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StockAxis Weekly Newsletter July 02, 2022

Sensex, Nifty maintain weekly gains despite a three-day losing streak.

Indian Markets

Equity benchmark indices extended their losing streak to a third day, but continued to gain for the second week in a row. S&P BSE Sensex grew (+0.34%) to 52,907.93 in the week ending July 1st, while the NSE Nifty50 grew (+0.34%) to 15,752.05.

On the sectoral front, only NiftyFMCG (+2.51%), NiftyMetal (+2.17%), NiftyRealty (+2.14%), NiftyAuto (+1.11%), NiftyIT (+1.03%), NiftyMedia (+0.92%), NiftyPharma (+0.68%), outperformed the NSE Nifty50 index and NiftyBank (-0.26%), NiftyPSUBank (-0.51%), underperformed the index.

The India VIX was +3.4% to 21.25.

FIIs/DIIs Daily Cash Market Activity (INR. in Crores)

Date FIIs DIIs
27-06-2022 -1,278.42 +1,184.47
28-06-2022 -1,244.44 +1,205.63
29-06-2022 -851.06 +847.46
30-06-2022 -1,138.05 +1,378.20
01-06-2022 -2,324.74 +1,310.71

News Update

Nazara Technologies: Company has entered into a Share Purchase agreement with Porush Jain and Absolute Sports (Absolute) on June 24, 2022, for the purpose of acquisition of 1.00% equity stake of Absolute on fully diluted basis, and to record the terms and conditions and other matters in connection therewith.Cost of acquisition is Rs 4.99 crore.

Aurobindo Pharma: Company has received a warning letter from Securities Exchange Board of India (SEBI) on June 24, 2022. The letter is in regards to certain disclosures made by the Company on the ongoing USFDA audit of Company's Unit-1 and observations made by the USFDA between the period 2019 to 2022. The SEBI warning letter observes that the Company had disclosed very limited and restricted information and that the Company did not disclose the detailed reasons and also did not consider-the observations of USFDA as serious.

Cipla: Company has agreed to acquire additional stake for Rs 25.90 crore in digital tech company GoApptiv and post completion of the deal, Cipla's total stake in GoApptiv will increase to 22.02% on a fully diluted basis. The investment will be made in equity shares and Compulsorily Convertible Preference Shares and is likely to be completed within 30 days or such other date mutually agreed between the parties and shall be subject to fulfillment of necessary closing conditions. The company's earlier investment in GoApptiv in June 2020 has yielded growth and expanded Cipla's channel reach across lower tier towns in India.

Reliance Industries: Company backed electric commercial vehicle maker Altigreen in collaboration with last-mile delivery service provider Vidyut Parivahan has inaugurated its EV service centre at Wagholi in Pune. Besides, the company also opened its sales, marketing and R&D office in the Aundh locality of Pune, with plans to expand its presence to other metro cities.

Tata Motors: Company is all set to increase price of its commercial vehicle range. An increase in price in the range of 1.5-2.5%, will come into effect from July 1, 2022 across the range, depending upon individual model and variant.While the company takes extensive measures to absorb a significant portion of the increased input costs, at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on a residual proportion via a minimised price hike.

India Cements: Company has completed acquisition of the entire paid-up equity and Preference share capital of Spring way Mining (SMPL). With this, SMPL has become wholly owned subsidiary of company with effect from June 27, 2022. The entire Equity and Preference Shares of SMPL are acquired at a total consideration of Rs 182.89 crore. The acquisition is for setting up of a cement plant in the State of Madhya Pradesh.

Jammu & Kashmir Bank (J&K Bank): Company has received approval to raise up to Rs 2,000 crore, through a mix of debt and equity, in the current fiscal year 2022-23. The board of directors of the bank, in its meeting held on June 28, approved the capital raise plan.

Acrysil: Company has completed capacity expansion of 160,000 units of Quartz Kitchen Sinks at Bhavnagar plant in Gujarat. The commercial production of additional 160,000 units has commenced from June 28, 2022. The manufacturing capacity of Quartz Kitchen Sinks has increased from 840,000 units to 1,000,000 units per annum.

Puravankara: Company has transferred its shareholding of 49% i.e., 47,72,047 shares held in Bangalore Tower, to Keppel Investments (Mauritius) and has received a total consideration of Rs 112.70 crore. Further to the aforesaid transaction, Bangalore Tower has ceased to be an associate of Puravankara.

ICICI Bank: Company has entered into an agreement dated June 28, 2022 in relation to an Investment in the equity shares of Perfios Account Aggregation Services (PAASPL). Post investment, ICICI Bank will hold 9.54% shareholding in Perfios Account Aggregation Services through subscription of 8,05,520 equity shares. The Cash consideration for acquisition is Rs 4.03 crore.

Indian Hotels Company (IHCL): Company has signed a new Taj resort in Bengaluru. This development project, under management contract with Sattva Homes from the Sattva Group, will also feature branded villas as part of the complex in the second phase. With the addition of this hotel, IHCL will have a total of 13 hotels with around 3,000 rooms in Bengaluru, including five under development.

