Sensex gains 4 points, Stock Market News Aug-22

Sensex gains, closed at 65,220 level: While Nifty at 19,396 level

 Indian Market 

FII AND DII 

 Indian Market News

1. The Sensex and Nifty close flat amid turbulence; power gains and PSU banks drag.
2. The Nasdaq is up with Nvidia and other tech stocks, as investors are looking ahead to Jackson Hole.
3. Stock up on anticipated However, China’s gloom tempers gains in US oil stocks.
4. Technoplast Pyramid On the last day of the IPO, the issue was subscribed to 12.25 times.
5. Aeroflex Industries’ initial public offering (IPO) was subscribed to 3.95 times.
6. Brigade Enterprises enters into a sale agreement to purchase a 6.54-acre land tract in Chennai.
7. For the first time this fiscal year, banking system liquidity is in deficit.
8. Despite a rise in US bond yields, gold remains solid.
9. SoftBank’s arm files for the largest IPO in 2023.
10. Asian markets are trading higher; the Hang Seng and Nikkei are both up.
11. Shiva Pharmachem files draft documents for an IPO to raise Rs 900 crore.
12. Adani expands its stake in the main company to 69.87%.
13. Today, the promoter of SJS Enterprises may sell a 30% interest in a block sale.
14. Union Bank’s board of directors approves a QIP financing up to Rs 5,000 crore and establishes a floor price.
15. GTRI predicts that India’s foreign trade will exceed $800 billion in the first six months of 2023.

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• GTRI predicts that India’s foreign trade will exceed $800 billion in the first six months of 2023.  

Despite a slowdown in global demand, India’s overall exports and imports of goods and services are expected to exceed $800 billion in the first half of 2023, according to a report released on Monday by think tank GTRI. 

According to a Global Trade Research Initiative (GTRI) report, exports of products and services increased by 1.5 percent to $385.4 billion in January-June this year, compared to $379.5 billion in January-June 2022. Imports, on the other hand, fell 5.9 percent to $415.5 billion in the first six months of this year, compared to $441.7 billion in January-June 2022.  

“India’s foreign trade (exports and imports of goods and services) reached $800.9 billion during January-June 2023, a 2.5 percent decrease from the same period last year (January-June 2022),” according to the report. 

• According to Paytm’s Vijay Shekhar Sharma, India will soon have 500 million payment consumers and 100 million merchants. 

Paytm founder and CEO Vijay Shekhar Sharma stated in a letter to shareholders in its Annual Report that India has the potential to become a net exporter of payment technology, software, and hardware, even as the country is forecast to reach 500 million payment consumers and 100 million merchants. 

“Our success will be determined by the true economic GDP growth benefit of reaching the last person in the financial system.” We have established a goal of enabling 500 million Indians to benefit from mainstream economic growth. This begins with facilitating mobile payments and assisting in the extension of various other financial services such as loans, insurance, and so on,” Sharma stated in the letter. 

Paytm’s lending platform business has taken off, allowing the company to minimize losses ahead of its previously promised schedule of EBITDA positivity before ESOP. It has disbursed loans worth over Rs 15,000 crore using its platform. 

The Noida-based mobile payments company’s merchant subscription has also reached eight million via various payment-facilitating devices like as PoS devices and soundboxes. The soundbox announces successful UPI payments based on QR codes and has become a runaway success, with competitors now following suit. 

•   Adani expands its stake in the main company to 69.87%. 

The promoter group led by billionaire Gautam Adani has boosted its stake in the group’s flagship enterprise as the ports-to-energy conglomerate recovers from the repercussions of a report by US short-seller Hindenburg Research. According to a stock exchange filing, the promoter group upped its shareholding in Adani Enterprises Ltd from 67.65 percent to 69.87 percent. 

Kempas Trade and Investment Ltd, a promoter group entity, acquired 2.22 percent on the open market between August 7 and August 18, according to the company. The equity rise comes as US-based boutique investment firm GQG Partners purchases shares in Adani group companies. 

According to stock exchange documents, GQG expanded its investment in Adani Ports & Special Economic Zone (APSEZ) to 5.03 percent last month through a bulk deal. GQG presently owns a stake in five of the ten Adani Group companies. On August 16, it purchased a 7.73 percent share in Adani Power Ltd. Promoter group entities Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09 percent stake in Adani Power in block transactions.   

• Raamdeo Agrawal anticipates a larger rise in the retail equities sector. 

Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services, said on August 21 that India’s retail equity market is on the rise and will continue to expand as savings rise.Over the next 25 years, the country’s gross domestic savings are predicted to reach $103 trillion. In the last 25 years, this figure has been over $12 trillion, he stated at the Motilal Oswal Annual Global Conference. 

