News and Global Index updates.

🌹 🌞Good Morning 🌞🌹

*SGX Nifty -72 pts (17570) from last trade 17642 ,*  

Nikkei -44 pts , 

Hangseng +39 pts , 

Now @6.54am . 

Dow -154.02 pts ,

Nsdq -0.27 pts, 

S&P -9.26 pts, 

Bovespa +2356 pts , 

Ftse -45 pts , 

Dax -36 pts , 

Cac -16 pts , 

Crude @ $93.61 brl (-0.13), 

Brent @ $100.04 brl (-0.11) , 

Gold @ 1758.50 (-2.70), 

Silver @ $18.945 (-0.08), 

Euro @ $0.9946, 

JPY @ $136.86,  

INR @ 79.845

*Today's Corporate Action*

*24th Aug Ex Date*

DHUNTEAIND

Final Dividend - Rs. - 4.0000

HEG

Final Dividend - Rs. - 40.0000

KANORICHEM

Dividend - Rs. - 1.0000

PREMCO

Interim 

Dividend 

SUPER

Final Dividend - Rs. - 10.0000

WEPSOLN

Final Dividend - Rs. - 0.5000

*Today's Key Results/Board Meetings*

*24-Aug-22*

Sonata Software: Officials of the company will meet IDBI Capital Markets & Securities. 

UltraTech Cement: Officials of the company will meet TT International, Aberdeen PLC, Schroder Investment Management UK. 

Sobha: Officials of the company will meet Jefferies. 

Mahindra Holidays & Resorts India: Officials of the company will meet IIFL. 

Blue Star: Officials of the company will meet IIFL Securities. 

Orient Electric, Carborundum Universal: Officials of companies will attend DAM Capital: Virtual MidCap Investor Conference 2022. 

Nazara Technologies, Aptus Value Housing Finance India, Inox Leisure, Zee Entertainment Enterprises, Polycab India, CSB Bank, PSP Projects: Officials of companies will attend DART India Annual Conference 2022 "The Challenge of Change". 

PI Industries: Officials of the company will meet M&G, Singapore, and Franklin Templeton MF. 

Advanced Enzyme Technologies: Officials of the company will meet Eternity Capital. 

Asian Paints: Officials of the company will meet J P Morgan Asset Management. 

Lemon Tree Hotels: Officials of the company will be participating in the corporate roadshow in Singapore organized by Motilal Oswal Securities. 

Wipro: Officials of the company will participate in HDFC Securities IT sector conference. 

Supreme Industries: Officials of the company will meet Vaughan Nelson Investment Management. 

Marksans Pharma: Officials of the company will meet several analysts including Discovery Capital, Enam Holding, Max Life Insurance, and Rare Enterprise. 

Persistent Systems: Officials of the company will interact with Grandeur Peak Global.

*Stock under F&O ban on NSE*

*24-Aug-22*

None

🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉

• Billionaire Adani to Buy NDTV for Foothold in India Media Space

o Group make an open offer for 26% more at INR294/share

• Indian Refiners’ Run Rates Come Off Recent Highs as Demand Eases

• SpiceJet Says It’s Open to External Investors as Funds Dwindle

• Adani’s Empire Is ‘Deeply Overleveraged,’ CreditSights Warns (3)

o Aggressive expansion putting pressure on credit, cash flow

• Congo Bans Telecom Executives’ Travel in Row Over New Tax (1)

• India Inflation to Ease to 4% in 2 Years After Peaking, Das Says

o Long term bond yields reflect inflation is getting anchored

• Moody’s Places Azure Power India SPVs Under Review for Downgrade

• Global Funds Buy Net INR5.63B of Indian Stocks on Tuesday: NSE

o Domestic funds sell net 2.15b rupees of stocks

• Adani Group Chairman Gautam Adani met Power Minister R.K. Singh, various power sector related issues were discussed: ET Now

• Govt plans to auction 17 non-operational mines surrendered by PSUs: PTI

• Adani Enterprises (ADE): SaysUnit AMG Media Indirectly Takes 29.2% in NDTV, Launches Open Offer

• Chennai Petroleum (MRL): Approves Joint Venture with Indian Oil for $4B Refinery project at Cauvery Basin Refinery for 315.8b rupees

• Hindalco Industries (HNDL): Plans $8 Billion Capex Over 5 Years, Including Novelis.

