considering a massive IPO of Eugia Pharma Specialitie
According to many industry sources who spoke with Moneycontrol, Aurobindo Pharma is currently considering a big-bang initial public offering (IPO) of its wholly-owned subsidiary, specialty generic company Eugia Pharma Specialities, in order to earn about Rs 4,500 crore in 2024. The company is currently in value unlocking mode again.
Due to disagreements over values, the Hyderabad-based parent company’s last attempt to sell Eugia failed. In 2022, it had talks with leading private equity firms, but the conversations never materialised into a deal.
SpiceJet’s shareholders have approved the idea to raise money by issuing warrants and shares.
SpiceJet has received approval from its shareholders to raise capital through the issue of equity shares and warrants following its annual general meeting. The shareholders approved the preferential issue of equity shares and warrants with an option to apply for and be allotted equivalent numbers of equity shares. The airline aimed to raise Rs 2,250 crore for development and revitalization, but the amount of fundraising approved by shareholders was not included in the filing. The plan to fund the funds was approved by the airline’s board last month, which will issue up to 130 million convertible warrants and 320.8 million new equity shares at an issue price of Rs 50 apiece.
Stocks in news
Phoenix Mills: Compared to a year before, total consumption increased by 24% to Rs 3,287 crore for the quarter that ended in December of FY24. Comparatively speaking, Q3 FY24 consumption increased by 4% over Q3 FY23. With Rs 700 crore in gross retail collections for the quarter, YoY rose by 30%.
Bank of India: In the quarter that ended in December of FY24, the public sector lender reported a 9.9% year-over-year increase in total business at Rs 12.76 lakh crore. Gross advances increased by 11.49 percent to Rs 5.66 lakh crore, while deposits increased by 8.66 percent to Rs 7.10 lakh crore.
Angel One: On January 15, the brokerage company’s board of directors will convene to discuss a plan to raise money by issuing non-convertible securities through a private placement.
Safari Industries (India): The board of directors of Safari Industries (India) will convene on January 15 to discuss the possibility of raising capital by issuing securities to one or more individuals at a preferential rate.
Metro Brands: For personal reasons, Deepika Deepti has resigned from her position as Senior Vice President, Marketing. Her resignation took effect on March 26. She was employed by the company’s upper management. In the interim, until a replacement is named, the marketing department will be managed by President Alisha Malik, who oversaw it previously.
Nuvama Wealth Management: The joint venture business, Nuvama and Cushman & Wakefield Management (NCW), with equal shares was announced by Nuvama Wealth Management, Nuvama Asset Management, and Cushman & Wakefield. The premier Offices Fund (PRIME), which NCW intends to introduce as its first real estate fund, aims to generate Rs 3,000 crore for investments in premier commercial offices in India’s high-growth markets.
Mahindra and Mahindra: Through a main issue and an offer-for-sale, the business and Mahindra Susten will lower their stakes in Sustainable Energy Infra Trust to 10.5 percent and 15 percent, respectively. The pre-offer shows that the company’s interest in Sustainable Energy Infra Trust is 15.7 percent, while Mahindra Susten, a subsidiary of Mahindra Holdings, has a 73.9 percent ownership.
NCC: At an average price of Rs 185.23 per share, Smallcap World Fund Inc. purchased 36,15,365 equity shares, or 0.57 percent of paid-up equity, in the construction business through an open market transaction. The value of these shares was Rs 66.97 crore.
Thirumalai Chemicals: At its greenfield facility in Dahej, TCL Intermediates, a fully owned subsidiary of the business, has started producing commercially. Fumaric acid is the produced good. For the quarter ending in March 2024, this is anticipated to increase revenue from its operations by almost Rs 4 cror
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