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Market Capsule 28th July'24 | Expect the Unexpected; Record Highs on Indices


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Despite initial fears following the Union Budget 2024 announcements, the Indian markets showed impressive resilience. After a sharp decline caused by the increases in Securities Transaction Tax (STT) and Long-Term Capital Gains (LTCG) tax, the Nifty rebounded last week to close at an all-time high on July 26, 2024. A robust undercurrent currently supports the Indian markets, emphasizing a long-term growth outlook.


The IT sector, in particular, saw significant gains, with companies like Infosys, HCL Tech, and TCS posting strong performances in last one month with 21%, 14% and 12% gain in last one month. Other notable leaders were from Pharma and FMCG space with likes of Sun Pharma, Dr Reddy, ITC and Hindustan Unilever showing a gain upwards of 10% in tha last one month.


Here is a breakdown of the expenditure by sector in the latest budget and key announcements.


Union Budget Key Announcements:


  • Andhra Pradesh Development: ₹15,000 crore for new capital.

  • Space Economy: ₹1,000 crore to expand space economy fivefold.

  • Agriculture and Allied Sectors: ₹1.52 lakh crore allocation.

  • Bihar Infrastructure: ₹26,000 crore for highways, airports, medical, and sports facilities.

  • Urban Housing & Solar Panels: ₹10 lakh crore for housing; PM Surya Ghar Muft Bijli Yojana for 1 crore solar rooftops.

  • Income Tax Revisions: New slabs, potential ₹17,500 net gain; standard deduction raised to ₹75,000.

  • Capital Gains Taxes: Short-term gains tax on specified assets increased to 20%, long-term gains to 12.5%, exemption limit raised to ₹1.25 lakh.

  • Rural Development: ₹2.66 lakh crore for infrastructure and PM Awas Yojana.

  • Gold and Silver Import Duties: Reduced from 15% to 6%.

  • Domestic Aviation & MRO: Export period extended to 1 year.

  • Mobile Industry: Customs duty on phones, accessories, chargers reduced to 15%.

  • Fiscal Deficit & Borrowing: ₹14.01 lakh crore borrowing for FY25, fiscal deficit at 4.9% of GDP.

  • Capex Spending: ₹11.1 lakh crore, infrastructure at 3.4% of GDP.

  • MSME Support: ₹100 crore credit guarantee, Mudra loan limit ₹20 lakh, reduced TReDS threshold to ₹250 crore.

  • Major Sector Expenditure:

    • Defence: ₹4,54,773 Cr

    • Rural Development: ₹2,65,808 Cr

    • Agriculture & Allied Activities: ₹1,51,851 Cr

    • Home Affairs: ₹1,50,983 Cr

    • Education: ₹1,25,638 Cr

    • IT & Telecom: ₹1,16,342 Cr

    • Health: ₹89,287 Cr

    • Energy: ₹68,769 Cr

    • Social Welfare: ₹56,501 Cr

    • Commerce & Industry: ₹47,559 Cr


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.




  • Monarch Networth Capital Ltd. reported Q1FY25 revenue of ₹84 Cr (up 100% YoY), OPM of 67% (up from 53% YoY), and PAT of ₹40 Cr (up 135% YoY).


  • Angel One Ltd. reported Q1FY25 revenue of ₹1,405 Cr (up 74% YoY), PAT of ₹293 Cr (up 32.57% YoY), and client acquisition of 24.7 Mn (up 11.2% QoQ).


  • Aditya Birla Money Ltd. reported Q1FY25 revenue of ₹118 Cr (up 51% YoY), OPM of 44% (up from 41% YoY), and PAT of ₹16 Cr (up 78% YoY).


  • Shakti Pumps (India) Ltd.: Q1FY25 revenue surged 402% to ₹567.6 Cr, with PAT up 9,160% to ₹92.6 Cr.


