Morning Update :–The Nasdaq scored its first gain of at least 1% in 2024 on Monday, as a fall in Treasury yields helped lift megacap stocks, while a sharp drop in Boeing shares kept gains on the Dow Industrials in check..
Sensex – Rise +468 Points at 71,823
Nifty 50 – Rise +142 Points at 21,655
Indian Market
FII AND DII
| FII Bought | 16.03 Cr |
| DII Bought | 155.96 Cr |
Indian Market News
- Asian markets trade higher; Nikkei is up 1%.
- Bitcoin surges ahead of the deadline for ETF approval, as the dollar falls.
- Oil prices remain constant as markets debate the Middle East turmoil and OPEC supplies.
- Nasdaq ends higher as rates fall, and Boeing trims Dow gains.
- Consolidated crude steel production increased by 12% YoY and 8% QoQ to 6.87 mt.
- Bajaj Auto board approved share repurchase of up to Rs 4,000 crore at Rs 10,000 per share through tender offer.
- Aurobindo Pharma receives EIR from US FDA for Telangana unit.
- Capacite Infra launches QIP, floor price of Rs 264.89 per share.
- BEML receives orders of Rs 329.87 crore from the Ministry of Defence.
- Zed and Sony’s $10 billion merger may be put off.
- Inox Wind wins LoI for 50 MW wind project from NLC India.
- Tata Motors JLR declares a 27% YoY increase in Q3 sales.
- Gensol Engineering signs MoU with the Gujarat government to spend Rs 2,000 crore in electric car manufacturing.
Global Markets updates
GIFT Nifty
With a gain of 125 points, the GIFT Nifty signals a slightly good start for the whole index. After peaking at 21,812 points, GIFT Nifty futures were trading at 21,701 points.
US Markets
•US Stock Futures Fall
• Dow Jones Industrial Average futures fell by 41 points, or 0.11%.
• S&P 500 and Nasdaq 100 futures each dipped by nearly 0.1%.
• Strong trading session for equities, with mega-cap tech stocks rebounding from last week’s declines.
• Nvidia shares reached an all-time high, climbing 6.4%.
• Dow ended the day more than 200 points higher, or 0.6%.
• Mega-cap tech stocks outperformed, with investors buying the dip after last week’s selloff.
• Major names like Apple may underperform due to market leadership last year.
European Markets
•European Markets Turn Positive on Monday
• Stoxx 600 index closed 0.34 percent higher, despite initial slump.
• Technology and retail stocks rose 1.23 percent.
• Oil and gas stocks dropped 1.55% due to Saudi Arabia’s price cuts and Shell’s upcoming fourth-quarter results.
• Pan-European index ended 0.3% lower on Friday.
• Global investors await US inflation data and big bank earnings for economic and Federal Reserve rate cuts clues.
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Asian Markets
• Asia-Pacific markets saw a rebound from a sell-off.
• Tokyo’s inflation rate slowed to 2.4% in December, indicating nationwide inflation. Core inflation remained unchanged at 2.1%.
• Australia’s retail sales for November 2023 rose above expectations, reaching 2% month-on-month.
• Japan’s Nikkei 225 soared 1.66%, while Topix gained 0.93 percent.
• South Korea’s Kospi advanced 0.7%, while Kosdaq gained 0.91 percent.
• Hong Kong’s Hang Seng index futures stood at 16,377, indicating a slight rebound.
Oil Prices
• US crude oil fell by 4% on Monday due to Saudi Arabia’s price cut.
• West Texas Intermediate futures contract for February lost $3.04, or 4.12%, to $70.77 a barrel.
• Brent futures contract for March shed $2.64, or 3.35 percent, to $76.12 a barrel.
• The cut comes amid market weakness due to record U.S. crude production and weakening China demand.
• OPEC and its allies are cutting production by 2.2 million barrels per day to balance the market.
Dollar Index
One dollar was trading around Rs 83.09, while the Dollar index saw a 0.06 percent decline in futures trading at 102.32.
Gold Prices
As hopes for an impending interest rate decrease by the Federal Reserve waned, investors turned their attention to this week’s U.S. inflation statistics, which caused gold prices to drop to a three-week low on Monday.
Earlier in the session, spot gold hit its lowest price since December 18 and was down 0.9 percent at $2,026.97 per ounce. Gold futures in the US dropped 0.8% to $2,033.4. There were some questions in the financial markets on Friday over the possibility that the US central bank will begin lowering interest rates in March after data released showed that the US created more jobs in December than experts predicted in a Reuters poll.
News Updates
Indian government bonds may be included in Bloomberg indices in 2024, following JPMorgan.
With Bloomberg intending to include Indian government bonds in its indices beginning in September 2024, the bonds may see more appreciation in 2024.