As more people access the securities market, the number of demat accounts has increased. The number of demat accounts increased from 41 million in March 2020 to 123 million in July 2023. This figure is predicted to more than double to over 250 million by 2028. Agrawal estimates that 17 percent of the whole population will be affected.  

• Aeroflex Industries acquires Rs 103.7 crore from anchor investors ahead of its first public offering (IPO).  

On August 21, Mumbai-based Aeroflex Industries raised Rs 103.68 crore from 15 anchor investors ahead of the company’s first public offering (IPO). Nippon Life, Invesco, Winro Commercial India, Whiteoak Capital Mutual Fund, Bank of India Mutual Fund, Quatum State Investment Fund, Societe Generale, and Universal Sompo General Insurance Company were among the 15 investors who took part in the anchor book. 

“We have finalised the allocation of 95,99,980 equity shares to anchor investors at Rs 108 per equity share,” the metals flexible flow solution products stated in an exchange filing. 

According to the business, 52.78 lakh shares were allocated to four domestic mutual funds through nine schemes out of a total distribution of 95.99 lakh shares to anchor investors. 

The hotel industry grew strongly in the first quarter and has a promising prognosis for the second half, according to Jefferies. 

In the first quarter of fiscal year 2024, the Indian hotel business had a combination of accomplishments and challenges. According to a Jefferies analysis, despite a drop in on-quarter performance due to seasonality, the sector maintained solid year-on-year (YoY) growth in Revenue Per Available Room (RevPAR) with a growth range of 12-24 percent, boosted by higher Average Room Rates (ARRs). While occupancy data were uneven, the sector tends to be confident about a strong second half (H2).  

• Welspun Enterprises completes a 50.10% stake purchase in Michigan Engineers for a Rs 137.1 crore equity investment. 

 Welspun Enterprises Limited (WEL) announced on August 21 that it had finalized the acquisition of 50.10 percent equity shares in Michigan Engineers from Authum Investment & Infrastructure Limited and Sansaar Housing Finance Limited for Rs 137.07 crore in equity. 

“Michigan will become a subsidiary of Welspun Enterprises Limited upon completion of the acquisition of 50.10 percent equity shares of Michigan,” the business said in an exchange filing. 

Welspun Enterprises, a subsidiary of Welspun World, is a road, water, and wastewater infrastructure development firm. Furthermore, Michigan Engineers is a technology-based engineering, procurement, and construction firm that specializes in subterranean infrastructure, water infrastructure, and sewage infrastructure projects. The interest was acquired in accordance with the provisions of the Share Purchase Agreement, which was signed in July of this year, according to the filing. 

Global Market Update

• GIFT Nifty

  The GIFT Nifty saw a marginally positive start, gaining 15 points after closing 83 points higher on August 21, with futures standing at 19,391 points.

• US Markets

  US stock futures traded flat on Monday night Indian time, as the Nasdaq Composite and S&P 500 ended a four-day negative streak.Futures tied to the Dow Jones Industrial Average slipped 33 points, while S&P 500 and Nasdaq 100 futures both fell 0.1%.The Nasdaq Composite saw its biggest advance of the month, rising 1.6%, while the S&P 500 added 0.7%.The broad market index and tech-heavy Nasdaq managed to post gains despite the 10-year Treasury yield reaching its highest level since November 2007.Tech shares struggle in high-rate environments, making the tandem rise with yields striking for Wall Street.

• European Markets

  European stock markets closed slightly higher on Monday after a six-week low. The Stoxx 600 index ended 0.1% higher, with auto stocks leading gains and construction and material stocks dipped 0.6%. China’s central bank cut its one-year loan prime rate by less than expected, raising questions about its ability to deliver a stimulus-led economic turnaround. Zoe Gillespie, chartered wealth manager at RBC Brewin Dolphin, criticized the moves as showing a lack of ambition but a “tough play” in China.

•   Asian Markets

  Asia-Pacific markets largely rose as US 10-year Treasury bond yields reached their highest level since November 2007, reaching a high of 4.34 percent. Japan’s Nikkei 225 climbed 0.86 percent, while the Topix rose 0.72 percent. SoftBank Group’s chip unit Arm filed for a Nasdaq listing, expected to be the largest of the year. South Korea’s Kospi also gained 0.88 percent, while the Kosdaq was 0.84 percent up. The Australian S&P/ASX 200 extended losses and slid 0.19 percent. Hong Kong’s Hang Seng index is expected to rebound, with futures at 17,680.