___________________________________

🎯News and Impact🎯

 

·       Expect market to open on a flat to negative note on account of soft global markets. Poor US economy data announcement and ahead of US Fed Chairman Jerome Powell's speech on Friday pulled down US market in the third consecutive data (Dow slipped half percent). US 10-Year boned close to above 3% and Dollar Index ended 6-week high. SGX Nifty slipped 55 points or quarter percent and US Dow Future declined nearly 100 points. Global market uncertainly, rising oil price (Brent above $100) and US Fed continue to ramp up interest rates to fight inflation may negative impact in the market. Traders buy on decline strategy in the market ahead of August series F&O expiry tomorrow. Above normal monsoon, FIIs buying interest and impressive quarterly results may support market fundamentally. Moreover, world largest phone maker Apple Inc announced to shift its iPhone 14 production from China to India which may boosted market sentiment. Upstream oil companies like ONGC, Oil India, Reliance may positive on account of increased oil price.

 

·       US equities declined for a third consecutive session on Tuesday as investors await more guidance on the Federal Reserve’s policy path at the Jackson Hole symposium later this week. Dow Jones slipped 150 points or 0.5%  after Twitter Inc fell by 7% while Nasdaq Composite ended on a flat note. US 10-Year Bond close to above 3%. Investors have grown anxious as traders brace for a potential hawkish message from Fed Chairman Jerome Powell, who is scheduled to speak Friday at the central bank’s gathering in Jackson Hole, Wyoming.

 

·       Asian market declined marginally as investors assessed whether an escalating economic slowdown will lead the Federal Reserve to temper the pace of monetary tightening.

 

·       European equities retreated to the lowest level in nearly four weeks as euro-area economic activity declined for a second month, fueling recession fears amid a looming energy crisis and surging inflation. UK, Germany and France Index declined nearly half percent each.

 

·       Brent crude surged 3% to above $100/bbl following an industry report that signaled shrinking US crude stockpiles, adding to a tightening supply outlook after Saudi Arabia flagged possible production cuts.

 

·       Gold gained half percent to $1747/ounce as investors weighed the outlook for the Federal Reserve’s monetary policy tightening path after new data pointed to some weakness in the US economy.

 

·       Actionable -   HAL, Tata Steel, Tata Chemical, IRCTC

 

·       Brokers Radar – HSBC on Pharma stocks – Cipla TGT at 1180, Apollo Hospital TGT at 5020, Sun Pharma TGT at 1130, IPCA Labs TGT at 985. Macquarie TGT on Titan 3025, Morgan Stanley TGT on Tata Motor at 567.

·       Corporate Action  – Ex-dividend - HEG Rs40, Ruby Mills Rs3, Hinduja Global Rs5, Dhunuseri Tea Rs4,

 

·       Events – HDFC AMC and Sona BLW weightage to increase in FTSE re-balancing  Bharat Gears Board meeting for bonus issue Dreamfloks IPO open today. BEML spinoff 1:1

 

·       Global Data – -  Mortgage Application, Pending Home Sales, Durable Goods order (US), PPI, Business Confidence, Manufacturing Confidence, Consumer Confidence (France), Private Consumption, GDP, Government Spending, Consumer Confidence  (Germany)  

 

·       Market Summary – Adani Unit Indirectly Takes 29.2% in NDTV, Launches Open Offer, NHPC and BEL in pact for Solar Manufacturing plant, Apple’s New IPhone 14 to Show India Closing Tech Gap With China, DCB Bank hikes interest rates on savings accounts, Adani Group Is ‘Deeply Overleveraged,’ Says Fitch Group Firm, Cipla Aims to Double India Business in Five, Zomato Discontinuing 'Pro', 'Pro Plus' Programmes, SpiceJet exploring stake sale to raise Rs 2,000 cr, says CMD.

