Jun 14, 2024, 3:29 pm IST
USFDA Wraps Up Inspection at Lupin’s Nagpur Facility with Zero Observations
Lupin Ltd declared on Friday that the United States Food and Drug Administration (USFDA) has wrapped up an inspection at one of its facilities without issuing any observations. The pharmaceutical firm, in a disclosure to the stock exchanges, stated that the US health regulator has concluded an inspection at the company’s Injectable facility situated in Nagpur, Maharashtra, with zero observations.
Jun 14, 2024, 2:49 pm IST
LIC Shares Rally Over 6% On Entry Into Health Insurance Market
Shares of Life Insurance Corporation (LIC) surged over 6% on the BSE on Friday (June 14), propelled by news of the insurance giant's foray into the health insurance domain. Opening at ₹1007.60 per share, the stock swiftly ascended to ₹1064.70 per share. As of the time of writing, the shares were trading 5.59% higher at ₹1057.80 per share on the BSE. This notable upswing follows reports indicating LIC's intentions to step into the health insurance sector by potentially acquiring one of the five private standalone health insurance companies.
Jun 14, 2024, 2:12 pm IST
Nykaa Share Price Dips 3% Amidst Aggressive Growth Strategy Plan
Shares of FSN E-Commerce Ventures Ltd., the parent firm behind the popular beauty and personal care label Nykaa, experienced a 3% decline from the day's peak due to profit booking. Despite this, the stock has surged by nearly 20% in the past year. Nykaa recently conducted an investor meet on Friday (June 14), unveiling its ambitious growth strategies across different business segments. The forward-looking company aims for a substantial 2,000 basis points enhancement in EBITDA margins by the conclusion of the fiscal year 2026, as compared to FY24.
Jun 14, 2024, 12:27 pm IST
Adani's Top Cement Stock Hits New High
Adani Group's cement stock touched new 52-week high of Rs 690 on BSE. The stock is trading on a bullish note on June 14. Adani Group-owned Ambuja Cements announced on June 13 its decision to acquire a 100% stake in Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore. This acquisition aligns with Adani's ambitious target of reaching a cement production capacity of 140 million tonnes per annum (MTPA) by 2028.
Jun 14, 2024, 12:02 pm IST
Sector Update: Hotels | Healthy Close To The Year; All On Eyes On H2FY25
Sumit Kumar of JM Financial said, “Hotel companies reported an inline 4QFY24 with a 20% growth in revenues aided by increase in room count (c.9%) and similar growth in RevPAR. ARRs for our coverage universe grew to INR 11,020 (+7% YoY; 1% QoQ) while occupancy increased to 75% (+89bps YoY) largely due to the high base. As a result, for our coverage universe, 4QFY24 Revenues and EBITDA increased significantly to INR 29.3bn (+21% YoY; 1% QoQ) and INR 11.0bn (+22% YoY; -2% QoQ). EBITDA margins were impacted by one-offs (for SAMHI, Lemon Tree and Chalet) and higher than expected increase in employee costs and other overheads. Looking ahead, growth in a seasonally weak 1QFY25 has somewhat been affected by the General Elections and adverse climatic conditions. We remain positive on the sector as sustained domestic tourism, a revival in foreign tourist arrivals, upward trajectory of MICE business and corporate travel should drive double-digit RevPAR growth in FY25E. We expect the hotel room rates to grow in the high single digits in FY25E with a 250-300 bps improvement in occupancy levels. Our preferred picks in the space are SAMHI, Chalet and Lemon Tree.”
Jun 14, 2024, 11:47 am IST
Sector Update: Chemicals Pricing Update | Basic Chemical Prices: Mixed Trends In May’24 And Early Jun’24
Krishan Parwani of JM Financial said, “Prices of several basic chemicals have shown a mixed trend in May’24 and early Jun’24. On account of a jump in benzene prices compared to flattish propylene, acetone and phenol prices, phenol-acetone spreads are down ~16% in the current month. As per our understanding, to offset this weakness, Deepak Nitrite has been selling more iso propyl alcohol (IPA) due to better IPA realisation. Bromine spot prices have been largely flattish. However, basis our check Archean’s average realisation is likely to have dropped to USD 2.1-2.2/kg in 1QFY25TD (compared to ~USD 2.6/kg in 3Q and 4QFY24). We believe higher volume offtake could provide some cushion to this sequential price drop. Domestic ref gas (R32 and R410A) prices improved in 1QFY25TD while US market ref gas prices (R32 and R125) continued their downtrend. We highlight that higher volumes would be able to offset the price decline in the US market. Prices of Fine Organic’s key raw material Erucic acid are down 7% in the current month. Hence, Fine will have to continue taking price cuts, in our view. During the month, PVC spreads are likely to witness an uptick on the back of decline in ethylene dichloride prices against a rise in PVC prices. Our top picks are SRF in the large cap, Deepak Nitrite in mid cap, and PCBL in small cap.”