  • Tejas Networks Ltd.: Q1FY25 revenue rose 731% to ₹1,563 Cr, with an order book of ₹7,091 Cr.


  • Ashapuri Gold Ornament Ltd. reported ₹44.23 Cr in revenue (up 121.70% YoY), OPM of 7.62%, and PAT of ₹2.69 Cr (up 472.34% YoY).


  • Ratnaveer Precision Engineering Ltd. reported ₹204 Cr in revenue (up 72.88% YoY), OPM of 12%, and PAT of ₹13 Cr (up 62.5% YoY).


  • Sterling & Wilson Renewable Energy Ltd. reported ₹915.06 Cr in revenue (up 77.69% YoY), OPM of 2.70%, and PAT of ₹4.83 Cr (up 105.06% YoY).

 

  • Epack Durable Ltd. reported revenue of ₹773 Cr (up 77% YoY), EBITDA of ₹52 Cr (up 77% YoY), OPM of 6.68%, and PAT of ₹23.4 Cr (up 169% YoY).


  • V-Guard Industries Ltd. reported revenue of ₹1,415 Cr (up 23% YoY), EBITDA of ₹156 Cr (up 49% YoY), PAT of ₹99 Cr (up 54% YoY)


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1. Solara Active Pharma Sciences Ltd.



2. Aegis Logistics Ltd


3.eMudhra Ltd

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4. Bharti Hexacom Ltd.



Corporate Developments

Order Wins:

  • DCX Systems Ltd has secured a contract valued at INR 1,250 crores from M/s. Larsen & Toubro Limited, India. Link

  • GE T&D India Limited has received an order worth 64 million Euros from Grid Solutions SAS, France. Link

  • Dredging Corporation of India Ltd has secured the prestigious Cochin Port Authority Annual Maintenance Dredging Contract, valued at Rs. 156.50 crores Link

  • Ircon International Limited (IRCON) has been awarded a ₹750 crore contract by Rail Vikas Nigam Limited for the Rishikesh-Karanprayag BG line in Uttarakhand.  Link

  • Thermax Babcock & Wilcox Energy Solutions Limited (TBWES), a wholly owned subsidiary of Thermax Ltd, has concluded an order of Rs. 513 crores for supply of 2X 550 TPH boiler. Link

  • Larsen & Toubro (L&T) has secured mega orders to construct two Gigawatt-scale Solar PV plants in the Middle East, with a total capacity of 3.5 GW.  Link

  • Diamond Power Infrastructure Ltd has received a letter of intent from Adani Energy Solutions Limited worth Rs. 899.75 Crores for supply of AL 59 Conductors -New Generations Aluminum Alloy Conductors. Link

  • Kalpataru Projects International Limited (KPIL), along with its Joint Ventures and international subsidiaries, has secured new orders and notifications of awards totaling ₹2,995 crores. Link

  • HPL Electric & Power Limited has received work orders and a letter of award worth ₹2,100.71 crores (inclusive of tax) from leading regular customers for the supply of smart meters. Link

  • Ahluwalia Contracts (India) Limited has secured a ₹893.48 crore order from the Airports Authority of India. Link

  • SRM Contractors Ltd has secured an EPC project from NHAI worth Rs 278.48 crore.  Link

  • Power Mech Projects Ltd has received a Rs. 209.50 crore order from Hindustan Zinc Limited for the operation and maintenance of a 3X91.5 MW captive power plant (CPP). Link

  • HPL Electric & Power Limited has received work orders and a letter of award worth ₹2,100.71 crores (inclusive of tax) from leading regular customers for the supply of smart meters. Link

  • H.G. Infra Engineering Limited has been declared the L-1 bidder by the Ministry of Road Transport and Highways (MORTH) for a project valued at ₹763.11 crore. Link 

  • BHEL has received an LOI from DVC for the EPC setup of the 2x800 MW Koderma Phase-II Thermal Power Station in Jharkhand. Link 