 

·       NDTV - Adani Enterprises ’s unit AMG Media Networks bought Vishvapradhan Commercial Pvt. for 114cr, giving it a 29.2% stake in NDTV, Adani Enterprises is making an open offer to buy a further 26% stake in NDTV at Rs294 a share (CMP 369), costing it 493cr –Avoid

 

·       GMDC, country's largest lignite supplier revealed plans to collaborate with technical consultants on a dry beneficiation technology pyrite/sulphur removal facility. Company’s aims to employ a consultant to design, engineer, build, supply, install, and commission a modular lignite washery (sulphur/pyrite removal plant) with an appropriate Crusher from 1.50 million tonnes of 10% sized lignite per annum using environmentally friendly dry technology. – positive

 

·       Redington - Apple Inc. plans to begin manufacturing the iPhone 14 in India about two months after the product’s initial release out of China. The company has been working with suppliers to ramp up manufacturing in India and shorten the lag in production of the new iPhone from the typical six to nine months for previous launches. – positive

 

·       Unichem Labs gets USFDA approval for generic of Tegretol. The drug is used as anti-convulsant and in treatment of pain associated with trigeminal neuralgia – positive

 

·       IPO Update - Dreamfolks IPO price band has been fixed at Rs308 to Rs326 per equity share. Meanwhile, shares of Dreamfolks Services Ltd are available at a premium of Rs65 in grey market today.

 

·       DCB Bank announced to hike interest rate on saving account between 25-100bps between various savings account level. The bank will now guarantee an interest rate of 2.25%, and for balances in savings accounts between 1 lakh and 2 lakh, the bank will now guarantee an interest rate of 4.00%. DCB Bank will now give a maximum interest rate of 7% on savings account balances between 25 lakh and less than 2 crore. – Rising saving interest rate may impact its NIM – Avoid 

 

·       Adani Group Is ‘Deeply Overleveraged,’ Says Fitch Group Firm - Gautam Adani’s port-to-power conglomerate is “deeply overleveraged” as the group has been investing aggressively across existing as well as new unrelated businesses, predominantly funded with debt, a Fitch Group unit said in a report Tuesday. –Negative, Already 2-3 fold jumped on Adani group stocks – Avoid

 

·       Glenmark Pharma has received a communication from the US FDA indicating the inspection classification as "Official Action Indicated" (OAI). The OAI classification implies that the US FDA may withhold approval of any pending product applications or supplements filed from this facility till the outstanding observations are resolved.

 

·       Cipla  aims to double its Indian business from Rs10000cr ($1.25 billion) in the next five years as it looks to expand in the US market, according to an interview given by Global Managing Director and CEO Umang Vohra to CNBC-TV18 – positive

 

·       SpiceJet is currently exploring multiple options, including stake sale to other airlines, to raise up to Rs 2,000 crore, its CMD Ajay Singh said – Positive but poor balance sheet is a concern

 

·       Amal Limited informed that its newly incorporated subsidiary, Amal Speciality Chemicals successfully commissions its sulphuric acid plant. The said plant will have a 300 TPD capacity. The sulphuric acid plant also consists of a zero liquid discharge facility. – positive

 

·       NHPC and Bharat Electronics announcement of signing of Memorandum of Understanding (MoU) for solar equipment manufacturing facility. BEL for setting up of Giga Watt Scale Vertically Integrated Solar manufacturing unit.- positive for BEL.

 

·       Shreeji Translogistics (STL), an India-based surface logistics and parcel delivery service provider has purchased an extra 15 trucks to cater to the increased domestic demand. – Positive

 

·       Ramco Systems announced that it would use its Logistics ERP Software to automate company-wide operations and services at Freight Specialists, a prominent freight and distribution services provider situated in Sydney, Australia. – positive

 

·       Rupa & Company - CRISIL Ratings has reaffirmed its ‘CRISIL AA-/Stable/CRISIL A1+’ ratings on the bank facilities and commercial paper of Rupa & Company – positive

 

·       Mahindra Finance board approves allotment of debt securities worth Rs275 crore. The tenure of the issue is 1 year and 306 days from the date of allotment i.e. August 23, 2022. – positive

 

·       Sundram Fasteners - CRISIL Ratings has reaffirmed its 'CRISIL A1+' rating on the short-term debt and commercial paper programme of Sundram Fasteners – positive

 

