Morning Update :–BPCL, Bajaj Auto, Dr Reddy’s Labs, L&T, and HCL Technologies were among the major gainers on the Nifty, while BPCL, Bajaj Finserv, Adani Ports, Tata Motors, and Infosys were among the major losers.
Sensex – Rise +341 Points at 71,698
Nifty 50 – Rise +96 Points at 21,613
Indian Market
FII AND DII
| FII Sold | 666.34 Cr |
| DII Sold | 862.98 Cr |
Indian Market News
- Asian markets are trading lower, with the Nikkei down 1%.
- As 2024 begins with profit-taking, Wall Street has its second lower finish.
- On January 8, the board of directors of Bajaj Auto will explore a share repurchase.
- Jio Financial-BlackRock and Abira Securities apply to the SEBI for mutual fund licences.
- Poonawalla Fincorp’s third-quarter disbursements increased 159% to Rs 8,730 crore:
- Bajaj Finance’s Third Quarter Business Update
- Vedanta’s bond restructuring plan has been approved by more than 97% of bondholders.
- The Dhampur Sugar Board has approved a Rs 30 crore buyback.
- STUP Consultants has purchased L&T Infrastructure Engineering’s whole interest.
- Adani Group’s fundraising efforts receive a boost from the Supreme Court.
- In November, job opportunities in the United States fell moderately.
- On January 2, Zomato’s Polish business will be liquidated.
Global Markets updates
GIFT Nifty
With a gain of 33 points, the GIFT Nifty predicts a somewhat favourable start for the broader index. GIFT Nifty futures were trading at 21,613 points, down from a high of 21,4716 points.
US Markets
• Nasdaq Composite fell for fourth consecutive day, affecting Dow Jones Industrial Average futures by 0.09 percent.
• S&P 500 and Nasdaq 100 futures also saw higher ticks by 0.09 percent and 0.1% respectively.
• All major averages closed out with losses, with Dow dropping nearly 300 points and S&P 500 falling 0.8%.
• Tech stocks like Apple are underperforming due to overstretched valuations and uncertainty about Federal Reserve rate cuts.
• In 2023, the S&P 500 rallied over 24%, while the Nasdaq Composite jumped 43%, marking its best year since 2020.
European Markets
European markets fell sharply Wednesday after a gloomy start to new year trading yesterday. The Stoxx 600 index moved between losses and gains in early trade but had settled lower by the afternoon and was down 1 percent at 4:00pm London time. Food and beverage stocks rose 0.3 percent, while financial services plunged 2.5 percent and technology sank 2 percent.
Asian Markets
•Asia-Pacific Markets Fall on Thursday
• Japan’s Nikkei 225 and Topix fell 2.26 percent and 1.25 percent respectively.
• South Korea’s Kospi and Kosdaq fell 0.64 percent and 0.69 percent respectively.
• Australia’s S&P/ASX 200 lost 0.5% in early trade.
• Hong Kong’s Hang Seng index futures rebounded from the HSI’s close of 16,646.41.
• Japan Airlines shares slid as much as 2% on Thursday, recovering slightly as markets resume trading.
Oil Prices
The main oilfield in Libya was reported to be disrupted on Wednesday, adding to supply worries brought on by Red Sea hostilities. As a result, oil prices increased. The price of a barrel of Brent crude increased by 93 cents, or 1.23 percent, to $76.82. The price of a barrel of US West Texas Intermediate crude futures increased by 81 cents, or 1.15 percent, to $71.15.
Two engineers told Reuters that the 300,000 barrels per day Sharara oilfield in Libya has had to partially reduce production due to protests. Due to Houthi rebel strikes on ships in the Red Sea over the weekend and the rumoured arrival of an Iranian warship on Monday, oil prices had already increased by about $2 earlier in the week. A more extensive war may shut important waterways used for the transit of oil and interfere with trade.
Dollar Index
One dollar was trading around Rs 83.29, while the Dollar index saw a 0.06 percent decline in futures trading at 102.60.
Gold Prices
In anticipation of the release of the minutes from the Federal Reserve’s most recent policy meeting and US jobs data, which could provide additional clarity on prospective interest rate cuts, investors saw a decline in gold prices on Wednesday as the dollar strengthened. Spot gold dropped to $2,033.85 an ounce, down 1.2%. American gold futures dropped 1.5% to $2,042 an ounce.