  • JNK India Ltd. has secured a significant order from JNK Global Co., Ltd., Korea, for a Regeneration Furnace for a refinery project in Oklahoma, USA. Link

Share Splits:

  • Panorama Studios International Ltd  has planned a stock split to be executed on 31st july, 2024, which involves reducing the face value of its shares from ₹10 to ₹2. Link

Agreements:

  • Cellecor Gadgets Limited announces Partnership to Integrate Samsung Tizen OS in Its Smart TVs . Link

  • Central Bank of India has formed a strategic Co-Lending Partnership with Arka Fincap Limited to provide MSME loans at competitive rates, adhering to RBI guidelines and relevant laws. Link

  • FlixBus announces strategic partnership with India’s leading travel aggregator Paytm, to expand distribution network. Link

  • TATA AIG Enters into a Strategic Partnership with Mahindra Finance to Broaden Distribution of Non-Life Insurance Products. Link

  • Sarveshwar Foods Ltd enters into strategic partnership with Boomitra to Drive Sustainable Agriculture Practices and Empower Farmers. Link

  • Pitti Engineering signs definitive agreements for acquisition of Dakshin Foundry Private Limited. Link

  • State Bank of India Ltd and FCDO signed a non-binding MoU for a 750 million Pounds investment, with each contributing 375 million Pounds. Link

  • Garden Reach Shipbuilders & Engineers Ltd. has signed two confidential MoUs: one with Merlinhawk Aerospace for naval technology and one with KELTRON for underwater surveillance advancements. Link

  • Torrent Power has signed an agreement with ARS Steels & Alloy International for the development and setup of up to 50 MWP solar power generating projects. Link

  • Rail Vikas Nigam Ltd entered into an MoU with M/S IMS Consultancy Pvt. Ltd. to offer technical and advisory services across various sectors. Link

  • HUDCO signed a non-binding MoU with the Government of Rajasthan for Rs. 1,00,000 Crore in financial assistance for housing and urban infrastructure over the next 5 years. Link

Acquisitions & Mergers:

  • Mankind Pharma's Board has approved acquiring a 100% stake in Bharat Serums and Vaccines Ltd. Link

  • Transindia Real Estate Ltd. has acquired a 6.62% stake in AGL Warehousing Pvt. Ltd. from Contech Solutions Pvt. Ltd. through a Share Purchase Agreement, making AGL a wholly-owned subsidiary. Link

  • Piramal Pharma Ltd. will acquire up to 15.76% in Clean Max Aero Pvt. Ltd. for Rs. 2.16 Crores to become a 'Captive User' for a 9.90 MWp solar project in Maharashtra. Link

  • Reliance New Energy Ltd. has acquired the remaining 12.7% of shares in Reliance Lithium Werks B.V. from existing shareholders for EURO 3.7 million. Link

  • Coromandel International Ltd. will increase its stake in Coromandel Crop Protection Philippines Inc. from 40% to 93.23% by infusing USD 193,000, making CCPP a subsidiary. Link

Other Important News:

  • Pitti Engineering Ltd has raised ₹359.99 crores through a QIP, allotting 34,14,749 equity shares to institutional buyers at ₹1054.25 per share. Link

  • Techno Electric & Engineering Company Ltd has approved the launch of a Qualified Institutional Placement (QIP) with a floor price of ₹1506.58 per share. Link

  • Jupiter Wagons Limited raised ₹800 crores through a Qualified Institutional Placement (QIP), which was 3.5 times oversubscribed with bids worth INR 2,800 crores. Link

  • Infosys Collaborates with Sector Alarm to Fuel Growth through Cloud-based Microsoft Dynamics ERP. Link

  • IndusInd Bank collaborates with Inspire Institute of Sport to launch ‘Wrestle for Glory. Link

  • Fischer Medical Ventures Ltd and Malaysia’s Health Digital Technologies firm up investment and collaboration to launch their DoctorOnCall platform worldwide. 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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