Jun 14, 2024, 11:31 am IST
Sector Update: Life Insurance-Surrender Charges Update-13Jun24 | Surrender Charges Regulations Give Respite; Conversation Shifts To Growth
Raghvesh of JM Financial said, “IRDAI has notified product regulations yesterday (12th June), addressing the question on surrender charges. First draft was for this was out on 12th Dec’23, after which the stocks reacted negatively – especially, HDFC Life, with its larger non-par book.Since then, IRDAI came out with product regulations in March, in which it did not change the guaranteed surrender values. Subsequently, on 30th May’24, IRDAI shared a fresh draft with the life insurers – in which they introduced regulation of Special Surrender Value (SSV), which was unregulated till now. Based on the draft shared with insurers, we had estimated an impact of up to c.4% on VNB margins for HDFC Life, with others seeing a lower impact.Two key changes in final regulations on June12:1. No Special Surrender Value in the first year of the policy.2. While determining the SSV, the draft proposed that returns could be discounted at 10 year G-sec, now, insurers have been allowed to discount at a rate 50bps higher than the 10 year- G-sec.Due to these changes, the impact on VNB margins for companies reduces as compared to the estimations based on 30th May, 2024 draft. Hence, it comes as a positive development for the sector. HDFC Life has come up with a press release indicating 100bps impact on VNB margins, better than our (2.4%) and street expectations.”
Jun 14, 2024, 11:17 am IST
Sector update: IT Services | ER&D Services: Advantage India
Abhishek Kumar of JM Financial said, “We argued in our initiation note (Charged up for a long-range, 8 Jan 24) that constraints facing Auto OEMs will likely trigger higher offshoring of ER&D services. Recent commentary by global Engineering Service Providers (ESPs) support the hypothesis. Importantly, India is gaining over Romania, the other major offshore destination for ER&D services. Unsurprisingly, Indian ESPs’ automotive vertical growth in FY24 was c.2x that of global peers (Exhibit 1-2). IT Services players’ recent acquisitions of onsite-centric ESPs will further accelerate the trend. These acquisitions are focussed on auto, semicon, aero and defence sectors. Rationale offered are cross-pollination of services and offshore leverage. That suggests offshoring offtake will likely extend beyond auto. It could also lead to higher competitive intensity for the incumbents. Our recent interactions with select Indian ESPs however indicate they are not wary of increased competition. Instead, they believe this will expand total addressable spend, benefitting all. We concur. They have already increased footprint beyond traditional strength. Tata Elxsi’s (ELXSI IN; NOT RATED) five wins in SDV domain driving higher share of auto OEMs, TATATECH’s progress in Aero are cases in point. TATATECH’s c.83% ex-JLR growth in Europe (Source: Annual Report-24) also point to a diversifying revenue base. We remain optimistic on ER&D space in general and Auto ER&D in particular. Reiterate BUY on KPIT (KPIT IN; BUY; TP: INR 2,030) and Tata Technologies (TATATECH IN; BUY; TP: INR 1,410).”
Jun 14, 2024, 10:46 am IST
Base Metal Outlook Today From Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One
Copper prices slipped on Thursday as the dollar steadied following the U.S. Federal Reserve's decision to delay potential interest rate cuts to the end of the year. Despite unexpected drops in the U.S. producer price index and a softer consumer price index for May, the dollar remained strong due to the Fed's hawkish stance. Slower inflation typically raises hopes for rate cuts, which pressure the dollar, but this optimism was overshadowed by the Fed's commitment to maintaining higher interest rates. Market focus now shifts to China's purchasing managers' index, an indicator of manufacturing activity, due at the end of the month. Copper prices are likely to remain under pressure due to the strengthened dollar following the Fed's hawkish stance on interest rates.
Jun 14, 2024, 10:35 am IST
Energy Outlook Today By Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One
Oil prices rose on Thursday, buoyed by an OPEC forecast for demand growth and data showing an easing U.S. labor market and slowing inflation, which fueled hopes for Federal Reserve rate cuts. OPEC predicts demand could reach 116 million barrels a day by 2045, countering the IEA's forecast of peak oil consumption by 2029. The U.S. Labor Department reported a 0.2% drop in the producer price index for May and a rise in jobless claims to a 10-month high. Despite the Fed holding interest rates steady and delaying policy easing to December, U.S. crude stockpiles and fuel inventories rose more than expected last week. Crude prices are expected to remain supported by positive demand forecasts.
Jun 14, 2024, 10:29 am IST
Forex Outlook By Anand James, Chief Market Strategist,Geojit Financial Services
INR: The Indian rupee closed nearly unchanged on Thursday at 83.5425 against the U.S. dollar, compared to 83.5450 previously. Dollar demand from local corporates was offset by state-run banks' dollar offers, likely on behalf of the Reserve Bank of India. USD: The dollar gained on Thursday, the dollar index rising 0.49% to 105.20, despite a soft U.S. producer price inflation report for May, following the Federal Reserve's hawkish tone on Wednesday. Data showed the PPI fell 0.2% last month, with core prices flat. This followed a softer-than-expected CPI report, suggesting the Personal Consumption Expenditures index may also show easing inflation.
