Stock to Watch: L&T secures orders worth ₹2,500 crore for urea plant in Australia

Larsen & Toubro (L&T) has secured an order worth ₹2,500 crore for the fabrication and supply of pipe rack modules for a 2.3-MMTPA urea plant for Perdaman Chemicals and Fertilizers Pty in Australia.

Asian stocks rise amid big tech rally

Asian equities opened mostly higher Tuesday following a rally in big tech that spurred a rebound on Wall Street, though elevated Treasury yields kept risk sentiment in check.

Nifty ended higher on Aug 21 aided by buying across Metals, Power and IT stocks. At close, Nifty was up 0.43% or 83.5 points at 19393.6. Nifty bounced up as expected post the doji formed in the previous session. 19483 is the resistance for the Nifty in the near term while 19253-19310 band could provide support.

US 10-year yield hits highest since 2007; markets anticipate Powell’s Jackson Hole speech

The US 10-year yield ended the New York session at 4.339% or its highest closing level since Nov. 6, 2007.

The street is waiting to hear and interpret Fed Chairman Jerome Powell’s speech at the annual Jackson Hole symposium on Friday. The speeches from Fed chiefs at the Jackson Hole conference have typically buoyed stocks since the turn of the millennium, with the S&P 500 gaining 0.4% on average in the following week, data compiled by Bloomberg Intelligence show. But last year’s appearance is still fresh in traders’ minds: Equities slumped 3.2% in the week following Powell’s remarks, according to BI, after he warned of keeping policy restrictive to battle inflation.

Indian markets likely to open flat amid global mixed signals: HDFC Securities:

Deepak Jasani, Head of Retail Research, HDFC Securities:

Indian markets could open flat, despite mostly higher Asian markets today and positive US markets on Aug 21

The S&P 500 and Nasdaq Composite finished with their first gains of the past five sessions on Monday, despite another surge in long-dated Treasury yields and lingering concerns about China’s economy. A rally in big tech spurred a rebound in stocks, outweighing concerns over higher Treasury yields just a few days ahead of a speech by Federal Reserve Chair Jerome Powell.

Stock in Focus: AU Small Finance Bank eyes robust growth and universal banking license

AU Small Finance Bank believes that systemic growth may remain strong and that the bank is well positioned to sustain a healthy growth rate of 25-30 per cent over the next few years.

Transitioning from an NBFC to an SFB to receiving an Authorised Dealer category-I license, AU Bank has come a long way and is now aiming for a universal banking license, said Motilal Oswal in a report.

It is one of the banks that has not only emerged as one of the largest SFBs but also delivered steady return ratios with 5-year Avg RoA/RoE at 1.7 per cent/14.9 per cent.

With the focus on building granular retail book and following the best-in-class underwriting practices like in-house origination and collection teams, the asset quality is expected to remain stable despite a minor blip in 1Q due to seasonality, it said.

Commodities: Gold holds steady ahead of Jackson Hole meet and interest rate clues

Gold remained range bound as markets geared up for the Federal Reserve’s Jackson Hole symposium for clues on where interest rates might settle. Fed officials largely remained concerned that inflation would fail to recede and suggested they may continue raising interest rates.

In MCX, gold prices were up marginally by 0.2 per cent at Rs 58,490 per 10 grams on Monday.

Asian ETFs bought $132 million of gold in July, largely propelled by surging Japanese demand with inflows totaling $170 million. Gold price tested the bearish channel’s resistance and may remain subdued today with a target of Rs 58,000 on Tuesday, said Kedia Commodities. Note that breaking the mentioned level will open the way to suffer additional losses that reach 57500 areas, it said.

Stock Analysis: Titan-CaratLane deal: Why the stock market reaction was muted

Titan Company on Saturday announced the acquisition of 27.18 per cent stake in the omnichannel jewellery retailer CaratLane by buying the entire 91,90,327 equity shares held by the founder. Consequently, Titan’s holding in the company will go up to 98 per cent from the previous 71 per cent.

Welspun Enterprises acquires remaining 50.10 per cent stake in Michigan Engineers

Sula Vineyards to concentrate on vineyards outside Bengaluru

BHEL has received an order worth of Rs 4000 crore from Mahan Energen, a unit of Adani Power

BLS International FZE is in process to subscribe 100% share capital of Saudi Arabia-based BLS International Travel & Tourism

Adani Power targets 21,110 MW thermal capacity by fiscal 2029

Omega TC sells 18 lakh shares of Shriram Properties at Rs 75.43 each

Omega TC Sabre Holdings sold 18 lakh shares of Shriram Properties at Rs 75.43 a piece

Ambuja Cements initiates Open Offer for 26% stake in Sanghi Industries

Ambuja Cements has made an open offer to acquire a 26 per cent stake in Sanghi Industries for Rs 767.16 crore. The offer opens on Sept. 29 and closes on Oct. 13.

