StockAxis Weekly Newsletter June 18, 2022

Sensex, Nifty log worst week after biggest fed rate hike in 28 years.

Indian Markets

Equity Benchmark Indices posted the worst week in over two years, dragged by information technology, metal stocks. S&P BSE Sensex degrew (-5.4%) to 51,360.42 in the week ending June17th, while the NSE Nifty50 degrew (-5.6%) to 15,293.50.

On the sectoral front, only NiftyFMCG (-3.11%), NiftyAuto (-4.94%), NiftyPharma (-4.95%), NiftyBank (-5.05%), outperformed the NSE Nifty50 index and NiftyRealty (-5.69%), NiftyMedia (-7.40%), NiftyPSUBank (-7.67%), NiftyIT (-8.18%), NiftyMetal (-9.14%), underperformed the index.

The India VIX was +16.3% to 22.76.

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

Date FIIs DIIs
13-06-2022 -4,164.01 +2,814.50
14-06-2022 -4,502.25 +3,807.60
15-06-2022 -3,531.15 +2,588.00
16-06-2022 -3,257.65 +1,929.14
17-06-2022 -7,818.61 +6,086.92

News Update

Vedanta: Company has planned to modify the design of one of its waste heat recovery power plants in Goa and reoptimise its turbines through the use of a specialised technology in order to increase power generation by another 5 MW. This is in line with Vedanta's efforts towards reducing the carbon footprint. The idea is in the nascent stage. The turbine which used to generate 30 MW will generate 35 MW using same amount of heat.

Maruti Suzuki India: Company has shipped 2.33 lakh units through Railways last fiscal, its highest ever dispatch in a financial year so far, since commencing the initiative eight years ago. The company's dispatch in 2021-22 was 23 per cent up from 1.89 lakh units it transported using Railways in the 2020-21 financial year.

IRB Infrastructure Developers: Company’s gross toll collection in May 2022 stood at Rs 343.51 crore as compared to Rs 163.32 crore in May 2021 i.e. reported over 2- fold jump. Toll collection was suspended on account of Farmers Agitation in May 2021. Gross toll collection in the month of April 2022 stood at Rs 327.04 crore.

Tata Steel: Company has unveiled a 7-million pound investment plan for its Hartlepool Tube Mill in northeast England. The investment will go into a new slitter which will allow the Hartlepool site to process coils of steel delivered from Tata's Port Talbot steelmaking site in South Wales.All of the steel products made at the site, where almost 300 people work producing up to 200,000 tonnes of steel tubes a year, are 100 percent recyclable and the investment is forecast to pay for itself in less than three years.

Zydus Lifesciences: Company is all set to commence its Rs 750 crore-share buyback offer on June 23, 2022 and close on July 6, 2022. The company's board has approved the proposal to buyback a little over 1.15 crore shares, representing up to 1.13 per cent of the total paid-up equity share capital of the company, for an aggregate amount of up to Rs 750 crore.

Tata Motors: Company has spent Rs 15,339 crore on Research and development (R&D) operations in the financial year (FY2022). This is one of the highest in the Indian automotive space. The company spent 5.5 percent of its overall turnover.

Krishna Institute of Medical Sciences: Company has entered into a Share Holders Agreement (SHA) on June 14, 2022 for acquiring 51% stake in KIMS Manavata Hospital. The acquisition will help KIMS Hospitals Group enter Maharashtra by opening its new hospital in Nashik, which will bring its affordable quality care model to Nashik. The proposed Hospital will be a Multi-Specialty Hospital with a total capacity of 325 Beds. The acquisition will be completed on or before June 30, 2022.

Sigachi Industries: Company has incorporated a wholly owned subsidiary in Dubai, UAE, under the name of ‘Sigachi Mena Fzco’ as a Free Zone Company in compliance with the regulations issued by the Dubai Integrated Economic Zones Authority (DIEZA). The scope of business to be carried out by the subsidiary shall be discussed in the ensuing board meeting and the same shall be intimated to the stock exchanges.

Bharti Airtel: Company has entered into an agreement for acquisition of 62,58,000 (14.304%) equity shares in AvaadaMHAmravati, a special purpose vehicle formed for the purpose of owning and operating the Captive Power Plant, in terms of the regulatory requirement for captive power consumption under electricity laws.

