Market Capsule 22nd June'24 | Benchmark Indices Soar Despite Friday Dip
- samarwealth
- Jun 22, 2024
- 5 min read
Weekly Insights: Despite a drop on Friday, the benchmark indices climbed for the third straight week to achieve their highest weekly close. In the week ended on Friday, 21 June 2024, the S&P BSE Sensex rose 217.13 points or 0.28% to settle at 77,209.90. The Nifty 50 index added 35.5 points or 0.15% to settle at 23,501.10. The BSE Mid-Cap index declined 0.20% to close at 45,967.07. The BSE Small-Cap index gained 1.44% to end at 51,936.53.
Economy: Fitch Ratings upgraded India's GDP growth forecast to 7.2% for the current fiscal year due to a rebound in consumer spending and rising investments. The Global Economic Outlook also raised the world growth forecast for 2024 to 2.6% from 2.4%. The HSBC Flash India Composite Output Index increased from 60.5 in May to 60.9 in June, indicating significant growth in manufacturing and services. India's direct tax collection grew 22.19% to over Rs 5.15 lakh crore by mid-june , with net collections up 21% to Rs 4.62 lakh crore. The government increased the Minimum Support Prices for kharif crops, adding Rs 35,000 crore to farmers' income.
Global Markets: The Bank of England maintained its 5.25% rate despite calls for cuts, preceding the July 4th election. The Swiss National Bank reduced its rate to 1.25%, its second cut this year, with inflation steady at 1.4%. The Reserve Bank of Australia kept its rate at 4.35% amid economic uncertainty. China maintained its lending rates despite a slow economy. In Japan, core inflation rose to 2.5% in May, surpassing the central bank's 2% target, driven by nonperishable goods.
Sectoral Performance: In comparison to the Nifty 50's increase of 0.23%, the Finance sector significantly outperformed with a gain of 2.85%, while most other sectors lagged behind. Notably, the Metal, Pharma, and FMCG sectors experienced declines of -1.49%, -1.93%, and -1.93% respectively, indicating underperformance relative to the broader market. Sectors like PSU Bank, Media, Consumption, Energy, Oil and Gas, IT, and Auto also registered losses, contributing to a mixed overall sector performance on the day.
Charting the Pulse of Indices: A) Sector Wise Performance
B) Heatmap
Heatmap helps investors quickly understand the performance of multiple stocks or sectors in a single view. Color coding, with varying shades indicating the degree of movement - red for declines, green for gains, and sometimes grey or other colors for little or no change. Heatmaps are effective for spotting market patterns and can be a time-saving resource in investment analysis.
C) Market Breadth
A) Nifty 500
Analyzing market breadth is important as it provides insight into the underlying strength or weakness of the market, beyond just looking at benchmark indices. Breadth measures the percentage of securities in NIFTY 500 surpassing specified moving averages over the specified period. Comparing the market breadth of nifty 500 during the previous week's trading sessions, we can analyze that number of stocks above key moving average support areas are reducing by the end of week. This can be considered as a sign of weakness if change is seen to be significant.
Jash Engineering Ltd.
Jash Engineering Limited specializes in the production of a diverse array of equipment tailored for Water Intake Systems, Water and Waste Water Pumping Stations, Treatment Plants, Storm Water Pumping Stations, Water Transmission Lines, as well as for industries including Power, Steel, Cement, Paper & Pulp, Petrochemicals, Chemicals, Fertilizers, and other process plants.
The company has established relationships over three decades with direct users, including EPC companies in India, the US, the Middle East, Southeast Asia, and Africa, as well as end users such as industries and government bodies like municipalities. It already has brand approvals in place for various products.
The company markets its products under several brands including Jash, Jash-Schuette, Jash-Rehart, Mahr Maschinenbau, Rodney Hunt, E&M Jash, Shivpad, and Sureseal. In the first nine months of FY23, Jash derived 46% of its revenues from India and 54% from international markets, with 42% from the USA and the remaining 12% from other parts of the world.
Notable international clients include Hyflux, GE Power, and Veolia Engineering. Key domestic clients include Reliance, Adani, and L&T. The top five customers contribute to approximately 20-30% of the total revenue.
Financial Highlights:
Product Portfolio:
Future Outlook:
1. MOIL Ltd.
2. Ethos Ltd.
3. Piramal Pharma Ltd.
4. Prakash Pipes Ltd.
5. Hindustan Zinc Ltd.
6. Jindal Steel and Power Ltd.
7. Kirloskar Oil Engines Ltd.
Order Wins:
Bonus share Issue & Share Splits:
Appointments & Resignations:
Joint Venture:
IndianOil has entered into a Joint Venture Agreement with GPS Renewables Private Limited to advance biofuel adoption across the country. Link
Agreement:
TVS Motor Partners with CSC Grameen eStores to Boost 3-Wheeler Sales through Village Level Entrepreneurs. Link
Hindustan Zinc Partners with AEsir Technologies for Next-Gen Zinc Batteries in Energy Transition. Link
TCS Expands Partnership with Xerox for Major Business Transformation Program. Link
Sun Pharma to Introduce Novel Gastrointestinal Drug, Voltapraz (Vonoprazan) in India Through Non-Exclusive Patent Licensing Deal with Takeda. Link
Gokaldas Exports Ties Up with BRFL Textiles, Invests ₹50 Crores with Optionally Convertible Debentures for Up to ₹300 Crores; Merger/Acquisition Potential by 2025. Link
Brigade Group Signs Agreement to Develop a Third World Trade Center (WTC) Tower at Infopark Kochi. Link
Blue Dart Partners with Skye Air for Drone Deliveries, Advancing Clean and Efficient Logistics. Link
ABB India and Witt India partner to enhance safety and operational efficiency in key infrastructure projects. Link
Strategic partnership between Hubject and Exicom aims to fuel further growth in India’s booming EV market. Link
Wipro and GBST Announce Strategic Partnership to Transform Superannuation and Wealth Administration Services. Link
Acquisitions & Mergers:
Axis Bank has acquired additional equity shares of Max Life Insurance, increasing its stake from 19.02% to 19.99%. Link
Kirloskar Pneumatic Acquires Majority Stake in Systems & Components India Pvt. Ltd., Boosting Industrial Refrigeration Presence. Link
Triveni Engineering Acquires Additional 36.34% Stake in Sir Shadi Lal Enterprises, Making It a Subsidiary; SEBI Approval Awaited for Open Offer. Link
Force Motors Ltd. Receives Approval for 12.21% Stake Acquisition in TP Surya for Solar Power Project. Link
Other Important News:
Indian Renewable Energy Development Agency Limited (IREDA) successfully raised Rs. 1500 crore through issuance of bonds. Link
Maruti Suzuki Expands FRONX Velocity Edition Across 14 Variants; 1.2L Sigma Variant Priced at ₹7.29 Lakh. Link
Amara Raja Invests 20mn Euro to Increase Stake in European Battery Tech Company InoBat. Link
Jindal Stainless Supplies Custom Wagons to Mozambique, Boosting India's Export Capability. Link
Jupiter Wagons Limited Achieves Significant Milestones in Battery Technology for Indian Railways. Link
Radico Khaitan brings internationally acclaimed Rampur Asava Indian Single Malt Whisky to Indian markets. Link
That's all for now! I hope you enjoyed the content. Do share your comments below! Disclaimer: Any stock or company discussed above should not be considered as a Buy/Sell recommendation. We personally or our clients might or might not have a position in any of the stocks discussed. This newsletter is purely is for educational purposes only.
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