MARKET CAPSULE 6th April'24 | Banking & Finance Buzzing Again

samarwealth
Apr 6, 2024
6 min read

RBI Keeps the Rates Unchanged

Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), recently announced the first monetary policy of the financial year 2024-25. The announcement came at the conclusion of a two-day review meeting held by the RBI's Monetary Policy Committee (MPC), which started on April 3 and ended on April 5. The RBI has decided to maintain the key policy repo rate at 6.5% for the seventh consecutive time. Presiding over the six-member MPC, Governor Das also opted to keep the policy stance at ‘withdrawal of accommodation’. Additionally, the RBI projects India’s real GDP growth rate for FY25 at 7%, with the CPI inflation estimated to be around 4.5%.

The finance sector has been demonstrating robust performance in the market for some time, and it appears poised to continue its upward trajectory. Leading companies such as Bajaj Finance, Bajaj Finserv, Shriram Finance, HDFC Bank, and ICICI Bank have reported strong results in the previous quarter. This positive trend is anticipated to persist, with expectations of impressive performances in the current quarter as well.

Indian market extended the rally in the Third consecutive week ended April 5 with benchmark indices hitting fresh record high. In this week, BSE Sensex ended 596.87 or 0.81 percent higher at 74248..22. The Nifty50 index rose 186.80 points or 0.84 percent to end at 22513.70.

On the sectoral front, Nifty Metal index rose 5.3 percent, Nifty PSE index up 3.98 percent, Nifty Reality Index up 4.12 percent. This week, the NIFTY Smallcap 100 index experienced a huge upside as compare to nifty and Bank Nifty.

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Charting the Pulse of Indices: A) Sector Wise Performance

This week, almost all Indian sectoral indices showed Stagnant Movement lead primarily by FMCG and Pharma. Nifty IT index Underperformed the other indices considerably. Nifty Auto index however stood strong and is likely to extend the gains with leading names like Bajaj Auto, Maruti Suzuki, Tata Motors etc. showing relative strength and strong resilience in a stagnant market.

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

Source: Stockedge

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.

Aegis logistics Ltd.

AEGIS is an integrated logistics services company, providing import, export, storage, and logistics services for chemicals and energy products. The company has a presence across the entire value chain starting from sourcing, terminalling, to distributing LPG to industrial and commercial clients. Mr. Raj K Chandaria, Chairman & MD of Aegis Logistics Ltd. has been associated with AGIS since 1982.

He has 24 years of experience in the international business arena. He served as Director of Konkan Storage Systems (Kochi) Pvt. Ltd and Eastern India LPG Co. Pvt. Ltd. He holds a BSc (Economics) from the London School of Economics and an MBA from Boston University. The company has 5 gas terminals (4 operational and 1 under construction) across Indian coastline and total LPG static capacity is 1,15,000 MT with annual throughput of 96,00,000 MT.

Aegis operates 142 Autogas stations in 10 states and has a network of 290 LPG distributors across 140 cities in 15 states. Company also operates 37 LPG bottling plants through their supply to both commercial and domestic LPG markets.

Integrated LPG Supply Chain:

Financial Highlights:

Fundamental Rational:

Seven good-looking charts for next week 1. JSW Infrastructure Ltd.

2. Jyoti CNC Automation Ltd.

3. Housing & Urban Development Corporation Ltd.

4. Ircon International Ltd.

5. Delhivery Ltd.

6. Bharat Electronics Ltd.

7. Union Bank Of INDIA

Order Wins:

Sterlite Technologies has disclosed that in FY24, it secured contracts valued at ₹900 crore to deliver integrated optical solutions to prominent service providers in the country. Link
GE Power India has secured two contracts from Jaiprakash Power Ventures Ltd, valued at Rs 491 crore and Rs 284 crore, respectively. These orders are for the Design & Engineering, Supply, and Technical Field Assistance of wet limestone-based FGD systems. Link
KEC International has successfully obtained new contracts totaling Rs 816 crores, spanning across its diverse business sectors. Link

Bonus Share Issue & Share Splits:

Grauer & Weil (India) Ltd has announced a fixed bonus with a record date set for April 10, 2024, to be issued in a 1:1 ratio. Link
Promax Power Ltd has announced a fixed bonus with a record date set for April 8, 2024, to be issued in a 1:1 ratio. Link
Sprayking Ltd has planned a stock split to be executed on April 12, 2024, which involves reducing the face value of its shares from ₹10 to ₹2. Link

Appointments & Resignations:

RBL Bank: The Board has given its approval for Mr. Parag Kale, presently serving as 'Business Head - Secured Business', to take on the new role of 'Chief Credit Officer - Retail & Head-Retail Collections. Link
Bank of Maharashtra has named Shri Subhasish Roy as the Chief Risk Officer, appointing him for a three-year term on a contractual basis. Link
HDFC Bank has announced the appointment of Mr. Suketu Kapadia as the new Group Head - Internal Audit, effective from April 1, 2024, succeeding Mr. V. Chakrapani in the role. Link
Escorts Kubota Limited has appointed Mr. Kenji Ennyu as the Chief Officer in the Operation Division, a role within the company's senior management. Link
Britannia Industries: The Board has sanctioned the appointment of Mr. Susheel Navanale as the Chief Information Officer of the company, effective from April 3, 2024. Link

Agreement:

Sunteck Realty has established a long-term agreement with Bennett, Coleman & Co Ltd for its second upscale commercial building, Sunteck Icon, located at BKC Junction. Link
Mphasis has disclosed a long-term Strategic Collaboration Agreement (SCA) of global scale with Amazon Web Services (AWS). Link
On April 3, 2024, Wipro Arabia Ltd, a step-down subsidiary of Wipro Ltd, signed an agreement that includes the transfer of shares held by Princess Nourahh Bint Abdulrahman University's Endowment Company, a joint venture partner, in Women's Business Park Technologies Ltd, also a step-down subsidiary of Wipro Ltd. Following this transfer, Wipro Arabia Ltd's stake in Women's Business Park Technologies Ltd will rise from 55% to 100%. Link

Other Important News:

ABFRL: The Company's Board of Directors has granted permission to the management to assess the potential vertical demerger of the Madura Fashion & Lifestyle business from ABFRL, aiming to form a distinct publicly traded company. Link
Hero MotoCorp Ltd has been issued assessment orders/demand notices by the Income Tax Department, dated March 30, 2024, concerning six assessment years. These orders include a tax demand of ₹308.65 crore along with an additional interest charge of ₹296.22 crore. Link
Grasim Industries: The Board has given its consent for acquiring a 26% stake in Clean Max Decimus Pvt Ltd, a Special Purpose Vehicle (SPV) focused on the generation and transmission of renewable energy. Link
Godrej Properties Ltd has revealed that in its Kandivali, Mumbai-based project, Godrej Reserve, it has successfully sold properties valued at INR 2,690 crores. Link
RBI Policy: The Reserve Bank of India has maintained the Repo rate at 6.50%, continuing with a monetary policy stance that focuses on the withdrawal of accommodation.
Colgate-Palmolive has been issued a final assessment order by the Punjab GST authority for the fiscal year 2018-19. The order includes a total demand of ₹4,06,10,801, which comprises Tax (₹1,97,46,587), Interest (€1,88,89,555), and a Penalty of ₹19,74,659. 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.