Market Capsule 25th May'24 | A Record High Week
- samarwealth
- May 25, 2024
- 7 min read
Indices at Record Highs; Broader Market Strength Missing
Indian equity indices experienced notable gains, reaching new record highs this week. However, the broader market lagged behind the leading indices. The Nifty closed above the 22,950 mark. In the week ending on Friday, May 24, 2024, the S&P BSE Sensex rose by 1,404.45 points or 1.90%, closing at 75,410.39. The Nifty 50 index increased by 455.1 points or 2.02%, finishing at 22,957.10. The BSE Mid-Cap index advanced by 1.1%, ending at 43,519.44, while the BSE Small-Cap index inched up by 0.08%, closing at 47,996.45.
The Reserve Bank of India (RBI) announced a record transfer of Rs 2.11 lakh crore to the government for the financial year 2023-24. This substantial surplus will be included in the government's accounts for the financial year 2024-25, significantly strengthening their fiscal position.
Foreign Institutional Investors (FIIs) were net buyers in the equity segment this week, with gross purchases of Rs 71,705.60 crore and gross sales of Rs 65,510.46 crore, resulting in a net inflow of Rs 6,195.14 crore. In the debt segment, FIIs also remained net buyers with gross purchases of Rs 4,072.09 crore and gross sales of Rs 2,241.20 crore, leading to a net inflow of Rs 1,830.89 crore. Conversely, in the hybrid segment, FIIs were net sellers, with gross purchases of Rs 81.82 crore and gross sales of Rs 173.39 crore, resulting in a net outflow of Rs 91.57 crore.
Ahead of the government's release of provisional GDP estimates for the 2023-24 fiscal year and the fourth quarter (January-March 2024) scheduled for May 31, India Ratings and Research (Ind-RA) has projected India's GDP growth rate at 6.2% for the March quarter and around 6.9-7% for the 2023-24 fiscal year. The Indian economy grew by 8.2% in the June quarter, 8.1% in the September quarter, and 8.4% in the December quarter of 2023-24.
India's business activity continued to expand robustly in May, according to the HSBC Flash India Composite Output Index. The index increased to 61.7, marking the third-highest growth in nearly 14 years. This growth was primarily driven by a sharp rise in services activity, which reached a four-month high.
⭐Video Recommendation:
Charting the Pulse of Indices: A) Sector Wise Performance
This week, almost all Indian sectoral indices showed Stagnant Movement lead primarily by PSE and Reality. Nifty FMCG index Underperformed the other indices considerably. Nifty PSUBANK and Infra index however stood strong and is likely to extend the gains and showing relative strength.
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.
Blockbuster Results ⭐⭐⭐⭐⭐
Tata Investment Corporation Ltd reports strong Q4 FY24 results: Revenue at Rs 57 crore, up 86%, with profit increasing by 204% year-on-year.
Interglobe Aviation Ltd reports strong Q4 FY24 results: Revenue at Rs 17,825 crore, up 26%, with profit increasing by 107% year-on-year.
Uno Minda Ltd reports strong Q4 FY24 results: Revenue at Rs 3,794 crore, up 31%, with profit increasing by 48% year-on-year.
Saregama India Ltd reports strong Q4 FY24 results: Revenue at Rs 263 crore, up 29%, with profit increasing by 23% year-on-year.
Good Results ⭐⭐⭐
Prakash Pipes Ltd reports strong Q4 FY24 results: Revenue at Rs 165 crore, up 6%, with profit increasing by 28% year-on-year.
NIIT Ltd reports strong Q4 FY24 results: Revenue at Rs 74.3 crore, up 24%, with profit increasing by 207% year-on-year.
Indo Tech Transformers Ltd reports strong Q4 FY24 results: Revenue at Rs 175 crore, up 21%, with profit increasing by 32% year-on-year.
Senco Gold Ltd reports strong Q4 FY24 results: Revenue at Rs 1,130 crore, up 39%, with profit increasing by 38% year-on-year.
Gabriel India Ltd reports strong Q4 FY24 results: Revenue at Rs 859 crore, up 17%, with profit increasing by 56% year-on-year.
Tega Industries Ltd reports strong Q4 FY24 results: Revenue at Rs 507 crore, up 28%, with profit increasing by 16% year-on-year.
Ashoka Buildcon Ltd reports strong Q4 FY24 results: Revenue at Rs 3,052 crore, up 25%, with profit increasing by 392% year-on-year.
Average Results ⭐
Goldiam International Ltd.
Incorporated in 1986, Goldiam International Ltd specializes in manufacturing and exporting gold and diamond jewelry to global retailers. The company supplies both natural diamond jewelry and lab-grown diamond (LGD) jewelry to global retailers, department stores, and wholesalers.