EPFO sees robust rise in membership growth in June 2023

In June 2023, the Employee Provident Fund Organization (EPFO) in India recorded a net increase of 17.89 lakh members, with a significant rise in youth enrollment, in the age group of 18-25 years, and Maharashtra contributing the highest share.: Source: AUM Capital

Derivative corner

Chola Securities.

Derivative corner:

Nifty OI Put/Call ratio has gone up from 1.00 to 1.08 levels.

Options data: The maximum Call OI is seen at 19,400 and 19,500 while maximum Put OI is seen at 19,300 and 19,200. This indicates that the market is expecting a trading range of 19,200 to 19,400 zones.

FII Activity in Derivatives: Marginal addition of longs is seen in index futures. On options buying front; there are more put buyers and on option writing front; net call-put writing is indicating put writers back in action.

FII Long/Short ratio in index futures has marginally gone up from 42% to 43% indicating long addition.

Today’s Board Meetings: 22 Aug 2023

CCCL

A.G.M.

LAL

Issue Of Warrants

PRERINFRA

General

TIRUSTA

Increase in Authorised Capital;Preferential Issue of shares

WSIND

General

Nomura on Tata Consumer: Maintain Buy on Company, target price at Rs 872/sh

Citi on Auro Pharma: Downgrade to Sell on Company, hike target price at Rs 750/sh

MS on LTTS: Holds Equal weight and a target price at Rs 3200

BofA on Bajaj Finance: Buy with a target price at Rs 8750

Macquarie on HDFC Bank: Outperform on rating with target price of Rs 2110

Citi on Sun Pharma: Buy, target price at Rs 1275

Citi on Cartrade: Buy, target price at Rs 624

Nomura on Cartrade: Buy, target price at Rs 678

Nomura on Bharat Forge: Buy, target price at Rs 1157

Aeroflex Industries IPO opens today

Aeroflex Industries IPO opens today at ₹102-108 price band

The ₹351-crore initial public offering opens to public today at a price band ₹102-108. Investors can bid for a minimum of 130 equity shares. Aeroflex Industries Limited IPO has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non institutional investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.

The IPO consists of a fresh issue worth ₹162 crore and an offer-for-sale (OFS) of up to 1.75 crore shares by promoter Sat Industries.

Pyramid Technoplast IPO issue closes today

Pyramid Technoplast issue closes today. Offer subscribed 5.84 times so far; price band is ₹151-166

Today is the last date to subscribe the initial public offering of Pyramid Technoplast.

The Rs 153-crore IPO of Pyramid Technoplast has so far been subscribed 5.20 times at the end of Day 2 of issue opening on Friday. The initial public offering saw a strong response from all category of investors. While retail investors portion was subscribed 6.52 times, NII portion and QIB quotas were subscribed 6.73 times, and 1.48 times respectively. Overall, it received bids for 4.41 crore shares against 75,60,400 shares on offer.

The IPO consists of fresh issue of ₹91.30 crore and an offer for sale (OFS) portion of ₹61.75 crore. Pyramid Technoplast IPO lot size is 90 equity shares

Stock to watch: Glenmark settles antitrust case by agreeing to pay $30 m

​Glenmark Pharmaceuticals​ Inc., USA has entered into an agreement with the U.S. Department of Justice, Antitrust Division (DOJ) to resolve all of its court proceedings with the DOJ involving historical pricing practices by former employees relating to the generic drug pravastatin between 2013 and 2015. The Company has entered into a three-year Deferred Prosecution Agreement, and if the Company adheres to the terms of the agreement, including the payment of $30 million, payable in six installments, the DOJ will dismiss the pending Superseding Indictment.

Stock to Watch: HOEC

In a surprise move, the board of directors of Hindustan Oil Exploration Company (HOEC) has announced that the company’s Executive Director and CFO, Ramasamy Jeevanandam, would be the Managing Director from October 1; the incumbent MD, Pandarinathan Elango, “shall be retiring” on September 30, upon completion of his current term.