Ahead of the publication of the minutes from the December policy meeting of the US central bank, traders are being cautious. A plethora of U.S. economic data this week, including Friday’s non-farm payrolls report, is also highly anticipated by investors.
News Updates
Adani Group shares continue to rise even after the Supreme Court rejects pleas on the Adani-Hindenburg issue.
After the Supreme Court dismissed applications to establish a Special Investigation Team (SIT) or CBI investigation into the Adani-Hindenburg controversy, shares of Adani group companies pared their gains during yesterday’s afternoon trading. The stocks maintained solid gains of up to 7% even as they decelerated from the day’s peak.
The FPI rules, which previously caused significant drops in share values, were deemed unjustifiable by the supreme court. On January 3, 2024, the Supreme Court declared, “No valid ground raised to revoke amendment to FPI, LODR recommendations, SEBI directed to complete remaining 2 probes within 3 months.”
Adani Enterprises’ flagship shares saw a morning surge of up to 7%, but they later pared those gains to trade 2% higher at midday. SEZ and Adani Ports saw an increase of over 0.5 percent. Adani Wilmar, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Energy Solutions, among other Adani group equities, had increases of two to six percent.
Vedanta Q3 update: 22% more sellable silver and 7% more metal produced year over year
Vedanta Ltd. reported a 22% increase in saleable silver output and a 7% YoY increase in mined metal production in Q3FY24. The increase was attributed to improved mined metal grades and higher ore production at Rampura Agucha and Sindesar Khurd Mines. The production of saleable silver reached 197 tonnes, a 22% YoY increase in line with lead metal production. Vedanta also recorded the highest-ever production of silver and mined metal in a nine-month period, with mined metal output of 780kt between April and December, a 2% YoY increase, and a 5% YoY increase in silver sales.
Backed by SoftBank In FY23, Unacademy’s losses drop by 41% while revenue growth slows.
The edtech firm Unacademy, financed by SoftBank, saw a 41% decrease in losses in FY23 (2022–2023) as a result of a roughly 40% decrease in employee benefit costs during a time when the business made significant cost-cutting efforts to increase its runway.
According to Unacademy’s financials obtained from the Ministry of Corporate Affairs, the company had a net loss of Rs 1,678.15 crore for FY22 as opposed to a net loss of Rs 2,848 crore the previous year. Employee benefit costs for the corporation decreased during that time, from Rs 1,771.64 crore in FY22 to Rs 1,281.28 crore.
Since the beginning of 2022, the test prep edtech company has let go of nearly 2,000 employees in an effort to cut costs amidst a persistent funding constraint that is particularly affecting the edtech industry in the startup environment. Unacademy’s employee benefit expenditures did, in fact, increase from Rs 749 crore to Rs 1,772 crore in FY22.
Abira Securities and Jio Financial-BlackRock submit mutual fund licence applications to SEBI.
In order to begin offering mutual funds in India, Jio Financial Services Ltd. and BlackRock Financial Management have submitted paperwork to the Securities and Exchange Board of India (SEBI), the capital market regulator.
Since the joint venture businesses filed an application on October 19, 2023, displaying the most recent list of mutual fund applications as of December 31, 2023, SEBI is currently reviewing the in-principle approval.
Abira Securities has also submitted a new application for the mutual fund licence. Abira Securities is a stock trading company situated in Kolkata that was founded in 2012. Abira had already submitted an application in April 2022 for an MF licence, but its name was absent from the ensuing lists.
Stocks in news
Industries Bank: Over the quarter ended December FY24, the private sector lender reported a 13 percent year-over-year growth in deposits (up 3 percent QoQ) at Rs 3.69 lakh crore. Advances increased by 4 percent sequentially and 20 percent year-over-year to Rs 3.27 lakh crore over the same period.
Ujjivan Small Finance Bank: During the quarter ending in December of FY24, the small finance bank witnessed a robust 29% year-over-year growth in total deposits at Rs 29,869 crore. Meanwhile, the gross loan book increased by 27% YoY to Rs 27,791 crore during the same period.
Adani Ports and Special Economic Zone: According to the Adani Group company, the board members have given their approval for the non-convertible debentures (NCDs) to be issued in one or more tranches with a maximum value of Rs 5,000 crore.
Mphasis: To accelerate expansion across several vectors, the information technology solutions provider announced a strategic reallocation of executive roles. Effective January 3, Ashish Devalekar assumed the role of Head of Europe, succeeding Anurag Bhatia, who will now oversee Mphasis’ Global Business Process Services division (BPS).