·       Kings Infra Ventures signed a MoU with the Central Institute of Fisheries Technology to develop ready-to-eat and ready-to-serve fish products using steam or water immersion technology capable of achieving a very long shelf life under normal room temperature without the use of any chemical additives or preservatives. – Positive

 

·       Yasho Industries’s - India Ratings gives rating to Yasho Industries’s new limits at ‘IND BBB+’/Stable and also affirms existing ratings.- positive

 

·       Sterling and Wilson Renewable Energy Limited emerged as the L-1 Bidder for the BOS Package. It comprises four (4) blocks of the proposed solar PV plant of NTPC Renewable Energy. The plant is situated at Khavda RE Power Park, Rann of Kutch, Gujarat. – positive

 

·       Markolines Pavement Technologies (formerly Markolines Traffic Controls) informed that the company has received its biggest ever work order (WO) to date worth Rs325 crore – stock gained 10% yesterday

 

·       Glenmark Pharmaceuticals - The pharmaceutical company anticipates flat or low single-digit growth for its US business in 2022–2033, due to hurdles like price erosion and erratic USFDA product approval.- Avoid

 

·       Zomato – Company has discontinued its 'Pro and 'Pro Plus' programmes for its users, two years after introducing the plans. Zomato said that its Pro Plus service is unavailable for renewal and that the company is working on a new experience. Zomato Pro members got additional benefits over normal users and gained access to exclusive delivery offers. Most of the orders for Pro members were delivered faster than the normal orders, on an average.- Positive

 

·       Hitachi Energy starts operations at new electrical plant, inaugurated a new and larger facility of Power Quality Products manufacturing in Doddaballapur, Bengaluru. - positive

 

·       Maharashtra Seamless get orders worth Rs197cr for pipes from ONGC – positive

 

·       Gensol Engineering plans to buy majority stake in a U.S.-based EV manufacturing start-up and aims to to start manufacture of three-wheeler EVs from October 2022. – Avoid, stock has already gained.

 

·       Capri Global - Capri Loans, a leading NBFC focused on MSME credit and housing finance, has commenced operations of its gold loan business with 100+ branches. These gold loan branches are equipped with an artificial intelligence-powered security vaults to offer best-in-class safety to the gold ornaments. – Positive

 

·       Monarch Networth - Monarch Alternative investment Fund (AIF) has successfully raised Rs252 crore in its second closed-ended cat-3 equity AIF fund. – positive

 

·       Chennai Petroleum to form JV for Cauvery Basin Refinery for Implementing the 9 MMTPA Refinery Project at Cauvery Basin Refinery, Nagapattinam District, at an estimated cost of Rs.31,580cr – Positive

 

·       Amal Speciality Chemicals, wholly-owned subsidiary of Amal Ltd has commissioned its 300 tpd Sulphuric Acid plant with zero liquid discharge facility – positive

 

·       RMC Switchgears has announced the receipt of an order of Rs10.46cr from Andhra Pradesh Utility. The supplies will be made within the next 2 quarters. – positive

 

·       IndusInd Bank has launched two Digital Banking Units at Jalandhar (Punjab), and Chengalpattu (Tamil Nadu) to commemorate the 75th Year of India's Independence. This announcement is in line with the recent Digital Banking Unit advisory, to accelerate and widen the reach of digital banking services in the country.- positive

 

·       Kings Infra Ventures (BSE Listed) has signed a pact with the Central Institute of Fisheries Technology on Monday for developing ready to eat and ready to serve fish products by adopting steam or water immersion technology - positive

 

·       Infosys scaled back the average variable payout of employees to 70% for quarter-ended June amid contraction in margin and rising employee costs, reported PTI citing sources. The decision comes after peer Wipro held back variable pay due to margin pressure. TCS also delayed quarterly variable compensation payout for some employees by a month, according to reports.- We are positive on Infosys, Tech Mahindra, HCL Tech

 

·       P&G announced poor Q4 results. Company reported Q4 net profit Rs42.55cr (down 13% YoY), Ebitda Rs67.1cr (down 10.4% YoY), Ebitda Margin 8.6% vs 9.5% (YoY) and Income Rs776.4cr (down 1.4% YoY)

 

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