Nifty snaps 14-day streak on weak global cues

by Hansraj Agrawal | Sep 4, 2024 | Share Market

The domestic equity benchmarks ended with minor losses on Wednesday. The Nifty snapped its 14-day winning streak and settled a tad below the 25,200 level. Global market jitters over a potential US economic slowdown and anticipation of key economic data weighed on sentiment. Despite early losses, selective buying in large-cap stocks helped limit the decline. Healthcare and pharma sectors outperformed, while IT and PSU banks faced selling pressure.

The S&P BSE Sensex slipped 202.80 points or 0.25% to 82,352.64. The Nifty 50 index declined 81.15 points or 0.32% to 25,198.70. The 50-unit index had risen 4.73% in the past 14 consecutive sessions.

In the broader market, the S&P BSE Mid-Cap index fell 0.15% and the S&P BSE Small-Cap index rose 0.26%.

The market breadth was negative. On the BSE, 1932 shares rose and 2019 shares fell. A total of 96 shares were unchanged.

The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, rallied 3.86% to 14.38.

Economy:

The HSBC India Services PMI was revised to a five-month high of 60.9 in August 2024 from 60.4 in the preliminary estimates, as the growth of incoming new business ticked higher. The latest result rose from 60.3 in July, marking the 38th consecutive month of growth in services activity, boosted by productivity gains and positive demand trends.

The HSBC India Composite PMI was at 60.7 in August 2024, compared with a flash figure of 60.5. The latest result matched July’s reading, remaining comfortably above its long-run average of 54.6. It was the 37th month of rise in private sector activity, with service providers signaling the strongest rise in business activity since March while goods producers posted the weakest expansion in production for seven months.

Numbers to Track:

The yield on India’s 10-year benchmark federal paper advanced 1.56% to 6.977 as compared with previous close 6.984.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.0150, compared with its close of 83.9800 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement shed 0.10% to Rs 71,310.

The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, was down 0.16% to 101.66.

The United States 10-year bond yield decline 0.58% to 3.819.

In the commodities market, Brent crude for November 2024 settlement added 29 cents or 0.29% to $74.04 a barrel.

Global Markets:

Markets in Europe and Asia declined on Wednesday, following a sharp tech selloff on Wall Street, coupled with resurgent concerns about U.S. growth, drove investors away from riskier assets.

Recent data from China revealed that its economy is still struggling to gain traction, leading to renewed calls for more stimulus from Beijing. The sluggish Chinese outlook, the world’s largest oil importer, further exacerbated the decline in oil prices due to expectations of weakening demand.

September has historically been a challenging month for stocks, but analysts attributed the current rout to a confluence of factors, including tepid U.S. manufacturing data.

U.S. stocks closed sharply lower overnight after the holiday, with AI leader NVIDIA tumbling nearly 10% as investors tempered their enthusiasm about artificial intelligence. The return from the Labor Day holiday saw a widespread air of portfolio de-risking across capital markets. Growth concerns were the dominant theme, leading to a sell-off in cyclical-sensitive assets and aggressive hedging.

The Dow Jones Industrial Average fell 1.51%, the S&P 500 slid 2.12% and the Nasdaq Composite dropped 3.26%. All three indexes notched their worst days since the global sell-off on Aug. 5.

US manufacturing contracted at a moderate pace in August. The Institute for Supply Management (ISM) said its manufacturing PMI rose to 47.2 last month from 46.8 in July, which was the lowest reading since November. The PMI remained below the 50 threshold for the fifth straight month.

Stocks in Spotlight:

General Insurance Corporation of India tumbled 5.59% to end at Rs 397.70 after the President of India announced its proposal to sell upto 6.78% stake in the company through an offer for sale (OFS) on 04th and 05th September 2024. On Day 1 (T-day), as of 15:30 IST, the OFS received subscription for 5,81,05,684 shares. It was subscribed 108.49% on the base non-retail offer size of 5,35,60,800 shares.

Azad Engineering jumped 4.37% to Rs 1,573 after a foreign broker initiated its coverage on the stock with a ‘buy’ rating and a target price of Rs 1,850 per share.

Cellecor Gadgets spurted 9.93% to Rs 3.75 after the company announced the launch of its latest range of laptops and smartphones in September for the upcoming festive season.