Stock to Watch: Tata Communications

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has ordered the Central Government not to take coercive steps against Tata Communications in relation to a licence fee demand of Rs 991.5 crore. A coram of TDSAT Chairperson Justice DN Patel and Member Subodh Kumar Gupta passed the interim order on August 14 on a plea filed by Tata challenging the Telecom department’s license fee demand for the years 2006-2007 and 2007-2008.

Stock to Watch: Coffee Day Enterprises

The National Financial Reporting Authority has imposed fines totalling Rs 1.10 crore on three entities, including two individual auditors, in connection with lapses in auditing of Tanglin Developments Ltd (TDL), a subsidiary of Coffee Day Enterprises Ltd. Besides, the auditing firm — Sundaresha & Associates — and the two auditors — C Ramesh and Chaitanya G Deshpande — have been barred from taking up auditing work for varying periods.

Stock in Focus: IEX

Central Electricity Regulatory Commission has floated a consultation paper on implementing market coupling in the power sector, which aids in discovery of uniform prices, optimal use of transmission infrastructure and maximising economic surplus. Shares of IEX will be in focus

Massive block deals anticipated for SJS Enterprises worth Rs 542 crore

Market Sources say SJS Enterprises to see huge block deals worth Rs 542 crore.

According to them, 30% of equity to see change hands via block deal while floor price has been fixed at580/share, over 6 per cent discount to CMP.

The sellers are: Evergraph Holdings – 29.53%; Sanders Consulting – 0.5%

F&O BAN

1️⃣ CHAMBLFERT

2️⃣ DELTACORP

3️⃣ GNFC

4️⃣ HINDCOPPER

5️⃣ IBULHSGFIN

6️⃣ INDIACEM

7️⃣ MANAPPURAM

8️⃣ METROPOLIS

9️⃣ PNB

1️⃣0️⃣ SAIL

1️⃣1️⃣ ZEEL

Move Out Of Short-Term ASM Framework

Gland Pharma, Orient Cement, RattanIndia Enterprises, SEPC.

Move Into Short-Term ASM Framework

Technocraft Industries (India), Hindustan Oil Exploration.

Record-date Interim Dividend

Sun TV Network, Natco Pharma, KPI Green Energy, Dreamfolks Services.

Record-date Dividend

Karnataka Bank, NHPC.

Ex-date AGM

Subro, Panama Petrochem, Aurobindo Pharma, NHPC

Ex-date Interim Dividend

Sun TV Network, Natco Pharma, KPI Green Energy, Dreamfolks Services.

Ex-date Dividend

Karnataka Bank, Subro, Panama Petrochem, NHPC, ICICI Securities.

Trading Tweaks: BF Utilities

Price Band Revised From 20% To 10%: BF Utilities.

Insider Trades: Vimta Labs

Vimta Labs: Promoter Sujani Vasireddi sold 18,234 shares on Aug. 17.

Bulk Deals

Shriram Properties: Omega TC Sabre Holdings sold 18 lakh shares (1.1%) at Rs 75.43 apiece.

IPO Offerings: Aeroflex Industries

Aeroflex Industries: The initial public offering will be open between Aug. 22 and 24. The manufacturer of stainless steel hoses will have an IPO issue size of Rs 351 crore. It consists of a fresh issue of Rs 162 crore and an offer for sale of Rs 189 crore by the promoter group, at a price band of Rs 102–108 apiece.

Stock to Watch: Rail Vikas Nigam

Rail Vikas Nigam: The company incorporated a wholly-owned subsidiary Masakani Paradeep Road Vikas.

Stock to Watch: RITES

RITES: The company signed an MoU with NHPC to collaborate on comprehensive consultancy services for rail infrastructure facilities for NHPC’s hydropower projects in Arunachal Pradesh.

Stock to Watch: BLS International

BLS International: The company’s subsidiary BLS International FZE is in process to subscribe 100% share capital of Saudi Arabia-based BLS International Travel & Tourism.

Stock to Watch: Brigade Enterprises

Brigade Enterprises: The south-based real estate developer has entered into a sale deed for acquiring 6.54 acres of land parcel in Chennai in which a residential project will be developed.

Stock to Watch: Lemon Tree Hotels

Lemon Tree Hotels: The hotel chain has signed license agreements for two properties in Bhubaneswar and Kasauli under the brand Lemon Tree Hotel and Lemon Tree Mountain Resort, respectively. The hotel in Bhubaneswar is expected to be operational by Q4FY25, and the hotel in Kasauli is expected to be operational by Q3FY26.