HDFC Bank: Company has executed agreements on June 28, 2022 to subscribe to 8,05,520 fully paid up Equity Shares of face value of Rs. 10 each at a premium of Rs. 40 per Equity Share to be issued by Perfios Account Aggregation Services (PAASPL) for a consideration of Rs. 50 per Equity Share. Post investment, HDFC Bank will hold 9.54% of the Equity Share capital of PAASPL by way of acquisition of Equity Shares of face value of Rs. 10 each fully paid up.

Biocon: Company is all set to acquire 26 per cent stake in AMPYR Renewable Energy Resources Eleven (AREREPL) for Rs 7.5 crore. AREREPL was incorporated on April 13, 2021. It is a special purpose vehicle formed for generation and supply of solar power. It will develop a 30 MWac solar power plant at Benkanhal village in Karnataka.

Minda Industries: Company has acquired 4,48,162 equity shares i.e. 5.24% stake in FRIWO AG, Germany, by investing Euro 14.99 million. The investment has been made in the aforesaid company, after obtaining the requisite approvals including Reserve Bank of India (RBI) under Overseas Direct Investment (ODI) guidelines. The object of acquisition is to strengthen the partnership with FRIWO AG via primary equity infusion.

Tata Steel: Company is planning to spend around Rs 1,200 crore on new technology development over the next three to four years. Besides, in the new materials business, the company has been focusing on graphene, which can be mixed with plastic and recycled like brand-new products, among other attributes.

Hikal: Company has received permission from Maharashtra Pollution Control Board (MPCB) to re-start manufacturing activities at its Plant located at MIDC Taloja. The company has commenced manufacturing at the Plant in a phased manner. The company being a Responsible Care Certified company stands by its commitment to long term sustainability and ethical way of doing business.

Bajaj Auto: Company has reported marginal rise in total sales to 3,47,004 units in June 2022 as against 3,46,136 in the same month last year. Total domestic sales decreased by 15 percent to 1,38,351 units in June as compared to 1,61,836 units in June 2021.Total two-wheeler sales were up 2 percent at 3,15,948 units as compared to 3,10,578 units in the year-ago month. Commercial Vehicles sales stood at 31,056 units in June 2022 as against 35,558 units in June 2021, registering a fall of 13 percent. Meanwhile, exports of the company stood at 2,08,653 units in the reporting month compared to 1,84,300 in the same month last year.

Maruti Suzuki India: Company has sold a total of 155,857 units in June 2022 as compared to 147,368 units in June 2021, a growth of 5.76%. Total sales in the month include domestic sales of 125,710 units, sales to other OEM of 6,314 units and exports of 23,833 units. The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models. The Company took all possible measures to minimise the impact.

NIFTY 17,698.15 0.22% SENSEX 59,462.78 0.22% BANKNIFTY 39,042.30 0.42% ADANIPORTS 788.35 -0.56% ASIANPAINT 3,427.85 0.67% AXISBANK 760.55 0.22% BAJAJ-AUTO 4,038.00 0.11% BAJAJFINSV 15,765.45 0.18% BAJFINANCE 7,309.40 -0.13% BHARTIARTL 709.70 -0.01% BPCL 333.90 1.69% BRITANNIA 3,659.75 0.53% CIPLA 1,027.15 -1.08% COALINDIA 221.65 1.40% DRREDDY 4,260.80 0.06% EICHERMOT 3,210.15 1.06% GAIL 131.50 2.22% GRASIM 1,622.60 1.41% HCLTECH 956.40 -0.62% HDFC 2,456.40 0.06% HDFCBANK 1,485.15 -0.04% HEROMOTOCO 2,761.90 -0.84% HINDALCO 436.25 0.63% HINDUNILVR 2,594.95 -0.72% IBULHSGFIN 124.75 0.44% ICICIBANK 874.40 1.71% INDUSINDBK 1,080.45 0.12% INDUSTOWER 196.45 0.69% INFY 1,594.10 -1.60% IOC 71.55 0.85% ITC 308.55 0.75% JSWSTEEL 678.20 0.68% KOTAKBANK 1,841.20 -0.66% LT 1,846.45 -1.11% M&M 1,259.45 -0.53% MARUTI 8,699.20 -1.30% NTPC 158.50 3.16% ONGC 139.20 4.82% POWERGRID 228.05 2.33% RELIANCE 2,633.00 1.62% SBIN 530.70 1.13% SUNPHARMA 913.45 -0.83% TATAMOTORS 477.55 0.19% TATASTEEL 112.65 3.25% TCS 3,401.55 -0.61% TECHM 1,065.90 -1.05% TITAN 2,471.95 -0.02% ULTRACEMCO 6,559.30 -0.57% UPL 788.90 2.79% VEDL 262.45 2.30% WIPRO 436.10 -0.54% YESBANK 15.30 -0.65% ZEEL 241.80 -2.52%