Natco Pharma added 1.66%. The pharma major said that its wholly owned Canadian subsidiary, Natco Pharma (Canada) made an investment of $8 million in biotechnology company, eGenesis for developing safe and effective human-compatible organs for transplant.

Shilpa Medicare (SML) climbed 6.38% after the company announced that it has submitted new drug application (NDA) to U.S. Food and Drug Administration (USFDA) for Oxylanthanum Carbonate.

Rama Steel Tubes soared 12.17% after the company announced a strategic collaboration with Onix Renewable for provide steel structures for latters solar projects.

Indian Energy Exchange (IEX) rose 0.39%. The company informed that it has achieved electricity volume (including certificates) of 12,040 million units (MU) in August 2024, registering a growth of 35.8 % YoY basis.

MOIL rose 0.58%. The company achieved its best ever August production of 1.24 lakh tonnes of manganese ore in August, 2024.

Cupid added 0.91%. The company is embarking a dynamic B2C expansion strategy with a topline target in excess of Rs 50 crore in this financial year.

New Listing:

Shares of ECOS (India) Mobility & Hospitality closed at Rs 441.05 on the BSE, representing a premium of 32.05% as compared with the issue price of Rs 334.

The scrip was listed at Rs 391.30, exhibiting a premium of 17.15% to the issue price.

The stock has hit a high of 456 and a low of 380.10. On the BSE, over 22.82 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Gala Precision Engineering received 44,79,36,580 bids for shares as against 22,23,830 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (4 September 2024). The issue was subscribed 201.43 times.

The issue opened for bidding on Monday (2 September 2024) and it will close on Wednesday (4 September 2024). The price band of the IPO is fixed between Rs 503 to Rs 529 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof.

Powered by Capital Market – Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

Source link

Food delivery major Swiggy reshuffles top deck ahead of upcoming IPO

by Hansraj Agrawal | Sep 4, 2024 | Share Market

3 min read Last Updated : Sep 04 2024 | 5:24 PM IST

Food delivery major Swiggy is reshuffling its top deck ahead of its upcoming initial public offering (IPO), expected sometime later this month.

The company on Wednesday said that it has roped in Dhruvish Thakkar as assistant vice president for revenue and growth at Swiggy Dineout, who was previously senior director, head of marketing and revenue at Flipkart.

However, Thakkar is not the only former Flipkart executive that the food delivery major has hired. Last week, Swiggy appointed Flipkart’s former senior vice president and head of grocery Amitesh Jha as the chief executive officer of its quick commerce business, Swiggy Instamart. He replaced co-founder Phani Kishan, who will now assume a broader organisation-wide role overseeing Swiggy’s central growth unit.

Early last month, the company had appointed Sairam Krishnamurthy as senior vice president and chief operating officer (COO) of Instamart. His appointment followed a series of senior hires at Instamart.

The company has recently brought in Himavant Srikrishna Kurnala as senior vice president of product and business, Aakash Bhotika as vice president – technical advisor, Mayank Rajvaidya as vice president of fruits and vegetables, and Manu Sasidharan as associate vice president of the FMCG category for Instamart.

Meanwhile, Swiggy’s chief growth and marketing officer Ashwath Swaminathan has left the firm. This follows Karthik Gurumurthy, senior vice president, who left the firm late last year to build his own venture.

Anuj Rathi, former head of revenue and growth, quit in September 2023, while Swiggy’s former chief technology officer Dale Vaz had also put in his papers in April last year.

Swiggy reshuffling its top deck comes ahead of its initial public offering (IPO), expected in the coming few weeks. In April, Swiggy had confidentially filed its IPO papers for Rs 10,400 crore (approximately $1.25 billion). The food delivery giant is reportedly targeting a valuation of around $15 billion for its stock market debut.

This comes at a time when competition is intensifying in the rapidly growing quick commerce space. Players like Zepto, Blinkit, and BB Now are rapidly expanding their operations, be it in terms of category expansion, scaling their dark store networks, or getting into newer cities. Moreover, e-commerce incumbents like Flipkart and Amazon have also jumped into the mix.

According to a report by HSBC Global, Instamart’s share has fallen from 52 per cent in March 2022 to 32 per cent in January 2024. At the same time, Blinkit emerged as the market leader with a 40 per cent share, while Zepto’s market share has risen from 15 per cent in March 2022 to 22 per cent in January 2024.