The company is one of the few diamond jewelry manufacturers that is fully backward integrated across the supply chain, encompassing lab-grown diamond (LGD) growing, cutting, jewelry manufacturing, and distribution. This integration ensures smooth communication, faster turnaround times, and an efficient product development cycle. Margins in LGD jewelry are higher than in mined diamond jewelry due to Goldiam's backward integration and the sale of higher caratage jewelry.
In Q1 FY24, Goldiam entered the Middle Eastern market with an initial order of Rs. 30 crores for studded jewelry. Consequently, the order book size reached Rs. 110 crores as of Q1 FY24, with expectations to execute these orders within the next four to six months.
The company has evolved from a traditional brick-and-mortar business model to embracing e-commerce and omnichannel strategies. It now offers omnichannel services such as dot-com production, fulfillment, and dropshipping. As of Q1 FY24, its share of online diamond jewelry sales stands at 28%.
Financial Highlights:
Product Portfolio:
Concall Updates:
1. Finolex Cables Ltd.
2. Paras Defence and Space Technology Ltd.
3. BEML Ltd.
4. Balkrishna Industries Ltd.
5. UNO Minda Ltd.
6. Solar Industries INDIA Ltd.
7. Samvardhan Motherson International Ltd.
Order Wins:
Man Industries (India) Ltd has secured new export orders worth approximately ₹505 crores. Link
Railtel Corporation has secured an order worth ₹17 crores from the Defence Research and Development Organisation (DRDO). Link
GPT Infra has secured an order worth ₹555 crore. The company's market capitalization stands at ₹1,417 crore. Link
Bonus Share Issue & Share Splits:
Davangere Sugar Company Ltd has planned a stock split to be executed on May 31, 2024, which involves reducing the face value of its shares from ₹10 to ₹1. Link
Balaxi Pharmaceuticals Ltd has planned a stock split to be executed on May 30, 2024, which involves reducing the face value of its shares from ₹10 to ₹2. Link
Appointments & Resignations:
Laxmi Organic's Board has approved the appointment of Mr. Ravi Goenka as Whole-Time Director, designated as Executive Chairman of the Company, for a five-year term starting from September 1, 2024, to August 31, 2029. Link
Gujarat Pipavav Port's Board has approved the appointment of Mr. Samir Chaturvedi, an Independent Director of the Company, as Chairman of the Board, effective May 23, 2024. Link
Wipro Limited has announced the appointment of Sarat Chand as Regional Head and Managing Director of Northern Europe. Sarat will report to Pierre Bruno, Wipro's CEO for Europe. Link
Agreement:
Glenmark Pharmaceuticals and BeiGene have signed an agreement for the marketing and distribution of Tislelizumab and Zanubrutinib in India. Link
Lupin has entered into a settlement agreement with Health Care Service Corporation and Humana Inc. regarding ongoing litigation over GlumetzaR, a diabetes treatment drug, for USD 9 million. Link
Oil India Ltd and its subsidiary, Numaligarh Refinery Ltd, have signed a long-term definitive agreement for the transportation of additional petroleum products through Oil India's Numaligarh-Siliguri Product Pipeline (NSPL), following the commissioning of the Numaligarh Expansion Project. Link
Dixon Technologies (India) Limited has entered into a MOU with Acerpure India CE Private Limited for manufacturing of range of Consumer appliance products, subject to signing of definitive agreements. Link
Navin Fluorine Advanced Sciences Limited, a subsidiary of Navin Fluorine International, has executed a five-year Material Supply Agreement to supply a fluoro intermediate for a novel agrochemical product patented by a Japanese innovator company. Link
NIBE has entered into a licensing agreement with the Vehicles Research & Development Establishment (VRDE), Ahmednagar, DRDO, Ministry of Defence, for the transfer of technology to manufacture and sell Anti-Terrorist Vehicles (ATVs). Link
Other Important News:
Trent's Zudio brand opened a record 203 new stores in FY24, expanding into 46 new cities. The company reported consolidated revenues of ₹12,375.11 crore and a profit of ₹1,477.46 crore for FY24. Link
Aarti Industries Limited and UPL Limited have announced a 50-50 joint venture (JV) partnership for the manufacturing and marketing of specialty chemicals, which are used in various downstream industries. Link
Aditya Vision has opened its 148th showroom today at Chak Diwan, Sant Ravi Das Nagar, Station Road, Bhadohi-221401, Uttar Pradesh. Link
Nirman Agri Genetics has executed a land agreement for 122 acres across various districts in Maharashtra. The company aims to use this agreement to enhance production activities, maximize seed production, and facilitate the launch of new varieties. Link
Shakti Pumps has received its 14th patent for its innovative motor technology. Link
JSW Infrastructure plans to establish a 51:49 joint venture with AP Møller Capital to explore opportunities in the infrastructure sector. 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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