Jun 14, 2024, 10:23 am IST
Derivative Outlook From Anand James, Chief Market Strategist,Geojit Financial Services
Nifty weekly contract has highest open interest at 23400 for Calls and 23400 for Puts while monthly contracts have highest open interest at 24000 for Calls and 22500 for Puts. Highest new OI addition was seen at 23400 for Calls and 23400 for Puts in weekly and at 24200 for Calls and 23400 for Puts in monthly contracts. FIIs increased their future index long position holdings by 14.08%, decreased future index shorts by 6.59% and in index options by 27.49% decrease in Call longs, 26.29% decrease in Call short, 32.82% decrease in Put longs and 29.26% decrease in Put shorts.
Jun 14, 2024, 10:18 am IST
Nifty Outlook Today From Anand James, Chief Market Strategist,Geojit Financial Services
For most part of this week so far, the lack of upside momentum had given the feeling that a distribution is unfolding that should lead to a sharp fall. However, we were content to mark this as a consolidation, as bargain hunting kept resurfacing on dips. Until 23145 gives away, we will persist with this approach. Meanwhile, expect swings on either sides of 23400, with the first downside marker for the day placed at 23350. Favoured view expects key pivots to be broken today, but with low visibility towards a directional move.
Jun 14, 2024, 10:01 am IST
Ambuja Cements Shares Surge Over 2% On Penna Cement Acquisition
Shares of Ambuja Cements rose by more than 2% after the Adani Group-owned company announced on June 13 its plan to acquire a 100% stake in Penna Cement Industries Ltd (PCIL) for an enterprise value of ₹10,422 crore. Expected to be completed within 3-4 months, this acquisition is a strategic move towards Adani's objective of achieving a production capacity of 140 million tonnes per annum (MTPA) by 2028.
Jun 14, 2024, 9:43 am IST
EIH Associated Hotels Announces First-Ever Bonus Shares Amidst 2024 Performance
EIH Associated Hotels Ltd, the flagship entity of The Oberoi Group, will convene a board meeting on Friday, June 14, to discuss and approve the issuance of bonus shares to its equity shareholders. Notably, this marks the company's inaugural bonus share issue, according to exchange data. The stock has surged 80% in 2024, reflecting strong market performance.
Jun 14, 2024, 9:23 am IST
Market Opens With Mild Gains
Indian benchmark indices started strong on Friday, defying subdued signals from global markets influenced by diminishing prospects of a rate cut by the US Federal Reserve. At the opening bell, the Sensex rose by 99.09 points or 0.13% to 76,909.99, while the Nifty climbed 25.20 points or 0.11% to 23,424.10.
Jun 14, 2024, 9:05 am IST
Rupee Opens Flat
Indian Rupee opens unchanged at 83.54 against US Dollar versus Thursday's close.
Jun 14, 2024, 9:03 am IST
Recommendations By Aditya Gaggar, Director Of Progressive Shares
The lackluster weekly expiry day ended on a positive note at 23,399. Higher levels played their part well as once again, the Index has formed a Bearish candle at record levels, and on the hourly timeframe, a bearish divergence was spotted which suggests loss of positive momentum. The levels of 23,480 and 23,300 will be considered as resistance and support respectively. BankNifty lacks momentum and to regain, it needs to surpass the strong hurdle of 50,200 while the level of 49,600 will serve as a support. From the Energy sector, Gas stocks look promising (IGL and Gujarat Gas). The FMCG segment is witnessing a round of correction but some stocks are showing great strength, particularly the Sugar counters as many of them are on the verge of giving a strong breakout. Some stocks from the Broader markets have given a strong breakout; Praj Industries (Rounding Bottom Breakout) and Usha Martin (Range Breakout).
Jun 14, 2024, 9:01 am IST
Suzlon Energy Boosts Corporate Governance With Legal Review
Suzlon Energy Ltd. announced on Thursday evening that it has engaged Khaitan & Co., a prominent Indian law firm, to review its corporate governance practices. This decision follows the recent resignation of independent director Marc Desaedeeler, who cited corporate governance concerns as his reason for stepping down.
Jun 14, 2024, 8:17 am IST
Oil's Weekly Rally Stalls Amid Risk-Off Sentiment and Ample Supply
Oil prices fell in Asian trading as broader financial markets adopted a risk-off tone and signs of robust global supply emerged. Brent crude dropped below a barrel, poised to end its four-day winning streak, while West Texas Intermediate fell below . The decline was accompanied by higher-than-usual trading volumes for both benchmarks, with some options contracts also changing hands—an unusual occurrence during early Asian trading hours.
Jun 14, 2024, 7:58 am IST
Asian Markets Dip Amid Japan’s Pre-BOJ Policy Meeting Jitters
Asian stocks took a hit, largely dragged down by Japanese shares, as the yen traded within a narrow range. Investors are keenly awaiting the outcome of the Bank of Japan's (BOJ) two-day policy meeting.
Both the Nikkei and Topix indices fell, while the yen hovered around 157.10 per dollar. The BOJ is widely expected to consider reducing its bond purchases. According to economists surveyed by Bloomberg, the policy board will likely maintain its benchmark rate in the range of 0 to 0.1%. Traders are also on high alert for any hints regarding a potential interest rate hike next month.
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