First Published: Sep 04 2024 | 4:53 PM IST

Source link

NCLT okays merger plan of this oil exploration company; shares surge 20%: Deep Energy Resources shares

by Hansraj Agrawal | Sep 4, 2024 | Share Market

2 min read Last Updated : Sep 04 2024 | 3:08 PM IST

Deep Energy Resources shares hit upper circuit: Shares of Oil & Gas Company, Deep Energy Resources, climbed as much as 20 per cent to hit the upper circuit of Rs 317.68 on the NSE, and Rs 316 on the BSE during intra-day deals on Wednesday. Nearly 15.68 lakh shares of the company worth around Rs 47.30 crore on the NSE, and 1.09 lakh shares worth nearly Rs 3.31 crore exchanged hands on the BSE today, leading to the stock getting locked in the upper circuit on the exchanges. The trading of Deep Energy Resources stock has been halted since then.

The northward move in the share price came following the news that the National Company Law Tribunal, Ahmedabad Bench, has sanctioned the composite Scheme of Arrangement amongst Deep Energy Resources, Savla Oil and Gas, and Prabha Energy, and their respective shareholders and creditors.

“…we wish to inform you that the Hon’ble National Company Law Tribunal, Ahmedabad Bench (‘NCLT Ahmedabad’) has sanctioned the scheme and uploaded the copy of the order on its web portal on September 3, 2024,” said Deep Energy Resources in a regulatory filing.

Deep Energy Resources is an Oil & Gas Company with business interests in both conventional and unconventional Oil & Gas Exploration and Production.

The oil exploration company commands a market capitalisation of Rs 1,011.84 crore on the BSE and Rs 1,016.58 crore on the NSE, as of September 4, 2024. The company is, however, under Enhanced Surveillance Measure, Stage 1, on the BSE.

Deep Energy Resources shares started today’s trading session on a lower note at Rs 262.90 against the previous close of Rs 263.50 on the BSE. The company’s stock, however, sprinted northward to hit the day’s high as well as the upper circuit of Rs 316.20 following the NCLT approval news. The oil exploration company’s stock has yielded a return of 67.11 per cent year-to-date.

Meanwhile, Deep Energy Resources shares have offered a multibagger return in the last one year with a rally of 104.82 per cent.

First Published: Sep 04 2024 | 3:00 PM IST

Source link

Piramal Pharma hits record high in weak market; surges 12% on heavy volumes

by Hansraj Agrawal | Sep 4, 2024 | Share Market

3 min read Last Updated : Sep 04 2024 | 2:21 PM IST

Piramal Pharma share price today: Shares of Piramal Pharma (PPL) hit a record high of Rs 216.58, surging 12 per cent on the National Stock Exchange (NSE), in Wednesday’s intraday amid heavy volumes. As many as 43.42 million equity shares, representing 3.3 per cent of total equity of the pharma company, had changed hands on the NSE till 01:58 PM. By comparison, the Nifty 50 was down 0.40 per cent at 25,178.

PPL, part of the Piramal Group, is a global pharmaceutical company providing end-to-end pharma solutions to its customers through its network of development and manufacturing facilities located in India, North America, and the UK/Europe.

PPL operates under three business verticals: Piramal Pharma Solutions (PPS) – An integrated contract development and manufacturing organisation (CDMO); Piramal Critical Care (PCC) – A complex hospital generics (CHG) business; and India Consumer Healthcare (ICH) – The business of selling over-the-counter healthcare and wellness products.

The company sees promising growth opportunities for all three business verticals and is strategically making investments to strengthen its capabilities and capacities, analysts said.

PPL is expected to see an improved performance across segments on the back of the addition of differentiated offerings and a favorable demand scenario in CDMO, new launches and expansion of reach in complex hospital generics (CHG), steady growth in power brands in ICP, and gradual reduction in financial leverage.

“The management is witnessing early signs of recovery in biotech funding on the back of increased customer visits/inquiries. The generic API business also saw a pick-up in demand. Favorable regulatory changes and supply-chain diversification should provide medium- to long-term growth opportunities in the CDMO segment,” analysts at Motilal Oswal Financial Services had said in its Q1FY25 result update.

CARE Ratings have a positive outlook on PPL’s bank facilities/instruments on expectations that the company’s CDMO segment will continue its growth trajectory in the coming quarters, resulting in increased capacity utilisation.