Asian Paints: Company has subscribed to 51% of the equity share capital of Weatherseal Fenestration comprising of 10,409 equity shares of Rs 10 each at a premium of Rs 18,091 per share, issued on preferential basis for an aggregate cash consideration of Rs 18.84 crore. Accordingly, Weatherseal Fenestration is now a subsidiary of the company.

JSW Steel: Company has reported the crude steel production for the month of May, 2022 at 17.89 lakh tonnes, that grew by 31% as against 13.67 lakh tonnes in May 2021 on standalone basis. The production of rolled products (flat) stood at 12.84 lakh tonnes in May 2022 as compared to 9.99 lakh tonnes in May 2021 i.e. up by 29%. The production of rolled products (long) rose 25% to 3.86 lakh tonnes in May 2022 as against 3.09 lakh tonnes in May 2021.

Strides Pharma Science: Stelis Biopharma, the biologics arm of Strides Pharma Science, has received the European Union Goods Manufacturing Practices (EU-GMP) compliance certificate from the National Institute of Pharmacy and Nutrition, Hungary for two of its manufacturing facilities.

Jyothy Labs: Nalanda India Equity Fund has bought 6.55 lakh equity shares in Jyothy Labs via open market transactions on June 14. With this, its shareholding in the company stands increased to 5.06 percent, up from 4.88 percent earlier.

Wipro: Company has signed an alliance agreement with Eros Investments to evolve and scale the Artificial Intelligence (AI) and Machine Learning (ML) based content localization solution. The solution will automate the time-consuming manual content localization process of subtitling and dubbing with near human-level accuracy, driving significant cost and time savings for global media organizations, post-production, and direct-to-consumer over-the-top (OTT) streaming platforms.

Bharti Airtel: Company has added 8,16,016 customers in April, 2022. Following this, the company’s total customer base has increased to 36.11 crore with market share of 23.54% in terms of wireless subscribers as on April 30, 2022.

NIFTY 15,921.90 0.55% SENSEX 53,464.17 0.43% BANKNIFTY 34,171.25 0.68% ADANIPORTS 688.65 0.98% ASIANPAINT 2,783.45 -0.25% AXISBANK 656.80 0.37% BAJAJ-AUTO 3,668.15 -0.32% BAJAJFINSV 11,573.00 1.62% BAJFINANCE 5,657.55 0.48% BHARTIARTL 683.30 0.21% BPCL 317.05 0.22% BRITANNIA 3,656.50 -1.19% CIPLA 934.95 0.46% COALINDIA 184.05 1.10% DRREDDY 4,379.00 0.56% EICHERMOT 2,829.00 1.17% GAIL 133.95 0.30% GRASIM 1,369.10 1.35% HCLTECH 990.10 0.56% HDFC 2,224.60 0.35% HDFCBANK 1,362.70 0.52% HEROMOTOCO 2,752.00 -0.31% HINDALCO 344.70 1.23% HINDUNILVR 2,381.65 0.27% IBULHSGFIN 95.65 1.11% ICICIBANK 727.45 1.02% INDUSINDBK 835.85 0.46% INDUSTOWER 211.00 0.48% INFY 1,499.60 0.78% IOC 74.20 -0.20% ITC 291.60 -0.10% JSWSTEEL 558.05 1.19% KOTAKBANK 1,683.60 0.76% LT 1,583.00 0.08% M&M 1,092.10 0.08% MARUTI 8,476.00 0.39% NTPC 142.85 1.03% ONGC 127.45 1.15% POWERGRID 214.05 1.59% RELIANCE 2,422.65 0.37% SBIN 478.20 1.00% SUNPHARMA 832.80 0.41% TATAMOTORS 417.25 2.15% TATASTEEL 863.50 1.05% TCS 3,253.65 0.57% TECHM 1,010.50 1.06% TITAN 1,963.25 0.04% ULTRACEMCO 5,735.00 0.45% UPL 663.10 1.31% VEDL 218.20 0.74% WIPRO 421.35 0.25% YESBANK 12.75 0.79% ZEEL 217.90 -0.59%