Chambal Fertilisers and Chemicals: The Board of Directors of Chambal Fertilisers and Chemicals will convene on January 8th to deliberate a proposal to repurchase equity shares of the company.
BGR Energy Systems: On February 2, 2023, State Bank of India downgraded the company’s credit exposure with them to Sub-Standard; on December 26, 2023, Central Bank of India downgraded the asset classification of the company’s accounts with it to non-performing asset because of RBI-observed divergence.
Vedanta: A restructure of $3.2 billion in notes that are scheduled to maturity in the next three years was authorised by more than 97% of bondholders of Vedanta Resources (VRL). By doing this, the mining giant has made sure that at least two-thirds of the bondholders have approved the restructuring plan, which is necessary to move on.
Reliance Industries: Subsidiary Reliance Jio added 31.59 lakh new customers in October 2023 compared to 34.75 lakh users a month earlier. Reliance Jio currently holds a 39.3% market share in the wireless subscriber base.
Jio Financial Services: In order to start mutual fund operations in India, Jio Financial and BlackRock Financial Management have submitted paperwork to the Securities and Exchange Board of India (SEBI), the capital market regulator. Since the companies filed their applications as joint ventures on October 19 and provided the most recent list of mutual fund applications as of December 31, SEBI is currently reviewing the in-principle approval.
Maruti Suzuki India: The Gujarat GST Department has sent an adjudication decision to Suzuki Motor Gujarat (SMG), a fully owned subsidiary of Maruti Suzuki, covering the period from July 2017 to August 2022. With regard to the tax duty under a reverse charge basis on specific services, the Gujarat GST Authority has upheld the tax demand of Rs 173.9 crore, levied interest, and assessed a penalty of Rs 17.4 crore. Prior to the show-cause notice being sent, SMG had already paid the tax amount of Rs 173.9 crore. SMG intends to appeal the order to the initial appellate authority. The order won’t significantly affect the business’s operations, finances, or other business-related activities.
Zomato: On January 2, the step-down subsidiary of the massive Polish food delivery company, Gastronauci SP ZOO, started the liquidation process. Gastronauci is not a significant subsidiary of the corporation and does not currently conduct any commercial activities. Furthermore, the company’s revenue will not be impacted by the separation of Gastronauci.
Bharti Airtel: 3.52 lakh new users in October 2023 compared to 13.2 lakh in the previous month, the telecom provider has a 32.85% market share in the cellular subscriber base. The two PSU access service providers, MTNL and BSNL, had a market share of only 8.25 percent of wireless subscribers as of October 2023, while the private access service providers owned a 91.75 percent market share.
Vodafone Idea: The 19.59 percent market-share telecom provider reported a 20.4 lakh user loss in October 2023 compared to a 7.5 lakh user loss in September 2023. The two PSU access service providers, MTNL and BSNL, had a market share of only 8.25 percent of wireless subscribers as of October 2023, while the private access service providers owned a 91.75 percent market share.
Indian Energy Exchange: The energy exchange’s overall volumes increased by 14.9 percent year over year to 9,707 MU (million units), while the month’s total power volumes increased by 8.7 percent year over year to 8,655 MU. For the month, the real-time electricity market (RTM) volume grew to 2,405 MU in December 2023 from 1,763 MU in December 2022, indicating a 36.4 percent YoY rise. The market clearing price in the day ahead market was Rs 4.54 per unit, representing a 13 percent YoY drop.
LTIMindtree: The Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai, has issued a tax demand notice to the IT services provider under the Maharashtra Goods & Services Tax Act. A tax claim of Rs 205.9 crore was made by the authority (with interest and a penalty of Rs 9.1 crore).
Torrent Power: Four non-binding Memorandums of Understanding (MoUs) have been inked by the diversified Torrent Group’s power utility with the Gujarati government. Torrent electricity has suggested investing a total of Rs 47,350 crore in electricity distribution, green hydrogen, and renewable energy through the aforementioned four Memoranda of Understandings.
Surya Roshni: The Odisha Urban Infrastructure Development Fund (OUIDF) of the Odisha government has awarded the company an order worth Rs 72 crore for the installation and upkeep of LED street lighting projects in 16 urban local bodies (ULBs) in Odisha’s Cluster C.
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