Sales from the CDMO segment increased to Rs 4,750 crore in FY24 from Rs 4,016 crore in FY23 considering increased commercial contracts. With around 34 per cent of development revenue from phase III molecules, there is a high probability of these transitioning to product registration and commercial production. This provides visibility and stability on sales increasing by 10-15 per cent in the near term and improvement in profit before interest, lease rentals, depreciation, and taxation (PBILDT) by 100-200 bps.

In the last 18 months, five of Piramal’s CDMO facilities — Digwal (India), Pithampur (India), Riverview (US), Sellersville (US), and Lexington (US) — contributing over half of CDMO revenues in FY24 successfully completed the USFDA inspections with zero observations and received an establishment inspection report (EIR) / Voluntary action indicated (VAI) status.

The company has already received an EIR for Riverview and Observations at Lexington have been classified as VAI. The company emphasised its commitment to upholding highest standards of compliance and affirmed its dedication to working closely with the FDA to address identified observations.

“As more molecules in the discovery and development phases reach commercialisation, revenue and capacity utilisation are expected to rise further in FY25 and FY26,” CARE Ratings said.

Meanwhile, on July 29, 2024, HDFC Mutual Fund, through various of its schemes, had purchased an additional 27.28 million or 2.06 per cent stake of PPL via open market, according to disclosure made by the company. Post acquisition, HDFC Mutual Fund holding in PPL increased to 7.06 per cent from 5 per cent.

First Published: Sep 04 2024 | 2:20 PM IST

Source link

Auto parts maker Motherson to launch $715 mn share sale to tap stock mkt

by Hansraj Agrawal | Sep 4, 2024 | Share Market

The fund-raising exercise stands to be one of India’s biggest this year, data from Dealogic shows, lagging only $1-billion share sales by Vedanta and Adani Energy in recent months | Photo: Shutterstock

2 min read Last Updated : Sep 04 2024 | 1:12 PM IST

One of India’s largest makers of auto parts, Samvardhana Motherson International, will launch a share sale of up to $715 million this month, two sources briefed on the matter told Reuters, the latest company to tap a booming stock market.

The fund-raising exercise stands to be one of India’s biggest this year, data from Dealogic shows, lagging only $1-billion share sales by Vedanta and Adani Energy in recent months.

With a market capitalisation of about $15 billion, Motherson supplies parts to domestic and global automakers such as Maruti Suzuki and Mercedes-Benz.

Motherson’s roadshows for the fund-raising exercise are “finding support from investors,” said one of the two sources, who sought anonymity as the planning process is confidential.

The exercise is expected to be completed by month-end, the sources said, adding that the company plans to use the funds raised to repay debt, fund some expansion and certain capital expenditure.

Motherson did not respond to a request for comment.

The funds will be raised through a so-called Qualified Institutional Placement (QIP), which listed Indian companies use to raise funds from large institutions.

Motherson reported revenues of $11.75 billion and operating profit of more than $1 billion in the fiscal year that ended in March. Its net debt at the end of June stood at $1.58 billion.

Axis Bank, HSBC, Jefferies, JM Financial and Morgan Stanley are advising the company on the share sale.

Jefferies declined to comment, while the other four did not respond to Reuters’ requests for comment.

Motherson says it is among the world’s largest suppliers of auto parts and also counts Tata Motors, Volkswagen, Ford Motor and Porsche among its clients.

Listed on the stock exchanges in 1993, the company also supplies parts to the aerospace, consumer goods and health and medical industries. It has acquired 45 companies in India and globally over the past two decades.

India’s stock market is on a hot streak, with the benchmark index up 16 per cent this year, outdoing Asian peers.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 04 2024 | 1:12 PM IST

Source link

« Older Entries

Next Entries »

Search
Recent Posts
Yastika Bhatia creates history, becomes second Indian left-hander after Sourav Ganguly to…

Bye Bye Bazball! Brendon McCullum sacked as England mens Test coach

India among countries with severe housing crisis; WEF says people’s wealth, health under threat

Is Shreyas Iyers India captaincy in danger? Abhishek Nayar gives bold verdict after series defeats to England, Ireland

GEMA refutes allegations of vehicle damage from ethanol-blended fuel

Recent Comments
No comments to show.

Times Top News

Times Top News

Recent Posts

Recent Comments