Stock to Watch: Welspun Enterprises

Welspun Enterprises: The company acquired 50.10% stake in Michigan Engineers from Authum Investment & Infrastructure and Sansaar Housing Finance for Rs 137.07 crore. Post acquisition, Michigan becomes a subsidiary.

Stock to Watch: Tata Power

Tata Power: The company’s arm Tata Power Renewable Energy signed a power purchase pact with Tata Motors for 9 MWp on campus solar plant at Pantnagar in Uttarakhand. The project will be commissioned within six months.

Stock to Watch: Sanghi Industries

Sanghi Industries: Ambuja Cements has made an open offer to acquire a 26% stake for Rs 767.16 crore. The offer opens on Sept. 29 and closes on Oct. 13.

Stock to Watch: Union Bank of India

Union Bank of India#: The board approved to raise up to Rs 5,000 crore from Qualified Institutions Placement. It set the floor price at Rs 91.10 apiece for the issue opened on Aug. 21.

Stock to Watch: Adani Power

Adani Power: The company has targeted a total capacity of 21,110 MW by FY29. This includes proposed inorganic capacity at 1,100 MW, brownfield capacity of 3,200 MW, core existing capacity of 15,210 MW and committed brownfield capacity of 1,600 MW. It sees the net senior debt at Rs 26,690 crore in FY24 vs Rs 24,350 crore in FY23.

Stock to Watch: Adani Enterprises

Adani Enterprises: Founder firm Kempas Trade and Investment bought 2.53 crore shares (2.22%). The purchase was made from open market between Aug. 7 to Aug. 18. The company has also incorporated a wholly-owned subsidiary Sirius Digitech International to provide digital solutions and services.

Opening Bid: Flattish opening seen for Nifty, Sensex

​Market is likely to open on flat note​ on Tuesday amid mixed global cues. Analysts expect lacklustre trading day for traders with stock-specific action to dominate. Lack of triggers to keep market in a range, said analysts. With result season is over, now the focus is shift to global cues.

Broker’s call: JK Cement (Reduce)

JK Cements reported results largely in line with our estimate at EBITDA level. The company has restated its financials to factor in the effect of amalgamation of its subsidiary Jay kay cem central ltd (recently commissioned Panna and Hamirpur plants) with the parent and as a result, Q1-FY24 and Q4-FY23 numbers have been restated.

Broker’s call: NMDC (Add)

NMDC’s Q1-FY24 EBITDA of ₹1,990 crore (up 4.9% YoY) was 17.5 per cent and 9.8 per cent ahead of our and consensus’ estimates.

Key points: Best-ever quarterly performance barring Q4-FY23; focus on volume growth; EBITDA margin sustained QoQ at 37 per cent due to better product mix; and cash & equivalents at Q1FY24-end were ₹11,280 crore.

Buzzing stocks: Stocks that will see action today: August 22

IEX, Adani Enterprises, Coffee Day, Welspun Enterprises, Lemon Tree, Tata Power, Brigade Enterprises, IIFL Finance, Hindustan Oil Exploration, Tata Communications Glenmark Pharma,

Day trading guide for Aug 22, 2023: Intraday supports, resistances for Nifty50 stocks

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

Stock to buy today: JBM Auto (₹1,539)

JBM Auto’s stock began its latest leg of uptrend in December last year after taking support at ₹400. While it had been gaining steadily since the beginning of this year, hit a resistance at ₹1,500 in July this year. A couple of attempts made by the stock since early July to rally past the ₹1,500-mark a failure.

Asian stocks rise on Wall Street rebound

Asian stock markets commenced Tuesday on an upward trajectory, propelled by a rally in major technology stocks that triggered a recovery on Wall Street. Despite this positive momentum, the influence of heightened Treasury yields tempered overall risk sentiment. While Japan’s Topix index marked a 0.6% increase, Australia’s S&P/ASX 200 Index experienced a marginal decline of 0.3%. Meanwhile, futures for Hong Kong’s Hang Seng index indicated modest gains ahead.

Wall Street: Nasdaq and S&P 500 rise amid Nvidia optimism

The S&P 500 and Nasdaq received a significant boost from the technology sector, leading to gains.

While the Dow Jones Industrial Average saw a marginal decline of 0.11%, the Nasdaq Composite soared by 1.56%, supported by strong performance from tech-related stocks. The S&P 500 also gained 0.69% during the trading session.

Meanwhile, semiconductor stocks advanced by 2.8%, contributing to the positive market momentum. – Reuters