The plan calls for the introduction of Indian government bonds over the course of five months, beginning in September 2024. Each month, 20% of the bonds’ full market value that fall within the Fully Accessible Route (FAR) category will be added. Consequently, January 2025 will mark the completion of the procedure.
The $10 billion Zee-Sony merger might not proceed.
According to persons familiar with the situation, Sony Group Corp. intends to renounce the merger agreement it had with Zed Entertainment Enterprises Ltd., ending two years of turmoil and delaying the establishment of a $10 billion media conglomerate.
According to insiders who asked not to be identified because the information is private, the Japanese conglomerate is attempting to back out of the agreement because of a disagreement over whether Punit Goenka, the son of the company’s founder and chief executive officer of Zed, will manage the combined company. According to the persons, Sony no longer wants Goenka as CEO in the wake of a regulatory investigation, despite the agreement struck in 2021 that he would run the new firm.
According to one of the sources, Sony intends to submit the notice of termination prior to the extended deadline of January 20th for concluding the agreement, citing several prerequisites that have not been fulfilled for the merger. Another person claims that during lengthy talks over the past few weeks, Goenka has maintained his position that he wants to lead the combined organisation, as was originally negotiated.
The Bajaj Auto Board has approved a buyback of Rs 4,000 crore, at a share price of Rs 10,000.
Major two- and three-wheeler manufacturer Bajaj Auto Ltd.’s board approved a Rs 4,000 crore share buyback at Rs 10,000 a share on January 8. This is 43 percent above the most recent closing price.
By way of the tender process, the business plans to purchase 40 lakh shares, or 1.41 percent of the outstanding shares of Bajaj Auto. The company’s promoters will take part in the buyback as well. As of right now, the promoters own 54.94 percent of the business. According to the automaker, the Board has established a Buyback Committee and assigned it the authority to carry out any actions, transactions, matters, or things that it may, at its sole discretion, determine to be appropriate, necessary, or expedient in relation to the buyback.
The buyback is contingent upon shareholder approval through a special resolution and postal ballot. Further information, including the record dates, will be released later.
Bajaj Auto has repurchased shares twice in as many years. In July 2022, the car manufacturer paid holders Rs 4,600 per share for shares valued at Rs 2,500 crore. Rajiv Bajaj, managing director of Bajaj Auto, stated to CNBC-TV18 last week that the buyback will be more larger this time.
China now leads the MSCI EM index weightage, with India surpassing Taiwan.
India is now ranked second after China in the MSCI EM index, with its weight having overtaken Taiwan. This confirms India’s status as one of the emerging markets’ most potential investment options.
The MSCI Emerging Markets index for India surged from 7% to 17.1% in just eight years. According to a recent Nuvama report, India could achieve a 20 percent weight in the MSCI EM Index by early 2024 with the continuous domestic institutional investments and possible sustained FII involvement.
In the medium run, India is expected to draw more foreign investments in 2024, according to recent Jefferies notes. India’s expanding growth is making its markets more relevant for global funds, but its presence in EM portfolios is still relatively small. Higher foreign flows are likely due to favourable factors such anticipated political stability, a strengthening investment cycle, and a peaking US currency.
Red Sea dangers might cost India $30 billion in lost export revenue.
Due to increased container shipping costs as a result of threats to cargo vessels in the Red Sea, exporters may decide to delay shipments, potentially subtracting roughly $30 billion from India’s overall export earnings in the current fiscal year.
Based on the $451 billion figure for the previous fiscal year, the initial evaluation, carried out by the Research and Information System for Developing Countries, a think tank located in New Delhi, would indicate a 6.7% decline in Indian exports.
Asian Concretes & Cements will be fully acquired by ACC, a company owned by Adani.
In an effort to increase capacity in the face of strong demand, the cement and building materials company Adani-owned ACC Limited announced on 8 January that it will buy the remaining 55% of Asian Concretes and Cements Private Limited (ACCPL) from an existing promoter for an enterprise value of Rs 775 crore. At the moment, ACC owns 45% of the business.
The business stated in a BSE filing that the acquisition is value accretive since it will balance Adani Cement’s clinker plants in north India. The deal will be completely funded by internal accruals.
Based on forecasts of strong demand driven by increased expenditure on infrastructure projects in the nation, analysts predict that the main players in the cement sector will continue to acquire smaller businesses and consolidate in order to protect and gain market dominance.
TN investor meeting sees the opening of GCPL’s Rs 515-cr manufacturing unit.
During the ongoing Global Investors Meet 2024 in Chennai, Godrej Consumer Products Limited (GCPL), a key player in the FMCG industry, partnered with the State Government of Tamil Nadu to hold the opening ceremony of its state-of-the-art manufacturing plant.