• Oil Prices

  Oil prices rose on Monday due to tighter supply, fewer Saudi Arabia and Russian exports, and high heating oil prices, outweighing concerns over global demand growth. Brent crude was up 52 cents to $85.32 a barrel, while US West Texas Intermediate crude was up 65 cents to $81.90. The September WTI contract expires on Tuesday, while the more active October contract gained 49 cents to $81.15 a barrel. The September WTI contract lost 2% last week due to concerns about China’s sluggish economic growth and potential US interest rate increases.

• Dollar Index

  The Dollar index closed 0.06 percent lower in futures at 103.32, while the dollar’s value was near Rs 83.09.

• Gold Prices

  Gold prices reached a five-month low on Monday due to elevated bond yields and investors anticipating the Federal Reserve’s Jackson Hole symposium for interest rate clarity. Spot gold was 0.1% lower at $1,887.09 per ounce, while US gold futures were steady at $1,916. Despite some buying interest, buying interest is limited due to bearish charts, according to senior market analyst Jim Wyckoff.

Stock in News

• KEC International: Across its different operations, the RPG Group firm has received fresh orders totaling Rs 1,007 crore. The design, engineering, procurement, and construction of a multi-specialty hospital in India has been ordered for the first time by the civil company, and a significant order for a 380 kV overhead transmission line project in the Middle East has been acquired by the transmission and distribution industry.
• Tanla Platforms: In November 2021, the firm agreed into a contract sheet with Vodafone Idea for the supply of platform and firewall services for international A2P services. The term sheet was effective for a period of two years. Tanla Platforms offers value-added services in the cloud communications arena. According to the corporation, this collaboration would end after the original period. This will have a full-quarter revenue effect of Rs 17 crore and a PAT impact of Rs 9 crore after November 2023.
• Adani Enterprises: During the period of August 7–18, promoter Kempas Trade & Investment purchased 2.53 crore equity shares, representing 2.22 percent of the Adani Group firm. As a result, its ownership in Adani Enterprises rose from 67.65 percent to 69.87 percent.
• Welspun Enterprises: The infrastructure development division of Welspun World has finalised the purchase of a 50.10 percent interest from the current owners in Michigan Engineers (MEPL), an EPC business using trenchless technology in the urban water infrastructure sector, for Rs 137.07 crore. After the deal was completed, MEPL became a Welspun Enterprises subsidiary, allowing the business to expand into India’s potential market for water and tunnelling solutions.
• Union Bank of India: The board of directors has given the public sector lender permission to raise up to Rs 5,000 crore through a qualified institutions placement (QIP) of equity shares. The QIP controversy started on August 21. For the issuance, the floor price per equity share has been set at Rs 91.10.
• Tata Power Company: The Pantnagar facility of Tata Motors in Uttarakhand and its subsidiary Tata Power Renewable Energy have inked a power purchase agreement (PPA) for a 9MWp on-campus solar project. The largest on-campus solar facility in Uttarakhand will be this solar plant. The project will be put into operation six months after the PPA’s execution.
• Eris Lifesciences: The pharmaceutical business has signed a term loan agreement to get a rupee term loan facility from Citi Bank NA in the amount of Rs 120.82 crore. The company’s consolidated net debt is not anticipated to change as a result of this occurrence, since Eris Oaknet Healthcare (EOHPL) is anticipated to pay a similar sum to Citi bank in order to make loan repayments over the course of the following two weeks.
• GI Engineering Solutions: At an average price of Rs. 11, GG Engineering, the business’s largest public stakeholder, sold 14.55 lakh equity shares, or 1.69% of the company, through open market transactions. As of June 2023, GG Engineering owned 24.47% of the corporation, or 2.1 crore shares.
• Shriram Properties: Omega TC Sabre Holdings Pte Limited, a foreign firm, sold 18 lakh equity shares—or 1.06%—of the real estate developer Shriram Properties through open market transactions at an average price of Rs 75.43 per share. As of June 2023, Omega TC Sabre owned 9.39% of the firm, or 1.59 crore shares.
• Brigade Enterprises: The southern-based developer of real estate has signed a selling agreement to buy a 6.54-acre property tract in Chennai. On the aforementioned property, the corporation will build a residential project.Adani Power: The private power company aims to increase its thermal generation capacity to 21,110 MW by FY29, including 1,100 MW through inorganic means. It anticipates net senior debt to increase to Rs 26,690 crore in FY24 from Rs 24,350 crore in FY23, but for the same time period, it expects the ratio of net senior debt to EBITDA to decrease from 1.7x to 1.6x.
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