This Rs 515-crore project, which is strategically positioned in the Chengalpattu District close to Chennai, the state capital, intends to improve delivery times, optimise inventory management, and lower total costs.
A major Memorandum of Understanding (MoU) was signed by GCPL and the state government in August 2023 to establish this cutting-edge plant, with the primary goal of speeding up manufacturing of flagship products including Cinthol, Godrej Expert Rich Crème, Godrej Selfie Shampoo Hair Colour, and Goodknight.
Oil production from ONGC’s delayed $5 billion deepwater project begins.
The much-delayed flagship deep-sea project of the state-run Oil and Natural Gas Corporation (ONGC) in the Krishna Godavari basin of the Bay of Bengal has begun to produce oil, contributing to the reversal of years of output reduction, the company announced. From the KG-DWN-98/2 block, ONGC has begun to produce from the Cluster-2 project and will gradually increase output.
Vistara is certain that Boeing will place an order.
The Indian full-service carrier Vistara stated on Monday that, despite a recent 737 MAX 9 mid-air burst that prompted regulatory attention, it was optimistic about receiving its final wide-body aircraft from Boeing by March or April.
Hyundai declares a Rs. 6,180 crore Tamil Nadu investment.
On Monday, Hyundai Motor India Ltd. announced that it would invest Rs. 6,180 crore in a number of projects, one of which is the creation of a hydrogen resource hub in Tamil Nadu.
The manufacturer has decided to invest an additional Rs 20,000 crore over a ten-year period (2023-2032) to strengthen its efforts in the areas of electric vehicle manufacturing, charging infrastructure, and skill development. During the Tamil Nadu Global Investors Meet in 2024, the firm and the state government signed a Memorandum of Understanding discussing the new investment.
TN investor meeting sees the opening of GCPL’s Rs 515-cr manufacturing unit.
During the ongoing Global Investors Meet 2024 in Chennai, Godrej Consumer Products Limited (GCPL), a key player in the FMCG industry, partnered with the State Government of Tamil Nadu to hold the opening ceremony of its state-of-the-art manufacturing plant.
This Rs 515-crore investment, which is strategically positioned in the Chengalpattu District close to Chennai, the state capital, intends to optimise inventory management, cut costs overall, and improve delivery times.
A major Memorandum of Understanding (MoU) was signed by GCPL and the state government in August 2023 to establish this cutting-edge plant, with the primary goal of speeding up manufacturing of flagship products including Cinthol, Godrej Expert Rich Crème, Godrej Selfie Shampoo Hair Colour, and Goodknight.
Stocks in news
Lemon Tree Hotels: In Meerut, Uttar Pradesh, the hotel brand signed a new property. The company will franchise the hotel, which is scheduled to debut in FY25. There will be 75 rooms in the hotel.
Oil India: Assam Power Generation Corporation and the state-owned oil and gas exploration corporation inked a Joint Venture Agreement (JVA) to collaborate in the renewable and green energy industry. The public sector company and the company will collaborate to maximise the production of renewable energy in the state.
BEML: The Ministry of Defence has awarded the business an order for Rs 329.87 crore to deliver Mechanical Minefield Marking Equipment Mark-II.
Brigade Enterprises: As part of the Tamil Nadu Global Investors Meet in Chennai in 2024, the Bengaluru-based real estate developer inked Memorandums of Understanding (MoUs) worth Rs 3,400 crore with the Tamil Nadu government to develop projects over the following three to four years.
Eicher Motors: Royal Enfield and the Tamil Nadu government signed a non-binding Memorandum of Understanding (MoU) during the Tamil Nadu Global Investors Meet in Chennai in 2024, pledging the former to invest Rs 3000 crore over eight years to construct brownfield and greenfield projects in the state.
Cipla: To develop and market innovative cell therapy treatments for unmet medical needs in the US, Japan, and the EU, the pharmaceutical business established a joint venture (JV) with Kemwell Biopharma and Manipal Education & Medical Group in the US.
Bajaj Auto: The request to repurchase shares valued at Rs 4000 crore was authorised by the board of directors, according to Bajaj Auto, a manufacturer of two and three-wheelers. At an average price of Rs 10,000 per share, the corporation plans to repurchase 40 lakh equity shares.
Tata Motors: JLR, a subsidiary, reported a 27% YoY increase in Q3 sales to 101,043 units. FY24’s YTD wholesales were 291,113 units, a 28% increase from the previous year. To 109,140, retail sales saw a 29 percent increase.
IRM Energy: As part of the Tamil Nadu Global Investors Meet 2024 in Chennai, IRM Energy and the Tamil Nadu government inked a Memorandum of Understanding (MoU) committing the company to investing Rs 858 crore in a project in the state over the following five years. 2200 state residents will have jobs thanks to the developments.
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